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FORM 10-QSB

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


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

|                                            |  |                              
|------------------------------------------- |  | -----------------------------
|For the quarterly period endedJune 30, 2003 |  | Commission fileNumber 0-26150

MILE MARKER INTERNATIONAL, INC.

(Exact Name Of Small Business Registrant As Specified In Its Charter)


|                                               |  |                                     
|---------------------------------------------- |  | ------------------------------------
|Florida                                        |  | 11-2128469                          
|(State or other
jurisdiction of
incorporation) |  | (IRS Employer
Identification
Number)

2121 Blount Road, Pompano Beach, Florida 33069

---

(Address of principal executive offices)


Registrants Telephone Number: (954) 782-0604



Former Address: 1450 S.W. 13th Court, Pompano Beach, FL 33069

---

(Former name or former address, if changed since last report)


Indicate by check mark whether the Registrant (1) has filed all documents
and reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or 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 xNo o

APPLICABLE ONLY TO CORPORATE ISSUERS

On July 31, 2003, the Registrant had outstanding 10,215,269 shares of
common stock, $.001 par value.





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TABLE OF CONTENTS



|                                         |  |  |  |  |  |  |  | 
|---------------------------------------- |  |  |  |  |  |  |  | 
|PART I  FINANCIAL INFORMATION          
|PART II  OTHER INFORMATION             
|SIGNATURES                              
|CERTIFICATION OF CHIEF EXECUTIVE OFFICER
|CERTIFICATION OF CHIEF FINANCIAL OFFICER



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MILE MARKER INTERNATIONAL, INC.

INDEX

|                                                            |                                                                                                    |  |          |   | 
|----------------------------------------------------------- | -------------------------------------------------------------------------------------------------- |  | -------- | - | 
|                                                            |                                                                                                    |  | Page No.
|PART I FINANCIAL INFORMATION                                |                                                                                                    |  |          |  
|Item 1. Financial Statements                                |                                                                                                    |  |          |  
|                                                            | Consolidated Condensed Balance Sheets, June 30, 2003, and
December 31, 2002                        |  |          | 4 | 
|                                                            | Consolidated Condensed Statements of Income, Three months
ended June 30, 2003, and June 30, 2002   |  |          | 5 | 
|                                                            | Consolidated Condensed Statements of Income, Six months ended
June 30, 2003, and June 30, 2002     |  |          | 6 | 
|                                                            | Consolidated Condensed Statements of Cash Flows, Six months ended
June 30, 2003, and June 30, 2002 |  |          | 7 | 
|                                                            | Notes to Consolidated Condensed Financial Statements                                               |  |          | 8 | 
|Item 2. Managements Discussion or Plan of Operation        |                                                                                                    |  | 9-11     |  
|Item 3. Controls and Procedures                             |                                                                                                    |  | 12       |  
|PART II OTHER INFORMATION                                   |                                                                                                    |  |          |  
|Item 1. Legal Proceedings                                   |                                                                                                    |  | 12       |  
|Item 2. Changes in Securities                               |                                                                                                    |  | 12       |  
|Item 3. Defaults Upon Senior Securities                     |                                                                                                    |  | 12       |  
|Item 4. Submission of Matters to a Vote of Security Holders |                                                                                                    |  | 12       |  
|Item 5. Other Information                                   |                                                                                                    |  | 12       |  
|Item 6. Exhibits and Reports on Form 8-K                    |                                                                                                    |  | 12       |  
|SIGNATURES                                                  |                                                                                                    |  | 13       |  
|CERTIFICATIONS                                              |                                                                                                    |  | 14-17    |  

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MILE MARKER INTERNATIONAL, INC.

RISKS AND UNCERTAINTIES

Current and potential shareholders should consider carefully the risk factors
described below. Any of these factors, or others, many of which are beyond the
Companys control, could negatively affect the Companys revenues,
profitability or cash flows in the future. These factors include:



| |  |  | Demand for the Companys products in general and from the U.S. Government in particular.                                          
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | Magnitude of price and product competition for the Companys products.                                                            
|
| |  |  | Effects of the weather and natural disasters on the demand for the
Companys products.                                            
|
| |  |  | Effects of foreign political, economic or military developments on
the Companys international customer or supplier relationships.
|
| |  |  | Ability to control costs and expenses.                                                                                            
|
| |  |  | Ability to retain qualified personnel.                                                                                            
|
| |  |  | Ability to develop and introduce new or enhanced versions of the
Companys products.                                              

FORWARD-LOOKING STATEMENTS

When used in this Quarterly Report on Form 10-QSB or in future filings by the
Company (as hereinafter defined) with the Securities and Exchange Commission,
in the Companys press releases or other public or shareholder communications,
or in oral statements made with the approval of an authorized executive
officer, the words or phrases will likely result, are expected to,  will
continue, is anticipated, estimate, project, or similar expressions
are intended to identify forward-looking statements. The Company wishes to
caution readers not to place undue reliance on any such forward-looking
statements, which speak as of the date made, and to advise readers that various
risk factors, including regional and national economic conditions, substantial
changes in levels of market interest rates, credit and other risks of
manufacturing, distributing or marketing activities, and competitive and
regulatory factors could affect the companys financial performance and could
cause the Companys actual results for future periods to differ materially from
those anticipated by any forward-looking statements.

The Company does not undertake and specifically disclaims any obligation to
update any forward-looking statements to reflect the occurrence of anticipated
or unanticipated events or circumstances after the date of such statements.




PART I  FINANCIAL INFORMATION

Item 1. Financial Statements of Mile Marker International, Inc.

-3-



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MILE MARKER INTERNATIONAL, INC. AND SUBSIDIARY

Consolidated Condensed Balance Sheets
June 30, 2003 and December 31, 2002
UNAUDITED

|                                                                                                                                                          |                                                                                                  |                           |                            |              |           |           |           |              |           |           |           | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | ------------------------- | -------------------------- | ------------ | --------- | --------- | --------- | ------------ | --------- | --------- | --------- | 
|                                                                                                                                                          |                                                                                                  |                           |                            |              |           | June 30,  |           | December 31,
|ASSETS                                                                                                                                                    |                                                                                                  | 2003                      |                            | 2002        
|                                                                                                                                                          |                                                                                                  |                           |                            |             
|CURRENT ASSETS                                                                                                                                            |                                                                                                  |                           |                            |              |           |           |           |             
|                                                                                                                                                          | Cash                                                                                             |                           | $                          | 259,306      |           |           | $         | 101,868      |          
|                                                                                                                                                          | Accounts Receivable, net of allowance for doubtful
accounts of $35,000 and $36,000, respectively |                           |                            | 1,142,113    |           |           |           | 1,021,921    |          
|                                                                                                                                                          | Inventories                                                                                      |                           |                            | 3,213,218    |           |           |           | 3,161,372    |          
|                                                                                                                                                          | Notes and Other Receivables                                                                      |                           |                            | 28,879       |           |           |           | 198,144      |          
|                                                                                                                                                          | Deferred Tax Asset                                                                               |                           |                            | 48,370       |           |           |           | 51,415       |          
|                                                                                                                                                          | Prepaid Expenses                                                                                 |                           |                            | 62,239       |           |           |           | 44,598       |          
|                                                                                                                                                          |                                                                                                  |                           |                            |              |           |           |           |              |          
|                                                                                                                                                          |                                                                                                  | Total Current Assets      |                            |              | 4,754,125 |           |           |              | 4,579,318 |          
|PROPERTY AND EQUIPMENT, NET                                                                                                                               |                                                                                                  |                           | 2,002,607                  |              |           |           | 361,842   |             
|INTANGIBLE ASSETS, NET                                                                                                                                    |                                                                                                  |                           | 113,727                    |              |           |           | 71,963    |             
|OTHER ASSETS                                                                                                                                              |                                                                                                  |                           | 77,261                     |              |           |           | 134,623   |             
|                                                                                                                                                          |                                                                                                  |                           |                            |              |           |           |           |              |          
|                                                                                                                                                          |                                                                                                  |                           |                            | Total Assets |           | $         | 6,947,720 |              |           | $         | 5,147,746 | 
|                                                                                                                                                          |                                                                                                  |                           |                            |              |           |           |           |             
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                                                      |                                                                                                  |                           |                            |              |           |           |           |             
|CURRENT LIABILITIES                                                                                                                                       |                                                                                                  |                           |                            |              |           |           |           |             
|                                                                                                                                                          | Notes Payable  Line of Credit                                                                   |                           | $                          | 1,766,330    |           |           | $         | 1,187,650    |          
|                                                                                                                                                          | Notes Payable  Current Portion                                                                  |                           |                            | 63,000       |           |           |           |             |          
|                                                                                                                                                          | Accounts Payable                                                                                 |                           |                            | 289,930      |           |           |           | 447,564      |          
|                                                                                                                                                          | Income Taxes Payable                                                                             |                           |                            |             |           |           |           | 48,708       |          
|                                                                                                                                                          | Accrued Liabilities                                                                              |                           |                            | 134,410      |           |           |           | 70,461       |          
|                                                                                                                                                          |                                                                                                  |                           |                            |              |           |           |           |             
|                                                                                                                                                          |                                                                                                  | Total Current Liabilities |                            |              | 2,253,670 |           |           |              | 1,754,383 |          
|DEFERRED TAX LIABILITY                                                                                                                                    |                                                                                                  |                           | 22,874                     |              |           |           | 30,988    |             
|LONG-TERM DEBT                                                                                                                                            |                                                                                                  |                           |                            |              |           |           |           |             
|                                                                                                                                                          | Other Notes Payable                                                                              |                           |                            | 1,181,250    |           |           |           |             |          
|                                                                                                                                                          |                                                                                                  |                           |                            |              |           |           |           |              |          
|                                                                                                                                                          |                                                                                                  |                           | Total Liabilities          |              |           | 3,457,794 |           |              |           | 1,785,371 |          
|                                                                                                                                                          |                                                                                                  |                           |                            |              |           |           |           |             
|SHAREHOLDERS EQUITY                                                                                                                                      |                                                                                                  |                           |                            |              |           |           |           |             
|Common Stock, $.001 par value; 20,000,000 shares
authorized, 10,218,680 and 10,268,799 shares issued at
June 30, 2003 and December 31, 2002, respectively |                                                                                                  |                           | 10,219                     |              |           |           | 10,269    |             
|Additional Paid-in Capital                                                                                                                                |                                                                                                  |                           | 1,192,316                  |              |           |           | 1,233,634 |             
|Less Treasury Shares (50,000 and 75,060 Shares at Cost)                                                                                                   |                                                                                                  |                           | (31,000                    | )            |           |           | (51,060   | )           
|Retained Earnings                                                                                                                                         |                                                                                                  |                           | 2,318,391                  |              |           |           | 2,169,532 |             
|                                                                                                                                                          |                                                                                                  |                           |                            |              |           |           |           |             
|                                                                                                                                                          |                                                                                                  |                           | Total Shareholders Equity |              |           | 3,489,926 |           |              |           | 3,362,375 |          
|                                                                                                                                                          |                                                                                                  |                           |                            |              |           |           |           |             
|Total Liabilities & Shareholders Equity                                                                                                                  |                                                                                                  | $                         | 6,947,720                  |              |           | $         | 5,147,746 |             
|                                                                                                                                                          |                                                                                                  |                           |                            |              |           |           |           |             

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

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MILE MARKER INTERNATIONAL, INC. AND SUBSIDIARY

Consolidated Condensed Statements of Income
Three Months Ended June 30,
UNAUDITED

|                                                   |  |                                               |                                           |                              |            |         |           |      |            |         |           |  
|-------------------------------------------------- |  | --------------------------------------------- | ----------------------------------------- | ---------------------------- | ---------- | ------- | --------- | ---- | ---------- | ------- | --------- | -
|                                                   |  |                                               |                                           |                              |            | 2003    |           | 2002
|                                                   |  |                                               |                                           |                              |            |         |           |     
|Sales                                              |  | $                                             | 2,303,564                                 |                              |            | $       | 2,883,835 |     
|Cost of Sales                                      |  |                                               | 1,362,222                                 |                              |            |         | 1,386,470 |     
|                                                   |  |                                               |                                           |                              |            |         |           |     
|                                                   |  |                                               |                                           | Gross Profit                 |            |         | 941,342   |      |            |         | 1,497,365 |  
|                                                   |  |                                               |                                           |                              |            |         |           |     
|Selling Expenses                                   |  |                                               | 214,645                                   |                              |            |         | 280,914   |     
|                                                   |  |                                               |                                           |                              |            |         |           |     
|General and Administrative Expenses                |  |                                               |                                           |                              |            |         |           |     
|                                                   |  | Salaries and Wages                            |                                           |                              | 342,082    |         |           |      | 298,759    |        
|                                                   |  | Professional Fees                             |                                           |                              | 63,284     |         |           |      | 24,774     |        
|                                                   |  | Rent                                          |                                           |                              | 35,071     |         |           |      | 37,747     |        
|                                                   |  | Depreciation and Amortization                 |                                           |                              | 46,450     |         |           |      | 36,190     |        
|                                                   |  | Insurance                                     |                                           |                              | 21,297     |         |           |      | 20,226     |        
|                                                   |  | Vehicle Expenses                              |                                           |                              | 24,471     |         |           |      | 19,034     |        
|                                                   |  | Research & Development                        |                                           |                              | 8,556      |         |           |      | 11,910     |        
|                                                   |  | Other                                         |                                           |                              | 108,640    |         |           |      | 77,549     |        
|                                                   |  |                                               |                                           |                              |            |         |           |     
|                                                   |  |                                               | Total General and Administrative Expenses |                              |            | 649,851 |           |      |            | 526,189 |          
|                                                   |  |                                               |                                           |                              |            |         |           |     
|                                                   |  |                                               |                                           | Total Expenses               |            |         | 864,496   |      |            |         | 807,103   |  
|                                                   |  |                                               |                                           |                              |            |         |           |     
|Income from Operations                             |  |                                               | 76,846                                    |                              |            |         | 690,262   |     
|                                                   |  |                                               |                                           |                              |            |         |           |     
|Other Income/(Expense)                             |  |                                               |                                           |                              |            |         |           |     
|                                                   |  |                                               | Interest Expense                          |                              |            | (25,492 | )         |      |            | (19,624 | )        
|                                                   |  |                                               | Interest Income                           |                              |            | 2,501   |           |      |            | 7,866   |          
|                                                   |  |                                               |                                           |                              |            |         |           |     
|                                                   |  |                                               |                                           | Total Other Income/(Expense) |            |         | (22,991   | )    |            |         | (11,758   | )
|                                                   |  |                                               |                                           |                              |            |         |           |     
|Income before Benefit (Provision) for Income Taxes |  |                                               | 53,855                                    |                              |            |         | 678,504   |     
|Benefit (Provision) for Income Taxes               |  |                                               | 7,450                                     |                              |            |         | (221,882  | )   
|                                                   |  |                                               |                                           |                              |            |         |           |     
|                                                   |  |                                               | Net Income                                |                              | $          | 61,305  |           |      | $          | 456,622 |          
|                                                   |  |                                               |                                           |                              |            |         |           |     
|Per Share Data:                                    |  |                                               |                                           |                              |            |         |           |     
|                                                   |  | Weighted Average Shares Outstanding  Basic   |                                           |                              | 10,218,704 |         |           |      | 10,521,857 |        
|                                                   |  | Weighted Average Shares Outstanding  Diluted |                                           |                              | 10,228,163 |         |           |      | 10,534,357 |        
|                                                   |  |                                               | Earnings per Common Share  Basic         |                              | $          | 0.01    |           |      | $          | 0.04    |          
|                                                   |  |                                               | Earnings per Common Share  Diluted       |                              | $          | 0.01    |           |      | $          | 0.04    |          

The accompanying Notes are an integral part of these financial statements.

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MILE MARKER INTERNATIONAL, INC. AND SUBSIDIARYConsolidated Condensed Statements of Income
Six Months Ended June 30,
UNAUDITED

|                                         |                                     |                                               |                                           |                              |            |           |           |      |            |           |           |  
|---------------------------------------- | ----------------------------------- | --------------------------------------------- | ----------------------------------------- | ---------------------------- | ---------- | --------- | --------- | ---- | ---------- | --------- | --------- | -
|                                         |                                     |                                               |                                           |                              |            | 2003      |           | 2002
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|Sales                                    |                                     | $                                             | 4,969,687                                 |                              |            | $         | 6,392,915 |     
|Cost of Sales                            |                                     |                                               | 2,720,649                                 |                              |            |           | 3,055,208 |     
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|                                         |                                     |                                               |                                           | Gross Profit                 |            |           | 2,249,038 |      |            |           | 3,337,707 |  
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|Selling Expenses                         |                                     |                                               | 512,010                                   |                              |            |           | 527,776   |     
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|General and Administrative Expenses      |                                     |                                               |                                           |                              |            |           |           |     
|                                         |                                     | Salaries and Wages                            |                                           |                              | 705,451    |           |           |      | 660,430    |          
|                                         |                                     | Professional Fees                             |                                           |                              | 116,002    |           |           |      | 104,352    |          
|                                         |                                     | Rent                                          |                                           |                              | 46,611     |           |           |      | 79,481     |          
|                                         |                                     | Depreciation and Amortization                 |                                           |                              | 86,644     |           |           |      | 70,228     |          
|                                         |                                     | Insurance                                     |                                           |                              | 42,747     |           |           |      | 43,209     |          
|                                         |                                     | Vehicle Expenses                              |                                           |                              | 42,719     |           |           |      | 31,862     |          
|                                         |                                     | Research & Development                        |                                           |                              | 13,526     |           |           |      | 15,504     |          
|                                         |                                     | Other                                         |                                           |                              | 201,779    |           |           |      | 159,254    |          
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|                                         |                                     |                                               | Total General and Administrative Expenses |                              |            | 1,255,479 |           |      |            | 1,164,320 |          
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|                                         |                                     |                                               |                                           | Total Expenses               |            |           | 1,767,489 |      |            |           | 1,692,096 |  
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|Income from Operations                   |                                     |                                               | 481,549                                   |                              |            |           | 1,645,611 |     
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|Other Income (Expense)                   |                                     |                                               |                                           |                              |            |           |           |     
|                                         |                                     |                                               | Interest Expense                          |                              |            | (48,886   | )         |      |            | (46,001   | )        
|                                         |                                     |                                               | Interest Income                           |                              |            | 8,800     |           |      |            | 12,346    |          
|                                         |                                     |                                               | Other Income (Expense)                    |                              |            |          |           |      |            | (5,322    | )        
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|                                         |                                     |                                               |                                           | Total Other Income (Expense) |            |           | (40,086   | )    |            |           | (38,977   | )
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|Income before Provision for Income Taxes |                                     |                                               | 441,463                                   |                              |            |           | 1,606,634 |     
|Provision for Income Taxes               |                                     |                                               | (140,072                                  | )                            |            |           | (575,408  | )   
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|                                         |                                     |                                               | Net Income                                |                              | $          | 301,391   |           |      | $          | 1,031,226 |          
|                                         |                                     |                                               |                                           |                              |            |           |           |     
|Per Share Data:                          |                                     |                                               |                                           |                              |            |           |           |     
|                                         |                                     | Weighted Average Shares Outstanding  Basic   |                                           |                              | 10,227,291 |           |           |      | 10,570,071 |          
|                                         |                                     | Weighted Average Shares Outstanding  Diluted |                                           |                              | 10,239,791 |           |           |      | 10,580,134 |          
|                                         | Earnings per Common Share  Basic   |                                               | $                                         | 0.03                         |            |           | $         | 0.10 |           
|                                         | Earnings per Common Share  Diluted |                                               | $                                         | 0.03                         |            |           | $         | 0.10 |           

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

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MILE MARKER INTERNATIONAL, INC. AND SUBSIDIARY

Consolidated Condensed Statements of Cash Flows
Six Months Ended June 30,
UNAUDITED

|                                                                                            |                                 |                                              |                      |         |         |          |            |         |         |           |  
|------------------------------------------------------------------------------------------- | ------------------------------- | -------------------------------------------- | -------------------- | ------- | ------- | -------- | ---------- | ------- | ------- | --------- | -
|                                                                                            |                                 |                                              |                      |         | 2003    |          | 2002      
|                                                                                            |                                 |                                              |                      |         |         |          |           
|OPERATING ACTIVITIES:                                                                       |                                 |                                              |                      |         |         |          |            |        
|Net income                                                                                  |                                 | $                                            | 301,391              |         |         | $        | 1,031,226  |        
|Adjustments to reconcile net income to net cash
provided by (used in) operating activities: |                                 |                                              |                      |         |         |          |            |        
|                                                                                            | Depreciation and amortization   |                                              |                      | 104,040 |         |          |            | 85,744  |        
|                                                                                            | Deferred income taxes           |                                              |                      | (5,069  | )       |          |            | (23,828 | )      
|                                                                                            | Inventory obsolescense reserves |                                              |                      | 15,273  |         |          |            | 47,845  |        
|                                                                                            | Bad debt provisions             |                                              |                      | 33,873  |         |          |            | 14,492  |        
|(Increase) decrease in:                                                                     |                                 |                                              |                      |         |         |          |            |        
|                                                                                            |                                 |                                              | Accounts receivable  |         |         | (154,065 | )          |         |         | 1,410,542 |  
|                                                                                            |                                 |                                              | Inventories          |         |         | (67,119  | )          |         |         | 15,861    |  
|                                                                                            |                                 |                                              | Prepaid expenses     |         |         | (17,640  | )          |         |         | 21,377    |  
|                                                                                            |                                 |                                              | Other receivables    |         |         | 169,265  |            |         |         | (154,312  | )
|                                                                                            |                                 |                                              | Other assets         |         |         | 57,361   |            |         |         | (42,760   | )
|(Decrease) increase in:                                                                     |                                 |                                              |                      |         |         |          |            |        
|                                                                                            |                                 |                                              | Accounts payable     |         |         | (157,634 | )          |         |         | (768,694  | )
|                                                                                            |                                 |                                              | Income taxes payable |         |         | (48,708  | )          |         |         | (133,943  | )
|                                                                                            |                                 |                                              | Accrued liabilities  |         |         | 63,949   |            |         |         | (26,371   | )
|                                                                                            |                                 |                                              |                      |         |         |          |            |        
|Net cash provided by operating activities                                                   |                                 |                                              | 294,917              |         |         |          | 1,477,179  |        
|INVESTING ACTIVITIES:                                                                       |                                 |                                              |                      |         |         |          |            |        
|Proceeds from sale of property and equipment                                                |                                 |                                              |                     |         |         |          | 29,000     |        
|Additions to intangible assets                                                              |                                 |                                              | (68,183              | )       |         |          |           |        
|Acquisitions of property and equipment                                                      |                                 |                                              | (1,718,387           | )       |         |          | (30,930    | )      
|                                                                                            |                                 |                                              |                      |         |         |          |            |        
|Net cash (used in) investing activities                                                     |                                 |                                              | (1,786,570           | )       |         |          | (1,930     | )      
|FINANCING ACTIVITIES                                                                        |                                 |                                              |                      |         |         |          |            |        
|(Repayment of) proceeds from short term borrowing  net                                     |                                 |                                              | 578,680              |         |         |          | (1,104,446 | )      
|Purchase and retirement of common stock                                                     |                                 |                                              | (21,308              | )       |         |          | (174,263   |        
|Payment of dividends                                                                        |                                 |                                              | (152,531             | )       |         |          |           |        
|Proceeds of long-term debt                                                                  |                                 |                                              | 1,260,000            |         |         |          |           |        
|Repayment of long-term debt                                                                 |                                 |                                              | (15,750              | )       |         |          | (108,856   | )      
|                                                                                            |                                 |                                              |                      |         |         |          |            |        
|Net cash provided by (used in) financing activities                                         |                                 |                                              | 1,649,091            |         |         |          | (1,387,565 | )      
|Increase in Cash                                                                            |                                 |                                              | 157,438              |         |         |          | 87,684     |        
|Cash at Beginning of Period                                                                 |                                 |                                              | 101,868              |         |         |          | 50,089     |        
|                                                                                            |                                 |                                              |                      |         |         |          |            |        
|Cash at End of Period                                                                       |                                 | $                                            | 259,306              |         |         | $        | 137,773    |        
|                                                                                            |                                 |                                              |                      |         |         |          |            |        
|Supplemental disclosure of cash flow information:                                           |                                 |                                              |                      |         |         |          |            |        
|                                                                                            |                                 | Cash paid during the period for interest     |                      | $       | 43,864  |          |            | $       | 40,525  |          
|                                                                                            |                                 | Cash paid during the period for income taxes |                      | $       | 202,779 |          |            | $       | 733,178 |          

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

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MILE MARKER INTERNATIONAL, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)

Note 1: Basis of Presentation

The unaudited consolidated condensed financial statements include the
accounts of Mile Marker International, Inc. and its wholly-owned subsidiary,
Mile Marker, Inc. (collectively the Company). All necessary adjustments to
the financial statements have been made, and significant inter-company accounts
and transactions have been eliminated in consolidation.

The accompanying unaudited consolidated condensed financial statements,
which are for interim periods, do not include all disclosures provided in the
annual consolidated financial statements. These unaudited consolidated
condensed financial statements should be read in conjunction with the
consolidated financial statements and the footnotes thereto contained in the
Annual Report on Form 10-KSB for the year ended December 31, 2002 of Mile
Marker International, Inc., as filed with the Securities and Exchange
Commission. The summary December 31, 2002, balance sheet was derived from
audited consolidated financial statements, but does not include all disclosures
required by generally accepted accounting principles at December 31, 2002.

In the opinion of the Company, the accompanying unaudited consolidated
condensed financial statements contain all adjustments (which are of a normal
recurring nature) necessary for a fair presentation of the financial
statements. The results for interim periods are not necessarily indicative of
results to be expected for the complete fiscal year.

Per share data was computed by dividing net income by the weighted average
number of shares outstanding during the period. The diluted share base for
the periods ended June 30, 2003 and 2002, includes incremental shares for stock
options outstanding during those periods.

Note 2: Shareholders Equity

During the six months ending June 30, 2003, the Company purchased and
retired 25,059 shares of its common stock, $.001 par value, for $21,308.
50,000 shares of the Companys common stock were held in the Companys treasury
as of June 30, 2003. On January 31, 2003, the Company paid a cash dividend of
$0.015 per share on its common stock, totaling $152,531.

Note 3: Reclassification

Certain amounts in prior periods have been reclassified for comparative
purposes.

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Item 2. Managements Discussion and Analysis or Plan of Operation

The following discussion and analysis should be read in conjunction with
the Financial Statements appearing elsewhere in this quarterly report on Form
10-QSB.

RESULTS OF OPERATIONS

The following table summarizes the results of operations, stated as a
percentage of sales, for the six months and three months ended June 30, 2003
and 2002:

|                                             |                |  |            |      |              |  |       |      |      |  |       |      |   |  |       |      |  
|-------------------------------------------- | -------------- |  | ---------- | ---- | ------------ |  | ----- | ---- | ---- |  | ----- | ---- | - |  | ----- | ---- | -
|                                             |                |  | Six Months |      | Three Months
|                                             |                |  |            |      |             
|                                             |                |  | 2003       |      | 2002         |  | 2003  |      | 2002
|                                             |                |  |            |      |              |  |       |      |     
|Sales                                        |                |  | 100.0      | %    |              |  | 100.0 | %    |      |  | 100.0 | %    |   |  | 100.0 | %   
|Cost of Sales                                |                |  | 54.7       | %    |              |  | 47.8  | %    |      |  | 59.1  | %    |   |  | 48.1  | %   
|                                             |                |  |            |      |              |  |       |      |      |  |       |      |   |  |       |     
|                                             | Gross Profit   |  |            | 45.3 | %            |  |       | 52.2 | %    |  |       | 40.9 | % |  |       | 51.9 | %
|Selling, General and
Administrative Expenses |                |  | 35.6       | %    |              |  | 26.5  | %    |      |  | 37.6  | %    |   |  | 28.0  | %   
|                                             |                |  |            |      |              |  |       |      |      |  |       |      |   |  |       |     
|Income from Operations                       |                |  | 9.7        | %    |              |  | 25.7  | %    |      |  | 3.3   | %    |   |  | 23.9  | %   
|Other Income/(Expense)                       |                |  | (0.8       | )%   |              |  | (0.6  | )%   |      |  | (1.0  | )%   |   |  | (0.4  | )%  
|                                             |                |  |            |      |              |  |       |      |      |  |       |      |   |  |       |     
|                                             | Pre-Tax Income |  |            | 8.9  | %            |  |       | 25.1 | %    |  |       | 2.3  | % |  |       | 23.5 | %
|Income Taxes                                 |                |  | (2.8       | )%   |              |  | (9.0  | )%   |      |  | 0.3   | %    |   |  | (7.7  | )%  
|                                             |                |  |            |      |              |  |       |      |      |  |       |      |   |  |       |     
|                                             | Net Income     |  |            | 6.1  | %            |  |       | 16.1 | %    |  |       | 2.6  | % |  |       | 15.8 | %

Sales of $4,969,687 for the six months ended June 30, 2003, were
$1,423,228, or approximately 22%, less than sales of $6,392,915 during the same
period in 2002. This sales decrease was due primarily to $2,087,455 less
military winch sales in the first six months of 2003 than in the comparable
period in 2002 due to the Companys fulfillment of a major military contract in
2002. This decrease in military winch sales was partially offset by an
increase of approximately $849,000 in commercial winch sales and approximately
$109,000 in hub sales during the first six months of 2003 compared to the first
six months of 2002. Special order sales were approximately $295,000 less in
the first six months of 2003 compared to the same period in 2002.

The Companys gross margins on its sales decreased from 52.2% in the first
six months of 2002 to 45.3% in 2003, primarily due to a shift in the Companys
2003 product mix toward more lower-margin winch products, including electric
winches. Selling costs decreased by $15,766, from $527,776 in 2002 to $512,010
in 2003, due to lower commissions offset by greater advertising costs related
to the Companys commercial winches.

The Companys operating structure is positioned to support its expected
annual sales volume, which during the first six months of 2003 averaged below
this level. The Company anticipates a much higher level of operation in the
second half of 2003 due to a new military order for winches. General and
administrative expenses for the six months ended June 30, 2003, increased by
$91,160, or about 8%, from $1,164,320 in the first six

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months of 2002 to $1,255,479 in the first six
months of 2003. The most significant increase in
general and administrative expenses in the first six months of 2003 related
primarily to salary and benefits expenses, which increased by approximately
$69,000, or approximately 10%, from 2002 levels. Higher professional fees,
depreciation and vehicle expenses were offset by lower rent expenses due to
temporary rental income received from the Companys warehouse/office building
purchased in January. Relative to its sales, however, the Companys total
general and administrative costs increased from 18.2% of sales in the first six
months of 2002 to 25.3% of sales in the first six months of 2003.

For the three months ended June 30, 2003, general and administrative
expenses increased by $123,662, or approximately 24%, over the comparable
period in 2002. These expense increases in this period were principally in
staffing, professional fees, depreciation and vehicle expenses.

The Companys results from operations for the first six months of 2003
reflected income from operations of $481,549 compared to income from operations
of $1,645,611 during the same period in 2002, a decrease of $1,164,062, or
approximately 71%. This decrease is due to the 22% decrease in sales, a
smaller profit margin and higher general and administrative expenses. Income
from operations in the three months ended June 30, 2003, were $76,846, compared
to $690,262 in income from operations during the same period in 2002. This
substantial decrease is due primarily to the fact that sales in the second
quarter of 2003 were approximately 20% less than sales in the same period in
2002, profit margins were lower and general and administrative expenses were
higher.

Interest expenses in the first six months of 2002 were $48,886, compared
to $46,001 in the first six months of 2002, reflecting the mortgage interest on
the Companys recently-acquired building. Offsetting these expenses, the
Company received $8,800 of interest income on its notes receivable during the
six months ended June 30, 2003, compared to $12,346 of such interest income in
the same period in 2002.

During the six months ended June 30, 2003, the Company recorded income
before taxes of $441,463 compared to income before taxes of $1,606,634 during
the same period in 2002. Net income for the first six months of 2003 totaled
$301,391 compared to net income of $1,031,226 for the first six months of 2002,
a decrease of approximately 71%. This net income represents earnings per
common share of $0.03 for the first six months of 2003 compared to earnings per
common share of $0.10 for the first six months of 2002. During the three
months ended June 30, 2003, the Company recorded net income of $61,305
compared to net income of $456,622 during the same three-month period in 2002,
a decrease of approximately 87%. This net income represents earnings per common
share of $0.01 for the second quarter of 2003 compared to earnings per common
share of $0.04 for the same period in 2002.

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LIQUIDITY AND CAPITAL RESOURCES

Net working capital decreased by $324,480 to $2,500,455 on June 30, 2003,
from $2,824,935 on December 31, 2002, and the Companys current ratio decreased
to 2.11 at June 30, 2003, compared to 2.61 at December 31, 2002. The
Companys current assets increased by $174,807 to $4,754,125 at June 30, 2003,
compared to $4,579,318 at December 31, 2002. Most of this increase was due to
$157,438 higher cash balances, which increased from $101,868 on December 31,
2002, to $259,306 on June 30, 2003.

The Companys current liabilities increased by $499,287 to $2,253,670 at
June 30, 2003, compared to $1,754,383 at December 31, 2002. The Companys
short-term borrowings under its line of credit increased by $578,680 to
$1,766,330 from the December 31, 2002, level of $1,187,650, and its trade
accounts payable decreased by $157,634 during the six months ended June 30,
2003. Income taxes payable decreased by $48,708 in the same period.

The Company anticipates having more than adequate capital and liquidity
for its foreseeable operational needs. During the first six months of 2003,
the Companys operating activities provided cash of $294,917. $1,718,387 of
capital expenditures for building, improvements, furniture and equipment during
the fist six months of 2003 was partially funded by a long-term mortgage loan
of $1,260,000. At the same time, $21,308 was used during this period to
purchase 25,059 shares of the Companys common stock, and $152,531 was used to
pay a cash dividend of $0.015 per common share. The Company has no material
commitments outstanding for major capital expenditures during 2003. The
Company may continue to pay dividends or repurchase its shares in the future.

The Companys cash balances increased by $157,438 from the December 31,
2002, level due to the timing of deposits in transit. However, these cash
balances are not really indicative of the Companys true liquidity because the
Company employs an efficient cash management system utilizing a zero balance
disbursement account funded by the Companys credit facility at the time
outstanding checks are presented and paid. The Company funds its operations
chiefly through the collection of its trade receivables, supplemented with
periodic short-term borrowings from a lender.

The Company has a $3,500,000 working capital line of credit from a lender
at an interest rate of 2.55% above the One Month London Interbank Offered Rate.
On January
16, 2003, the Companys lender extended the maturity date of this working
capital line of credit to February 28, 2004. The Companys actual borrowings
at June 30, 2003, were only about 50% of its total availability due to the
significant cash flow generated from its operations.

On February 6, 2003, the Companys lender supplemented the Companys
existing working capital line of credit with a 10-year $1,260,000 revolving
line of credit secured by the Companys warehouse and office building.

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Item 3. Controls and Procedures

Based on an evaluation conducted within 90 days of the filing date of this
report, the Chief Financial Officer and the Chief Executive Officer of the
Registrant have determined the effectiveness of the Registrants disclosure
controls and procedures. These officers determined that there were no
significant changes in the Registrants internal controls or in other factors
that could significantly affect these controls subsequent to the date of their
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.




PART II  OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, the Company is a party to business disputes arising in
the normal course of its business operations. The Companys management
believes that none of these actions, standing alone, or in the aggregate,
currently are material to the Companys operations or finances.

Item 2. Changes in Securities

None.

Item 3. Defaults Upon Senior Securities

None

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

On June 10, 2003, holders of a majority of the Companys common shares
voted to approve the June 9, 2003 actions of the Companys Board of Directors
to effect a 1 for 15 reverse stock split followed immediately by a 15 for 1
forward stock split as a means by which the Company could reduce the
administrative costs of servicing its shareholders. Accordingly, through the
reverse/forward split, approximately 600 shareholders holding less than 15
shares were cashed out on an economical basis. This transaction was
consummated on July 9, 2003.

Item 5. Other Information

None

Item 6. Exhibits and Reports on Form 8K

Exhibit
31.1          Certificate
of Chief Executive Officer

Exhibit
31.2          Certificate
of Chief Financial Officer

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SIGNATURES

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

|                                             |  |                                                                 
|-------------------------------------------- |  | ----------------------------------------------------------------
|MILE MARKER INTERNATIONAL, INC.
(Registrant) |  |                                                                 
|                                             |  |                                                                 
|8/8/03                                       |  | /s/ Richard E. Aho                                              
|                                             |  |                                                                 
|(Date)                                       |  | Richard E. Aho, President and
Chief Executive Officer           
|                                             |  |                                                                 
|8/8/03                                       |  | /s/ Alvin A. Hirsch                                             
|                                             |  |                                                                 
|(Date)                                       |  | Alvin A. Hirsch, Secretary/Treasurer
and Chief Financial Officer

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