<PAGE>

                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1999

                                       OR

|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ________ to ___________

Commission file number: 0-19239


                               LawGibb Group, Inc.
                -------------------------------------------------
             (Exact name of Registrant as specified in its charter)

Georgia                                                   58-0537111
------------------------------------                      ----------------------
(State or other jurisdiction of                           (I.R.S. Employer
Incorporation or organization)                            Identification No.)

1105 Sanctuary Parkway, Suite 300, Alpharetta, GA                 30004
-------------------------------------------------------------------------------
(Address of principal executive offices)                       (Zip code)

                                 (770) 360-0600
               (Registrant's telephone number including area code)

                           Law Companies Group, Inc.
        (Former name, former address, and former fiscal year, if changed
                               since last report)


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 |_|

The number of shares of Common Stock of the Company,  par value $1.00 per share,
outstanding at August 13, 1999 was 2,624,312.
<PAGE>
3
                                                 TABLE OF CONTENTS

                                                                           PAGE
PART I.  FINANCIAL INFORMATION

         ITEM 1.           FINANCIAL STATEMENTS

         Condensed Consolidated Balance Sheets
          as of June 30, 1999 and December 31, 1998............................1

         Condensed Consolidated Statements of Income and Comprehensive Income
          for the Quarters and Six-Month Periods Ended June 30, 1999 and 1998..2

         Condensed Consolidated Statements of Cash Flows
          for the Six-Month Periods Ended June 30, 1999 and 1998...............3
 .
         Notes to Condensed Consolidated
          Financial Statements.................................................4


         ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                           FINANCIAL CONDITION AND RESULTS OF OPERATIONS.......6

         ITEM 3.           QUANTITATIVE AND QUALITATIVE DISCLOSURES
                           ABOUT MARKET RISK...................................9


PART II.  OTHER INFORMATION

         ITEM 2.           CHANGES IN SECURITIES..............................10

         ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF
                              SECURITY HOLDERS................................10

         ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K...................10

SIGNATURE.....................................................................11

<PAGE>


PART  I  FINANCIAL INFORMATION
         ITEM 1.           FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS
LAWGIBB GROUP, INC.
(unaudited - dollars in thousands, except per share data)

                                             June 30,            December 31,
                                               1999                  1998
                                        -----------------      -----------------
Assets
Current assets:
    Cash and cash equivalents             $   19,046            $      11,022
    Billed fees receivable,
      net of allowance                        56,274                   55,346
    Unbilled work in progress                 32,034                   31,464
    Other current assets                       7,750                    9,041
                                        -----------------      -----------------
Total current assets                         115,104                  106,873

Property and equipment, net                   21,807                   23,442
Equity investments                             1,417                    1,587
Goodwill, net                                 12,568                   13,250
Other assets                                   5,293                    5,759
                                        -----------------      -----------------
Total assets                              $  156,189            $     150,911
                                        =================      =================


Liabilities and Shareholders' Equity

Current liabilities:
    Short-term borrowings                 $    1,333            $         902
    Accounts payable                          12,731                   15,858
    Billings in excess of costs and fees
      earned on contracts in progress         13,394                   13,805
    Current portion of long-term debt          5,114                    5,220
    Other accrued expenses                    14,510                   16,745
    Other current liabilities                 15,987                   15,283
                                        -----------------      -----------------
Total current liabilities                     63,069                   67,813

Long-term debt                                37,922                   41,979
Deferred income taxes                          1,992                    1,983
Minority interest in equity of subsidiaries      200                      208

Cumulative convertible redeemable preferred
  stock; Issued and Outstanding: 963,398
  shares in 1999 and 1998                      9,896                    9,886
Shareholders' equity:
    Common stock--$1 par value:
      authorized: 10,000,000 shares;
      issued and outstanding: 2,040,711
      shares in 1999 and 2,045,870 shares
      in 1998                                  2,041                    2,046
    Common stock subscribed (584,028 shares
      in 1999)                                   584                       --
    Additional paid - in capital              29,101                   18,046
    Retained earnings                         20,023                   15,931
    Accumulated other comprehensive
      income                                  (8,639)                  (6,981)
                                        -----------------      -----------------
                                              43,110                   29,042
                                        -----------------      -----------------
Total Liabilities and
  Shareholders' Equity                    $  156,189            $     150,911
                                        =================      =================

See accompanying notes.
<PAGE>

<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
LAWGIBB GROUP, INC.
(unaudited - in thousands, except per share data)

                                        For the Quarters                       For the Six Months
                                          Ended June 30,                          Ended June 30,
                                ---------------------------------       ----------------------------------
                                     1999               1998                  1999               1998
                                ---------------    --------------       ---------------    ---------------
<S>                             <C>                <C>                  <C>                  <C>
Gross fees                      $     77,090       $     77,855         $    151,995         $  151,510
Less: Cost of outside services         9,772              8,810               18,049             16,742
                                ---------------    --------------       ---------------    ---------------
Net fees                              67,318             69,045              133,946            134,768

Direct costs and expenses:
    Payroll                           20,256             20,481               40,531             40,139
    Job related expenses               7,409              8,156               14,448             15,499
                                ---------------    --------------       ---------------    ---------------
Gross profit                          39,653             40,408               78,967             79,130

Indirect costs and expenses:
    Payroll                           15,513             15,617               31,982             31,245
    Other expenses                    17,982             20,601               36,754             40,290
                                ---------------    --------------       ---------------    ---------------
Operating income                       6,158              4,190               10,231              7,595

Other income (expense):
    Interest expense                    (971)            (1,136)              (1,973)            (2,191)
    Deferred financing costs             (23)               (24)                 (46)               (61)
    Other income (expense)                23                236                   50                237
                                ---------------    --------------       ---------------    ---------------
    Income before income taxes
      and equity investments           5,187              3,266                8,262              5,580
Income tax provision                  (2,178)            (1,502)              (3,470)            (2,567)
Equity investments                       (17)                 1                  (18)                (7)
                                ---------------    --------------       ---------------    ---------------
Net income                             2,992              1,765                4,774              3,006
                                ---------------    --------------       ---------------    ---------------

Less:  Preferred stock dividend
       and accretion                    (282)              (282)                (564)              (564)
                                ---------------    --------------       ---------------    ---------------
Net income available to common
shareholders                    $      2,710       $      1,483         $      4,210      $       2,442
                                ===============    ==============       ===============    ===============
Basic earnings per
 common share                   $       1.33       $        .78         $       2.06      $        1.29
                                ===============    ==============       ===============    ===============
Diluted earnings per
 common share                   $        .89       $        .58         $       1.44      $        1.01
                                ===============    ==============       ===============    ===============

Statements of Comprehensive Income

Net income                      $      2,992       $      1,765         $      4,774      $       3,006
Other comprehensive income:
  Foreign currency translation
  adjustment                            (867)              (869)              (1,658)                (9)
                                ---------------    --------------       ---------------    ---------------
Comprehensive income            $      2,125       $        896         $      3,116      $       2,997
                                ===============    ==============       ===============    ===============
</TABLE>
See accompanying notes.


<PAGE>


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
LAWGIBB GROUP, INC.
(unaudited - dollars in thousands, except per share data)
<TABLE>
<CAPTION>
                                                                                       For the Six Months
                                                                                         Ended June 30
                                                                             -------------------------------------
                                                                                   1999                1998
                                                                             -----------------    ----------------
<S>                                                                          <C>                  <C>
Operating activities
Net income                                                                         $    4,774           $   3,006
Adjustments to reconcile net income to net cash provided by
       operating activities:
         Depreciation and amortization                                                  3,397               3,344
         Provision for losses on receivables                                              333                 398
           Deferred income taxes                                                            3              (2,805)
         Undistributed  losses from equity investments                                     18                   7
         Loss on disposal of property and equipment                                        34                  62

Changes in operating assets and liabilities:
         Billed fees receivable                                                        (2,462)             (1,541)
         Unbilled work in progress                                                     (1,337)             (2,830)
         Other current assets                                                           1,151                (656)
         Accounts payable and accrued expenses                                         (3,218)              3,906
         Billings in excess of costs and fees earned on
              contracts in progress                                                    (1,398)             (1,299)
                                                                             -----------------    ----------------
Net cash provided by operating activities                                               1,295               1,592

Investing activities
Purchases of property and equipment                                                    (1,812)             (2,732)
Proceeds from disposal of property and equipment                                           71                  13
Other, net                                                                              1,172              (1,657)
                                                                             -----------------    ----------------
Net cash used by investing activities                                                    (569)             (4,376)

Financing activities
Net (payments) proceeds on short-term borrowings                                          431                (234)
Net (payments) proceeds on revolving line of credit and
       long-term borrowings                                                            (4,160)              1,782
 Deferred financing and preferred stock issuance costs                                      -                (369)
 Proceeds from exercise of stock options                                               11,700               2,888
 Repurchase and retirement of shares                                                     (184)               (291)
 Preferred dividends paid                                                                (400)               (400)
                                                                             -----------------    ----------------
Net cash provided by financing activities                                               7,387               3,376

Effect of exchange rate changes on cash                                                   (89)                (16)
                                                                             -----------------    ----------------
Increase in cash and cash equivalents                                                   8,024                 576
Cash and cash equivalents at beginning of period                                       11,022               9,527
                                                                             -----------------    ----------------
Cash and cash equivalents at end of period                                          $  19,046           $  10,103
                                                                             =================    ================

</TABLE>
See accompanying notes.


<PAGE>


12



NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
LAWGIBB GROUP, INC.
(unaudited  - dollars in thousands, except per share data)

NOTE 1 - There have been no significant  changes in the  accounting  policies of
the Company during the periods  presented.  For a description of these policies,
see Note 1 of Notes to  Consolidated  Financial  Statements  for the year  ended
December 31, 1998 in the Company's Annual Report on Form 10-K for the year ended
December 31, 1998 (the "Form 10-K").

NOTE 2 - The unaudited condensed  consolidated  financial  statements  presented
herein have been prepared in accordance  with the  instructions to Form 10-Q and
do not include all of the information and note disclosures required by generally
accepted accounting  principles.  These statements should be read in conjunction
with the Consolidated Financial Statements and Notes for the year ended December
31, 1998  included in the Form 10-K.  The  accompanying  condensed  consolidated
financial statements for the quarter and six months ended June 30, 1999 and 1998
have not been  audited by  independent  auditors in  accordance  with  generally
accepted  auditing  standards,  but in the opinion of management  such financial
statements  include  all  adjustments,   consisting  only  of  normal  recurring
adjustments,  necessary to summarize fairly the Company's consolidated financial
position and results of  operations.  The results of  operations  for the second
quarter  ended June 30, 1999 may not be indicative of the results that may occur
during the year ending December 31, 1999.

NOTE 3 - The  Company's  operations  are  conducted  principally  in the  United
States,  Europe,  and Africa.  Accordingly,  the Company considers its operating
segments to be defined as United States Operations and International Operations.
For financial reporting purposes, International Operations results are presented
separately  for  operations in the United  Kingdom,  Europe,  Africa,  and other
countries.  The net  fees for each  segment  as  described  in the  table  below
correspond  directly to the net revenues  attributable  to the geographic  areas
that are represented by these segments.  Inter-segment revenues related to these
geographic areas were not material.  The table that follows represents  combined
disclosure for both business segment and geographic area information.

                           For the Quarters Ended    For the Six Months Ended
                                  June 30                   June 30
                          -----------------------   -------------------------
                              1999       1998           1999         1998
                          ----------- -----------   ------------  -----------
Net Fees
United States Operations  $  45,226   $  45,067     $   90,052    $   87,910
International Operations
        United Kingdom        7,372       7,940         15,028        15,729
        Europe                4,460       4,315          8,831         8,690
        Africa                6,490       7,746         12,475        14,383
        Other                 3,770       3,977          7,560         8,056
                          ----------- -----------   ------------  -----------
Total                     $  67,318   $  69,045     $  133,946    $  134,768
                          =========== ===========   ============  ===========
Operating Income
United States Operations  $   5,070   $   3,711     $    8,649    $    6,764
International Operations
        United Kingdom          122          69            273           142
        Europe                  345          94            607           325
        Africa                  483         530            509           615
        Other                   138        (214)           193          (251)
                          ----------- -----------   ------------  -----------
Total                     $   6,158   $   4,190     $   10,231    $    7,595
                          =========== ===========   ============  ===========

                           June 30,   December 31,
                             1999        1998
                          ----------- -----------
Assets
United States Operations  $  93,155   $  84,801
International Operations
        United Kingdom       34,770      37,373
        Europe                5,399       4,875
        Africa               14,440      15,636
        Other                 8,425       8,226
                          ----------- -----------
Total                     $ 156,189   $ 150,911
                          =========== ===========
<PAGE>
<TABLE>
<CAPTION>
NOTE 4 - Computation of Earnings Per Share
                               LAWGIBB GROUP, INC.
                        COMPUTATION OF EARNINGS PER SHARE
                      (in thousands, except per share data)

                                                 For the Quarter Ended June 30,     For the Six Months Ended September 30,
                                                 ---------------------------------------------------------------------------
                                                       1999              1998                1999              1998
                                                 ---------------------------------------------------------------------------
<S>                                              <C>                <C>                <C>               <C>
Numerator:
   Net income                                    $   2,992          $  1,765           $     4,774       $     3,006
   Preferred stock dividends and accretion            (282)             (282)                 (564)             (564)
                                                 ---------------------------------------------------------------------------
   Numerator for basic earnings per share -
    income available to common shareholders          2,710             1,483                 4,210             2,442

   Effect of dilutive securities:
      Preferred stock dividends and accretion          282               282                   564               564
                                                 ---------------------------------------------------------------------------
      Numerator for diluted earnings per
     share - income available to common
     shareholders                                $   2,992          $  1,765           $     4,774       $     3,006

Denominator:
   Denominator for basic earnings per share -
    weighted-average shares                          2,042             1,893                 2,044             1,893

   Effect of dilutive securities:
       Employee stock options                          178                79                   167                74
       Other stock options                             165                91                   136                48
       Cumulative convertible redeemable
        preferred stock                                963               963                   963               963
                                                 ---------------------------------------------------------------------------

   Dilutive potential common shares                  1,306             1,133                 1,266             1,085
                                                 ---------------------------------------------------------------------------

      Denominator for diluted earnings per
      share-adjusted weighted-average shares         3,348             3,026                 3,310             2,978
                                                 ===========================================================================

Basic earnings per common share                  $    1.33          $    .78           $      2.06       $      1.29
                                                 ===========================================================================

Diluted earnings per common share                $     .89          $    .58           $      1.44       $      1.01
                                                 ===========================================================================
</TABLE>
<PAGE>


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

The following table sets forth, for the quarters and six months  indicated,  (i)
the  percentage  of net fees  represented  by  certain  items  reflected  in the
Company's  condensed  consolidated  statements of income and (ii) the percentage
increase  or  decrease  in each of such  items  in the  1999  periods  from  the
comparable  periods  in the prior  year.  The  Company  measures  its  operating
performance  on the basis of net fees since a substantial  portion of gross fees
flow through to clients as costs of  subcontractors  and other  project-specific
outside services. Net fees are determined by deducting the cost of these outside
services from gross fees.  The  following  table and the  subsequent  discussion
should  be  read  in  conjunction  with  the  Condensed  Consolidated  Financial
Statements and Notes to Condensed  Consolidated  Financial  Statements contained
elsewhere in this Form 10-Q.
<TABLE>
<CAPTION>

                                            Qtr to Qtr                                  Year to Year
                                              Dollar                                       Dollar
                     Quarters Ended          Increase       Six Month Periods Ended       Increase
                        June 30,            (Decrease)            June 30,               (Decrease)
                   --------------------   ---------------   ------------------------   ----------------
                      1999      1998       1999 vs 1998       1999         1998        1999 vs  1998
                   ---------  ---------   ---------------   -----------  -----------   ----------------
<S>                <C>        <C>         <C>               <C>          <C>           <C>
Net fees           100.0%     100.0%         (2.5%)           100.0%       100.0%            (0.6%)

Gross profit        58.9%      58.5%         (1.9%)            59.0%        58.7%            (0.2%)

Indirect costs
  and expenses      49.8%      52.5%         (7.5%)            51.3%        53.1%            (3.9%)

Operating income     9.1%       6.1%         47.0%              7.6%         5.6%            34.7%

Net income           4.4%       2.6%         69.4%              3.6%         2.2%            58.8%

</TABLE>

Results of Operations

Increases  in the  Company's  US  Operations  net fees  combined  with  improved
management of indirect costs and expenses  resulted in improvements of 69.4% and
58.8% in net  income  for the  quarter  and six  months  ended  June  30,  1999,
respectively.  Consolidated  net fees of $67.3 million for the second quarter of
1999 represented a 2.5% decrease from $69.0 million for the same period in 1998.
For the six-month  period ended June 30, 1999,  consolidated  net fees of $133.9
million  represented a 0.6% decrease from $134.8  million for the same period in
1998. For both the second quarter and six-month  year-to-date periods,  indirect
costs and expenses, operating income, and net income improved as a percentage of
net fees compared to 1998.

Net fees from the Company's United States  operations  increased 0.4% from $45.1
million for the second  quarter of 1998 to $45.2  million for the same period in
1999.  For the first  six  months of 1999,  net fees from the  Company's  United
States operations  increased 2.4% from $87.9 million for the first six months of
1998 to $90.1 million.

Net fees from the Company's  International  operations decreased 7.9% from $24.0
million for the second  quarter of 1998 to $22.1  million for the same period in
1999.   For  the  first  six  months  of  1999,  net  fees  from  the  Company's
International  operations  decreased  6.3% from $46.9  million for the first six
months of 1998 to $43.9  million for the same period in 1999.  This decrease was
primarily the result of a significant  strengthening  in the value of the United
States dollar compared to the local currencies for these  operations.  The value
of the pound  sterling  compared to the United  States  dollar has declined 4.2%
since December 31, 1998.

The  Company's  gross  profit  margin of 58.9% for the  second  quarter  of 1999
reflected a small  increase  compared to 58.5% for the same period of 1998.  For
the six months ended June 30, 1999,  the Company's  gross profit margin of 59.0%
also reflected a small  increase  compared to 58.7% for the same period of 1998.
For the six month period ended June 30, 1999,  the gross profit  margin of 64.0%
for United States  operations  decreased  compared to 65.0% during the first six
months of 1998. The International Group's gross profit margin increased to 48.4%
from 47.0% for the first six months of 1999 compared to the same period in 1998,
primarily as a result of improved management of direct costs. Indirect costs and
expenses,  which include expenses related to both operations  support as well as
administrative support functions,  were $68.7 million, or 51.3% of net fees, for
the first six months of 1999, compared with $71.5 million, or 53.1% of net fees,
for the same  period  in 1998.  This  decrease  as a  percentage  of net fees is
attributable to the continued positive impact of the Company's expense reduction
initiatives in insurance costs,  professional services,  facilities expense, and
other areas.

Interest  expense was $1.0 million and $2.0  million for the second  quarter and
first six months of 1999,  respectively.  This  compares to interest  expense of
$1.1  million and $2.2  million  for the second  quarter and first six months of
1998,  respectively.  These decreases were primarily the result of the reduction
of the  Company's  outstanding  debt,  which has  declined  7.8% since  December
31,1998.

The  effective  income  tax rate was 42.0%  for the  first  six  months of 1999,
compared  to  46.0%  for the  first  six  months  of  1998.  This  decrease  was
attributable to changes in permanent book versus tax differences.

For the second quarter of 1999, the Company  recorded net income of $3.0 million
($1.33 per common share - basic and $.89 per common share - diluted) which is an
increase  from $1.8  million in 1998 ($.78 per common  share  basic and $.58 per
common share-  diluted).  For the first six months of 1999, the Company recorded
net income of $4.8 million  ($2.06 per common share - basic and $1.45 per common
share - diluted)  which is an  increase  from $3.0  million  in 1998  ($1.29 per
common share - basic and $1.02 per common share - diluted).

Currency Translation

The translation of the Company's foreign subsidiaries' financial statements into
U.S.  dollars is done in  multiple  steps.  First,  all foreign  operations  are
measured into the functional currencies of the foreign  subsidiaries'  operating
environments  by  utilizing a  combination  of  current,  monthly  average,  and
historic  exchange  rates,  with  translation  impacts  included in income.  The
foreign  subsidiaries'  functional currency financial  statements are translated
into U.S. dollars,  the Company's  reporting  currency,  utilizing month-end and
monthly  average  exchange  rates,  resulting in an adjustment to  shareholders'
equity. In addition,  transactions denominated in different currencies result in
exchange  gains or losses,  which are included in income.  The impact of foreign
currency   translation  and  exchange   transactions   included  in  income  was
significant  during  the  first  six  months  of 1999.  The  translation  of the
Company's  foreign  subsidiaries  for the first six months of 1999 resulted in a
change of $1.7 million in the foreign currency translation  adjustment component
of shareholders'  equity.  This component is reported on the company's condensed
consolidated   balance  sheet  in  the  line  item  entitled  Accumulated  Other
Comprehensive  Income.  This  fluctuation  was  caused  primarily  by  increased
strength of the U.S. dollar relative to the British pound sterling and the South
African rand from December 31, 1998 to June 30, 1999.

Debt and Short-term Borrowings

The Company reported debt and short-term borrowings of $44.3 million at June 30,
1999,  compared  to $48.1  million at December  31,  1998.  Debt and  short-term
borrowings as a percentage of total capitalization amounted to 45.6% at June 30,
1999, compared to 55.3% at December 31, 1998.

Liquidity and Capital Resources

While the Company anticipates continuing capital requirements to support growth,
expansion of services,  and capital expenditures,  the Company believes that its
cash provided by operations and borrowings  available  under its credit facility
will be sufficient to meet its requirements for the foreseeable future.

The Company's 401(k) Savings Plan (the "Plan")  permitted  employees to elect to
invest their Plan  contributions  in Company Common Stock, and provided that the
Company's matching contributions,  if any, under the Plan be made in the form of
Company Common Stock.  As of May 10, 1996, the Board of Directors of the Company
decided to terminate the use of Company Common Stock under the Plan,  whether as
employee  contributions  or as Company matching  contributions.  Consistent with
that  decision,  employees  are allowed to trade out of (but not into) shares of
the  Company's  Common  Stock  held in  their  individual  401(k)  accounts,  in
accordance with Plan provisions. Over the first six months of 1999, 6,140 shares
totaling $171,073 were traded out of the Plan and repurchased by the Company.



<PAGE>


On May 6, 1997,  the  shareholders  of the  Company  authorized  and  approved a
transaction  between the Company and Virgil R.  Williams and James M.  Williams,
Jr., each a director of the Company (collectively, the "Investors"), pursuant to
which the  Company  sold to the  Investors  (including,  in the case of James M.
Williams,  a family  partnership  that he controls) a  combination  of Preferred
Stock,  Common Stock  warrants,  and options to purchase  shares of Common Stock
(the "Options").  The Options are eligible to be exercised in various quantities
and at various  prices  through  December 31, 2006. On June 30, 1999,  Virgil R.
Williams and James M. Williams  exercised  all remaining  options to purchase an
aggregate of 584,028  shares of the Company's  Common Stock at an exercise price
of $20.00 per share.  The options  were  exercised  on June  30,1999  subject to
Hart-Scott-Rodino  approval,  which  occurred on July  23,1999.  The proceeds of
$11.7  million  received by the Company will be used  initially to pay down bank
debt and further position the Company for future growth initiatives.

Cash Provided by Operations

Cash  provided by  operations  over the first six months of 1999 of $1.3 million
decreased from $1.6 million  during the first six months of 1998.  This decrease
was primarily due to increased  working capital  requirements  for other current
assets as well as accounts payable and accrued other expenses.

Capital Expenditures

Capital  expenditures  during  the  first  six  months of 1999 and the first six
months of 1998 were $1.8  million and $2.7  million,  respectively.  In order to
continue to enhance  productivity the Company has continued,  and will continue,
its  capital   spending   programs,   particularly   for   computer   and  other
technology-related  equipment.  The Company  believes that the capital  spending
amount  allowed by its credit  facility ($7.0 million per year) is sufficient to
meet foreseeable requirements.

Dividends

Cash dividends on Common Stock have been and continue to be prohibited under the
current and  previous  bank credit  facilities.  As required by the terms of the
Company's  outstanding  Cumulative  Convertible  Redeemable  Preferred Stock and
permitted by the 1998 credit facility, the Company paid dividends to the holders
of the Preferred Stock. For the second quarter,  dividends totaled $0.2 million,
or $0.21 per preferred share. For the six months ended June 30, 1999,  dividends
totaled $0.4 million, or $0.42 per preferred share.

Year-2000

The  Company   recognizes  the  need  to  address  potential  problems  in  both
information  technology  and  non-information  technology  systems,  which could
result  in  improper  handling  of the  date  change  to the year  2000.  As the
Company's  core business  services are  engineering  and  environmental  science
professional  consulting services,  delivery of these services is not critically
dependent on any mainframe,  mini-computer or personal computer-based systems or
software applications. Where computer systems and software applications are used
to support the delivery of services to clients,  these systems and  applications
are largely personal  computer-based and are not considered likely to experience
year-2000 related problems.  For certain  applications which are used to support
administrative  operations of the Company and certain  systems and  applications
used to support the  Company's  international  operations,  year-2000  readiness
projects are currently in the process of being  implemented.  These projects are
substantially complete as of June 30,1999.

The  Company  has  spent a total of  approximately  $150,000  to  address  known
year-2000  issues.  Additionally,  the Company  does not  anticipate  a material
adverse effect on the Company's  business,  results of operations,  or financial
condition  associated  with any currently  identified or  anticipated  year-2000
readiness  issue,  inclusive of internal  systems and software  applications and
those systems of other parties with whom the Company does  business.  As part of
the Company's  contingency plan to address year-2000 matters, a centralized task
force  has  been  established  to  coordinate  identification,  evaluation,  and
implementation   of  any  year-2000   contingency  plans  or  future  compliance
requirements.  This task force is evaluating all of its major external providers
of essential goods and services for year-2000  readiness.  Based on the critical
nature of any goods or services, the task force is developing a contingency plan
regardless of the reported year-2000 readiness of the provider or industry.  The
Company  expects  all  phases  to be  substantially  complete  during  the third
quarter, 1999.

<PAGE>


While the Company is taking steps that it believes to be reasonable  and prudent
to assess the  year-2000  readiness of third  parties with whom the Company does
business,  the  failure  of any of these  third  parties  to  correct a material
year-2000  problem could result in an interruption  in, or a failure of, certain
normal  business  activities  or  operations.  Due  to the  general  uncertainty
inherent in the year-2000 problem, resulting in part from the uncertainty of the
year-2000  readiness  of third party  suppliers  and  customers,  the Company is
unable to determine at this time whether the consequences of year-2000  failures
will have a material impact on the Company's  results of operations,  liquidity,
or financial condition.  Readers are cautioned that  forward-looking  statements
contained  in this  year-2000  update  should  be read in  conjunction  with the
Company's  disclosures under the heading:  "Forward Looking  Statements,"  which
follow this section.

Forward Looking Statements

This Quarterly Report on Form 10-Q contains "forward-looking  statements" within
the  meaning  of the  Private  Securities  Litigation  Reform  Act of 1995 which
represent  the  company's  expectations  or beliefs.  These  statements by their
nature involve substantial risks and uncertainties,  certain of which are beyond
the Company's control. The Company cautions that various factors, including, but
not  limited  to,  the  factors  described  in the  Company's  filings  with the
Securities  and  Exchange  Commission,   the  uncertain  timing  of  awards  and
contracts,  increasing  competition  by foreign and  domestic  competitors,  the
impact of year-2000 issues,  general economic and regulatory  conditions in each
of the geographic  regions  served by the Company,  industry  trends,  and other
risks could cause  actual  results or outcomes to differ  materially  from those
expressed in any forward-looking statements.

Effect of Inflation

General  economic  inflation  had the effect of increasing  the Company's  basic
costs of operations.  These  increased  costs were generally  recovered  through
increases in contract prices.


ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is exposed to various  types of market risks in the normal course of
business,  including  the impact of interest  rate changes and foreign  currency
exchange  rate   fluctuations.   Except  for  the  effect  of  foreign  currency
translation discussed  previously,  there have been no material changes in these
exposures during the periods presented. For a description of these market risks,
see "Management's  Discussion and Analysis of Financial Condition and Results of
Operations" in the Company's Form 10-K.

PART II.  OTHER INFORMATION


ITEM 2.     CHANGES IN SECURITIES

On May 6, 1997,  the  shareholders  of the  Company  authorized  and  approved a
transaction  between the Company and Virgil R.  Williams and James M.  Williams,
Jr., each a director of the Company (collectively, the "Investors"), pursuant to
which the  Company  sold to the  Investors  (including,  in the case of James M.
Williams,  a family  partnership  that he controls) a  combination  of Preferred
Stock,  Common Stock  warrants,  and options to purchase  shares of Common Stock
(the "Options").  The Options are eligible to be exercised in various quantities
and at various  prices  through  December 31, 2006. On June 30, 1999,  Virgil R.
Williams and James M. Williams  exercised  all remaining  options to purchase an
aggregate of 584,028  shares of the Company's  Common Stock at an exercise price
of $20.00 per share.  The options  were  exercised  on June  30,1999  subject to
Hart-Scott-Rodino  approval,  which  occurred on July 23, 1999.  The proceeds of
$11.7  million  received by the Company will be used  initially to pay down bank
debt and position the Company for future growth initiatives.

ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Company's  Annual Meeting of Shareholders  was held May 11, 1999 in Atlanta,
Georgia for the purpose of considering and voting on a proposal (the" Proposal")
to elect seven (7)  directors  to serve on the Board of Directors of the Company
until the 2000 Annual  Meeting and until their  successors  are duly elected and
qualified.

The votes for the Proposal are detailed below:

Directors                                     For                    Withheld
------------------------                   -----------              -----------
Peter D. Brettell                           1,321,848                  60,203
Bruce C. Coles                              1,304,216                  77,835
Robert B. Fooshee                           1,328,458                  53,593
Walter T. Kiser                             1,336,887                  45,164
Steven Muller                               1,322,741                  59,310
Clay E. Sams                                1,348,922                  33,129
John Y. Williams                            1,346,588                  35,463


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

                  (a) The exhibits below are filed as part of this report

                           10.1     Supplemental Executive Retirement Plan dated
                                    May 10, 1996.

                           10.2     First Amendment to Supplemental Executive
                                    Retirement Plan dated August 10, 1999.

                           27.1     Financial Data Schedule for the six months
                                    ended June 30,1999.

                  (b) Reports on Form 8-K

                           Current  Report  on Form  8-K,  filed  May 14,  1999,
                           reporting under Item 5 the announcement of the change
                           of the name of the Company from Law Companies  Group,
                           Inc. to LawGibb Group, Inc.


<PAGE>



SIGNATURE


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


LAWGIBB GROUP, INC.




/s/ R.B. Fooshee
------------------------------------------------------------
Robert B. Fooshee
Chief Financial Officer and Treasurer


Dated:    August 13, 1999