|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------



|UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, 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 June 30, 2007
|--------------------------------------------



|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. Employerincorporation or organization)
     
     
     
     Identification No.)230 Broadway E.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 [ ]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

Number of shares outstanding of our only class of common stock as of August 09, 2007:



|6,256,681
|---------

Page 1

---



|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

--------------------------------------------------------------------------------



| | Table of Contents
| | -----------------



|PART I
|------

--------------------------------------------------------------------------------

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4. CONTROLS AND PROCEDURES



|PART II
|-------

--------------------------------------------------------------------------------



|OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGSITEM 6. EXHIBITSSIGNATURES
|--------------------------------------------------------------------

--------------------------------------------------------------------------------

Page 2

---



|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

|                                                                                        |  |                      |  |                       |  |                                                  
|--------------------------------------------------------------------------------------- |  | -------------------- |  | --------------------- |  | -------------------------------------------------
|                                                                                       
|                                                                                        |  | PART I               |  | FINANCIAL INFORMATION |  |                                                  
|                                                                                       
|                                                                                       
|ITEM 1.                                                                                 |  | FINANCIAL STATEMENTS |  |                       |  |                                                  
|                                                                                       
|                                                                                        |  |                      |  |                       |  | INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
|                                                                                        |  |                      |  |                       |  | CONSOLIDATED BALANCE SHEETS                      
|                                                                                       
|                                                                                        |  |                      |  |                       |  | June 30,                                         
|                                                                                        |  |                      |  |                       |  | 2007                                             
|Assets                                                                                  |  |                      |  |                       |  |                                                  
|                                                                                       
|Current Assets                                                                          |  |                      |  |                       |  |                                                  
|                                                                                       
|Cash and cash equivalents                                                               |  | $ 4,882,932          |  | $ 5,498,259          
|Deposit with clearing organization, restricted                                          |  |                      |  | 175,000               |  | 175,000                                          
|Accounts receivable                                                                     |  |                      |  | 4,174,405             |  | 4,336,234                                        
|Note receivable (current)                                                               |  |                      |  | 8,533                 |  | 8,561                                            
|Loans receivable from registered representatives (current)                              |  |                      |  | 541,167               |  | 470,492                                          
|Prepaid income taxes                                                                    |  |                      |  | -                     |  | 35,078                                           
|Marketable securities, at market value                                                  |  |                      |  | 144,256               |  | 206,530                                          
|Investment (short term)                                                                 |  |                      |  | 1,432,048             |  | 745,315                                          
|Prepaid expenses                                                                        |  |                      |  | 333,868               |  | 482,882                                          
|                                                                                        |  |                      |  |                       |  |                                                  
|                                                                                        |  |                      |  |                       |  | 11,692,209                                       
|                                                                                       
|Property and equipment, net                                                             |  |                      |  | 1,359,064             |  | 1,396,793                                        
|                                                                                       
|Long Term Investments                                                                   |  |                      |  |                       |  |                                                  
|Loans receivable from registered representatives                                        |  |                      |  | 156,724               |  | 191,305                                          
|Note receivable                                                                         |  |                      |  | 747,617               |  | 747,617                                          
|Equity investments, at cost                                                             |  |                      |  | 190,000               |  | 190,000                                          
|Investments                                                                             |  |                      |  |                       |  | 495,423                                          
|Cash surrender value life insurance policies                                            |  |                      |  | 296,928               |  | 275,201                                          
|                                                                                        |  |                      |  |                       |  |                                                  
|                                                                                        |  |                      |  |                       |  | 1,886,692                                        
|Other Assets                                                                            |  |                      |  |                       |  |                                                  
|Other assets                                                                            |  |                      |  |                       |  | 70,127                                           
|Deferred tax asset, net                                                                 |  |                      |  | 866,352               |  | 889,128                                          
|                                                                                        |  |                      |  |                       |  |                                                  
|                                                                                        |  |                      |  |                       |  | 936,479                                          
|                                                                                       
|TOTAL ASSETS                                                                            |  | $ 15,874,444         |  | $ 16,890,200         
|                                                                                        |  | ________             |  | ________             
|                                                                                       
|Liabilities and Stockholders' Equity                                                    |  |                      |  |                       |  |                                                  
|                                                                                       
|Current Liabilities                                                                     |  |                      |  |                       |  |                                                  
|                                                                                       
|Accounts payable                                                                        |  | $ 759,771            |  | $ 773,636            
|Accrued expenses                                                                        |  |                      |  | 747,820               |  | 1,871,694                                        
|Notes payable                                                                           |  |                      |  | 353,637               |  | 838,358                                          
|Unearned revenues                                                                       |  |                      |  | 87,546                |  | 100,363                                          
|Commissions payable                                                                     |  |                      |  | 3,053,684             |  | 3,049,900                                        
|Income taxes payable                                                                    |  |                      |  | 42,406                |  | -                                                
|Securities sold, not yet purchased, at market value                                     |  |                      |  | 65                    |  | 711                                              
|                                                                                        |  |                      |  |                       |  |                                                  
|                                                                                       
|                                                                                        |  |                      |  |                       |  | 5,044,929                                        
|Long-Term Liabilities                                                                   |  |                      |  |                       |  |                                                  
|                                                                                       
|Total liabilities                                                                       |  | $ 5,044,929          |  | $ 6,634,662          
|                                                                                        |  |                      |  |                      
|                                                                                       
|                                                                                       
|                                                                                       
|Stockholders' Equity:                                                                   |  |                      |  |                       |  |                                                  
|                                                                                       
|Common stock, $.01 par value, 10,000,000                                                |  |                      |  |                       |  |                                                  
|shares authorized; 6,257,434 issued and 6,253,549 outstanding at June 30,2007;          |  |                      |  |                      
|6,209,421 issued and 6,205,536 outstanding at March 31 2007 .                           |  |                      |  | 62,574                |  | 62,094                                           
|Additional paid-in capital                                                              |  |                      |  | 9,820,034             |  | 9,721,749                                        
|Retained earnings                                                                       |  |                      |  | 935,072               |  | 468,506                                          
|less: Treasury stock, 3,885 shares at cost                                              |  |                      |  | (30,135)              |  | (30,135)                                         
|Accumulated other comprehensive income                                                  |  |                      |  | 41,970                |  | 33,324                                           
|                                                                                        |  |                      |  |                       |  |                                                  
|                                                                                       
|                                                                                       
|Total stockholders' equity                                                              |  |                      |  | 10,829,515            |  | 10,255,538                                       
|                                                                                       
|TOTAL LIABILITIES AND STOCKHOLDERS'                                                     |  |                      |  |                       |  |                                                  
|EQUITY                                                                                  |  |                      |  | $ 15,874,444          |  | $ 16,890,200                                     
|                                                                                        |  |                      |  | ________              |  | _________                                        
|                                                                                       
|The accompanying notes are an integral part of these consolidated financial statements. |  |                      |  |                      

Page 3

---



|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

|                                                          |  |                    |  |               |  |                |  | 
|--------------------------------------------------------- |  | ------------------ |  | ------------- |  | -------------- |  | 
|INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES        
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS          
|THREE MONTHS ENDED JUNE 30, 2007 AND 2006                
|(UNAUDITED)                                              
|                                                          |  | Three Months Ended
|                                                          |  | June 30,          
|                                                          |  | 2007               |  |               |  | 2006           |  | 
|Revenues                                                  |  |                    |  |               |  |                |  | 
|                                                         
|Commission                                                |  | $ 19,708,113       |  | $ 17,458,902  |  |               
|Advisory fees                                             |  | 2,188,284          |  |               |  | 1,568,429      |  | 
|Other fee income                                          |  | 129,819            |  |               |  | 66,397         |  | 
|Marketing revenue                                         |  | 494,558            |  |               |  | 324,414        |  | 
|Other income                                              |  | 228,021            |  |               |  | 184,030        |  | 
|                                                          |  |                    |  |               |  |                |  | 
|Total Revenue                                             |  | 22,748,795         |  |               |  | 19,602,172     |  | 
|Commission and advisory fees expenses                     |  | 18,325,414         |  |               |  | 15,815,220     |  | 
|                                                          |  |                    |  |               |  |                |  | 
|Gross profit                                              |  | 4,423,381          |  |               |  | 3,786,952      |  | 
|                                                          |  |                    |  |               |  |                |  | 
|Operating expenses:                                       |  |                    |  |               |  |                |  | 
|Advertising                                               |  | 267,494            |  |               |  | 269,627        |  | 
|Communications                                            |  | 179,003            |  |               |  | 65,767         |  | 
|                                                          |  |                    |  |               |  |                |  | 
|Total Selling Expenses                                    |  | 446,497            |  |               |  | 335,394        |  | 
|                                                          |  |                    |  |               |  |                |  | 
|                                                         
|Compensation and benefits                                 |  | 1,980,591          |  |               |  | 2,716,025      |  | 
|Regulatory, legal and professional                        |  | 606,304            |  |               |  | 1,202,340      |  | 
|Occupancy                                                 |  | 305,111            |  |               |  | 234,006        |  | 
|Other administrative expenses                             |  | 251,611            |  |               |  | 332,604        |  | 
|Interest expense                                          |  | 25,644             |  |               |  | 8,032          |  | 
|                                                          |  |                    |  |               |  |                |  | 
|Total Administrative Expenses                             |  | 3,169,261          |  |               |  | 4,493,007      |  | 
|                                                          |  |                    |  |               |  |                |  | 
|Total Operating Expenses                                  |  | 3,615,758          |  |               |  | 4,828,401      |  | 
|                                                          |  |                    |  |               |  |                |  | 
|Operating Income (Loss)                                   |  | 807,623            |  |               |  | (1,041,449)    |  | 
|                                                          |  |                    |  |               |  |                |  | 
|                                                         
|Income (loss) before taxes                                |  | 807,623            |  |               |  | (1,041,449)    |  | 
|(Provision) benifit for income taxes                      |  | (341,057)          |  |               |  | 443,827        |  | 
|                                                          |  |                    |  |               |  |                |  | 
|Net Income (Loss)                                         |  | $ 466,566          |  | $ (597,622)   |  |               
|                                                          |  | _____________      |  | _____________ |  |               
|                                                         
|Earnings per common share:                                |  |                    |  |               |  |                |  | 
|Basic earnings per common share                           |  | $0.08              |  |               |  | ($0.10)        |  | 
|Diluted earnings per common share                         |  | $0.08              |  |               |  | ($0.10)        |  | 
|                                                          |  |                    |  |               |  |                |  | 
|                                                         
|Share data:                                               |  |                    |  |               |  |                |  | 
|Weighted average shares used in basic earnings per        |  |                    |  |               |  |                |  | 
|common share calculations                                 |  | 6,011,332          |  |               |  | 5,799,998      |  | 
|Incremental shares from assumed exercise of stock options |  | 156,504            |  |               |  | 141,243        |  | 
|                                                          |  |                    |  |               |  |                |  | 
|Weighted average shares used in diluted earnings per      |  |                    |  |               |  |                |  | 
|common share calculations                                 |  | 6,167,836          |  |               |  | 5,941,241      |  | 
|                                                          |  | _____________      |  |               |  | ______________ |  | 
|See Notes to Condensed Consolidated Financial Statements. |  |                    |  |               |  |                |  | 

Page 4

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY THREE MONTHS

ENDED JUNE 30, 2007 AND 2006 (UNAUDITED)

|                                                                                                                      |  | Common                                  |  | Amount      |  | Additional Comprehensive |  | Retained    |  | Treasury      |  |                    |  | Accumulated   |  |               
|--------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------- |  | ----------- |  | ------------------------ |  | ----------- |  | ------------- |  | ------------------ |  | ------------- |  | --------------
|                                                                                                                      |  | Stock                                   |  |             |  | Paid-In                  |  | Income      |  | Earnings      |  | Stock              |  |               |  | Other         
|                                                                                                                      |  | Shares                                  |  |             |  | Capital                  |  |             |  | (Deficit)     |  |                    |  | Comprehensive |  | Total         
|                                                                                                                      |  |                                         |  |             |  |                          |  |             |  |               |  |                    |  | Income (Loss) |  |               
|Balance at April 01, 2006                                                                                             |  | 5,794,246                   $    57,942 |  | $ 8,740,780 |  | -                        |  | $ 1,797,789 |  | $    (30,135) |  | $           19,707 |  | $ 10,586,083 
|Stock based compensation                                                                                              |  | 337,226                                 |  | 3,373       |  | 649,639                  |  |             |  |               |  |                    |  |               |  |               
|Comprehensive income:                                                                                                 |  |                                         |  |             |  |                          |  |             |  |               |  |                    |  |               |  |               
|Net (loss)                                                                                                            |  |                                         |  |             |  |                          |  | (597,622)   |  | (597,622)     |  |                    |  |               |  |               
|Other Comprehensive Income:                                                                                           |  |                                         |  |             |  |                          |  |             |  |               |  |                    |  |               |  |               
|Unrealized gain on securities:                                                                                        |  |                                         |  |             |  |                          |  |             |  |               |  |                    |  |               |  |               
|Unrealized holding gains arising during                                                                               |  |                                         |  |             |  |                          |  | (1,374)     |  |               |  |                    |  |               |  |               
|period no tax effect                                                                                                  |  |                                         |  |             |  |                          |  |             |  |               |  |                    |  |               |  |               
|No reclassification adjustment required                                                                               |  |                                         |  |             |  | -                        |  |             |  |               |  |                    |  |               |  |               
|                                                                                                                      |  |                                         |  |             |  | ___________              |  |             |  |               |  |                    |  | ___________   |  |               
|Other Comprehensive Income                                                                                            |  |                                         |  |             |  |                          |  | (1,374)     |  |               |  |                    |  |               |  | (1,374)       
|                                                                                                                      |  |                                         |  |             |  |                          |  | ___________ |  |               |  |                    |  |               |  | ___________   
|Comprehensive Income                                                                                                  |  |                                         |  |             |  |                          |  | (598,996)   |  |               |  |                    |  |               |  |               
|                                                                                                                      |  |                                         |  |             |  |                          |  | __________  |  |               |  |                    |  |               |  |               
|Dividend payment to shareholders                                                                                      |  |                                         |  |             |  |                          |  | (245,218)   |  |               |  |                    |  |               |  | (245,218)     
|_____________________________________________________________________________________________________________________
|Balance at June 30,2006                                                                                               |  | 6,131,472                               |  | $    61,315 |  | $  9,390,419             |  | -           |  | $   954,949   |  | $   (30,135)       |  | $ 18,333      |  | $   10,394,811
|_____________________________________________________________________________________________________________________
|Balance at April 01, 2007                                                                                             |  | 6,209,421                               |  | $   62,094  |  | $ 9,721,749              |  | -           |  | $   468,506   |  | $   (30,135)       |  | $ 33,324      |  | $ 10,255,538  
|_____________________________________________________________________________________________________________________
|Stock based compensation                                                                                              |  | 48,013                                  |  | 480         |  | 98,285                   |  |             |  |               |  |                    |  |               |  |               
|Comprehensive income:                                                                                                 |  |                                         |  |             |  |                          |  |             |  |               |  |                    |  |               |  |               
|Net income                                                                                                            |  |                                         |  |             |  |                          |  | 466,566     |  | 466,566       |  |                    |  |               |  |               
|Other Comprehensive Income:                                                                                           |  |                                         |  |             |  |                          |  |             |  |               |  |                    |  |               |  |               
|Unrealized gain on securities:                                                                                        |  |                                         |  |             |  |                          |  |             |  |               |  |                    |  |               |  |               
|Unrealized holding gains arising during                                                                               |  |                                         |  |             |  |                          |  | 8,646       |  |               |  |                    |  |               |  |               
|period no tax effect                                                                                                  |  |                                         |  |             |  |                          |  |             |  |               |  |                    |  |               |  |               
|No reclassification adjustment required                                                                               |  |                                         |  |             |  | -                        |  |             |  |               |  |                    |  |               |  |               
|                                                                                                                      |  |                                         |  |             |  |                          |  |             |  |               |  |                    |  | ___________   |  |               
|Other Comprehensive Income                                                                                            |  |                                         |  |             |  |                          |  | 8,646       |  |               |  |                    |  |               |  | 8,646         
|                                                                                                                      |  |                                         |  |             |  |                          |  | ___________ |  |               |  |                    |  |               |  |               
|                                                                                                                      |  |                                         |  |             |  |                          |  | ___________ |  |               |  |                    |  |               |  |               
|Comprehensive Income                                                                                                  |  |                                         |  |             |  |                          |  | 475,212     |  |               |  |                    |  |               |  |               
|                                                                                                                      |  |                                         |  |             |  |                          |  | ___________ |  |               |  |                    |  |               |  |               
|_____________________________________________________________________________________________________________________
|Balance at June 30,2007                                                                                               |  | 6,257,434                               |  | $62,574     |  | $9,820,034               |  | -           |  | $935,075      |  | $(30,135)          |  | $ 41,970      |  | $10,829,515   
|_____________________________________________________________________________________________________________________
|See Notes to Condensed Consolidated Financial Statements.                                                             |  |                                         |  |             |  |                          |  |             |  |               |  |                    |  |               |  |               

Page 5

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

|INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES           
|------------------------------------------------------------
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS             
|THREE MONTHS ENDED JUNE 30, 2007 AND 2006                   
|(UNAUDITED)                                                 
|                                                            
|                                                            
|                                                            
|                                                            
|                                                            
|Cash flows from operating activities:                       
|                                                            
|                                                            
|Net income (loss)                                           
|                                                            
|Adjustments to reconcile net income (loss) to net cash      
|                                                            
|used in operating activities:                               
|                                                            
|Depreciation and amortization                               
|                                                            
|Amortization U.S. Treasury Notes                            
|                                                            
|Change in deferred taxes                                    
|                                                            
|Stock Based Compensation                                    
|                                                            
|Market Adjustment Cash surrender value life insurance policy
|                                                            
|Stock option compensation                                   
|                                                            
|Change in marketable securities                             
|                                                            
|(Loss) on investment                                        
|                                                            
|                                                            
|Change in operating assets and liabilities                  
|                                                            
|Decrease in accounts receivable                             
|                                                            
|Decrease (Increase) in prepaid expenses and other assets    
|                                                            
|Decrease (increase) in prepaid income taxes and payable     
|                                                            
|Loans receivable from registered representatives            
|                                                            
|(Decrease) in accounts payable                              
|                                                            
|(Decrease) increase in accrued expenses                     
|                                                            
|Increase (decrease) in commissions payable                  
|                                                            
|(Decrease) in unearned revenues                             
|                                                            
|Net cash used in operating activities                       
|                                                            
|                                                            
|Cash flows from investing activities:                       
|                                                            
|                                                            
|Purchases of property and equipment                         
|                                                            
|(Payments) Cash Surrender Value life insurance policy       
|                                                            
|Changes in Note Receivable                                  
|                                                            
|                                                            
|                                                            
|Net cash used in investing activities                       
|                                                            

Page 6

---



|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED JUNE 30, 2007 AND 2006 (CONTINUED)

|                                                          |  | (UNAUDITED)                
|--------------------------------------------------------- |  | ---------------------------
|                                                          |  | Three Months Ended June 30,
|                                                          |  | 2007                       
|Cash flows from financing activities:                     |  |                            
|Payment of Note Payable                                   |  | (484,721)                  
|Payment of dividends                                      |  | -                          
|Exercise of stock options                                 |  | 38,822                     
|                                                          |  |                            
|                                                         
|Net cash used in financing activities                     |  | (445,899)                  
|Net Decrease in cash and cash equivalents                 |  | (615,327)                  
|Cash and cash equivalents, in the beginning of the period |  | 5,498,259                  
|                                                          |  |                            
|Cash and cash equivalents,at the end of the period        |  | $4,882,932                 
|                                                          |  |                            
|                                                         
|Supplemental disclosures of cash flow information:        |  |                            
|Interest paid                                             |  | 25,644                     
|Income taxes paid                                         |  | 235,825                    

See Notes to Condensed Consolidated Financial Statements.

Page 7

---



|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



|FOR THE QUARTER ENDED JUNE 30, 2007
|-----------------------------------



|(UNAUDITED)
|-----------

NOTE 1. ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES



|ORGANIZATION:
|-------------

Incorporated in July 1995, Investors Capital Holdings, Ltd. ("ICH") is a financial services holding company that operates in two segments of the
financial services industry through its subsidiaries, Investors Capital Corporation (ICC) (doing business as Investors Capital Advisors, ICA, as a registered investment advisor), Eastern Point Advisors, Inc.
(EPA), ICC Insurance Agency, Inc. and Investors Capital Holdings Securities Corporation (ICH Securities). These two segments comprise (1) broker-dealer services in support of trading in securities, including provision of
market information, Internet on-line trading, portfolio tracking and records management, and (2) investment advisory services including asset management. These products and services are offered throughout the United States primarily through our
network of independent registered representatives. ICH Securities was formed in March 2005 to hold cash, cash equivalents, interest income and dividend income for ICH.



|BASIS OF PRESENTATION:
|----------------------

The accompanying unaudited condensed consolidated financial statements of Investors Capital Holdings, Ltd. and its subsidiaries (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. In the opinion of management, these financial statements
contain all of the adjustments necessary for a fair presentation of the results of these interim periods. Certain footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted,
although the Company believes the disclosures in these financial statements are adequate to make the information presented not misleading. Operating results for the three-month period ending June 30, 2007 are not necessarily indicative of the
results that may be expected for the year ending March 31, 2008. The balance sheet at March 31, 2007 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 included in the Company's report on Form 10-K for the fiscal year ended
March 31, 2007 filed with the Securities and Exchange Commission (the SEC).



|USE OF ESTIMATES AND ASSUMPTIONS:
|---------------------------------

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 remain consistent with the current fiscal year financial statement presentation.



|SIGNIFICANT ACCOUNTING POLICIES:
|--------------------------------



|Revenue Recognition
|-------------------

Company revenue recognition policies are summarized below. These policies are maintained in compliance with SEC Staff Accounting Bulletin ("SAB") 104
"Revenue Recognition in Financial Statements".

Mutual Funds/Variable Annuities.Revenue from the sale of mutual funds and variable annuities is recognized as of the date the check and application is accepted by the investment company.

Page 8

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

Trading.The Company earns commissions through stock purchase and sale transactions, mutual fund purchases, government and corporate bonds transactions, fee-based managed accounts and ticket charges. The Company also earns revenue in the form of 12b-1 fees and interest on account balances. The earnings process is substantially complete at trade date in accordance with the rules of the National Association of Securities Dealers (NASD) and the SEC.

The Company also receives credit for clearing charge adjustments that are netted against any clearing charges the Company may incur for the period. These adjustments are recognized as income in the period received unless otherwise noted by the clearing firm.

Unrealized gains and losses are recorded at the time that the Company reconciles its trading positions with the market value. The unrealized gains or losses are adjusted to market until the position is settled or the trade is cancelled.

Advisory Fees.Our managed accounts advisory fees are based on the amount of assets managed per agreement between the adviser and the advisers client. These revenues are recorded quarterly as and when billed, and any portion remaining uncollected at the end of the subsequent quarter is charged against earnings at that time.

The Company ceased providing advisory services to mutual funds effective October 18, 2005. Prior thereto, advisory fees relating to the management of mutual funds were based on average daily net fund assets as specified in the Companys advisory agreement and disclosed in the funds prospectuses. These fees were recognized monthly based on the fund Trustees administrative fee report detailing the amounts that were earned for the month. The Company elected to waive certain of these fees to allow for one of the funds to maintain its ceiling on administrative expenses. Per agreement with the trustee of the funds, the waived fees were subject to a three-year recovery period, at the end of which any uncollected fees were permanently waived and, consequently, charged against earnings. The Companys successor as fund adviser has agreed to pay to the Company all such waived amounts with interest. See Note 5. Note Receivable.

Administration Fees.Administration fees for services rendered to the Companys representatives respecting annual NASD license renewals and E&O insurance are recognized as revenue upon registration of the representative with NASD and listing of the registered representative with the E&O insurance carrier. The funds received from the registered representative are initially recorded as unearned revenue. The amounts, if any, collected in excess of the E & O insurance premium and/or fees due NASD are recognized as revenue.Fees collected to maintain books and records are deferred and recognized ratably throughout the year.

Marketing Revenue.Revenue from marketing associated with product sales is recognized quarterly based on production levels. Marketing event revenues are recognized at the commencement of the event offset by its costs.



|Accounts Receivable  Allowance for Doubtful Accounts
|-----------------------------------------------------

Our policies for determining whether a receivable is considered uncollectible are as follows.

Loans to representatives. We perform periodic credit evaluations and provide allowance based on our assessment of specifically identified unsecured receivables and other factors, including the representative's payment history. Once it is determined that it is both probable that a loan has been impaired and the amount of loss can reasonably be estimated, the portion of the loan balance estimated to be uncollectible is so classified and written off. See Note 6. Loans to Representatives.

Advisory fees from mutual funds.Effective October 18, 2005, the Company no longer provides advisory services to mutual funds. Prior thereto, as disclosed in the respective mutual funds' prospectuses, the Company attempted to recoup waived advisory service fees within a three-year period. If management believed that the likelihood of collecting such a receivable within the three-year period was doubtful, the Company provided for an allowance. Determinations whether to write off such fees were made annually. By agreement, the Company is entitled to payment of all uncollected waived advisory fees by the successor fund adviser.

Trade receivables.As prescribed by the SEC, trade receivables usually settle within three days. If a trade error results, the Company pursues remedies to collect on the trade error. The Company does not record a receivable resulting from a trade error that is in litigation or whose outcome is otherwise not reasonably determinable. In such a case, the Company applies any proceeds from settlements or insurance against any trade losses incurred.



|Income Taxes
|------------

The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate for the full fiscal year. Cumulative adjustments to the tax provision are recorded in the interim period in which a change in the estimated annual effective rate is determined.

Page 9

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------



|RECENTLY ISSUED ACCOUNTING STANDARDS:
|-------------------------------------

In June 2006, the FASB issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48), which clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with SFAS No. 109, "Accounting for Income Taxes." FIN 48 establishes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006.The Company has adopted FIN 48 as of April 1, 2007. Management conducted an analysis as to the financial impact of FIN 48 and concluded that FIN 48 will not have a material impact on its consolidated financial statements.

In June 2006, the Emerging Issues Task Force issued EITF 06-5, "Accounting for Purchases of Life Insurance - Determining the Amount That Could Be Realized in Accordance with FASB Technical Bulletin No. 85-4, Accounting for Purchases of Life Insurance". This EITF discusses whether a policyholder should consider any additional amounts included in the contractual terms of the insurance policy other than the cash surrender value in determining the amount that could be realized under the insurance contract in accordance with Technical Bulletin 85-4 and whether a policyholder should consider the contractual ability to surrender all of the individual-life policies (or certificates in a group policy) at the same time in determining the amount that could be realized under the insurance contract in accordance with Technical Bulletin 85-4. The Task Force reached a tentative conclusion that EITF 06-5 should be effective for fiscal years beginning after December 15, 2006. The Company has adopted EITF 06-5 as of April 1, 2007. Management conducted an analysis and has determined there is no impact on its consolidated financial statements.

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This new standard provides guidance for using fair value to measure assets and liabilities. The FASB believes SFAS No. 157 also responds to investors' requests for expanded information about the extent to which companies measure assets and liabilities at fair value, the information used to measure fair value, and the effect of fair value measurements on earnings. SFAS No. 157 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances. SFAS No. 157 will become effective fiscal years beginning after November 15, 2007. The Company is continuing to evaluate the provisions of this standard and is not certain of the potential impact at this time.

In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assetsand Financial Liabilities ("SFAS 159"), which provides companies with an option to report selected financial assets and liabilities at fairvalue. The objective of SFAS 159 is to reduce both complexity in accounting for financial instruments and the volatility in earningscaused by measuring related assets and liabilities differently. SFAS 159 establishes presentation and disclosure requirements designed tofacilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and tomore easily understand the effect of the companys choice to use fair value on its earnings. SFAS 159 also requires entities to display thefair value of the selected assets and liabilities on the face of the balance sheet. SFAS 159 does not eliminate disclosure requirements ofother accounting standards, including fair value measurement disclosures in SFAS 157. This Statement is effective as of the beginning ofan entitys first fiscal year beginning after November 15, 2007. Early adoption is permitted as of the beginning of the previous fiscal yearprovided that the entity makes that choice in the first 120 days of that fiscal year and also elects to apply the provisions of Statement 157.Adoption of SFAS 159 is not expected to have a material impact on the Companys results of operations or financial position.



|NOTE 2. SEGMENT INFORMATION
|---------------------------

The Company makes disclosures about products and services, geographic areas, and major customers in accordance with SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information."The Company evaluates performance based on profit and loss from operations after income taxes.

The Company accounts for inter-segment services and transfers as if the services or transfers were to third parties, that is, at current market prices. The Company's reportable segments are strategic business units that offer different services. They are managed separately because each business requires distinct marketing strategies and varied technological and operational support.

The Company's reportable segments include broker/dealer and related services offered through ICC and asset management (investment advisory) services offered through ICA and EPA. ICC earns commissions as a broker for its customers in the purchase and sale of securities on major exchanges and other public markets. Asset management services generate recurring annual revenue from fees received on the management of customer accounts.

EPA provided asset management and portfolio design services to two mutual funds until October 18, 2005, and provided money management services to a variety of investors through March 2006. ICAs primary mission is to offer clients investment advisory and asset management procedures grounded on sound investment principles of asset allocation, performance monitoring and portfolio rebalancing. To improve efficiency, EPA transitioned the bulk of its advisory services business to ICA over the 2 1⁄2 year period ended March 31, 2006. Subsequent EPA operations have been limited to providing third-party advisory services and easing the conversion of representatives to ICAs investment advisory programs.

Page 10

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

Under the guidelines of FAS 131 Disclosures about Segments of an Enterprise and Related Information, commencing with the quarter ended December 31, 2005, management reports its segments on a management approach whereby our business is presented in segments reflecting the way we make operating decisions and assess performance. Accordingly, ICA is now reported as part of the asset management services segment. Segments are currently reported based upon the services provided, whereas they were previously segmented according to legal entity.

In presenting segment data, all corporate overhead items are allocated to the segments, and inter-segment revenue, expense, receivables and payables are eliminated. Currently it is impractical to report segment information using geographical concentration.

Assets are allocated among ICH and its subsidiaries based upon legal ownership and the services provided. Total period-end assets are presented in this Note 2 on a stand-alone basis, i.e., without inter-company eliminations. Corporate items and eliminations are presented in the following table for the purpose of reconciling the stand-alone asset amounts to total consolidated assets.

|                                       |  | Three Months Ended
|-------------------------------------- |  | ------------------
|                                       |  | June 30,          
|                                       |  | 2007              
|                                       |  |                   
|Inter-company eliminations             |  | $ (1,257,697)     
|Deferred income taxes                  |  | -                 
|Income Taxes                           |  | -                 
|                                       |  | _____________     
|                                      
|Total Corporate items and eliminations |  | $ (1,257,697)     
|                                       |  | _____________     

Page 11

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

|Segment reporting is as follows:                         |  |                        |  |                     
|-------------------------------------------------------- |  | ---------------------- |  | --------------------
|                                                        
|                                                         |  | Quarter Ended June 30,
|                                                         |  |                       
|                                                         |  | 2007                   |  | 2006                
|                                                         |  |                        |  |                     
|Non-interest revenues:                                   |  |                        |  |                     
|ICC brokerage services                                   |  | $        20,267,673    |  | $         17,834,357
|EPA, ICA asset management services                       |  | 2,253,101              |  | 1,592,222           
|                                                        
|Total                                                    |  | $       22,520,774     |  | $        19,426,579 
|                                                         |  | ________________       |  | ________________    
|                                                        
|Revenues from transaction with other operating segments: |  |                        |  |                     
|ICC brokerage services                                   |  | $           306,553    |  | $         1.046,117 
|EPA, ICA asset management services                       |  | 34,061                 |  | 93,444              
|                                                         |  | ________________       |  | ________________    
|                                                        
|Total                                                    |  | $          340,614     |  | $        1,139,561  
|                                                         |  | ________________       |  | ________________    
|                                                        
|Interest and dividend income,net:                        |  |                        |  |                     
|ICC brokerage services                                   |  | $          192,444     |  | $          130,603  
|EPA, ICA asset management services                       |  | 13,595                 |  | 18,002              
|ICH                                                      |  | 434                    |  | 226                 
|ICH Securities                                           |  | 21,548                 |  | 26,762              
|                                                         |  | ________________       |  | ________________    
|                                                        
|Total                                                    |  | $           228,021    |  | $        175,593    
|                                                         |  | ________________       |  | ________________    
|                                                        
|Depreciation and amortization expenses:                  |  |                        |  |                     
|ICC brokerage services                                   |  | $             92,380   |  | $          59,652   
|EPA, ICA asset management services                       |  | 691                    |  | 691                 
|                                                         |  | ________________       |  | ________________    
|                                                        
|Total                                                    |  | $             93,071   |  | $          60,343   
|                                                         |  | ________________       |  | ________________    
|                                                        
|Income tax provision (benefit):                          |  |                        |  |                     
|ICC brokerage services                                   |  | $          217,763     |  | $      (574,542)    
|EPA, ICA asset management services                       |  | 139,326                |  | 119,415             
|ICH                                                      |  | (16,032)               |  | 11,300              
|                                                         |  | ________________       |  | ________________    
|                                                        
|Total                                                    |  | $          341,057     |  | $     (443,827)     
|                                                         |  | ________________       |  | ________________    
|                                                        
|Income (loss) :                                          |  |                        |  |                     
|ICC brokerage services                                   |  | $          297,900     |  | $     (773,612)     
|EPA, ICA asset management services                       |  | 190,597                |  | 160,775             
|ICH                                                      |  | (43,479)               |  | (11,527)            
|ICH Securities                                           |  | 21,548                 |  | 26,742              
|                                                         |  | ________________       |  | ________________    
|                                                        
|Total                                                    |  | $        466,566       |  | $     (597,622)     
|                                                         |  | ________________       |  | ________________    
|                                                        
|Period end total assets:                                 |  |                        |  |                     
|ICC brokerage services                                   |  | $    12,192,562        |  | $     9,167,171     
|EPA, ICA asset management services                       |  | 876,521                |  | 1,482,984           
|ICH                                                      |  | 2,088,861              |  | 1,856,868           
|ICH Securities                                           |  | 1,974,197              |  | 3,112,516           
|Corporate items and eliminations                         |  | (1,257,697)            |  | (1,173,192)         
|                                                         |  | ________________       |  | ________________    
|                                                        
|Total                                                    |  | $    15,874,444        |  | $   14,446,347      
|                                                         |  | ________________       |  | ________________    



|NOTE 3. LITIGATION
|------------------

The Company typically is involved with various judicial, regulatory and arbitration proceedings concerning matters arising in connection with the conduct of its business.



|Massachusetts Proceedings
|-------------------------

By administrative complaint dated November 16, 2005, the Securities Division of the Secretary of the Commonwealth of Massachusetts brought an adjudicatory proceeding against the Company alleging violation of supervisory obligations under state securities laws in connection with certain past sales of equity-indexed annuities by a few independent representatives. In settling these proceedings on December 19, 2006, the Company agreed, among other things:

- to pay a $0.5 million administrative fine,
- to offer to reimburse losses and costs incurred by Massachusetts persons aged 75 or older in connection with the surrender, no later than December 31, 2007, of any equity-indexed annuities purchased through ICC or its representatives during 2004 or 2005, and to offer an additional payment to ensure that no amount invested in a surrendered EIA yielded less than 3%; and
- to pay an additional administrative fine equal to the extent, if any, that ICCs surrender-related payments total less than $0.5 million.

Page 12

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

The Company does not anticipate, although there can be no assurances, that the total of said payments will exceed $1 million, of which $0.54 million had been expended as of June 30, 2007.

The Company will not be permitted to utilize proceeds from insurance policies to cover payments that will be made pursuant to the settlement.



|Other Proceedings
|-----------------

At June 30, 2007, the Company was the co-defendant in various other lawsuits other than the Massachusetts Proceedings. Management believes, based on currently available information, that the results of such proceedings, in the aggregate, will not have a material adverse effect on the firm's financial condition. The Company has Errors and Omissions ("E&O") insurance to protect itself from potential damages and/or legal costs associated with the aforementioned lawsuits and, as a result, in the majority of cases the Companys exposure is limited to between $75,000 and $100,000 per case, subject to policy limitations and exclusions. In accordance with Financial Accounting Standards Board ("FASB") Statement No. 5, "Accounting for Contingencies", the Company had accrued expenses of approximately $0.67 million for the quarter ended June 30, 2007 related to legal fees and estimated probable settlement costs relating to the Company's defense in various lawsuits.



|NOTE 4. STOCK BASED COMPENSATION
|--------------------------------

On April 1, 2006, the Company adopted Statement of Financial Accounting Standard (SFAS) No. 123(R), Share-Based Payment, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair value over the requisite service period. The adoption of this statement did not have a material impact on the Companys consolidated financial statements for prior periods because the Company adopted the fair value recognition provisions of SFAS No. 123 effective September 28, 2002 using the modified prospective application transition method within the provisions of SFAS No. 148, Accounting for Stock-Based Compensation - Transition and Disclosure.



|Stock Options
|-------------

Prior to the adoption of SFAS 123(R), the Company had granted options and had reported as a footnote disclosure the pro forma effect if we had reported an expense under the guidelines of SFAS No. 123. There was no stock option expense for the quarters ended June 30, 2007 and 2006.The pro forma expense calculated using the Black-Scholes option pricing model did not exceed the cumulative expense previously disclosed in the Companys financial statements reported on Form 10-K for the fiscal year ended March 31, 2005.

A summary of the status of the Company's employee and director fixed stock options as of June 30, 2007 and June 30, 2006 is as follows:

|Employee                                                                                   |  | 2007                                      |  | 2006                                   
|------------------------------------------------------------------------------------------ |  | ----------------------------------------- |  | ---------------------------------------
|                                                                                           |  | _________________________________________ |  | _______________________________________
|Fixed Options                                                                              |  |                                           |  | Weighted-Average                       
|                                                                                           |  | Shares                                    |  | Exercise Price                         
|                                                                                           |  |                                          
|Outstanding at beginning of year                                                           |  | 153,332                                   |  | $1.02                                  
|                                                                                           |  |                                          
|Granted                                                                                    |  | -                                         |  |                                        
|Forfeited                                                                                  |  | -                                         |  |                                        
|Exercised                                                                                  |  | -                                         |  |                                        
|Reclassified(non-employee)                                                                 |  | -                                         |  |                                        
|                                                                                           |  |                                           |  |                                        
|                                                                                           |  | _________________________________________ |  | _______________________________________
|Outstanding at quarter end                                                                 |  | 153,332                                   |  | $1.02                                  
|                                                                                          
|Options exercisable at quarter-end                                                         |  | 152,666                                   |  |                                        
|                                                                                           |  |                                          
|                                                                                           |  |                                          
|The following assumptions were applied to employee options for the quarters ended June 30,
|                                                                                           |  | 2007                                      |  | 2006                                   
|                                                                                           |  | _________________________________________ |  | _______________________________________
|Dividend                                                                                   |  | 0.00%                                     |  | 0.26%                                  
|Volatility                                                                                 |  | 35%                                       |  | 54%                                    
|Risk-free interest rate                                                                    |  | 5.00%                                     |  | 5.21%                                  
|Expected Life in years                                                                     |  | 0.5                                       |  | 1.5                                    

Page 13

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

The following table summarizes information about employee and Directors' fixed stock options outstanding as of June 30, 2007:

|Options Outstanding     |  | Options Exercisable                                 
|----------------------- |  | ----------------------------------------------------
|_______________________ |  | ____________________________________________________
|                        |  |                                                     
|Range Of                |  | Number                                              
|Exercise Prices         |  | Outstanding                                         
|                       
|$1.00                   |  | 150,000                                             
|$1.91                   |  | 3,332                                               
|                        |  | 153,332                                             



|Restricted Stock
|----------------

Under the 2005 Equity Incentive Plan (the Plan) the Company is authorized to grant shares of ICH common stock to employees, directors, officers, representatives and other key individuals. Grants under the Plan may be made in connection with initial employment or under various retention plans and, to date, have subjected unvested options and shares to forfeiture in the event of termination other than for death, disability or retirement. The compensation cost associated with these stock grants is recognized over the vesting period of the shares and is calculated as the market value of the shares on the date of grant. The following activity occurred during the three months ended June 30, 2007:

|                       |  |  |  | Shares  |  |         |  | Weighted Ave Stock Price |  | Weighted Average Vested Life |  | Fair Value $
|---------------------- |  |  |  | ------- |  | ------- |  | ------------------------ |  | ---------------------------- |  | ------------
|                      
|                       |  |  |  |         |  |         |  |                          |  |                              |  |             
|Non-vested at 4/1/2007 |  |  |  | 181,729 |  | $3.95   |  |                          |  | $717,830                    
|                       |  |  |  |         |  |         |  |                          |  |                              |  |             
|Granted                |  |  |  |         |  | 30,000  |  | $4.70                    |  |                              |  | $141,000    
|Vested                 |  |  |  |         |  | 14,447  |  | $4.07                    |  |                              |  | $58,799     
|Canceled               |  |  |  |         |  | 2,688   |  | $4.77                    |  |                              |  | $12,822     
|Non-vested a 6/30/2007 |  |  |  |         |  | 194,594 |  | $4.04                    |  | 3.49 yrs                     |  | $786,160    
|                       |  |  |  |         |  |         |  |                          |  |                             
|                       |  |  |  |         |  |         |  |                          |  |                              |  |             

The Companys net income for the three months ended June 30, 2007 includes $30,797 of compensation costs related to the Companys grants of restricted stock to employees, and $29,149 for grants to independent representatives, under the Plan.



The Companys net loss for the three months ended June 30, 2006 includes $557,196 of compensation costs related to the Companys grants of restricted stock to employees, and $66,800 for grants to Directors, consultants and independent representatives, under the Plan.

As of June 30, 2007, there was $786,160 of total unrecognized compensation cost related to grants under the Plan. These costs are expected to be recognized over a weighted average period of approximately 3.49 years. The total fair value of shares vested under this plan during the three months ended June 30, 2007 was $58,799.

As of June 30, 2006, there was $684,907 of total unrecognized compensation cost related to grants under the Companys Equity Incentive Plan. These costs are expected to be recognized over a weighted average period of approximately 4.64 years. The total fair value of shares vested under this plan during the three months ended June 30, 2006 was $608,599.



|NOTE 5 - NOTE RECEIVABLE
|------------------------

On October 24, 2005, the Company entered into a definitive agreement (the Transition Agreement) with Dividend Growth Advisors, LLC (DGA). Pursuant to the Transition Agreement, the Company agreed to terminate its Investment Advisory Agreement with Eastern Point Advisors Funds Trust (the Trust) effective October 18, 2005 to permit the appointment by the Trust of DGA to supersede the Company as the Trusts investment adviser. The Company had served since 1999 as Investment Adviser for the Funds, which are sponsored by the Trust, and DGA had provided investment advisory services to the Trust since 2004 pursuant to a subcontract with the Company. DGA entered into a new advisory agreement directly with the Trust.

Page 14

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

Under the terms of the Transition Agreement and an associated promissory note, the receivable owed by the Funds to the Company was assigned to DGA, and DGA agreed to pay the Company an amount equal to the total of all fees that the Company had waived or remitted to a fund in the Trust through October 18, 2005. In addition, DGA has agreed to pay the Company 10 basis points on the assets raised by the Companys broker dealer ICC at the effective time of transition, October 18, 2005 subject to market to market adjustments. These fees are to be paid to the Company on a quarterly basis. Although these payments are part of the agreement between DGA and the Trust, they are not part of the terms of the note and are deemed totally separate.

The note provides for a principle amount of $747,617, quarterly payments of interest accruing thereon at a 5.5% annual rate, and a full payment on or before October 31, 2010. Prepayments are permitted without penalty.

NOTE 6  LOANS TO REGISTERED REPRESENTATIVES

ICC has granted loans to certain registered representatives with the stipulation that the loans will be forgiven if the representatives remain licensed with the Company for an agreed upon period of time, generally one to five years, and/or meet specified performance goals. Upon forgiveness, the loans are charged to commission expense for financial reporting purposes. There were no loans charged to commission expense for the quarters ended June 30, 2007 and 2006.

Other loans to registered representatives are not subject to a forgiveness contingency. These loans, as well as loans that have not met the forgiveness contingency, are repaid to the Company by deducting a portion of the representatives commission payouts throughout the commission cycle until the loans are paid off.

Interest charged on these loans to representatives range from 3% to 8% annually.

The Company writes off any loans that are deemed uncollectible after performing periodic credit evaluations. There were no loans written off to commission expense for the quarters ended June 30, 2007 and 2006.

For further detail, please refer to Note 1 - Accounts Receivable- Allowance for Doubtful Accounts.

|                  |  | Quarter Ended June 30,
|----------------- |  | ----------------------
|                  |  | 2007                  
|Forgiveable Loans |  | $334,283              
|Other Loans       |  | 363,608               
|                  |  |                       
|Total Loans       |  | $697,891              
|                  |  | _______               



|NOTE 7 - INVESTMENTS
|--------------------

Securities not readily marketable include investment securities (a) for which there is no market on a securities exchange or no independent publicly quoted market, (b) that cannot be publicly offered or sold unless registration has been effected under the Securities Act of 1933, or (c) that cannot be offered or sold because of other arrangements, restrictions, or conditions applicable to the securities or to the Company. The Company has not exercised significant influence over these equity investments; accordingly, these investments were recorded as of June 30, 2007 and 2006 at the Companys cost of $190,000 pursuant to Accounting Principles Board No. 18 "The Equity Method of Accounting for Investments in Common Stock" (APB 18).

As of June 30, 2007, the Company had investments in U.S. Treasury Notes being held to maturity in accordance with SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities. These investments are presented at an amortized value as follows:

Page 15

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

|              |  |                   |  |                                                     |  |              
|------------- |  | ----------------- |  | --------------------------------------------------- |  | -------------
|Purchase Date |  | Purchase Price    |  | Interest Rate /Maturity Date /Coupon Date           |  | Face Value   
|             
|7/12/2006     |  | $         242,745 |  | US TREAS NOTES 3.000% 11/15/07 B/E DTD 11/15/02 N/C |  | $     250,000
|7/12/2006     |  | 246,035           |  | US TREAS NOTES 3.625% 06/30/07 B/E DTD 06/30/05 N/C |  | 250,000      
|7/12/2006     |  | 248,525           |  | US TREAS NOTES 4.875% 04/30/08 B/E DTD 04/30/06 N/C |  | 250,000      
|7/12/2006     |  | 249,727           |  | US TREAS NOTES 5.125% 06/30/08 B/E DTD 06/30/06 N/C |  | 250,000      
|9/28/2006     |  | 250,732           |  | US TREAS NOTES 4.875% 08/31/08 B/E DTD 08/31/06 N/C |  | 250,000      
|11/3/2006     |  | 242,461           |  | US TREAS NOTES 3.125% 10/15/08 B/E DTD 10/15/03 N/C |  | 250,000      
|              |  | $     1,480,225   |  | Balance @ 6/30/07                                   |  | $   1,500,000

On September 08, 2006, The Eastern Point Advisors Capital Appreciation Fund merged with The Eastern Point Advisors Rising Dividend Fund to become The Rising Dividend Growth Fund. As of June 30, 2007 the Company held a 0.27% ownership interest in The Rising Dividend Growth Fund, which had a fair market value of $185,134.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management's discussion and analysis reviews our consolidated financial condition as of June 30, 2007 and March 31, 2007, the consolidated results of operations for the three months ended June 30, 2007 and 2006 and, where appropriate, factors that may affect future financial performance. The discussion should be read in conjunction with the consolidated financial statements and related notes, included elsewhere in the Form 10-Q. Unless context requires otherwise, as used in this Managements Discussion and Analysis (i) the current period means the fiscal quarter ended June 30, 2007, (ii) the prior period means the fiscal quarter ended June 30, 2006, (iii) an increase and decrease compares the current period to the prior period, and (iv) all non-comparative amounts refer to the current period.



|FORWARD-LOOKING STATEMENTS
|--------------------------

The statements, analysis, and other information contained herein relating to trends in our operations and financial results, the markets for our products, the future development of our business, and the contingencies and uncertainties to which we may be subject, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "should," "may," and other similar expressions, are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Such statements are made based upon management's current expectations and beliefs concerning future events and their effects on the Company and are subject to many risks and uncertainties. Our actual results may differ materially from the results anticipated in these forward-looking statements. Readers are directed to discussions of risks and uncertainties that may be found in this report and other documents filed by the Company with the United States Securities and Exchange Commission. We specifically disclaim any obligation to update or revise any forward-looking information, whether as a result of new information, future developments or otherwise.



|OVERVIEW
|--------

We are a financial services holding company that, through our subsidiaries, provides brokerage, investment advisory, insurance 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 such external factors.



|OUR BUSINESS
|------------

The Company operates primarily through its subsidiary, ICC/ICA, in the broker-dealer and investment advisory services segments of the financial services industry.



| | Broker-Dealer Services
| | ----------------------

The Company provides broker-dealer services in support of trading and investment by its representatives customers in corporate equity and debt securities, U.S. Government securities, municipal securities, mutual funds, variable annuities and variable life insurance, including provision of market information, internet trading, portfolio tracking facilities and records management.



| | 
| | 

Page 16

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

Investment Advisory Services

The Company provides investment advisory services, including asset allocation and portfolio rebalancing, for its representatives customers. In the past, investment advisory services were performed by both ICC and EPA. To avoid the duplication of effort involved in supporting two advisory services entities, the Company has consolidated substantially all of its investment advisor services in ICC doing business as ICA. Since March 31, 2006, EPA operations have been limited to providing third-party advisory services and a mechanism to ease the conversion of representatives to ICAs advisory services programs.



| | Recruitment and Support of Representatives
| | ------------------------------------------

A key component of our business strategy is to recruit well established, productive representatives who generate revenues in high margin services and products. Additionally, we assist our existing representatives to develop and expand their business by providing to them a variety of support services and a diversified range of investment products for their clients. The Company focuses on providing substantial added value to our representatives that enables them to be more productive, particularly in high margin lines such as advisory services and trading/brokerage.

Support provided to assist representatives in pursuing consistent and profitable sales growth takes many forms, including: hi-tech trading systems, targeted financial assistance and a network of communication links with investment product companies. These links include regional and national conventions that provide forums for interaction to improve product knowledge, sales and client satisfaction. In addition, a dedicated business development unit focuses on providing representatives with programs and tools to grow their businesses both through new client acquisition and the advancement of their existing client relationships. These programs are also designed to enhance our ability to attract and retain new, productive representatives.



|OUR PROCESSCheck and Application
|--------------------------------

The majority of transactions are conducted through a check and application process where a check and an investment company's product application are delivered to us for processing. This process includes principal review and submission to the investment company or clearing firm. Investments in technology have allowed the firm to move from a process that was previously paper intensive to a process that is virtually paper free. This has shortened the transaction cycle, reduced errors and created greater efficiencies. The firm continues its investment in technologies that will provide more efficient processes resulting in improved productivity.



| | Online Trading
| | --------------

Registered representatives can efficiently submit a wide range of security investments online through the use of our remote electronic-entry trading platform.



| | Bond Trading
| | ------------

The Company's fixed-income trading desk uses a network of regional and primary dealers to execute trades across a broad array of fixed-income asset classes. The desk also utilizes several dealer-only electronic services that allow the desk to offer inventory and to execute trades. Our fixed income traders work with our representatives to develop portfolios for clients. This area has seen growth as interest rates have risen and more investors have become interested in retirement income.



| | Asset Allocation
| | ----------------

Asset allocation services are made available through ICA, the Company's registered investment advisor subsidiary. Our services include the design, selection and rebalancing of investments on behalf of our advisers clients in addition to providing the tools, services and guidance that enable our advisers to provide these investment services directly to their clients. These services, for the most part, are conducted through our online trading platform. Other allocation services are performed directly by the fund company.



|OFF-BALANCE SHEET RISK
|----------------------

We execute securities transactions on behalf of our customers. If either the customer or a counter-party fails to perform, we, by agreement with our clearing broker, may be required to discharge the obligations of the non-performing party. In such circumstances, we may sustain a loss if the market value of the security is different from the contract value of the transaction. We seek to control off-balance sheet risk by monitoring the market value of securities held or given as collateral in compliance with regulatory and internal guidelines. Pursuant to such guidelines, our clearing firm requires that we reduce positions when necessary. We also complete credit evaluations where there is thought to be credit risk.

Page 17

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------



|CRITICAL ACCOUNTING POLICIES
|----------------------------



| | In General
| | ----------

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The
Company believes that of its significant accounting policies (see Footnote 1 to the Companys condensed consolidated financials statements contained herein), those dealing with valuation of securities and other assets, revenue recognition and
allowance for doubtful accounts receivable involve a particularly high degree of judgment and complexity. Our accounting policies require estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in the
condensed consolidated financial statements. Due to their nature, estimates involve judgment based upon available information. Actual results or amounts can and do differ from estimates and the differences can have a material effect on the condensed
consolidated financial statements. Therefore, understanding these policies is important to understanding the reported results of operations and the financial position of the Company.



| | Reserves
| | --------

The Company records reserves related to legal proceedings in "accrued expenses" in the condensed consolidated balance sheet. The determination of these
reserve amounts requires significant judgment on the part of management. Management considers many factors including, but not limited to: the amount of the claim; the amount of the loss in the client's account; the basis and validity of the claim;
the possibility of wrongdoing on the part of an employee or representative of the Company; previous results in similar cases; and legal precedents. Each legal proceeding is reviewed with counsel in each accounting period and the reserve is adjusted
as deemed appropriate by management. Any change in the reserve amount is recorded in the consolidated financial statements and is recognized as a charge/credit to earnings in that period. The assumptions of management in determining the estimates of
reserves may be incorrect and the actual costs upon disposition of a legal proceeding may be greater or less than the reserved amount.

KEY INDICATORS OF FINANCIAL PERFORMANCE FOR MANAGEMENT

Management periodically reviews and analyzes our financial performance across a number of measurable factors considered to be particularly useful in
understanding and managing our business.  Key metrics in this process include average production per representative, top line commission and advisory services revenues, gross margins, operating expenses, legal costs, earnings per share.

Page 18

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

COMPARISON OF FISCAL QUARTERS ENDED JUNE 30, 2007 AND JUNE 30, 2006

|RESULTS OF OPERATIONS                |  |                                                                                  |  |              |  |                    |  |           
|------------------------------------ |  | -------------------------------------------------------------------------------- |  | ------------ |  | ------------------ |  | ----------
|                                    
|                                     |  |                                                                                  |  |              |  | Percent of Revenue |  |           
|                                     |  |                                                                                  |  |              |  | Quarter Ended      |  | Percent   
|                                     |  | Quarter Ended June 30,                                                           |  | June 30,     |  | Change            
|                                     |  | ________________________________________________________________________________
|                                     |  |                                                                                  |  |              |  |                    |  |           
|                                     |  | 2007                                                                             |  | 2006         |  | 2007               |  | 2006      
|                                     |  | ________                                                                         |  | __________   |  | __________         |  | __________
|Revenues:                            |  |                                                                                  |  |              |  |                    |  |           
|Commission                           |  | $ 19,708,113                                                                     |  | $ 17,458,902 |  | 86.63%             |  | 89.07%    
|Advisory                             |  | 2,188,284                                                                        |  | 1,568,429    |  | 9.63%              |  | 8.00%     
|Other fee income                     |  | 129,819                                                                          |  | 66,397       |  | 0.57%              |  | 0.34%     
|Marketing revenue                    |  | 494,558                                                                          |  | 324,414      |  | 2.17%              |  | 1.65%     
|Other income                         |  | 228,021                                                                          |  | 184,030      |  | 1.00%              |  | 0.94%     
|                                     |  | ____________                                                                     |  | ____________ |  |                    |  |           
|Total Revenue                        |  | 22,748,795                                                                       |  | 19,602,172   |  | 100.00%            |  | 100.00%   
|                                     |  |                                                                                  |  |              |  |                    |  |           
|Commission and advisory expenses     |  | 18,325,414                                                                       |  | 15,815,220   |  | 80.56%             |  | 80.68%    
|Gross Profit                         |  | 4,423,381                                                                        |  | 3,786,952    |  | 19.44%             |  | 19.32%    
|Operating Expenses:                  |  |                                                                                  |  |              |  |                    |  |           
|Advertising                          |  | 267,494                                                                          |  | 269,627      |  | 1.18%              |  | 1.38%     
|Communications                       |  | 179,003                                                                          |  | 65,767       |  | 0.79%              |  | 0.34%     
|                                     |  | ____________                                                                     |  | ____________ |  |                    |  |           
|Total Selling Expenses               |  | 446,497                                                                          |  | 335,394      |  | 1.96%              |  | 1.71%     
|Compensation and benefits            |  | 1,980,591                                                                        |  | 2,716,025    |  | 8.71%              |  | 13.86%    
|Regulatory, legal and professional   |  | 606,304                                                                          |  | 1,202,340    |  | 2.67%              |  | 6.13%     
|Occupancy                            |  | 305,111                                                                          |  | 234,006      |  | 1.34%              |  | 1.19%     
|Other administrative expenses        |  | 251,611                                                                          |  | 332,604      |  | 1.11%              |  | 1.70%     
|Interest expense                     |  | 25,644                                                                           |  | 8,032        |  | 0.11%              |  | 0.04%     
|                                     |  | ____________                                                                     |  | ____________ |  |                    |  |           
|Total Administrative Expenses        |  | 3,169,261                                                                        |  | 4,493,006    |  | 13.93%             |  | 22.92%    
|Total Operating Expenses             |  | 3,615,758                                                                        |  | 4,828,401    |  | 15.89%             |  | 24.63%    
|                                     |  | ____________                                                                     |  | ____________ |  |                    |  |           
|Operating Income (Loss)              |  | 807,623                                                                          |  | (1,041,449)  |  | 3.55%              |  | -5.31%    
|                                    
|Income before taxes                  |  | 807,623                                                                          |  | (1,041,449)  |  | 3.55%              |  | -5.31%    
|Provision (benefit) for income taxes |  | 341,057                                                                          |  | (443,827)    |  | 1.50%              |  | -2.26%    
|Net Income (Loss)                    |  | $ 466,566                                                                        |  | $ (597,622)  |  | 2.05%              |  | -3.05%    
|                                     |  | ____________                                                                     |  | ____________ |  |                    |  |           



|AVERAGE PRODUCTION PER REPRESENTATIVE
|-------------------------------------

Management believes that upgrading the overall quality of our independent representatives is a key to achieving robust growth in revenues and net income. Our experience has been that increasing the average technical qualifications and business practices of our representatives not only generates more revenue, but assists in limiting the cost of overhead functions and representative errors and misconduct. We strive to continually improve the overall quality of our force of representatives by:

- recruiting higher quality new representatives,
- terminating lower quality representatives, and
- assisting representatives to improve their skills and practices.

A key metric that we use to assess the average quality of our representatives is average revenue generated per representative.

Average revenue per representative increased by 9.5%, reflecting managements continuing emphasis on recruiting established, successful representatives. We look forward to a continuation of this trend as we maintain our efforts to increase the average productivity of our existing sales force and to recruit representatives who are already successful but seek a higher level of service than they experience from their existing brokerage firms.

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

|                          |  |                                    |  |               |  |                    
|------------------------- |  | ---------------------------------- |  | ------------- |  | -------------------
|                          |  | Average Revenue Per Representative |  |               |  |                    
|                         
|                          |  | June 30, 2007                      |  | June 30, 2006 |  | Percentage Increase
|                         
|Commission                |  | $ 19,708,113                       |  | $ 17,458,902  |  | 12.9%              
|Advisory                  |  | 2,188,284                          |  | 1,568,429     |  | 39.5%              
|Other fee income          |  | 129,819                            |  | 66,397        |  | 95.5%              
|                          |  | $ 22,026,216                       |  | $ 19,093,728  |  | 15.4%              
|                         
|Number of representatives |  | 675                                |  | 641           |  | 5.3%               
|                         
|Average Revenue Per Rep   |  | $ 32,631                           |  | $ 29,787      |  | 9.5%               



|REVENUES
|--------

Revenues rose $3.15 million, or 16.1%, to $22.7 million, led by a $2.25 million or 12.9% increase in commissions and a $0.62 million or 39.5% increase in advisory services revenue. We are pleased by continued growth in high margin lines of business such as trading and advisory services. We also value the diversification of our brokerage revenues sources provided by similar or even greater growth in revenues from mutual funds, variable annuities and direct participation programs. Much like a diversified client portfolio, management looks to a diversified revenue stream to provide a degree of protection from market risk.



| | Commissions
| | -----------

Commissions from direct participation programs, which predominantly include REITs (Real Estate Investment Trusts) and oil and gas programs, increased by $0.75 million, or 31.0%, primarily reflecting increased sales volume in the oil and gas programs. Commissions for direct participation programs were responsible for 33.0% of an overall $2.25 million increase in commission revenue, while commissions from variable annuities, which generated 30.5% of the overall commission revenue increase, grew by $0.69 million or 9.6% .

|                                                                                                                                |  | Commission Revenue
|------------------------------------------------------------------------------------------------------------------------------- |  | ------------------
|                                                                                                                                |  | Quarters June 30, 
|                                                                                                                               
|                                                                                                                                |  |                   
|Product Type                                                                                                                    |  | 2007              
|Variable Annuities                                                                                                              |  | $ 7,849,676       
|Trading (brokerage)1                                                                                                            |  | 5,819,403         
|Mutual Funds                                                                                                                    |  | 2,835,564         
|Direct Participation Programs                                                                                                   |  | 3,134,390         
|Other                                                                                                                           |  | 69,080            
|                                                                                                                                |  | _____________     
|                                                                                                                               
|Total Commission Revenue                                                                                                        |  | $ 19,708,113      
|                                                                                                                                |  | _____________     
|                                                                                                                               
|1. Revenue designated as Trading (brokerage) includes revenue from mutual funds sold through our trading platform. Revenue from |  |                   
|direct check and application sales of mutual funds are listed above under "Mutual Funds".                                       |  |                   

Commissions from variable annuities continued to comprise the largest component of commission revenue, while trading (brokerage) revenue maintained its position as the second largest component of commission revenue. We continue to emphasize recruitment and retention of representatives who generate transactional (brokerage) business, particularly through utilization of our clearing firms trading platform which enables us to more efficiently conduct brokerage business despite increasing volume. As discussed below, the recent trend of higher growth in fee-based advisory services, compared to commission-based services, reflects efforts by management to grow revenues in the high margin advisory services area.



| | Advisory Fees
| | -------------

Advisory services typically provide significantly higher margins than traditional non-trading broker-dealer products such as variable annuities and mutual funds. See "- Gross Margins", below. Accordingly, we have been encouraging our representatives to transition more of their non-trading business to advisory services. Although we do not dictate the nature or extent of advisory services our representatives provide for their clients, we continue to make concerted efforts to attract them to our proprietary advisory services programs through education, seminars, trade shows and direct telemarketing.

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

Fees from our representative-directed asset-managed A-MAP program, where asset allocation and other investment advisory services are provided directly by our independent representatives, continue to be the leading source of revenue in this category. Revenues from this program, which have been contributing an increasing proportion of advisory services revenue, grew by $0.48 million or 48.5% to $1.47 million compared to $0.99 million for the prior period. The A-MAP program is supported by our Net Exchange Pro and Pershing direct on-line mainframe trading platforms. This program is popular with our representatives because of the opportunities it provides to deliver to their clients superior asset management services at a potentially lower cost, and the potential for increased overall investment performance. Resulting transactional cost savings have been passed on to our representatives clients in the form of lower fees for improved service.



| | Other Fee Income
| | ----------------

Other fee income, primarily comprised of licensing and financial planning fees, increased by 95.5% compared to the prior period. This increase reflects growth in financial planning fees.



| | Marketing Revenue
| | -----------------

Marketing revenues increased by 52.4% due to growth in marketing support revenues reflecting increased sales in the sponsorship companys products.



| | Other Income
| | ------------

Other income, consisting primarily of interest and dividends and gains/losses on investments, increased by 23.9% .The majority of the increase came from interest earned on account balances due to an increase in the average daily balance in our trading accounts.

|GROSS MARGINS                                    |  |                        |             |               |       |                        |       |                         |       |         |       |         |       |         
|------------------------------------------------ |  | ---------------------- | ----------- | ------------- | ----- | ---------------------- | ----- | ----------------------- | ----- | ------- | ----- | ------- | ----- | --------
|                                                 |  |                        |             |               |       | Gross Margin Retention |       | Percent of Gross Margin |       |        
|                                                 |  | Gross Margin           |             | Quarter Ended |       | Quarter Ended          |       | Gross Margin           
|                                                 |  | Quarter Ended June 30, |             | June 30,      |       | June 30,               |       | Percent Change         
|                                                 |  |                        |             |               |       |                        |       |                         |       |        
|                                                 |  |                        |             |               |       |                        |       |                         |       |         |       |         |       | 2007    
|                                                 |  | 2007                   |             | 2006          |       | 2007                   |       | 2006                    |       | 2007    |       | 2006    |       | vs. 2006
|                                                 |  |                        |             |               |       |                        |       |                         |       |         |       |         |       |         
|                                                
|Commission - Mutual Funds and Variable Annuities |  | $ 1,796,551            | $ 1,516,892 |               | 13.0% |                        | 12.6% |                         | 40.7% |         | 40.1% |         | 18.4%
|(Check and Application distribution)             |  |                        |             |               |       |                        |       |                         |       |         |       |         |       |         
|Commission - Trading                             |  | 1,362,724              |             | 1,182,053     |       | 23.4%                  |       | 22.5%                   |       | 30.8%   |       | 31.2%   |       | 15.3%   
|Commission - Insurance Products                  |  | 40,643                 |             | 68,674        |       | 100.0%                 |       | 99.5%                   |       | 0.9%    |       | 1.8%    |       | -40.8%  
|Commission - Underwriting                        |  | 2,844                  |             | 9,502         |       | 10.0%                  |       | 10.0%                   |       | 0.1%    |       | 0.3%    |       | -70.1%  
|Advisory Services                                |  |                        |             |               |       |                        |       |                         |       |         |       |         |       |         
|                                                
|A-Map (rep direct)                               |  | 337,552                |             | 221,113       |       | 23.0%                  |       | 22.4%                   |       | 7.6%    |       | 5.8%    |       | 52.7%   
|Other                                            |  | 127,825                |             | 262,107       |       | -2.3%                  |       | 7.9%                    |       | 2.9%    |       | 6.9%    |       | -51.2%  
|                                                 |  |                        |             |               |       |                        |       |                         |       |         |       |         |       |         
|Total                                            |  | 465,377                |             | 483,220       |       | 20.7%                  |       | 30.3%                   |       | 10.5%   |       | 12.7%   |       | -3.7%   
|                                                 |  | _______                |             | ______        |       | ______                 |       | _____                   |       | ______  |       | ______  |       |         
|Licensing                                        |  | 64,108                 |             | 37,828        |       | n/a                    |       | n/a                     |       | 1.4%    |       | 1.0%    |       | 69.5%   
|Marketing                                        |  | 494,558                |             | 324,414       |       | n/a                    |       | n/a                     |       | 11.2%   |       | 8.6%    |       | 52.4%   
|Other income                                     |  | 196,576                |             | 164,369       |       | n/a                    |       | n/a                     |       | 4.4%    |       | 4.3%    |       | 19.6%   
|                                                 |  |                        |             |               |       |                        |       |                         |       |         |       |         |       |         
|Total Gross Margin                               |  | 4,423,381              |             | 3,786,952     |       | 19.4%                  |       | 19.3%                   |       | 100.0%  |       | 100.0%  |       | 16.8%   
|                                                 |  | _______                |             | _______       |       |                        |       |                         |       | _______ |       | _______ |       |         

Gross margin rose by $0.64 million or 16.8% to $4.42 million for the current period primarily due to a $0.28 million or

18.4% increase in gross margin derived from our check and application programs and a $0.18 million or 15.3% increase

Page 21

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

from trading.  We also experience a $0.12 million increase from our A-MAP advisory service program which has been experiencing continued growth.



| | Check and Application
| | ---------------------

The increase in gross margin from our check and application business reflect increases in sales volume of the variable annuity and direct participation
components. As a result of a $1.42 million increase in sales from these product types, we achieved an increase of approximately $0.19 million in our profit margin. See the above commission revenue chart.

Profit margins from mutual fund sales, variable annuity sales, direct participation programs and other check and application distribution programs
generated $1.80 million or nearly 40.6% of the total gross margin compared to $1.52 million or 40.1% during the prior period. As reflected in the above gross margin table, margin from our check and application distribution programs comprised
the greatest portion of our overall profit margin, with profit margin from trading being the next leading component among our principal categories. Investments in technology have allowed us to process this additional volume without adding a
commensurate level of staff.



| | Advisory Services
| | -----------------

The Companys continued emphasis on A-MAP, our rep-directed asset managed program, is clearly reflected in our gross margin table as gross margin
increased by $0.12 million or 52.7% . This gross margin improvement resulted directly from growth in assets under management in the program that, in managements opinion, is due primarily to lower fees, improved services and increased
awareness of this program.

Managements primary focus in the advisory services program has been to increase assets under management in the belief that it will generate an
increase in the overall profit margin in advisory services even though the percentage retention rate may decrease as a result of lower fee rates. Although our retention rate from advisory services decreased compared to the prior period, it continues
to exceed the rates generated by most of the other products and services we provide. See the gross margin table, above.

Managements emphasis on delivering our A-MAP program is reflected in the gross margin table with a concomitant $0.13 million, or 51.2%,
decrease in gross margin in Other Advisory Services, including the older wrap fee programs.



| | Trading Services
| | ----------------

Trading Services profit margin increased by $0.18 million or 15.3%in part
due toa $0.08 million increase in the margin from our fees on account balances. These fees contribute directly to our profit margin as they require no commission payout.
In addition, there was a $0.10 million increase in gross margins from trading activities that required a commission payout.

As a result of a $0.08 million increase to our profit margin from non-commissionable fees on account balances, our payouts as a percentage of total
trading revenue decreased slightly for the comparative periods; however, payouts, as a percentage of commissionable trading, remained relatively flat. Our margin retention increased slightly from 22.5% in the prior period to 23.4% in the current
period as trading services remain the second largest component of revenue contributing to our gross margin.

The percentage retention rates generated by trading services and advisory services continue to exceed those generated by our check and application
business. We intend to continue recruiting representatives who are duly licensed to offer trading and advisory services to their clients.



| | Commission and Advisory Fees
| | ----------------------------

Payouts to our independent representatives, when combined with other advisory and trading services costs, increased to 83.2% of rep-generated revenue,
compared to 82.8% for the prior period.  The corresponding decrease in our overall retention rate from 16.8% to 17.2% reflects a continuing transitioning of our sales force to higher producing representatives who command correspondingly higher
payout rates (see Part I, Item II  Our Process). Partially offsetting this effect was a net increase in fees that do not generate payouts.

In addition to selling more products through our check and application distribution programs, higher quality representatives have the potential to
positively influence our overall retention rate because they are licensed to sell more of the higher margin products such as trading and advisory services. Also, management has been making a concerted effort to grow our A-MAP program, which provides
to our clients the benefits of an advisory service program at reduced fees.

Page 22

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

We carefully monitor our retention rates; however, we have chosen to focus more on total dollars retained. Management believes that increased payout rates earned by higher producing representatives will be more than offset by their greater overall contributions to margin and increased firm profitability.

Management is continuing their efforts to improve margin contribution by recruiting and retaining sophisticated representatives who are duly licensed to offer a variety of brokerage and advisory products and services that generate higher commission retention rates than those obtained from check and application products. We experienced higher margins from trading as a result of ticket charges and fees pertaining to increases in account balances that flow entirely to the profit margin. With respect to advisory services, we receive fees on asset account balances that flow directly to the firm. Refer to Note 1  "Revenue Recognition - Advisory Fees" to our condensed consolidated financial statements



|OPERATING EXPENSES
|------------------

Operating expenses, which experienced a $1.32 million or 27.4% decrease, are discussed in detail below.



| | Compensation and Benefits
| | -------------------------

The largest component of operating expenses is compensation and benefits, which decreased by $0.74 million or 27.1%. This primarily reflects a decrease, from $0.62 million to $0.06 million, in compensation expense from the vesting of restricted stock that has been awarded to employees, directors, consultants, and independent representatives. We also experienced a $0.27 million decrease in compensation paid to officers due to the absence of any bonus awards during the current period. Partially offsetting these decrease was a $0.11 million increase in general salaries incurred primarily by hiring additional IT and accounting personnel.



| | Regulatory, Legal and Professional
| | ----------------------------------

Regulatory, legal and professional expenses decreased by $0.60 million or 49.6% . The largest component of this decrease was a $0.59 million decrease in legal fees and settlement costs of which $0.20 million was associated with the Massachusetts Proceedings in the prior period. Management believes, although there can be no assurances, that the Massachusetts Proceedings will prove to be atypical, in terms of financial impact, of legal proceedings that will be generated in the future in connection with our on-going operations.

The Companys legal fee and settlement costs, other than those associated with the Massachusetts Proceedings, decreased by $0.39 million. Management believes this result is directly attributable to the Companys risk-based management approach that seeks to minimize risk by improving the quality of its associated registered representatives while committing resources to educate and train our sales force, efficiently and accurately process their business, and appropriately supervise their business activities.

The Company's legal accrual decreased by $0.19 million to $0.67 million as of June 30, 2007, compared to $0.86 million as of June 30, 2006, primarily as a result of the settlement of the Massachusetts Proceedings . As we operate in an increasingly litigious industry embedded with regulation, we will continue to invest significant resources to reduce the likelihood of future litigation exposure by promoting accuracy, ensuring sound operational techniques and applying appropriate compliance measures.



| | Advertising
| | -----------

Advertising, including related marketing expenses, remained relatively flat at $0.27 million.



| | Communications
| | --------------

Communications expenses increased by $0.11 million or 172.2% primarily due to an increase in conferences and meetings costs from the hosting of our first Casa De Campo Conference which focused on furthering the business development of ICA. There was also an increase in telephone expenses. There were costs savings in printing expenses that were achieved by communicating to our prospective representatives by emailing our product literature instead of direct mailing. Costs also were incurred in enhancing our website to better inform and assist our representatives.

The Companys website is currently used to target new revenue streams by providing access to information through the website and other Internet publications. Recently the Companys website has been upgraded as a communication tool to assist our representatives in keeping up with the industrys rules and regulatory requirements, as well as consolidating their clients portfolio through a portfolio design software that the Company purchased.

Communication efforts and related expenses, which also include investor/public relations, conference, and telephone, have historically been positively correlated with the overall growth of our business. Our website and newsletter, "The Capitalist", have become effective media to communicate to qualified representative recruitment prospects.

Page 23

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------



| | Occupancy
| | ---------

Occupancy expenses increased by $0.07 million or 30.4% primarily as a result of opening Investment Centers in Braintree, MA, Manhattan, NY and Bedford, NH and a new Business Center in Miami, FL. The Company also experienced an increase in depreciation due to acquiring additional fixed assets in the form of new computers for the additional staff, leasehold improvements and additional furniture and fixtures for the home office in Lynnfield, MA to accommodate the increased number of employees.



| | Other Administrative
| | --------------------

Other administrative expenses, which include various insurance, postage, office and computer-related expenses, decreased by $0.08 million or 24.4% . Management continues to mount a concerted effort to reduce general office and postage expenses through several cost saving methods.



| | Interest Expense
| | ----------------

Interest expense increased by $0.02 million reflecting lower margin balances in our firm accounts and the incurring of a short-term obligation in financing insurance premiums.



|NET INCOME
|----------

Net income totaled $0.47 million, or $0.08 per basic and diluted share, compared to a $0.60 million, or $0.10 per basic and diluted share, loss for the prior period. The improvement in after-tax results was due to a favorable $1.85 million swing in operating (loss) income partially offset by a countervailing $0.79 million swing in provision (benefit) for income tax. The turnaround in operating income (loss) reflects both substantial increases in revenues and substantial reductions in operating expenses, particularly, compensation and regulatory/legal expenses.

As discussed in OPERATING EXPENSES  Regulatory, Legal and Professional, above, the substantial reduction in regulatory/legal expenses was due in large part to termination of the Massachusetts Proceedings. Management believes, but there can be no assurances, that the Massachusetts Proceedings will prove to be atypical, in terms of financial impact, of legal proceedings that will be generated in the future in connection with our on-going operations.



|LIQUIDITY AND CAPITAL RESOURCES
|-------------------------------

The Company believes that achieving its return on equity goals requires the efficient use of capital. We have financed our operations primarily with internally generated cash flow.

Cash inflows typically have come primarily from the Companys core broker-dealer and investment advisory services. Our business operations historically have proven profitable on a yearly basis. An exception was the fiscal year ended March 31, 2007, during which $2.20 million of costs were incurred in connection with the Massachusetts Proceedings.

Our historic profitability typically has followed an annual cycle of relatively average profitability during the first and third fiscal quarters, relatively low profitability (or even a loss) during the second fiscal quarter (when many representatives and their clients are on summer vacation), and relatively high profitability during the fourth fiscal quarter (when many representatives and their clients start a new business and investment year).

Negative fluctuations and general uncertainty in financial markets can have a negative impact on cash flow. The Company works to minimize this impact by aggressively recruiting sophisticated representatives who can offer diversified products that continue to meet the needs of their clients despite changing market conditions.

The Company takes a proactive approach to minimizing the occurrence and impact of other events that may lead to unexpected cash outflows, including lawsuits, trade errors, and fines and other sanctions imposed by regulatory agencies such as the NASD, the SEC and state securities regulators. A key to this approach is ensuring that adequate controls over our operations and those of our representatives are implemented and periodically updated. As part of this effort, substantial resources have been committed to enhancing the capabilities of our compliance team, whose tasks include assuring that our representatives give proper weight to the circumstances and interests of their clients when recommending investment options. The Company also allocates resources to stay current with the many rules and regulations applicable to our business by assisting in the education and training of our sales representatives and staff.

Page 24

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

As of June 30, 2007, cash and cash equivalents totaled $4.89 million compared to $5.50 million as of March 31, 2007. Working capital as of June 30, 2007 was $6.65 million compared to $5.32 million as of March 31, 2007. The ratio of current assets to current liabilities was 2.32 to 1 as of June 30, 2007 compared to 1.80 to 1 as of March 31, 2007.

Operations used $0.10 million in cash for the quarter ended June 30, 2007 compared to $0.22 million in cash used for the quarter ended June 30, 2006. Cash flow from operations, in comparing the current period to the prior period, increased by $0.12 million as a result of several factors.

We experienced a $1.06 million increase in cash flow from net income as the Company reported a $0.47 million profit in the current period versus a $0.60 million loss in the prior period. Offsetting this increase was a $1.55 million decrease in cash flow from the payment in the current period of accrued expenses, primarily related to preferred marketing events and litigation, versus an increase in accrued expenses in the prior period pertaining to the Massachusetts Proceedings.

In addition, we had a $0.57 million increase in cash flow from accounts payable in comparing the current period to the prior period . We also experienced a $0.94 million decrease in cash flow from receivables, primarily trade receivables, and a $0.94 million increase due to changes in income taxes.

Cash outflows from investing activities for the current period totaled $0.06 million, the majority of which was for purchasing equipment, software and leasehold improvements.

Finally we experienced a $0.48 million decrease in cash flow during the current period pertaining to a short-term obligation for insurance premiums.

By comparison, for the quarter ended June 30, 2006, cash used in operations was $0.24 million. Cash outflows for the prior period included $0.12 million for purchasing equipment, software and leasehold improvements and, finally, from financing activities we paid a $0.25 million cash dividend on June 29, 2006 to shareholders of record as of June 15, 2006.

Cash disbursements contributing to quarter ended June 30, 2006 cash flow included $0.64 million for legal-related matters, of which $0.35 million was for legal fees pertaining to the Massachusetts Proceedings. In addition the Company paid out $0.36 million in income taxes.

Cash disbursements contributing significantly to cash outflows during our most recent quarter included $0.65 million for legal-related matters, of which $0.01 million was for legal fees pertaining to the Massachusetts Settlement. In addition the Company paid out $0.48 million toward short-term financing of insurance premiums along with $0.24 million for two of our preferred conferences, the Diamond Achiever and the West Coast National Convention. Finally we paid out $0.14 million to our independent accountants.

The SEC Uniform Net Capital Rule (Rule 15c3-1) requires that ICC, our broker-dealer subsidiary, maintain net capital of $100,000 and a ratio of aggregate indebtedness to net capital (a net capital ratio) not to exceed 15 to 1. Under the 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 subordinated loans) from being withdrawn, cash dividends from being paid and other specified actions of similar effect from being taken, if, among other specified contingencies, the Companys net capital ratio would exceed 10 to 1 or if we would have less than 120% of our minimum required net capital.

As of June 30, 2007 ICC had net capital of $1.95 million (i.e., an excess of $1.51 million) and a3.38 to 1net capital ratio as compared to net capital of $1.05 million (i.e., an excess of $0.52 million) and a 7.59 to 1 net capital ratio as of March 31, 2007.

The Companys legal accrual decreased to $0.67 million from $0.86 million as a result of payments of accrued expenses incurred in the prior period pertaining to the Massachusetts Proceedings and various arbitrations filed against the Company. The Company will continue to assess its legal accrual as it pertains to the Massachusetts Settlement and its impact on ICCs net capital ratio and excess net capital. The Company will record additional accruals as needed in the future if, when and to the extent that it becomes likely that total settlement costs will exceed $1,000,000.

The Company currently has ample cash to cover additional accruals and disbursements resulting from these other arbitrations and proceedings.



|
|

Page 25

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------



|CONTRACTUAL OBLIGATIONS                                                                                                        |  |                              |  |                              |  |                              |  |                             
|------------------------------------------------------------------------------------------------------------------------------ |  | ---------------------------- |  | ---------------------------- |  | ---------------------------- |  | ----------------------------
|Contractual Obligations                                                                                                        |  |                              |  | Payments Due by period       |  |                              |  |                             
|                                                                                                                               |  |                              |  |                              |  |                              |  |                             
|Period                                                                                                                         |  | April 1, 2007-March 31, 2008 |  | April 1, 2008-March 31, 2011 |  | April 1, 2011-March 31, 2013 |  | April 1, 2013 and thereafter
|                                                                                                                               |  | Total                        |  | less than 1 year             |  | 1-3 years                    |  | 4-5 years                   
|Fiscal Years Ended March 31,                                                                                                   |  |                              |  | 2008                         |  | 2009-2011                    |  | 2012-2013                   
|______________________________________________________________________________________________________________________________
|Short- term loans and notes payable:                                                                                           |  |                              |  |                              |  |                              |  |                             
|Lines of credit and other short- term                                                                                          |  |                              |  |                              |  |                              |  |                             
|borrowings                                                                                                                     |  | $            353,637         |  | $               353,637      |  |                              |  |                             
|Operating leases:                                                                                                              |  | 1,966,320                    |  | 439,702                      |  | 1,202,506                    |  | 324,112                     
|                                                                                                                               |  |                              |  |                              |  |                              |  |                             
|Total Contractual Obligations                                                                                                  |  | $         2,319,957          |  | $               793,339      |  | $              1,202,506     |  | $              324,112      
|                                                                                                                               |  |                              |  |                              |  |                              |  |                             
|                                                                                                                              
|NOTES PAYABLE                                                                                                                  |  |                              |  |                              |  |                              |  |                             

At June 30, 2007 and 2006, notes payable consisted of debt to finance insurance premiums. These notes are referenced in the table below:

|June 30, |  | Lender                         |  | Premium                                        |  | Principal |  | Interest Rate
|-------- |  | ------------------------------ |  | ---------------------------------------------- |  | --------- |  | -------------
|        
|         |  | First insurance Funding, Corp. |  | Directors and officers,Liability,Fidelity Bond |  | $ 52,899  |  | 7.19%        
|         |  | First insurance Funding, Corp. |  | Errors & Omissions                             |  | 300,738   |  | 5.75%        
|         |  |                                |  |                                                |  | _________ |  |              
|2007     |  |                                |  |                                                |  | $ 353,637 |  |              
|         |  |                                |  |                                                |  | _________ |  |              
|        
|2006     |  | First insurance Funding, Corp. |  | Directors and officers,Liability,Fidelity Bond |  | $ 47,833  |  | 6.95%        



|COMMITMENTS AND CONTINGENCIES
|-----------------------------

The Company is obligated under various lease agreements covering offices and equipment. These agreements are considered to be operating leases in accordance with the requirements under FASB 13 "Accounting for Leases". The terms of the leases expire between fiscal year 2008 and 2012. Options to renew for additional terms are included under the lease agreements. The total minimum rental due in future periods under these existing agreements is as follows as of March 31, 2007:

|Year ending March 31, 2008   |  | $ 439,702  
|---------------------------- |  | -----------
|Year ending March 31, 2009   |  | 482,394    
|Year ending March 31, 2010   |  | 379,544    
|Year ending March 31, 2011   |  | 340,568    
|Year ending March 31, 2012   |  | 324,112    
|                             |  | _________  
|                            
|Total minimum lease payments |  | $ 1,966,320
|                             |  | _________  

Certain leases contain provisions for escalation of minimum lease payments contingent upon increases in real estate taxes.

Total lease expense approximated to $176,117, and $147,273 for quarters years ended June 30, 2007 and 2006 respectively, of which $94,766, and $88,153, respectively, was incurred with respect to leases with Arlsburg Trust and Investors Realty, LLC.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is present in our business due to, among other things, price changes in equities, changes in interest rates, and credit ratings in debt instruments. This risk relates both to financial instruments we hold as investments and those we hold for trading purposes.

As of June 30, 2007, we held U.S. Treasury bonds with an amortized value totaling $1,492,337. Although we intend to hold these bonds to maturity, if we determined to liquidate our position in these bonds prior to maturity, the proceeds from their sale would depend on fluctuations in their market value that reflect, among other things, fluctuations in prevailing interest rates. See Note 7  Investments to our condensed consolidated financial statements.

We own an equity position in the Rising Dividend Fund with a market value of $185,134 as of June 30, 2007. The value of this position fluctuates daily.

Page 26

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

Market risk is present in our normal business activity as a result of our involvement as principal in the execution of trading activity and delivery of
fixed and variable investment products. Securities inventories are exposed to risk of loss in the event of unfavorable price movements. Securities positions are marked to market on a daily basis. Market-making activities are client-driven, with the
objective of meeting client needs while earning a positive spread. As of June 30, 2007, we held in inventory for trading purposes securities valued at $144,191. We conduct our business as a brokerage and advisory firm clearing through another
broker dealer on a fully disclosed basis to minimize our market risk. In our view, exposure to market risk, trading volatility and illiquidity of securities held from time to time in the firms inventory accounts could potentially have a
material adverse effect on our financial position.



|ITEM 4. CONTROLS AND PROCEDURES
|-------------------------------

Based on an evaluation by our management in which they or persons performing similar functions participated, our principal executive and financial
officers have concluded that controls and procedures in place as of the end of the period covered by this report were effective (i) for the purpose of ensuring that information required to be disclosed in our reports filed under the Securities
Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and (ii) for the purpose of ensuring that material information required to be in
a report is made known to management and others, as appropriate, to allow timely decisions regarding required disclosures.



|PART II. OTHER INFORMATION
|--------------------------



|ITEM 1. LEGAL PROCEEDINGS
|-------------------------

The Company operates in a highly litigious and regulated business and, as such, is a defendant or codefendant in various lawsuits and arbitration
incidental to its securities business. The Company is vigorously contesting the allegations of the complaints in these cases and believes that there are meritorious defenses in each. Counsel is unable to respond concerning the likelihood of an
outcome, whether favorable or unfavorable, because of inherent uncertainty routine in these matters. For the majority of pending claims, the Company's errors and omissions (E&O) policy limits the maximum exposure in any one case to between
$75,000 and $100,000 and, in certain of these cases, the Company has the contractual right to seek indemnity from related parties. Management, in consultation with counsel, believes that resolution of pending litigation will not have a
material adverse effect on the consolidated financial results of the Company.



|ITEMS 1A  5.
|-------------



|None.
|-----

Page 27

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------

|ITEM 6. EXHIBITS |  |                                                                        
|---------------- |  | -----------------------------------------------------------------------
|Exhibit          |  |                                                                        
|Number           |  | Description                                                            
|3.1              |  | Articles of Organization, as amended                                   
|3.2              |  | By-Laws                                                                
|4.1              |  | Form of Stock Certificate                                              
|10.1             |  | Employment Agreement with Theodore E. Charles                          
|10.2             |  | Employment Agreement with Timothy B. Murphy                            
|10.3             |  | The 1994 Stock Option Plan                                             
|10.4             |  | The 2005 Equity Incentive Plan                                         
|31.1             |  | Certification of Theodore E. Charles pursuant to Rule 13a-14(a)        
|31.2             |  | Certification of Timothy B. Murphy pursuant to Rule 13a-14(a)          
|32.1             |  | Certification of Theodore E. Charles pursuant to 18 U.S.C. Section 1350
|                
|32.2             |  | Certification of Timothy B. Murphy pursuant to 18 U.S.C. Section 1350  
|                 |  |                                                                        

|(1) | Filed herewith.                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) | Incorporated by reference to the indicated exhibit to the Registrants Registration Statement on Form SB-2 (File No. 333-05327) filed August 14, 2000.
|   
|(3) | Incorporated by reference to the indicated exhibit to the Registrants Annual Report on Form 10-K for the year ended March 31, 2005.                  
|   
|(4) | Incorporated by reference to the indicated exhibit to the Registrants Registration Statement on Form S-8 (File No. 333-43664) filed June 9, 2006     
|   

Any exhibit not included with this Form 10-Q will be furnished to any shareholder of record upon written request and payment of up to $.25 per page plus postage. Such requests should be directed to Investors Capital Holdings, Ltd., 230 Broadway East, Lynnfield, MA 01940-2320.

Page 28

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------



|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.By:/s/ Timothy B. MurphyChief Financial Officer
Date: August 14, 2007
| | -----------------------------------------------------------------------------------------------------

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------



|Exhibit 31.1CERTIFICATION
|-------------------------



|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 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 report;
|  
|3. | Based on my knowledge, the financial statements, and other financial information included in this 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 said report;                   
|  
|4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) for the registrant and have:                                                                             
|  
|   | a)                                                                                                                                                                                                                                                                                                        
|  
|   | b)                                                                                                                                                                                                                                                                                                        
|  
|   | c)                                                                                                                                                                                                                                                                                                        
|  
|   | d)                                                                                                                                                                                                                                                                                                        
|  
|5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):        
|  
|   | a)                                                                                                                                                                                                                                                                                                        
|  
|   | b)                                                                                                                                                                                                                                                                                                        
|  



|Date: August 14, 2007By: /s/ Theodore E. CharlesTheodore E. Charles, Chairman,Chief Executive Officer and Director(principal executive officer)
|-----------------------------------------------------------------------------------------------------------------------------------------------

Page 30

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------



|Exhibit 31.2CERTIFICATION
|-------------------------



|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 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 report;
|  
|3. | Based on my knowledge, the financial statements, and other financial information included in this 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 said report;                   
|  
|4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) for the registrant and have:                                                                             
|  

|a) |  | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be        
|-- |  | -----------------------------------------------------------------------------------------------------------------
|   |  | designed under our supervision, 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 report is being prepared;                                                                             

|   | b)                                                                                                                                                                                                                                                                                                 | Not applicable.                                                                                                                                                                                                                                                                                                                                                                 
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | c)                                                                                                                                                                                                                                                                                                 | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and                                                                                             
|  
|   | d)                                                                                                                                                                                                                                                                                                 | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|  
|5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|  
|   | a)                                                                                                                                                                                                                                                                                                 | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and                                                                                                       
|  
|   | b)                                                                                                                                                                                                                                                                                                 | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.                                                                                                                                                                                                      
|  



|Date: August 14, 2007By: /s/ Timothy B. MurphyTimothy B. Murphy, President,Treasurer, Chief Financial Officer and Director(principal financial officer)
|-------------------------------------------------------------------------------------------------------------------------------------------------------

Page 31

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------



|Exhibit 32.1CERTIFICATION
|-------------------------

I, Theodore E. Charles, certify that this report on Form 10-Q fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in this report fairly presents, in all material respects, the financial condition and results of operations of Investors Capital Holdings, Ltd.



|Date: August 14, 2007By: /s/ Theodore E. CharlesTheodore E. Charles, Chairman,Chief Executive Officer and Director(principal executive officer)
|-----------------------------------------------------------------------------------------------------------------------------------------------

Page 32

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|Investors Capital Holdings, Ltd. report on form 10-Q
|----------------------------------------------------



|Quarter Ended 06/30/07
|----------------------



|Exhibit 32.2CERTIFICATION
|-------------------------

I, Timothy B. Murphy, certify that this report on Form 10-Q fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in this report fairly presents, in all material respects, the financial condition and results of operations of Investors Capital Holdings, Ltd.



|Date: August 14, 2007By: /s/ Timothy B. MurphyTimothy B. Murphy, President,Treasurer, Chief Financial Officer and Director(principal financial officer)
|-------------------------------------------------------------------------------------------------------------------------------------------------------

Page 33

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