<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 September 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)


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 November 12, 1999 was 2,619,236.
<PAGE>

                                TABLE OF CONTENTS


                                                                           PAGE
PART I.  FINANCIAL INFORMATION

         ITEM 1.  FINANCIAL STATEMENTS

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

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

         Condensed Consolidated Statements of Cash Flows
         for the Nine-Month Periods Ended September 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 6.           EXHIBITS AND REPORTS ON FORM 8-K...................10

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

<PAGE>


PART  I  FINANCIAL INFORMATION
ITEM 1.           FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEETS
LAWGIBB GROUP, INC.
(unaudited - dollars in thousands, except per share data)

Assets                                                         September 30,          December 31,
                                                                   1999                  1998
                                                            ------------------    ------------------
<S>                                                       <C>                   <C>
Current assets:
    Cash and cash equivalents                             $              9,992  $             11,022
    Billed fees receivable, net of allowance                            60,853                55,346
    Unbilled work in progress                                           30,469                31,464
    Other current assets                                                 7,254                 9,041
                                                             ------------------    ------------------
Total current assets                                                   108,568               106,873

Property and equipment, net                                             17,353                23,442
Equity investments                                                       1,482                 1,587
Goodwill, net                                                           12,846                13,250
Other assets                                                             5,333                 5,759
                                                             ------------------    ------------------
Total Assets                                              $            145,582  $            150,911
                                                             ==================    ==================

Liabilities and Shareholders' Equity

Current liabilities:
    Short-term borrowings                                 $              1,004  $                 902
    Accounts payable                                                    12,596                 15,858
    Billings in excess of costs and fees earned on
      contracts in progress                                             14,468                 13,805
    Current portion of long-term debt                                    4,535                  5,220
    Other accrued expenses                                              17,548                 16,745
    Other current liabilities                                           13,973                 15,283
                                                             ------------------    -------------------
Total current liabilities                                               64,124                 67,813

Long-term debt                                                          24,238                 41,979
Deferred income taxes                                                    1,992                  1,983
Minority interest in equity of subsidiaries                                190                    208

Cumulative convertible redeemable preferred stock -
    issued and outstanding: 963,398 shares in
    1999 and 1998                                                        9,902                  9,886
Shareholders' equity:
    Common stock--$1 par value: authorized: 10,000,000
      shares; issued and outstanding:  2,619,171 shares
      in 1999 and 2,045,870 shares in 1998
                                                                         2,619                  2,046
    Additional paid-in capital                                          29,044                 18,046
    Retained earnings                                                   21,177                 15,931
    Accumulated other comprehensive income                             (7,704)                (6,981)
                                                             ------------------    -------------------
                                                                        45,136                 29,042
                                                             ------------------    -------------------
Total Liabilities and Shareholders' Equity                $            145,582  $             150,911
                                                             ==================    ===================
</TABLE>

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 Nine Months
                                                       Ended September 30                      Ended September 30
                                                ----------------------------------      ----------------------------------
                                                     1999               1998                 1999               1998
                                                ---------------    ---------------      ---------------    ---------------
<S>                                             <C>                <C>                  <C>                <C>
Gross fees                                           $  76,243          $  79,462            $ 228,237         $  230,972
Less:  Cost of outside services                         12,346              9,817               30,394             26,559
                                                ---------------    ---------------      ---------------    ---------------

Net fees                                                63,897             69,645              197,843            204,413

Direct costs and expenses:
    Payroll                                             19,306             20,303               59,837             60,442
    Job related expenses                                 7,655              8,396               22,103             23,895
                                                ---------------    ---------------      ---------------    ---------------

Gross profit                                            36,936             40,946              115,903            120,076

Indirect costs and expenses:
    Payroll                                             15,106             16,053               47,088             47,298
    Other expenses                                      18,329             19,310               55,083             59,600
                                                ---------------    ---------------      ---------------    ---------------

Operating income                                         3,501              5,583               13,732             13,178

Other income (expense):
    Interest expense                                     (648)            (1,038)              (2,621)            (3,229)
    Deferred financing costs                              (17)               (31)                 (63)               (92)
    Other income (expense)                               (143)              (104)                 (93)                133
                                                ---------------    ---------------      ---------------    ---------------
    Income before income taxes and
      equity investments                                 2,693              4,410               10,955              9,990

Income tax provision                                   (1,131)            (1,829)              (4,601)            (4,396)

Equity investments                                          20                 16                    2                  9
                                                ---------------    ---------------      ---------------    ---------------

Net income                                               1,582              2,597                6,356              5,603

Less:  Preferred stock dividend and
       accretion                                         (282)              (283)                (846)              (847)
                                                ---------------    ---------------      ---------------    ---------------

Net income available to
  common shareholders                                $   1,300          $   2,314           $   5,510           $   4,756
                                                ===============    ===============      ===============    ===============

Basic earnings per common share                       $    .50          $    1.13            $    2.46          $    2.45
                                                ===============    ===============      ===============    ===============

Diluted earnings per common share                     $    .38           $    .81            $    1.77          $    1.87
                                                ===============    ===============      ===============    ===============

Statements of Comprehensive Income
Net income                                          $   1 ,582          $   2,597            $   6,356          $   5,603
Other comprehensive income:
   Foreign currency translation
     adjustment                                            936                797                (723)                788
                                                ---------------    ---------------      ---------------    ---------------
Comprehensive income                                 $   2,518          $   3,394            $   5,633          $   6,391
                                                ===============    ===============      ===============    ===============
</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 Nine Months
                                                                                      Ended September 30
                                                                             ------------------------------------
                                                                                   1999                1998
                                                                             -----------------    ---------------
<S>                                                                          <C>                  <C>
Operating activities
Net income                                                                         $    6,356          $   5,603
Adjustments  to  reconcile   net  income  to  net  cash  provided  by  operating
   activities:
         Depreciation and amortization                                                  5,097              5,019
         Provision for losses on receivables                                              475                399
         Deferred income taxes                                                              1            (3,663)
         Undistributed income from equity investments                                       2                (9)
         Loss on disposal of property and equipment                                       100                200

Changes in operating assets and liabilities:
         Billed fees receivable                                                       (6,628)            (3,176)
         Unbilled work in progress                                                      1,084            (2,204)
         Other current assets                                                           1,754              (191)
         Accounts payable and accrued expenses                                        (3,162)              3,320
         Billings in excess of costs and fees earned on
              contracts in progress                                                       448            (1,099)
                                                                             -----------------    ---------------
Net cash provided by operating activities                                               5,527              4,199

Investing activities
Cash used for acquisitions                                                                  -              (187)
Purchases of property and equipment                                                   (2,461)            (4,187)
Proceeds from disposal of property and equipment                                        3,815                 34
Other, net                                                                              (124)            (1,482)
                                                                             -----------------    ---------------
Net cash provided (used) by investing activities                                        1,230            (5,822)

Financing activities
Net (payments) proceeds on short-term borrowings                                          127              (305)
Net (payments) proceeds on revolving line of credit and
       long-term borrowings                                                           (18,393)             2,659
Deferred financing costs                                                                    -              (369)
Proceeds from exercise of stock options                                                11,727              2,888
Repurchase and retirement of shares                                                     (420)              (343)
Preferred dividends paid                                                                (600)              (600)
                                                                             -----------------    ---------------
Net cash provided (used) by financing activities                                      (7,559)              3,930

Effect of exchange rate changes on cash                                                 (228)                106
                                                                             -----------------    ---------------
Increase (decrease) in cash and cash equivalents                                      (1,030)              2,413
Cash and cash equivalents at beginning of period                                       11,022              9,527
                                                                             -----------------    ---------------
Cash and cash equivalents at end of period                                         $    9,992          $  11,940
                                                                             =================    ===============
</TABLE>
See accompanying notes.


<PAGE>


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 nine months ended  September 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
nine months ended  September  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 Nine Months Ended
                               September 30              September 30
                          -----------------------   -------------------------
                              1999       1998           1999         1998
                          ----------- -----------   ------------  -----------
Net Fees
United States Operations  $  42,456   $  46,281     $  132,508    $  134,191
International Operations
        United Kingdom        7,301       8,095         22,329        23,824
        Europe                3,887       4,294         12,718        12,984
        Africa                6,523       7,171         18,998        21,554
        Other                 3,730       3,804         11,290        11,860
                          ----------- -----------   ------------  -----------
Total                     $  63,897   $  69,645     $  197,843    $  204,413
                          =========== ===========   ============  ===========
Operating Income
United States Operations  $   4,100   $   4,784     $    12,749    $  11,548
International Operations
        United Kingdom        (376)           9           (103)          151
        Europe                (136)         (4)             471          321
        Africa                 (74)         786             435        1,401
        Other                  (13)           8             180        (243)
                          ----------- -----------   ------------  -----------
Total                     $   3,501   $   5,583     $    13,732    $  13,178
                          =========== ===========   ============  ===========

                          September 30, December 31,
                              1999        1998
                          ----------- -----------
Assets
United States Operations  $  80,146   $  84,801
International Operations
        United Kingdom       35,623      37,373
        Europe                7,377       4,875
        Africa               14,283      15,636
        Other                 8,153       8,226
                          ----------- -----------
Total                     $ 145,582   $ 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 Quarters Ended                For the Nine Months Ended
                                                           September 30                            September 30
                                                 ---------------------------------------------------------------------------
                                                       1999              1998                1999              1998
                                                 ---------------------------------------------------------------------------
<S>                                              <C>                <C>                <C>               <C>
Numerator:
   Net income                                    $   1,582          $  2,597           $     6,356       $     5,603
   Preferred stock dividends and accretion            (282)             (283)                 (846)             (847)
                                                 ---------------------------------------------------------------------------
   Numerator for basic earnings per share -
    income available to common shareholders          1,300             2,314                 5,510             4,756

   Effect of dilutive securities:
      Preferred stock dividends and accretion                            283                                     565
                                                 ---------------------------------------------------------------------------
      Numerator for diluted earnings per
      share - income available to common
      shareholders                               $   1,300          $  2,597           $     5,510       $     5,321

Denominator:
   Denominator for basic earnings per share -
    weighted-average shares                          2,622             2,051                 2,239             1,941

   Effect of dilutive securities:
       Employee stock options                          199                90                   191                79
       Other stock options                                               115                    90                70
       Cumulative convertible redeemable
        preferred stock and associated
        common stock warrants                          614               957                   588               750
                                                 ---------------------------------------------------------------------------

   Dilutive potential common shares                    813             1,162                   869               899
                                                 ---------------------------------------------------------------------------

      Denominator for diluted earnings per
      share-adjusted weighted-average shares         3,435             3,213                 3,108             2,840
                                                 ===========================================================================

Basic earnings per common share                  $     .50          $   1.13           $      2.46       $      2.45
                                                 ===========================================================================

Diluted earnings per common share                $     .38          $    .81           $      1.77       $      1.87
                                                 ===========================================================================
</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 nine 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       Nine Month Periods Ended       Increase
                      September 30          (Decrease)          September 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%         (8.3%)           100.0%       100.0%            (3.2%)

Gross profit        57.8%      58.8%         (9.8%)            58.6%        58.7%            (3.5%)

Indirect costs
  and expenses      52.3%      50.8%         (5.5%)            51.6%        52.3%            (4.4%)

Operating income     5.5%       8.0%        (37.3%)             6.9%         6.4%             4.2%

Net income           2.5%       3.7%        (39.1%)             3.2%         2.7%            13.4%

</TABLE>

Results of Operations

Improved  management of indirect  costs and expenses  resulted in an increase of
13.4% in net income for the nine months ended  September 30, 1999,  although for
the quarter there was a decrease of 39.1% in net income.  Consolidated  net fees
of $63.9 million for the third quarter of 1999  represented a 8.3% decrease from
$69.6  million  for the same period in 1998.  For the  nine-month  period  ended
September 30, 1999,  consolidated net fees of $197.8 million  represented a 3.2%
decrease  from $204.4  million for the same period in 1998.  For the  nine-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  decreased 8.2% from $46.3
million  for the third  quarter of 1998 to $42.5  million for the same period in
1999.  For the first nine  months of 1999,  net fees from the  Company's  United
States  operations  decreased 1.3% from $134.2 million for the first nine months
of 1998 to $132.5  million.  This decrease is generally  reflective of increased
competition in some of the markets served.

Net fees from the Company's  International  operations decreased 8.6% from $23.4
million  for the third  quarter of 1998 to $21.4  million for the same period in
1999.  For  the  first  nine  months  of  1999,  net  fees  from  the  Company's
International  operations  decreased  7.0% from $70.2 million for the first nine
months of 1998 to $65.3  million  for the same period in 1999.  Contributing  to
this  decrease  has been the  delayed  startup  of  certain  projects  due to an
earthquake in Eastern Europe and other client delays.  The delayed  projects are
expected to commence in future  periods.  Another factor  impacting the decrease
has been the  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 2.5% since December 31, 1998.

The  Company's  gross  profit  margin  of 57.8% for the  third  quarter  of 1999
reflected a small  decrease  compared to 58.8% for the same period in 1998.  For
the nine months ended  September 30, 1999, the Company's  gross profit margin of
58.6% also reflected a small  decrease  compared to 58.7% for the same period of
1998.  For the nine month period  ended  September  30,  1999,  the gross profit
margin of 64.1% for United States operations  decreased compared to 64.8% during
the nine  months of 1998.  The  decrease  is  generally  a result  of  increased
competitive  pressure in some of the U.S.  markets.  The  International  Group's
gross profit  margin  increased to 47.5% from 47.1% for the first nine 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 $102.2  million,  or 51.6% of net fees,  for the first nine months of 1999,
compared with $106.9 million, or 52.3% 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 $.65  million and $2.6  million for the third  quarter and
first nine months of 1999,  respectively.  This compares to interest  expense of
$1.0  million and $3.2  million  for the third  quarter and first nine months of
1998, respectively. These decreases were primarily the result of the significant
reduction of the  Company's  outstanding  debt,  which has declined  38.1% since
December 31,1998.

The  effective  income  tax rate was 42.0% for the  first  nine  months of 1999,
compared to 44.0% for the first nine months of 1998. This decrease was primarily
attributable to changes in items not deductible for tax purposes.

For the third quarter of 1999,  the Company  recorded net income of $1.6 million
($.50 per common share - basic and $.38 per common  share - diluted)  which is a
decrease  from $2.6  million in 1998 ($1.13 per common  share basic and $.81 per
common share- diluted).  For the first nine months of 1999, the Company recorded
net income of $6.4 million  ($2.46 per common share - basic and $1.77 per common
share - diluted)  which is an  increase  from $5.6  million  in 1998  ($2.45 per
common share - basic and $1.87 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 not
significant  during  the first  nine  months  of 1999.  The  translation  of the
Company's  foreign  subsidiaries for the first nine months of 1999 resulted in a
change of $.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  movement  was caused  primarily  by the  increased
strength of the U.S. dollar relative to the British pound sterling and the South
African rand from December 31, 1998 to September 30, 1999.

Debt and Short-term Borrowings

The  Company  reported  debt  and  short-term  borrowings  of $29.8  million  at
September  30, 1999,  compared to $48.1  million at December 31, 1998.  Debt and
short-term borrowings as a percentage of total capitalization  amounted to 35.1%
at September 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 nine  months of 1999,  11,680
shares  totaling  $331,000  were traded out of the Plan and  repurchased  by the
Company.

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  proceeds  of $11.7  million was used to pay down bank
debt to further position the Company for future growth initiatives.

On  September  30,  1999,  the Company  consummated  a  transaction  to sell its
laboratory facility in Pensacola, Florida for $3.7 million. The proceeds will be
used to pay down bank debt to further  position  the Company  for future  growth
initiatives.

Cash Provided by Operations

Cash provided by  operations  over the first nine months of 1999 of $5.5 million
increased from $4.2 million during the first nine months of 1998.  This increase
was  primarily  due to  improved  net income and the  conclusion  in 1998 of tax
payments associated with a change in tax accounting methods.

Capital Expenditures

Capital  expenditures  during the first  nine  months of 1999 and the first nine
months of 1998 were $2.5 million and $4.2 million, respectively,  reflecting the
Company's  continued  deliberate approach to capital  expenditures.  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 third quarter,  dividends  totaled $0.2 million,
or $0.21 per  preferred  share.  For the nine months  ended  September  30,1999,
dividends totaled $0.6 million, or $0.62 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 have been substantially completed.

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 completed during the fourth quarter of 1999.

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.





























<PAGE>


PART II.  OTHER INFORMATION


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

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

27.1 Financial Data Schedule for the nine months ended September 30,1999.

                  (b) Reports on Form 8-K

                           None

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:    November 12, 1999