U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   FORM 10-QSB

              [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 2003
                                                 --------------

             [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                        For the transition period from to

                        Commission file number 000-24498


                       DIAMOND HILL INVESTMENT GROUP, INC
                       ----------------------------------
                 (Name of small business issuer in its charter)


                          Ohio                         65-0190407
             -------------------------------------------------------
             (State or other jurisdiction of        (I.R.S. Employer
              incorporation or organization)       Identification No.)


             375 North Front Street, Suite 300, Columbus, Ohio 43215
             -------------------------------------------------------
               (Address of principal executive offices) (Zip Code)


                    Issuer's telephone number (614) 255-3333
                                              --------------

State the number of shares outstanding of each of the issuer's classes of common
equity, as of April 29, 2003:
     Common Stock: 1,409,467 shares

Transitional Small Business Disclosure Format (check one): Yes [ ]; No [X]

                                       1
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES

                                                                            PAGE
                                                                            ----
Part I:   FINANCIAL INFORMATION                                             3-17

          Item 1.   Financial Statements:                                   3-12

                      Consolidated Statements of Financial Condition
                      as March 31, 2003 (unaudited)                            4

                      Consolidated Statements of Operations for the
                      Three Months Ended March 31, 2003 and 2002
                      (unaudited)                                              5

                      Consolidated Statements of Cash Flow for the
                      Three Months Ended March 31, 2003 and 2002
                      (unaudited)                                              6

                      Notes to the Consolidated Financial Statements        7-12

          Item 2.   Management's Discussion and Analysis or
                      Plan of Operation                                    13-16

          Item 3.   Controls and Procedures                                   17

Part II:  OTHER INFORMATION                                                   17

          Item 1.   Legal Proceedings                                         17

          Item 2.   Changes in Securities                                     17

          Item 3.   Defaults Upon Senior Securities                           17

          Item 4.   Submission of Matters to a Vote of Security Holders       17

          Item 5.   Other Information                                         17

          Item 6.   Exhibits and Reports on Form 8-K                          17

Signatures                                                                    18

Certifications for Quarterly Report on Form 10-QSB                         19-20

                                       2
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES

PART I    FINANCIAL INFORMATION

ITEM 1:   FINANCIAL STATEMENTS

The  accompanying  consolidated  financial  statements,  which should be read in
conjunction with the  consolidated  financial  statements and footnotes  thereto
included  in the  Company's  Annual  Report on Form  10-KSB  for the year  ended
December 31, 2002,  are  unaudited,  but have been prepared in  accordance  with
generally  accepted  accounting  principles for interim  financial  information.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting  principles for complete financial  statements.
In the  opinion  of  management,  all  adjustments  (consisting  only of  normal
recurring  adjustments)  considered  necessary for a fair presentation have been
included.

Operating  results for the three months ended March 31, 2003 are not necessarily
indicative of the results that may be expected for the entire fiscal year ending
December 31, 2003

                                       3
<PAGE>


              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
                              As of March 31, 2003

                                    UNAUDITED
                                    ---------

<TABLE>
<CAPTION>
                                     ASSETS
<S>                                                                      <C>
Cash                                                                     $    158,874
Investment portfolio (note 3 and 4):
     Mutual fund shares and limited partnership interests                   2,697,482
     Marketable equity securities, at market value                              5,510
     Not readily marketable equity securities, at estimated fair value        118,683
Accounts receivable:
     Investment products                                                       84,416
     Other                                                                         --
Property and equipment, net of accumulated depreciation of $107,487           155,548
     and $97,885, respectively
Deposits and other                                                            131,964
                                                                         ------------

          Total assets                                                   $  3,352,477
                                                                         ============

                                  LIABILITIES

Accounts payable to broker-dealers and other                             $        416
Accrued expenses                                                              210,106
                                                                         ------------

          Total liabilities                                                   210,522
                                                                         ------------

                              SHAREHOLDERS' EQUITY

Common stock: (note 5)
     No par value, 7,000,000 shares authorized,
          1,827,972 shares issued and 1,409,467 shares outstanding         10,027,613
     Treasury stock, at cost
          (418,505 shares)                                                 (2,394,510)
     Deferred compensation                                                    (11,033)
Accumulated deficit                                                        (4,480,115)
                                                                         ------------

          Total shareholders' equity                                        3,141,955
                                                                         ------------

          Total liabilities and shareholders' equity                     $  3,352,477
                                                                         ============
</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       4
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
          For the Three Months Ended March 31, 2003 and March 31, 2002

                                    UNAUDITED
                                    ---------

                                                      2003             2002
                                                  ------------     ------------

INVESTMENT MANAGEMENT FEES:
 Mutual funds                                     $     87,997     $     82,925
 Managed accounts                                      106,786           49,724
 Private Partnership                                    12,255            1,374
                                                  ------------     ------------

  Total investment management fees                     207,038          134,023
                                                  ------------     ------------

OPERATING EXPENSES:
 Salaries, benefits and payroll taxes                  378,897          383,398
 Legal and audit                                        10,243           59,966
 General and administrative                            131,901          135,877
 Sales and marketing                                    31,835           55,342
                                                  ------------     ------------

  Total operating expenses                             552,876          634,583
                                                  ------------     ------------

Mutual fund administration, net (note 7)               (62,800)         (70,493)

Mutual fund distribution, net (note 8)                 (32,539)         (19,925)

Broker-dealer activity, net (note 9)                    (6,637)          (5,949)
                                                  ------------     ------------

NET OPERATING INCOME (LOSS)                           (447,814)        (596,927)
                                                  ------------     ------------

Investment return, net of interest expense             (55,558)         338,106
                                                  ------------     ------------

INCOME (LOSS) BEFORE TAXES                            (503,372)        (258,821)
                                                  ------------     ------------

Income Tax Provision (Credit)                               --               --
                                                  ------------     ------------

NET INCOME (LOSS)                                 $   (503,372)    $   (258,821)
                                                  ============     ============

Basic Earnings (Loss) Per Share                   $      (0.36)    $      (0.18)
                                                  ============     ============
Diluted Earnings (Loss) Per Share                 $      (0.36)    $      (0.18)
                                                  ============     ============


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       5
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
               For the Three Months Ended March 31, 2003 and 2002

                                    UNAUDITED
                                    ---------

<TABLE>
<CAPTION>
                                                                2003             2002
                                                            ------------     ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                         <C>              <C>
 Net income (loss)                                          $   (503,372)    $   (258,821)
 Adjustments to reconcile net income (loss)
 to net cash provided by (used in) operating activities:
  Depreciation and amortization                                    9,602           14,140
  Amortization of deferred compensation                            4,141            7,148
  Unrealized (gain) loss                                          24,384         (301,850)
  (Increase) decrease in certain assets-
   Investment portfolio                                          (55,577)          40,675
   Accounts receivable
    Investment products                                            5,443          (19,487)
    Other                                                            118              601
   Deposits and other                                             26,724           (1,209)
  Increase (decrease) in certain liabilities-
   Accounts payable to broker-dealers and other                      416            2,840
   Accrued expenses and other                                    (46,090)         (66,996)
                                                            ------------     ------------
    Net cash used in operating activities                       (534,211)        (582,959)
                                                            ------------     ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
 Purchase of property and equipment                                   --               --
 Proceeds from sale of property and equipment                         --               --
                                                            ------------     ------------
    Net cash used in investing activities                             --               --
                                                            ------------     ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Exercise of stock options                                         3,910               --
 Purchase of treasury stock                                           --         (169,200)
                                                            ------------     ------------
    Net cash provided (used) in financing activities               3,910         (169,200)
                                                            ------------     ------------

NET DECREASE IN CASH                                            (530,301)        (752,159)

CASH, BEGINNING OF PERIOD                                        689,175        1,174,026
                                                            ------------     ------------

CASH, END OF PERIOD                                         $    158,874     $    421,867
                                                            ============     ============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

 Cash paid during the period for:
  Interest                                                  $         --     $         --
  Income taxes                                                        --               --
</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       6
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2003

Note 1    ORGANIZATION AND NATURE OF BUSINESS
          -----------------------------------

Diamond  Hill  Investment  Group,  Inc.  (the  Company)  is an Ohio  corporation
incorporated in May 2002, previously a Florida corporation since April 1990. The
Company has two subsidiary operating companies.

Diamond Hill Capital Management,  Inc. (DHCM), an Ohio corporation,  is a wholly
owned subsidiary of the Company and a registered investment advisor. DHCM is the
investment  adviser to the Diamond Hill Focus Fund, Diamond Hill Small Cap Fund,
Diamond  Hill Large Cap Fund,  Diamond  Hill Short  Term Fixed  Income  Fund and
Diamond Hill  Strategic  Income Fund,  open-end  mutual funds,  which are each a
series in the Diamond Hill Funds trust.  DHCM is also the investment  adviser to
the Diamond  Hill  Investment  Partners,  L.P. and offers  advisory  services to
institutional and individual investors.

Diamond Hill  Securities,  Inc.  (DHS), an Ohio  corporation,  is a wholly owned
subsidiary of DHCM and a NASD registered  broker-dealer.  DHS is registered with
the  Securities and Exchange  Commission  and the securities  commissions of ten
states (including Ohio) and the District of Columbia. DHS trades securities on a
fully-disclosed  basis and clears customer  transactions through an unaffiliated
broker-dealer  that  also  maintains  the  customer  accounts.  DHS  is  also  a
registered  investment advisor and offers advisory services to institutional and
individual  investors.  DHS is the investment adviser to the Diamond Hill Bank &
Financial Fund, which is a series in the Diamond Hill Funds trust.

Note 2    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
          ------------------------------------------

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect the reported  amounts of assets and liabilities and the reported  amounts
of revenues and expenses for the periods. Actual results could differ from those
estimates.  The following is a summary of the Company's  significant  accounting
policies:

Principles of Consolidation
---------------------------

The accompanying consolidated financial statements include the operations of the
Company, DHCM and DHS. All material inter-company transactions and balances have
been eliminated in consolidation.

Cash
----

The Company has defined  cash as demand  deposits,  certificate  of deposits and
money market accounts. The Company maintains its cash in seven accounts with two
financial institutions.

Accounts Receivable
-------------------

Accounts  receivable  are  recorded  when they are due and are  presented in the
statement of financial  condition net of any  allowance  for doubtful  accounts.
Accounts   receivable   are  written  off  when  they  are   determined   to  be
uncollectible. Any allowance for doubtful accounts is estimated on the Company's
historical  losses,  existing  conditions  in the  industry,  and the  financial
stability  of  those  individuals  that owe the  receivable.  No  allowance  for
doubtful accounts was deemed necessary at March 31, 2003.

Valuation of Investment Portfolio
---------------------------------

Securities  and  related  options  traded on  national  securities  markets  and
securities  not  traded  on  national  securities  markets,   but  with  readily
ascertainable  market values, are valued at market value. Other securities,  for
which  market  quotations  are not  readily  available,  due to  infrequency  of
transactions,  are  valued  at fair  value as  determined  in good  faith by the
management of the Company. Realized and unrealized gains and losses are included
in investment profits and losses.

                                       7
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2003

Note 2    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
          ------------------------------------------------------

Limited Partnership Interests
-----------------------------

DHCM is the managing  member of Diamond Hill General  Partner,  LLC, the General
Partner of Diamond Hill Investment Partners,  L.P. (DHIP), a limited partnership
whose underlying assets consist of marketable  securities.  DHCM's investment in
DHIP is accounted for using the equity  method,  under which DHCM's share of the
net earnings or losses of the  partnership  is reflected in income as earned and
distributions  received  are  reflected as  reductions  of the  investment.  The
Company is actively seeking additional  unaffiliated investors for DHIP. Several
board members, officers and employees of the Company are members in Diamond Hill
General Partner,  LLC. The capital of Diamond Hill General  Partner,  LLC is not
subject to a management fee or an incentive fee.

Property and Equipment
----------------------

Property  and  equipment,  consisting  of  computer  equipment,  furniture,  and
fixtures,  is carried at cost less  accumulated  depreciation.  Depreciation  is
calculated using the straight-line  method over estimated lives of five to seven
years.

Reclassifications
-----------------

The  consolidated  statement of operations  for the three months ended March 31,
2002, has been  reclassified to conform to the  presentation of the consolidated
statement  of  operations  for the three  months  ended  March 31,  2003.  These
reclassifications  have had no effect  on the  operating  results  for the three
months ended March 31, 2002.

Revenues
--------

Securities  transactions  and  commissions  are  accounted for on the trade date
basis.  Dividend income is recorded on the ex-dividend  date and interest income
is accrued as earned.  Realized  gains and losses from sales of  securities  are
determined utilizing the first-in, first-out method (FIFO).

Earnings Per Share
------------------

Basic and diluted  earnings  per common share are  computed in  accordance  with
Statement of Financial  Accounting  Standards  No. 128,  "Earnings per Share." A
reconciliation of the numerators and denominators used in these  calculations is
shown below:

For the three months ended March 31, 2003:

                       Numerator     Denominator     Amount
                      ----------     ----------    ----------

  Basic Earnings      $ (503,372)     1,409,367    $    (0.36)

  Diluted Earnings    $ (503,372)     1,409,367    $    (0.36)

For the three months ended March 31, 2002:

                       Numerator     Denominator     Amount
                      ----------     ----------    ----------

  Basic Earnings      $ (258,821)     1,453,950    $    (0.18)

  Diluted Earnings    $ (258,821)     1,453,950    $    (0.18)

Stock  options and warrants  have not been  included in the  denominator  of the
diluted  per-share  computations  because the effect of their inclusion would be
anti-dilutive.

                                       8
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2003

Note 2    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
          ------------------------------------------------------

Fair Value of Financial Instruments
-----------------------------------

Substantially  all of the Company's  financial  instruments  are carried at fair
value  or  amounts   approximating  fair  value.   Assets,   including  accounts
receivable,  notes and interest  receivable and securities  owned are carried at
amounts that approximate fair value. Similarly, liabilities,  including accounts
payable and accrued expenses are carried at amounts approximating fair value.

Note 3    INVESTMENT PORTFOLIO
          --------------------

Investment  portfolio  balances,  which  consist  of  securities  classified  as
trading, are comprised of the following at March 31, 2003:

<TABLE>
<CAPTION>
                                                               Unrealized     Unrealized
                                     Market         Cost         Gains          Losses
                                   ----------    ----------    ----------     ----------
<S>                                <C>           <C>           <C>            <C>
  Mutual fund shares and
  limited partnership interest     $2,697,482    $2,673,890    $   23,592     $       --

  Marketable equity securities          5,510        13,313            --         (7,803)

  Not readily marketable equity
  securities
                                      118,683       313,700         1,800       (196,817)
                                   ----------    ----------    ----------     ----------

  Total                            $2,821,675    $3,000,903    $   25,392     $ (204,620)
                                   ==========    ==========    ==========     ==========
</TABLE>

Marketable  equity  securities  at March 31,  2003,  consist  primarily  of bank
stocks, at market value, as follows:

                                                    2003
                                                 ----------
  Traded on national securities market           $    5,510

  Not traded on a national securities market,
  but readily ascertainable market value                 --
                                                 ----------

  Total                                          $    5,510
                                                 ==========

As of March 31,  2003,  the  Company  had only one  individual  equity  security
investment representing its marketable equity securities.

                                       9
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2003

Note 3    INVESTMENT PORTFOLIO (Continued)
          --------------------------------

DHCM is the  managing  member the  General  Partner of Diamond  Hill  Investment
Partners,   L.P.,  whose  underlying  assets  consist  primarily  of  marketable
securities.   The  General  Partner  is  contingently  liable  for  all  of  the
partnership's liabilities.

Summary financial information, including the Company's carrying value and income
from this  partnership  at March 31, 2003 and 2002 and for the years then ended,
is as follows:

                                           2003             2002
                                       ------------     ------------

  Total assets                         $ 13,051,107     $  8,750,366
  Total liabilities                       4,924,134        2,439,514
  Net assets                              8,126,973        6,310,852
  Net fair market value of earnings        (899,110)         415,195

  DHCM's carrying value                   1,000,589        3,292,222
  DHCM's income                            (109,119)         227,786


DHCM's income from this partnership includes its pro-rata capital allocation and
its share of an incentive  allocation  from the limited  partners.  In addition,
DHCM earns an  administrative  fee payable  quarterly at the rate of .25% of the
value of the limited partners' capital accounts.

Note 4    LINE OF CREDIT
          --------------

The Company  obtained a line of credit loan with a maximum  principal  amount of
$325,000 on August 28, 2002 at an annual percentage  interest rate of prime plus
0.50%,  which is currently  4.75%. The balance due on the line of credit loan at
March 31, 2003 was zero ($0). A portion of the  Company's  investment  portfolio
secures this loan. The line of credit loan is due to mature on August 28, 2003.

Note 5    CAPITAL STOCK
          -------------

Common Stock
------------

The Company has only one class of securities, Common Stock.

Treasury Stock
--------------

On July 17, 2000,  the Company  announced a program to  repurchase up to 400,000
shares  of  its  Common  Stock  through  open  market  purchases  and  privately
negotiated  transactions.  From July 17, 2000 through  December  31,  2001,  the
Company  purchased  281,597 shares of its Common Stock for  $1,716,407.  For the
three months ended March 31, 2002,  the Company  purchased  42,300 shares of its
Common  Stock for  $169,200.  For the three  months  ended March 31,  2003,  the
Company  did not  purchase  any of its shares of Common  Stock.  As of March 31,
2003, the Company has purchased  352,897  shares for $2,009,107  pursuant to the
aforementioned 400,000 share repurchase program.

Authorization of Preferred Stock
--------------------------------

The  Company's  Articles of  Incorporation  authorize  the issuance of 1,000,000
shares of "blank  check"  preferred  stock  with such  designations,  rights and
preferences,  as may be determined  from time to time by the Company's  Board of
Directors. The Board of Directors is empowered, without shareholder approval, to
issue preferred stock with dividend,  liquidation,  conversion, voting, or other
rights,  which could adversely  affect the voting or other rights of the holders
of the  Common  Stock.  There  were no  shares  of  preferred  stock  issued  or
outstanding at March 31, 2003.

                                       10
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2003

Note 6    OPERATING LEASES
          ----------------

The Company leases office space under an operating lease agreement effective May
1, 2002,  which  terminates on May 31, 2005.  Total lease expenses for the three
months ended March 31, 2003 were  $30,000.  The future  minimum  lease  payments
under the operating lease are as follows:

                     Year Ended           Amount
                   --------------       ----------

                        2003               120,000
                        2004               120,000
                        2005                50,000

Note 7    MUTUAL FUND ADMINISTRATION
          --------------------------

DHCM  has an  administrative,  fund  accounting  and  transfer  agency  services
agreement  with Diamond Hill Funds,  an Ohio  business  trust,  under which DHCM
performs certain  services for each series of the trust.  These services include
mutual  fund  administration,  accounting,  transfer  agency  and other  related
functions.  For performing these services,  each series of the trust compensates
DHCM a fee at an annual  rate of 0.45%  times  each  series'  average  daily net
assets.  DHCM  collected  $49,060 and  $40,609  for mutual  fund  administration
revenue for the three  months  ended March 31, 2003 and 2002,  respectively.  In
fulfilling its role under this agreement,  DHCM has engaged several  third-party
providers,  and the cost for  their  services  are  paid by  DHCM.  Mutual  fund
administration  expense for the three  months ended March 31, 2003 and 2002 were
$111,860 and $111,102, respectively.

Note 8    MUTUAL FUND DISTRIBUTION
          ------------------------

DHS is the principal underwriter for Diamond Hill Funds, an Ohio business trust,
and may pay  third-party  financial  institutions a fee for  distribution or for
performing  certain  servicing  functions  for  mutual  fund  shareholders.  For
performing  distribution  functions,  DHS collects  front-end and back-end sales
loads,  ranging  from 1.00% to 5.75% and/or  underwriting  fees of 0.50% on fund
investments.  DHS also collects  12b-1 fees at an annual rate ranging from 0.25%
to 1.00% times each series' average daily net assets.  Mutual fund  distribution
revenue for the three  months  ended  March 31,  2003 and 2002 were  $28,903 and
$22,354,  respectively.  DHS also pays for the production of marketing materials
used in the  distribution  of the Diamond Hill Funds.  Mutual fund  distribution
expense for the three  months  ended  March 31,  2003 and 2002 were  $61,442 and
$42,279, respectively.

Note 9    BROKER-DEALER ACTIVITY
          ----------------------

DHS is a  registered  full-service  broker-dealer  transacting  security  trades
through its  clearing  broker  under a  correspondent  agreement.  For the three
months  ended  March  31,  2003  and  2002,   broker-dealer  activity  expenses,
principally  clearing charges and regulatory fees,  totaled $22,270 and $46,010,
respectively.  DHS earns  commissions  and  service  fees  related  to  business
transacted  through  its  clearing  broker,  along with  gains and  losses  from
market-making  activities.  Broker-dealer  activity revenue for the three months
ended March 31, 2003 and 2002 were $15,633 and $40,061, respectively.

                                       11
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2003

Note 10   REGULATORY REQUIREMENTS
          -----------------------

DHS is subject to the uniform net capital  rule of the  Securities  and Exchange
Commission   (Rule  15c3-1),   which  requires  that  the  ratio  of  "aggregate
indebtedness" to "net capital" not exceed 15 to 1 (as those terms are defined by
the Rule).  DHS had net capital of $261,207 as of March 31,  2002,  which was in
excess of its required  minimum net capital of $100,000.  The ratio of aggregate
indebtedness  to net  capital  was 0.46 to 1 as of March 31,  2002.  DHS is also
subject to regulations of the District of Columbia and ten states in which it is
registered as a licensed broker-dealer.

DHCM and DHS are registered investment advisers and subject to regulation by the
SEC pursuant to the Investment Advisors Act of 1940.

Note 11   CONCENTRATIONS   OF  CREDIT  RISK  AND  FINANCIAL   INSTRUMENTS   WITH
          ----------------------------------------------------------------------
          OFF-BALANCE SHEET RISK
          ----------------------

DHS, under a  correspondent  agreement with its clearing  broker,  has agreed to
indemnify  the clearing  broker from damages or losses  resulting  from customer
transactions.  The Company is,  therefore,  exposed to off-balance sheet risk of
loss in the event that customers are unable to fulfill contractual  obligations.
The Company manages this risk by requiring  customers to have sufficient cash in
their account before a buy order is executed and to have the subject  securities
in their account  before a sell order is executed.  The Company has not incurred
any losses from customers unable to fulfill contractual obligations.

In the normal course of business,  the Company periodically sells securities not
yet  purchased  (short  sales)  for its own  account  and  writes  options.  The
establishment  of short  positions and option  contracts  exposes the Company to
off-balance sheet market risks in the event prices change, as the Company may be
obligated to cover such  positions at a loss. At March 31, 2003, the Company had
no short security  positions,  had not written any option  contracts and did not
own any options.  The Company did not  experience  any credit  losses due to the
failure of any counterparties to perform during the three months ended March 31,
2003.  Senior  management of the Company is  responsible  for reviewing  trading
positions,  exposures,  profits  and  losses,  trading  strategies  and  hedging
strategies on a daily basis.

                                       12
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES

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

Forward-looking Statements
--------------------------

Throughout  this  discussion,  the Company may make  forward-looking  statements
relating  to such  matters  as  anticipated  operating  results,  prospects  for
achieving  the  critical  threshold of assets  under  management,  technological
developments,  economic trends (including interest rates and market volatility),
expected  transactions and  acquisitions and similar matters.  While the Company
believes that the  assumptions  underlying  its  forward-looking  statements are
reasonable, any of the assumptions could prove to be inaccurate and accordingly,
the actual results and  experiences of the Company could differ  materially from
the anticipated  results or other  expectations  expressed by the Company in its
forward-looking  statements.  Factors  that could cause such  actual  results or
experiences to differ from results discussed in the  forward-looking  statements
include,  but are not  limited  to:  the  adverse  effect  from a decline in the
securities  markets; a decline in the performance of the Company's  products;  a
general  downturn in the economy;  changes in government  policy and regulation;
changes in the Company's ability to attract or retain key employees;  unforeseen
costs and other  effects  related  to legal  proceedings  or  investigations  of
governmental and self-regulatory organizations;  and other risks identified from
time-to-time in the Company's other public documents on file with the SEC.

General
-------

With the change in executive  management in May of 2000, the Company has shifted
its emphasis from its traditional  investment related activities through its DHS
subsidiary,  to the investment  advisory  services of its DHCM subsidiary.  DHCM
manages  portfolios of stocks  representing  interests in entities  operating in
various  economic  sectors,  as  opposed to a  portfolio  of bank  stocks  only.
Staffing  and  costs  associated  with  this  shift  and the  various  marketing
initiatives at DHCM negatively  impacted the Company in 2002 and may continue in
2003.  Management believes that this process was necessary in order to achieve a
critical  threshold  of assets under  management  to support  operations  in the
future.  However,  there can be no  assurance  that the Company  will be able to
achieve the  critical  threshold of assets under  management  to support  future
operations.

Assets Under Management
-----------------------

As of March 31, 2003,  assets under  management  totaled $129.4,  a 17% increase
from December 31, 2002. Assets under management grew by 64% as of March 31, 2003
in  comparison  to March 31,  2002.  Asset  growth for the three months and year
ended March 31, 2003 is not  necessarily  indicative  of the results that may be
expected for the entire  fiscal year ended  December  31, 2003.  The table below
provides a summary of assets under management:

                                    3/31/2003       12/31/2002      3/31/2002
                                   ------------    ------------    ------------
Individually Managed Account       $ 78,109,054    $ 58,297,957    $ 31,527,276
Mutual Funds                         43,180,916      44,819,496      40,899,194
Alternative Investment                8,126,973       7,210,934       6,310,852
                                   ------------    ------------    ------------
  Total Assets Under Management    $129,416,943    $110,328,387    $ 78,737,322

Three months ended March 31, 2003 compared to Three Months ended March 31, 2002
-------------------------------------------------------------------------------

Investment  management  revenues  for the three  months  ended  March  31,  2003
increased to $207,038  compared to $134,023 for the three months ended March 31,
2002, a 55%  increase.  This  increase  results  primarily  from the increase in
assets under management from which the Company derives its revenues.

The  Company  increased  its  investment  management  fees from all three of its
investment  products:  mutual funds,  managed accounts and a private  investment
partnership,  Diamond Hill Investment Partners,  L.P. ("DHIP"). Fees from mutual
funds were up 6%, for the three  months  ended March 31,  2003,  from $82,925 to
$87,997.  Fees from managed accounts posted the largest dollar increase over the
three months ended March 31, 2002, with at dollar increase of $57,062, or a 115%
increase.  Investment management fees collected from the DHIP improved the most,
relatively, over the three months ended March 31, 2002. These

                                       13
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES

fees  grew by a  multiple  of  eight,  increasing  from  $1,374  to  12,255.  In
conjunction  with the shift in emphasis to the investment  advisory  services of
DHCM,  a program  has been  initiated  to attempt  to gather  new  assets  under
management at DHCM.  Assets under  management  increased to  $129,416,943  as of
March 31, 2003, a 17% increase since December 31, 2002. However, there can be no
assurance  that the Company  will be able to achieve the  critical  threshold of
assets under management at DHCM to support future operations.

Operating  expenses  for the three  months  ended  March 31, 2003  decreased  to
$552,876  compared to $634,583  for the three  months  ended March 31,  2002,  a
decrease of 13%.  Salaries,  benefits and payroll taxes decreased to $378,897 in
2003 from $383,398 in 2002, a decrease of 1%. This decrease  reflects  personnel
changes.  Since the Company  reduced  personnel  at the end of 2002,  management
expects  salary,  benefits and payroll  taxes to decrease in 2003 as compared to
2002.  Legal and audit  expense  dropped to $10,243  from  $59,966 for the three
months  ended March 31, 2003 versus the three months ended March 31, 2002, a 83%
decrease.  Since there are no current plans for major administrative projects or
new products, management expects legal and audit professional expense to drop in
2003 as  compared to 2002.  General and  administrative  expenses  decreased  to
$131,901  in 2003  compared to  $135,877  in 2002,  a decrease of 3%.  Sales and
marketing  expense for the three months ended March 31, 2003 decreased by 43% to
$31,835 from $55,342 for the three months ended March 31, 2002.  However,  sales
and marketing costs may increase in 2003, due to increased  expenditures related
to  promoting  the  Company's   products  and  developing   relationships   with
distribution intermediaries.

Mutual fund administration,  which is administrative  services fees collected in
connection  with the  Company's  mutual  fund  products  net of all mutual  fund
administrative  expenses  paid by the Company,  decreased  from a net expense of
$70,493  for the three  months  ended  March 31,  2002 to $62,800  for the three
months ended March 31,  2003,  a 11%  decrease.  Administrative  fees  collected
increased, while administrative expenses were steady, for the three months ended
March 31,  2003  versus  the three  months  ended  March 31,  2002.  DHCM has an
administrative,  fund accounting and transfer agency services agreement with the
Diamond Hill Funds,  where DHCM performs certain services for each series of the
trust. These services include mutual fund administration,  accounting,  transfer
agency  and  other  related  functions.   For  performing  these  administrative
services,  each series of the trust  compensates DHCM a fee at an annual rate of
0.45% times each series'  average daily net assets.  DHCM collected  $49,060 and
$40,609 for mutual fund administration  revenue for the three months ended March
31, 2003 and 2002,  respectively.  In fulfilling its role under this  agreement,
DHCM has engaged several  third-party  providers and the cost for their services
are paid by DHCM. Mutual fund administration  expense for the three months ended
March 31, 2003 and 2002 were  $111,860  and  $111,102,  respectively.  As assets
under  management  grow in the mutual fund  products,  the Company  expects fees
collected to increase, while the Company expects expenses paid to remain steady;
therefore,  causing  the net mutual fund  administration  expense to continue to
decrease.

Mutual  fund  distribution,   which  includes  distribution  fees  collected  in
connection  with sales of the  Company's  mutual  funds net of all  mutual  fund
distribution expenses paid by the Company, increased to a net expense of $32,539
for the three  months  ended  March 31, 2003 from  $19,925 for the three  months
ended March 31, 2002, a 63%  increase.  Both mutual fund  distribution  fees and
expense  increased during the three months ended March 31, 2003 versus the three
months ended March 31,  2002;  although  expense grew by a larger  margin due to
increased expenses paid to have the mutual funds on distribution platforms.  For
performing these  distribution  functions,  DHS collects  front-end and back-end
sales loads,  ranging from 5.75% to 1.00% and/or  underwriting  fees of 0.50% on
fund  investments.  DHS also collects  12b-1 fees at an annual rate ranging from
0.25% to 1.00%  times  each  series'  average  daily  net  assets.  Mutual  fund
distribution  revenue  for the three  months  ended March 31, 2003 and 2002 were
$28,903 and $22,354,  respectively. DHS is the principal underwriter for Diamond
Hill  Funds,  an  Ohio  business  trust,  and  may  pay  third-party   financial
institutions  a  fee  for  distribution  or  for  performing  certain  servicing
functions  for mutual fund  shareholders.  DHS also pays for the  production  of
marketing  materials used in the distribution of the Diamond Hill Funds.  Mutual
fund  distribution  expense for the three  months  ended March 31, 2003 and 2002
were $61,442 and $42,279,  respectively.  As assets under management grow in the
mutual fund products, the Company expects fees collected to increase,  while the
Company  expects  expenses  paid to remain  steady;  therefore,  causing the net
mutual fund distribution expense to decrease.

                                       14
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES

Broker-dealer  activity,   which  is  revenue  from  security  transactions  and
market-making  activity  net  of  broker-dealer  expenses  which  are  comprised
principally of clearing costs and regulatory fees, increased to a net expense of
6,637 for the three months ended March 31, 2003 from $5,949 for the three months
ended  March  31,  2002,  a  $688  increase.  DHS is a  registered  full-service
broker-dealer  transacts  security  trades  through its clearing  broker under a
correspondent  agreement.  For the three  months  ended March 31, 2003 and 2002,
broker-dealer  activity  expenses were $22,270 and $46,010,  respectively.  This
decrease is largely due to the reduction in overhead and commission expense from
reduced  activity.  DHS earns  commissions  and service fees related to business
transacted  through  its  clearing  broker,  along with  gains and  losses  from
market-making  activities.  Broker-dealer  activity revenue for the three months
ended  March 31,  2003 and 2002 were  $15,633  and  $40,061,  respectively.  The
decrease in revenue is  primarily  due the  reduction in  commissions  received,
which  decreased  by 60% to $14,464  for the three  months  ended March 31, 2003
compared to $36,185 for the three months ended March 31,  2002.  In  conjunction
with the Company's  shift in emphasis from its  traditional  investment  related
activities  through DHS, to the  investment  advisory  services of DHCM,  broker
dealer activities through DHS have declined.  It is expected for 2003, that this
level of expense in 2002 will be maintained or will increase.

The  Company's  net  operating  loss  decreased to $447,814 for the three months
ended March 31, 2003 from  $596,927 for the three months ended March 31, 2002, a
25% improvement.

Investment return,  net of interest expense,  decreased to a loss of $55,558 for
the three  months  ended March 31,  2003 from a gain of  $338,106  for the three
months ended March 31,  2003,  a 116%  decrease.  This  investment  loss results
primarily  from  decreases  in  market  values  of  investments  in the  limited
partnership interest. Management is unable to predict how future fluctuations in
market  values  will  impact  the   performance  of  the  Company's   investment
portfolios.  Dividend  income  increased by 159% to $29,945 for the three months
ended March 31, 2003  compared to $11,577 for the three  months  ended March 31,
2002.  In 2003,  dividend  income may  increase  versus  2002 since the  Company
reallocated  approximately  $1.5  million  of its  investments  from DHIP to the
Company's  fixed  income  funds,  which  pay  monthly  dividends,   yielding  an
anticipated  average of six percent  (6%).  Even though the Company  reduced its
equity  market  exposure,  due to this large  swing in the  market  value of its
portfolio  investments,  the Company's  net loss  increased by 95% for the three
months ended March 31, 2003 compared to the same time period for 2002.

Liquidity and Capital Resources
-------------------------------

Approximately 96% of the Company's  investment  portfolio is readily marketable.
Approximately 4% of the value of the Company's investment portfolio is comprised
of small  capitalization  bank stocks that are thinly traded and there can be no
assurance  that active  markets  will  develop.  The failure of such  markets to
develop  could  negatively   affect  the  Company's   operations  and  financial
condition.  Investments in securities traded on national  securities markets and
securities  not  traded  on  national  securities  markets,   but  with  readily
ascertainable  market values, are valued at market value. Other securities,  for
which  market  quotations  are not  readily  available,  due to  infrequency  of
transactions, are valued at fair value as determined in good faith by management
of the Company.  While management  employs objective criteria to ascertain these
values,  there is no  independent  benchmark  by which the  values  assigned  by
management  can be judged.  Accordingly,  the value of these  securities  may be
overstated.

By the end of 2002, the Company reallocated its investment  portfolio to provide
more  liquidity  and  reduce  its  equity  exposure.  In doing so,  the  Company
transferred $2 million out of its investment in the limited  partnership,  DHIP,
and invested  approximately  $1.5 million into the Company's fixed income mutual
funds and used the remaining to pay-off the Company's line of credit and provide
short-term liquidity for current operating expenses.

DHS, under a  correspondent  agreement with its clearing  broker,  has agreed to
indemnify the clearing  broker from damages or losses  resulting from customers'
transactions.  The Company is,  therefore,  exposed to off-balance sheet risk of
loss in the event that customers are unable to fulfill contractual  obligations.
The Company manages this risk by requiring  customers to have sufficient cash in
their account before a buy order is executed and to have the subject  securities
in their account  before a sell order is executed.  The Company has not incurred
any losses from customers being unable to fulfill contractual obligations.

                                       15
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES

In the normal course of business, the Company may sell securities it has not yet
purchased  (short  sales)  for  its own  account,  and may  write  options.  The
establishment  of short  positions and option  contracts  exposes the Company to
off-balance sheet market risks in the event prices change, as the Company may be
obligated to cover such positions at a loss.

At March 31, 2003, the Company had no short security positions,  had not written
any  option  contracts,  and  did  not  own any  options.  The  Company  did not
experience  any credit  losses  due to the  failure  of any  counter  parties to
perform during the three months ended March 31, 2003.  Senior  management of the
Company is responsible for reviewing trading positions,  exposures,  profits and
losses, trading strategies and hedging strategies on a daily basis.

As of  March  31,  2003,  the  Company  had  working  capital  of  approximately
$2,900,000  compared to $3,300,000 at December 31, 2002.  The decrease is due to
operating  activities,  which  includes the net loss in 2002,  and using working
capital to  purchase  Company  common  stock.  Working  capital  includes  cash,
securities owned and accounts and notes receivable, net of all liabilities.  The
Company has no long-term debt.

The  Company's  net cash balance  decreased by $530,301  during the three months
ended March 31, 2003. Net cash used by operating  activities  was $534,211.  The
primary  use of cash  flow  was the net loss of  $503,372.  No cash was used for
investing  activities  during the three months  ended March 31, 2003.  Financing
activities provided $3,910 of cash during the three months ended March 31, 2003,
entirely  from the  exercise  of  options of  Company  common  stock by a former
employee.

The  Company's  net cash balance  decreased by $752,159  during the three months
ended March 31, 2002. Net cash used by operating  activities  was $582,959.  The
primary use of cash flow was the net loss of $258,821 and the unrealized gain on
investment  portfolio  assets  of  $301,850.  No cash  was  used  for  investing
activities  during the three months ended March 31, 2002.  Financing  activities
used $169,200 of cash during 2001,  entirely from the purchase of Company common
stock.

Investment  management  fees  primarily  fund  the  operations  of the  Company.
Management believes that the Company's existing  resources,  including available
cash and cash  provided by operating  activities,  will be sufficient to satisfy
its  working  capital  requirements  in  the  foreseeable  future.  However,  no
assurance can be given that additional funds will not be required. To the extent
that returns on investments are less than  anticipated,  or expenses are greater
than  anticipated,  the  Company  may be  required  to  reduce  its  activities,
liquidate the investment portfolio or seek additional  financing.  Further, this
additional  financing  may not be available on acceptable  terms,  if at all. No
significant capital expenditures are expected in the foreseeable future.

Impact of Inflation and Other Factors
-------------------------------------

The Company's operations have not been significantly affected by inflation.  The
Company's  investment   portfolios  of  equity  securities,   primarily  in  the
community-banking  sector, are carried at current market values.  Therefore, the
Company's  profitability is affected by general economic and market  conditions,
the volume of  securities  trading  and  fluctuations  in  interest  rates.  The
Company's  business  is also  subject to  government  regulation  and changes in
legal,  accounting,  tax and other  compliance  requirements.  Changes  in these
regulations may have a significant effect on the Company's operations.

                                       16
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES

ITEM 3:   CONTROLS AND PROCEDURES

Our Chief  Executive  Officer and Chief  Financial  Officer have  evaluated  the
effectiveness  of our  disclosure  controls and  procedures (as defined in Rules
13a-14(c)  and  15d-14(c)  under the  Exchange  Act) as of a date within 90 days
prior to the filing date of this quarterly report (the "Evaluation Date"). Based
on such  evaluation,  such officers have  concluded  that, as of the  Evaluation
Date, our disclosure controls and procedures are effective.

There have been no  significant  changes in our  internal  controls  or in other
factors that could significantly affect such controls since the Evaluation Date.

PART II:  OTHER INFORMATION

ITEM 1:   LEGAL PROCEEDINGS - None

ITEM 2:   CHANGES IN SECURITIES - None

ITEM 3:   DEFAULTS UPON SENIOR SECURITIES - None

ITEM 4:   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - None

ITEM 5:   OTHER INFORMATION - None

ITEM 6:   EXHIBITS AND REPORTS ON FORM 8-K

(a)  Index of Exhibits
      *3.1     Amended and Restated Articles of Incorporation of the Company.
      *3.2     Code of Regulations of the Company.
    **10.1     Diamond  Hill   Investment   Group  (fka   Heartland)   Incentive
               Compensation Plan.
   ***10.2     1993 Non-Qualified and Incentive Stock Option Plan.
  ****10.3     Synovus Securities, Inc., Sub-Advisory Agreement with the Diamond
               Hill Capital Management, Inc. dated January 30, 2001.
    **10.4     Employment  Agreement between the Company and Roderick H. Dillon,
               Jr. dated May 11, 2000.
    **10.5     Employment Agreement between the Company and James F. Laird dated
               October 24, 2001.
      99.1     Certification of Chief Executive  Officer Pursuant to Section 906
               of the Sarbanes-Oxley Act of 2002.
      99.2     Certification of Chief Financial  Officer Pursuant to Section 906
               of the Sarbanes-Oxley Act of 2002.

* Filed  with the  Securities  and  Exchange  Commission  as an  exhibit  to the
Company's Form 8-K filed on May 8, 2002 and incorporated herein by reference.
** Filed  with the  Securities  and  Exchange  Commission  as an  exhibit to the
Company's  Form  10-KSB  filed on March  28,  2003 and  incorporated  herein  by
reference.
*** Filed  with the  Securities  and  Exchange  Commission  as an exhibit to the
Company's  Proxy  Statement  filed on July 21, 1998 and  incorporated  herein by
reference.
**** Filed with the  Securities  and  Exchange  Commission  as an exhibit to the
Company's  Form  10-KSB  filed on  March 1,  2001  and  incorporated  herein  by
reference.

(b)  Reports on Form 8-K

     A Form 8-K was filed on March 31, 2003 to report the Company's earnings for
     the year ended December 31, 2002.

                                       17
<PAGE>

              DIAMOND HILL INVESTMENT GROUP, INC. AND SUBSIDIARIES

                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized:

DIAMOND HILL INVESTMENT GROUP, INC.

Signature                          Title                         Date
--------------------------------------------------------------------------------

/s/ R. H. Dillon                   President and Director        May 15, 2003
-----------------------
R. H. Dillon

/s/ James F. Laird                 Chief Financial Officer       May 15, 2003
-----------------------
James F. Laird

                                       18
<PAGE>

                CERTIFICATION FOR QUARTERLY REPORT ON FORM 10-QSB

I, R.H. Dillon, certify that:

1. I have  reviewed  this  quarterly  report  on Form  10-QSB  of  Diamond  Hill
Investment Group, Inc.;

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

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

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

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

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

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

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

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

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

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly report whether there were significant  changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.

Date: May 15, 2003                      /s/ R. H. Dillon
                                        -----------------------
                                        R.H. Dillon
                                        Chief Executive Officer

                                       19
<PAGE>

                CERTIFICATION FOR QUARTERLY REPORT ON FORM 10-KSB

I, James F. Laird, certify that:

1. I have  reviewed  this  quarterly  report  on Form  10-KSB  of  Diamond  Hill
Investment Group, Inc.;

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

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

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

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

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

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

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

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

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

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly report whether there were significant  changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.

Date: May 15, 2003                      /s/ James F. Laird
                                        -----------------------
                                        James F. Laird
                                        Chief Financial Officer

                                       20
<PAGE>