UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)

(x) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                                     OF 1934
                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2006


( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
                                       ACT
                         Commission file number 0-26150

                         MILE MARKER INTERNATIONAL, INC.
       (Exact name of Small Business Issuer as specified in its charter)

                  Florida                                 11-2128469
                  -------                                 ----------
(State or other jurisdiction of incorporation) (IRS Employer Identification No)

                 2121 Blount Road, Pompano Beach, Florida 33069
                    (Address of principal executive offices)

                    Issuer's Telephone Number: (954) 782-0604


Check whether the Issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the Issuer was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes __X__ No _____

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes _____ No __X__



                         APPLICABLE ONLY TO CORPORATE ISSUERS

         On  September  30,  2006,  the Small  Business  Issuer had  outstanding
9,936,117 shares of common stock, $.001 par value.

Transitional Small Business Disclosure Format (Check one): Yes _____ No __X__

<PAGE>




<TABLE>
<CAPTION>

                         MILE MARKER INTERNATIONAL, INC.

                                      INDEX
                                                                                               Page No.

PART  I     FINANCIAL INFORMATION

Item 1.        Financial Statements

<S>                                                                                              <C>
                    Condensed Consolidated Balance Sheets, September 30, 2006,
                    and December 31, 2005  .............................................          4

                    Condensed  Consolidated  Statements of Income,  Three Months
                    ended September 30, 2006, and September 30, 2005 ...................          5

                    Condensed  Consolidated  Statements  of Income,  Nine Months
                    ended September 30, 2006, and September 30, 2005 ...................          6

                    Condensed Consolidated Statements of Cash Flows, Nine
                    Months ended September 30, 2006, and September 30, 2005 ............          7

                    Notes to Condensed Consolidated Financial Statements  ..............       8-10

Item  2.  Management's Discussion and Analysis or Plan of Operation ....................      10-14

Item 3.   Controls and Procedures ......................................................         15


PART II   OTHER INFORMATION

Item 1.    Legal Proceedings ...........................................................         15

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds..................         15

Item 3.    Defaults Upon Senior Securities .............................................         16

Item 4.     Submission of Matters to a Vote of Security Holders ........................         16

Item 5.      Other Information .........................................................         16

Item 6.      Exhibits ..................................................................         16

SIGNATURES .............................................................................         17

CERTIFICATIONS  ........................................................................    18 - 23
</TABLE>


                                       2

<PAGE>

                        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:

o    Demand for the Company's products from its major customers and from U.S.
     Government entities in particular.
o    Magnitude of price and product competition for the Company's products.
o    Effects of weather and natural disasters on demand for the Company's
     products.
o    Effects of foreign political, economic or military developments on the
     Company's international customer or supplier relationships.
o    Ability to control costs and expenses.
o    Ability to retain qualified personnel.
o    Ability to develop and introduce new products and enhanced versions of the
     Company's products.
o    Ability to operate a foreign subsidiary in China.
o    Availability  of financing on terms that the Company's  operations  may
     require.

                             FORWARD-LOOKING STATEMENTS

Safe Harbor  Statement  under the Private  Securities  Litigation  Reform Act of
1995: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 factors, including national economic conditions,  political
and  military  developments,  substantial  changes in levels of market  interest
rates,  credit  and other  risks of  manufacturing,  distributing  or  marketing
activities,  competitive and regulatory factors, and those factors set out under
"Risks  and  Uncertainties"   above,   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.


                                       3
<PAGE>

                                    PART  I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS OF MILE MARKER INTERNATIONAL, INC.


                MILE MARKER INTERNATIONAL, INC. AND SUBSIDIARIES
                      Condensed Consolidated Balance Sheets
                    September 30, 2006 and December 31, 2005
                                    UNAUDITED
<TABLE>
<CAPTION>

ASSETS                                                                              2006                2005
                                                                         ----------------------------------------
CURRENT ASSETS
<S>                                                                               <C>                <C>
  Cash                                                                            $   172,460        $   172,306

  Accounts Receivable, net of allowance for doubtful
    accounts of $20,690 and $5,175, respectively                                    2,081,733          3,448,848

  Inventories                                                                       7,268,333          6,204,563
  Deferred Tax Asset                                                                   71,687             58,553


  Prepaid Expenses                                                                    229,624            162,507
                                                                         ----------------------------------------
      Total Current Assets                                                          9,823,837         10,046,777

PROPERTY, PLANT AND EQUIPMENT, NET                                                  2,142,309          2,153,436
INTANGIBLE ASSETS, NET                                                                125,323             85,251
OTHER ASSETS                                                                           78,665             92,873
                                                                         ----------------------------------------
        Total Assets                                                              $12,170,134        $12,378,337
                                                                         ========================================
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
  Notes Payable - Line of Credit                                                  $ 5,438,685        $ 4,399,238
  Accounts Payable                                                                    639,778          1,068,321
  Income Taxes Payable                                                                391,925            887,417
  Other Liabilities                                                                    54,973                   -
  Accrued Liabilities                                                                 225,321            222,639
                                                                         ----------------------------------------
      Total Current Liabilities                                                     6,750,682          6,577,615

DEFERRED TAX LIABILITY                                                                 79,817            108,847
                                                                         ----------------------------------------
      Total Liabilities                                                             6,830,499          6,686,462
                                                                         ----------------------------------------
SHAREHOLDERS' EQUITY
Common Stock, $.001 par value; 20,000,000 shares
  authorized, 10,181,117 and 10,215,272 shares issued at
  September 30, 2006 and December 31, 2005, respectively.                              10,181             10,215
Additional Paid-in Capital                                                          1,048,404          1,118,388
Less Treasury Shares (245,000 and 249,155 Shares at Cost)                            (509,830)          (490,270)
Retained Earnings                                                                   4,793,039          5,053,542
Foreign Exchange Translation Adjustments                                               (2,159)                  -
                                                                         ----------------------------------------
      Total Shareholders' Equity                                                    5,339,635          5,691,875
                                                                         ----------------------------------------
Total Liabilities & Shareholders' Equity                                          $12,170,134        $12,378,337
                                                                         ========================================
</TABLE>


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


                                        4

<PAGE>


                MILE MARKER INTERNATIONAL, INC. AND SUBSIDIARIES
                   Condensed Consolidated Statements of Income
                        Three Months Ended September 30,
                                    UNAUDITED



<TABLE>
<CAPTION>
                                                                                 2006                2005
                                                                         ----------------------------------------
<S>                                                                                <C>                <C>
Sales                                                                             $ 2,816,923        $ 4,464,747
Cost of Sales                                                                       1,744,996          2,504,960
                                                                         ----------------------------------------
              Gross Profit                                                          1,071,927          1,959,787
                                                                         ----------------------------------------
Selling Expenses                                                                      370,781            287,515
                                                                         ----------------------------------------
General and Administrative Expenses
   Salaries and Wages                                                                 679,149            567,789
   Insurance Costs                                                                    155,782            131,265
   Professional Fees                                                                   78,193             46,791
   Depreciation and Amortization                                                       81,837             68,361
   Rent Expense                                                                        49,142             43,147
   Vehicle Expenses                                                                    19,711             21,374
   Research & Development                                                              26,065             13,325
   Other Expenses                                                                      96,419             86,456
                                                                         ----------------------------------------
      Total General and Administrative Expenses                                     1,186,298            978,508
                                                                         ----------------------------------------
              Total Expenses                                                        1,557,079          1,266,023
                                                                         ----------------------------------------
(Loss)/Income from Operations                                                        (485,152)           693,764
                                                                         ----------------------------------------
Interest Expense                                                                      100,075             84,016
                                                                         ----------------------------------------
(Loss)/Income before (Benefit)/Provision for Income Taxes                            (585,227)           609,748

(Benefit)/Provision for Income Taxes                                                  (92,337)           232,017
                                                                         ----------------------------------------
      Net (Loss)/Income                                                             ($492,890)       $   377,731
                                                                         ========================================
Per Share Data:
   Weighted Average Shares Outstanding - Basic                                      9,943,139         10,024,223
   Weighted Average Shares Outstanding - Diluted                                    9,943,139         10,060,833

  (Loss)/Earnings per Common Share - Basic                                             ($0.05)             $0.04
  (Loss)/Earnings per Common Share - Diluted                                           ($0.05)             $0.04
</TABLE>


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


                                        5

<PAGE>



                MILE MARKER INTERNATIONAL, INC. AND SUBSIDIARIES
                   Condensed Consolidated Statements of Income
                         Nine Months Ended September 30,
                                    UNAUDITED

<TABLE>
<CAPTION>

                                                                                 2006                2005
                                                                         ----------------------------------------
<S>                                                                               <C>                <C>
Sales                                                                             $15,056,197        $17,966,675
Cost of Sales                                                                       8,991,159          9,889,963
                                                                         ----------------------------------------
              Gross Profit                                                          6,065,038          8,076,712
                                                                         ----------------------------------------
Selling Expenses                                                                    1,288,201          1,012,143
                                                                         ----------------------------------------
General and Administrative Expenses
   Salaries and Wages                                                               2,090,049          2,178,042
   Insurance Costs                                                                    442,066            377,067
   Professional Fees                                                                  260,562            226,565
   Depreciation and Amortization                                                      238,421            203,266
   Rent Expense                                                                       148,637            105,317
   Vehicle Expenses                                                                    63,339             51,567
   Research & Development                                                              58,861             34,193
   Other Expenses                                                                     361,199            326,508
                                                                         ----------------------------------------
      Total General and Administrative Expenses                                     3,663,134          3,502,525
                                                                         ----------------------------------------
              Total Expenses                                                        4,951,335          4,514,668
                                                                         ----------------------------------------
Income from Operations                                                              1,113,703          3,562,044
                                                                         ----------------------------------------
 Interest Expense                                                                     268,510            208,361
                                                                         ----------------------------------------
Income before Provision for Income Taxes                                              845,193          3,353,683

Provision for Income Taxes                                                            482,815          1,247,252
                                                                         ----------------------------------------
      Net Income                                                                  $   362,378        $ 2,106,431
                                                                         ========================================
Per Share Data:
   Weighted Average Shares Outstanding - Basic                                      9,953,558         10,020,666
   Weighted Average Shares Outstanding - Diluted                                    9,968,751         10,084,428

  Earnings per Common Share - Basic                                                     $0.04              $0.21
  Earnings per Common Share - Diluted                                                   $0.04              $0.21

</TABLE>

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


                                        6


<PAGE>
                MILE MARKER INTERNATIONAL, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
                         Nine Months Ended September 30,
                                    UNAUDITED
<TABLE>
<CAPTION>
                                                                             2006                2005
                                                                     ----------------------------------------
OPERATING ACTIVITIES:
<S>                                                                              <C>              <C>
Net income                                                                   $    362,378        $ 2,106,431
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
  Depreciation and amortization                                                   244,078            227,785
  Deferred income taxes                                                           (42,164)             3,408
  Inventory obsolescense reserves                                                  18,285             12,458
  Bad debt provisions                                                              30,592             20,594
(Increase) decrease in:
    Accounts receivable                                                         1,336,523            648,415
    Inventories                                                                (1,082,055)        (1,967,111)
    Prepaid expenses                                                              (67,116)           (72,437)
    Other assets                                                                   14,450            (52,895)
(Decrease) increase in:
    Accounts payable                                                             (428,543)           164,157
    Income taxes payable                                                         (495,492)          (941,224)
    Other liabilities                                                              54,973                   -
    Accrued liabilities                                                             2,683             10,672
                                                                     ----------------------------------------
Net cash (used in)/ provided by operating activities                              (51,408)           160,253

INVESTING ACTIVITIES:
Additions to intangible assets                                                    (77,007)           (51,120)
Acquisitions of property and equipment - net                                     (196,259)           (77,034)
                                                                     ----------------------------------------
Net cash (used in) investing activities                                          (273,266)          (128,154)

FINANCING ACTIVITIES
Proceeds from (repayment of) short term borrowing - net                         1,039,447          1,634,289
Purchase of treasury stock                                                        (89,578)            (1,750)
Proceeds from common shares sold pursuant to options                                     -            31,500
Payment of dividends                                                             (622,882)        (1,878,926)
                                                                     ----------------------------------------
Net cash provided by/(used in) financing activities                               326,987           (214,887)

Effect of exchange rate fluctuations on cash                                       (2,159)                  -

Increase/(decrease) in Cash                                                           154           (182,788)

Cash at Beginning of Period                                                       172,306            334,208

                                                                     ----------------------------------------
Cash at End of Period                                                        $    172,460        $   151,420
                                                                     ========================================

Supplemental disclosure of cash flow information:
   Cash paid during the period for interest                                  $    263,663        $   196,779
   Cash paid during the period for income taxes                              $  1,020,471        $ 2,185,068
</TABLE>

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


                                       7
<PAGE>



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

NOTE 1:   BASIS OF PRESENTATION

         The unaudited condensed  consolidated  financial statements include the
accounts of Mile Marker International,  Inc. and its wholly-owned  subsidiaries,
Mile Marker, Inc., Mile Marker West, Inc. and Mile Marker Automotive Electronics
(ShenZhen),  Ltd. (collectively "the Company").  On January 7, 2006, the Company
incorporated Mile Marker Automotive  Electronics  (ShenZhen),  Ltd. in ShenZhen,
China, as a wholly-owned  subsidiary of Mile Marker, Inc., which is now included
in these condensed consolidated financial statements.  All necessary adjustments
to  the  condensed   consolidated  financial  statements  have  been  made,  and
significant  inter-company  accounts and  transactions  have been  eliminated in
consolidation.

         The accompanying unaudited condensed consolidated financial statements,
which are for interim  periods,  do not include all disclosures  provided in the
annual consolidated financial statements. These unaudited condensed consolidated
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, 2005, of Mile Marker  International,
Inc., as filed with the U.S.  Securities  and Exchange  Commission.  The summary
December 31, 2005, balance sheet was derived from audited consolidated financial
statements,  but does not include all disclosures required by generally accepted
accounting principles at December 31, 2005.

          In the opinion of the Company's management, the accompanying unaudited
condensed  consolidated  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 or net loss by the
weighted  average number of shares  outstanding  during the period.  The diluted
share base for the periods  ended  September  30, 2006 and  September  30, 2005,
includes  incremental  shares for stock options  outstanding.  Potential  common
stock,  when included in the computation of loss per share for the quarter ended
September 30, 2006, was anti-dilutive.

NOTE 2: SHAREHOLDERS' EQUITY

        245,000 shares of the Company's  common stock were held in the Company's
treasury as of September 30, 2006. The Company  purchased 16,000 treasury shares
during the third quarter for $41,373, purchased 4,000 treasury shares during the
second quarter of 2006 for $11,005,  and purchased 10,000 treasury shares during
the first quarter of 2006 for $37,200.  The Company retired and cancelled 34,155
treasury shares during the second quarter of 2006.

                                       8
<PAGE>
NOTE 3: RECLASSIFICATION

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

NOTE 4: REVENUE POLICIES AND PROCEDURES

          Except for some sales to the U.S.  military,  revenues are  recognized
when the Company's products are physically shipped to its customers. Some of the
Company's  sales  contracts with the U.S.  military  provide for quality control
inspection and acceptance by a U.S.  Government  employee at the Company's plant
prior to shipment,  at which time the U.S.  Government  takes  possession of the
products.  Shipping of such U.S.  military sales  generally  occurs within a few
days of  acceptance.  As of September 30, 2006,  all of the  Company's  recorded
sales had been shipped, with the only contingencies being product warranties.

         The  Company's  sales  contracts  with its customers do not contain any
contingency  clauses  that would  cause the  Company to retain any risk of loss,
except for normal  product  warranties.  The Company's  product  warranties  are
limited  to  certain  terms  based  on type of  product:  hydraulic  motors  are
warranted for five years, hydraulic and electric winches are generally warranted
for two years,  electrical  components of electric winches are warranted for one
year and Spectro Classic hubs are warranted for one year.  Provisions for return
warranties are made monthly based on an analysis of the cost of actual  warranty
returns during the period and charged to selling expenses. Warranty returns from
all  customers  totaled  $35,741 in the third  quarter of 2006,  and  provisions
totaling  $35,000 were added to the warranty reserve during the third quarter of
2006.  As of September  30, 2006,  the Company's  warranty  reserve  balance was
$84,830.

NOTE 5: CREDIT RISK

         The Company sets  individual  credit limits for its customers  based on
detailed  credit  investigations,  with larger limits  requiring a more thorough
investigation  and  approved  credit  insurance  when such credit  insurance  is
available.  The  Company's  management  establishes  provisions  for  bad  debts
quarterly  based on a monthly  individual  customer-by-customer  analysis of all
aged receivables.  All receivables over $500 aged over 90 days are evaluated for
the  probability of loss,  quantified and reserved on a specific  identification
basis.  During the third quarter of 2006,  $13,462 of  additional  reserves were
provided    for    potentially    uncollectible    receivables    based   on   a
customer-by-customer  analysis,  and $9,834 were written off as bad debts. As of
September  30,  2006,  the  Company's  Reserve for  Uncollectible  Accounts  was
$20,690.

NOTE 6: CUSTOMER CONCENTRATION RISKS

         During the quarter ended  September 30, 2006, only two of the Company's
customers accounted for more than 10% of the Company's total quarterly sales.

                                       9
<PAGE>

        During  the  third  quarter  of 2006,  the  Company's  largest  customer
accounted for $478,828,  or approximately  17%, of the Company's total sales and
$298,744, or approximately 14.3%, of its accounts receivable as of September 30,
2006.

        During the third quarter of 2006, the Company's  second largest customer
accounted for $338,803,  or approximately  12%, of the Company's total sales and
$529,256, or approximately 25.4%, of its accounts receivable as of September 30,
2006.

NOTE 7: INVENTORY RESERVES

         The Company establishes reserves quarterly for obsolete and slow-moving
inventory based on an item-by-item  analysis of inventory levels compared to the
movement  history  of each  inventory  item.  Slow-moving  inventory  items  are
reserved  in direct  proportion  to their  movement  activity  over the past two
years, i.e., the slowest moving inventory items are reserved the most.  Obsolete
inventory items are fully reserved. During the third quarter of 2006, additional
reserves for obsolete and slow-moving inventory of $3,598 were provided,  and no
obsolete  or  slow-moving  inventory  was  disposed  of and  written  off. As of
September 30, 2006, this reserve amounted to $105,325.

NOTE 8: LENDER LOAN COVENANTS

         During the quarter ended  September 30, 2006,  the Company was required
by its  lender to  maintain a minimum  Tangible  Net Worth of  $4,899,706  and a
minimum Fixed Charge Coverage Ratio in excess of 1.00. As of September 30, 2006,
the Company was in compliance  with the Tangible Net Worth  requirement  and the
Fixed Charge Coverage Ratio. Minimum Tangible Net Worth was $4,984,689,  and the
Fixed  Charge  Coverage  Ratio was  1.12.  While the  Company  has  historically
received waivers for any technical  defaults of these ratios,  it is likely that
not  meeting  these  covenants  and  failing  to  receive  a future  waiver of a
technical default from the lender could result in more restrictive loan terms by
the lender.

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 Company's  results of operations,
stated as a percentage of sales,  for the nine months and the three months ended
September 30, 2006 and September 30, 2005:



                                       10
<PAGE>

<TABLE>
<CAPTION>
                                                         Nine Months             Three Months
                                                     2006        2005          2006         2005
                                                  ------------------------  -------------------------
<S>                                                     <C>         <C>           <C>          <C>
Sales                                                  100.0%      100.0%        100.0%       100.0%
Cost of Sales                                           59.7%       55.0%         61.9%        56.1%
                                                  ------------------------  -------------------------
      Gross Profit                                      40.3%       45.0%         38.1%        43.9%
Selling Expenses                                         8.6%        5.6%         13.2%         6.4%
General & Administrative Expenses                       24.3%       19.6%         42.1%        21.9%
                                                  ------------------------  -------------------------
      Income/(Loss) from Operations                      7.4%       19.8%        -17.2%        15.6%
Other Expense                                            1.8%        1.2%          3.6%         1.9%
                                                  ------------------------  -------------------------
      Income/(Loss) Before Income Taxes                  5.6%       18.6%        -20.8%        13.7%
Income Taxes                                             3.2%        6.9%         -3.3%         5.2%
                                                  ------------------------  -------------------------
                                                  ------------------------  -------------------------
      Net Income/(Loss)                                  2.4%       11.7%        -17.5%         8.5%
                                                  ========================  =========================
</TABLE>

         Sales of $15,056,197 for the nine months ended September 30, 2006, were
$2,910,478,  or  approximately  16%, less than sales of  $17,966,675  during the
first nine months of 2005.  This sales  decrease  was due chiefly to  $3,004,710
less  Original  Equipment  Manufacturer  (OEM) sales in the first nine months of
2006 than in the comparable  period of 2005.  Military sales were  $1,442,780 in
the first nine months of 2006,  compared to $2,589,776 during the same period in
2005, a decrease of $1,146,996,  or approximately  44%.  However,  this military
sales  decrease  was offset by an increase  of  $1,241,229  in other  commercial
sales.  During the third quarter of 2006,  military  sales amounted to $181,946,
compared to $223,727  during the same period in 2005.  The major reasons for the
decreases in military sales were the U.S. military budgetary  considerations and
priorities that have resulted in the deferral of military equipment  maintenance
during the U.S. Government's 2006 Fiscal Year.

         Commercial  sales  (including OEM sales ) were $13,613,417 in the first
nine months of 2006,  compared to $15,376,899  during the same period in 2005, a
decrease of  $1,763,482,  or  approximately  11%.  $1,606,043  of this  decrease
occurred in the third  quarter as commercial  sales fell from  $4,241,020 in the
third  quarter of 2005 to $2,634,977 in the third quarter of 2006, a decrease of
approximately 38%. The main reasons for these decreases in commercial sales were
reduced  orders from the  Company's  major OEM customer  due to a  manufacturing
shutdown and product line conversion.

       The Company's gross margins on sales decreased from 45% in the first nine
months  of 2005 to 40.3% in the first  nine  months  of 2006.  During  the third
quarter of 2006,  gross  margins  decreased to 38.1% from 43.9%  compared to the
third quarter of 2005.  These  decreases  were due to a continuing  shift in the
Company's  product  sales  mix to  more  high-volume  purchasers  of  discounted
commercial  winch  products and the impact of increased  material  costs flowing
through the Company's first-in first-out (FIFO) inventory. Cost savings from the
Company's  China  factory  expected  to be  realized  have  not yet  contributed
significantly to the Company's overall cost of goods during the third quarter of
2006.

                                       11
<PAGE>

         Selling  costs  increased  by  $276,058,  or  approximately  27%,  from
$1,012,143  in the first  nine  months of 2005 to  $1,288,201  in the first nine
months of 2006,  primarily  due to  greater  travel and trade show costs for new
product introductions as well as higher sales commissions,  sales promotions and
warranty  costs.  During the third quarter of 2006,  selling costs  increased by
$83,266,  or  approximately  29%,  from $287,515 in the third quarter of 2005 to
$370,781,  primarily due to higher sales  promotions,  travel costs and warranty
costs.

         General and administrative expenses for the nine months ended September
30, 2006, increased by $160,609,  or about 5%, from $3,502,525 in the first nine
months of 2005 to $3,663,134  in the first nine months of 2006.  The increase in
general  and  administrative  expenses  in the  first  nine  months  of  2006 is
primarily due to higher insurance, rent and depreciation costs. Offsetting these
increases  was a decrease  in officer  salaries  due to the  elimination  of the
annual performance bonuses for the Company's officers in 2006.

         For  the  three  months   ended   September   30,  2006,   general  and
administrative  expenses  increased by $207,790,  or about 21%, from $978,508 in
the third  quarter of 2005 to  $1,186,298  in the third  quarter  of 2006.  This
increase from the third quarter of 2005 resulted  primarily  from an increase of
$111,360 in salaries and wages,  $31,402 in higher professional fees and $30,727
higher health insurance costs.

         The Company's  results of operations  for the first nine months of 2006
reflected  operating income of $1,113,703  compared to income from operations of
$3,562,044  during  the same  period  in 2005,  a  decrease  of  $2,448,341,  or
approximately 69%. Other expenses,  consisting of interest, were $60,149 more in
the first nine months of 2006 than the  comparable  period in 2005 primarily due
to higher interest rates on higher working capital  borrowings.  During the nine
months ended  September 30, 2006,  the Company  recorded  income before taxes of
$845,193 compared to income before taxes of $3,353,683 during the same period in
2005.  The Company's net income of $362,378 after taxes in the first nine months
of 2006  was  $1,744,053,  or  approximately  83%,  lower  than  net  income  of
$2,106,431  for the first  nine  months of 2005.  Net  income in the first  nine
months of 2006 represented  earnings per share of $0.04,  both primary and fully
diluted, compared to $0.21 earnings per share during the same period in 2005.

         During the third quarter of 2006,  the Company's  results of operations
reflected an operating loss of $485,152,  compared to income from  operations of
$693,764 during the same period in 2005. Other expenses,  consisting principally
of interest,  were $16,059 more in the third quarter of 2006 than the comparable
period in 2005, primarily due to higher interest rates on higher working capital
borrowings.  During the three  months  ended  September  30,  2006,  the Company
recorded a loss before  taxes of $585,227  compared  to income  before  taxes of
$609,748  during the same  period in 2005.  The  Company  incurred a net loss of
$492,890 after taxes in the third quarter of 2006,  compared to net income after
taxes of $377,731  during the third quarter of 2005.  The net loss for the three
months ended  September 30, 2006,  represented a loss of $0.05 per common share,
both primary and fully  diluted,  compared to earnings of $0.04 per share during
the same period in 2005.


                                       12
<PAGE>

         The  primary  reason  for the net  loss in the  third  quarter  of 2006
compared  to  the  comparable   period  in  2005  was  the  negative  effect  of
significantly  lower sales and gross margins in 2006 on the Company's  operating
leverage.  The  main  contributing  factors  for the  sales  decrease  were  the
significant  decrease in OEM orders and the lack of significant  direct military
sales.  OEM sales  declined  from  $2,523,790  in the third  quarter  of 2005 to
$478,828 in the same period in 2006, a decrease of $2,044,962,  or approximately
81%, due to a manufacturing  shutdown in July and product line  conversion.  All
other  commercial  sales  increased  by $438,919,  or  approximately  26%,  from
$1,717,230  in the third  quarter of 2005 to  $2,156,149 in the third quarter of
2006 despite the negative effect of seasonal factors.

          As we have  previously  noted,  the  Company's  financial  results are
heavily  influenced  by  significant  periodic  sales  to the U.S.  military  of
replacement  winches for the refurbishing of existing Humvees.  During 2006, the
Company's  investments in inventory,  staff and facilities  have been based on a
much higher level of anticipated  military sales due to the substantial  backlog
of  unfilled  potential  military  orders.  While  there were only  $181,946  in
military  sales in the third quarter of 2006,  the Company's  total sales in the
future will continue to be affected  considerably by the receipt of new military
orders  for  replacement  winches  under  its four  outstanding  military  winch
contracts  totaling  over $47 million of potential  orders  through  February of
2010. The military is not required to order any more winches under its contracts
with the Company.  Even if, as the Company anticipates,  the military does place
additional  orders for such  winches,  the  timing and size of such  potentially
large orders is intermittent  and  unpredictable,  nor are the order  quantities
guaranteed or assured. However, the Company must be prepared to meet such orders
on a timely basis when they are  received  pursuant to the  contracts.  The 2007
Department of Defense Appropriations Act was signed into law by the President on
September 29, 2006.  Media reports have indicated  that the US Army's  equipment
budget  for  Fiscal  Year 2007 is  expected  to be  substantially  more than was
budgeted in previous years,  that $5 billion of previous years'  allocations for
equipment expenses have been deferred and that many Humvee vehicles were waiting
for funding for repair and refurbishing during the fiscal year beginning October
1, 2006. Any major military  orders  received for  replacement  winches would be
expected  to  provide  opportunities  for  substantial  increases  in sales  and
profits, while the lack of such additional military orders would have a material
adverse effect on the Company's future sales, profits and cash flow.

       The  Company's  basic sales  strategy  continues  to be  increasing  both
hydraulic  and  electric  winch  sales to various  commercial  markets  with the
addition of new winch models and electronic  products,  while continuing to sell
more of its  hydraulic  winches to OEM  customers.  Military  winch  sales could
supplement such commercial sales very dramatically.


                                       13
<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

         Net working  capital  decreased by $396,007 to  $3,073,155 on September
30, 2006, from $3,469,162 on December 31, 2005, and the Company's  current ratio
decreased to 1.46 at September 30, 2006,  compared to 1.53 at December 31, 2005.
The Company's  current  assets  decreased by $222,940 to $9,823,837 at September
30, 2006, compared to $10,046,777 at December 31, 2005. Most of this decrease in
current assets was due to a decrease of $1,367,115 in accounts  receivable  from
December 31, 2005,  levels,  offset by  $1,144,175 of increases in other current
assets, primarily inventories, which increased by $1,063,770.

        The Company's  current  liabilities  increased by a net  $173,067,  from
$6,577,615 on December 31, 2005, to $6,750,682 on September 30, 2006.  Decreases
of $495,492 in income taxes payable and $428,543 in accounts payable were offset
by increased  borrowings of $1,039,447.  Borrowings under the Company's  working
capital line of credit  increased  from  $4,399,238  on December  31,  2005,  to
$5,438,685 on September 30, 2006. The higher borrowings  essentially  funded the
increase in inventories noted above.

        During the first nine months of 2006, the Company's operating activities
used  $51,408 of cash flow.  Major cash uses during this period were  $1,082,055
for higher  inventories,  $622,882 for  dividends to  shareholders  in the first
quarter,  $196,259  for capital  expenditures  and  $89,578 for the  purchase of
Company stock.  The Company has no material  commitments  outstanding  for major
capital  expenditures  during  2006,  but the Company may  purchase  more of its
common stock,  as it has been doing since 2002.  The  Company's  ability to have
adequate  liquidity  and  capital  for  its  foreseeable  operational  needs  is
dependant  upon its ability to  increase  its  borrowing  capacity in the fourth
quarter and to process substantial military orders while simultaneously  growing
its commercial  business.  The Company's  management is actively  addressing all
these factors while managing its existing liquidity and capital.

         The  Company has  historically  paid out a  substantial  portion of its
earnings in the form of dividends to its shareholders.  However, the Company did
not pay a dividend during the second or third quarter of 2006. While the Company
intends  that it will again pay  quarterly  cash  dividends  in the  foreseeable
future,  its  ability  to  do so  is  subject  to  adequate  earnings,  periodic
determinations  that  such  cash  dividends  are in  the  best  interest  of its
shareholders,  and that the Company's capital and lender  requirements are being
satisfied.  Our dividend  policy will be affected by, among other  matters,  the
views of our  management and Board of Directors on the  anticipated  earnings of
the Company and the Company's overall financial condition.

        The Company's cash balances did not change significantly from a December
31, 2005, level of $172,306 to $172,460 on September 30, 2006, due to the timing
of deposits  in transit.  The  Company  seeks to minimize  its cash  balances by
employing  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.

                                       14
<PAGE>

       The Company has a $7,000,000 working capital line of credit from a lender
at an interest rate of 2.40% above the One Month London  Interbank  Offered Rate
with a  maturity  date of April 30,  2007.  In  addition,  this  lender has also
provided the Company with a 10-year $1,260,000  revolving line of credit secured
by the Company's  warehouse and office building that was fully repaid in June of
2004, but it remains available for term borrowings on a declining balance basis.

ITEM 3.    CONTROLS AND PROCEDURES

      As  stated  in the  certifications  in  Exhibit  31 of  this  Report,  the
Company's Chief Executive Officer and Chief Financial Officer have evaluated the
Company's  disclosure controls and procedures as of September 30, 2006. Based on
that  evaluation,  these officers have  concluded that the Company's  disclosure
controls and  procedures are effective for the purpose of ensuring that material
information  required  to be in this  quarterly  report is made known to them by
others on a timely basis.  There have not been changes in the company's internal
control over  financial  reporting  that  occurred  during the  Company's  third
quarter that have materially  affected,  or are reasonably likely to affect, the
Company's internal control over financial reporting.

                           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,  is
currently material to the Company's operations or financial condition.

ITEM  2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

      a.   Unregistered Sales of Equity Securities - None

      b. Purchase of Equity Securities by Small Business Issuer

The following  table  summarizes  the status of equity  purchases by the Company
during the quarter ended September 30, 2006:

              Small Business Issuer Purchases of Equity Securities

<TABLE>
<CAPTION>
                                            Average        Total Shares              Maximum Shares
Time                Total Number            Price          Purchased Under           Remaining Under
Period              of Shares               Paid per       the Publicly              the Publicly
                    Purchased               Share          Announced                 Announced
                                                           Purchase Program          Purchase Program
<S>                  <C>                  <C>              <C>                       <C>
7/1/06-7/31/06          6,000                $2.73               6,000                     123,845
8/1/06-8/31/06          8,000                $2.50               8,000                     115,845
9/1/06-9/30/06          2,000                $2.50               2,000                     113,845
</TABLE>


                                       15
<PAGE>

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


  Exhibit 31.1 -  Section 302 Certificate of Chief Executive Officer

  Exhibit 31.2 -  Section 302 Certificate of Chief Financial Officer

  Exhibit 32.1 -  Section 906 Certificate of Chief Executive Officer

  Exhibit  32.2 - Section 906 Certificate of Chief Financial Officer

                                       16
<PAGE>


                                   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)



  11/03/06            /s/  Richard E. Aho
-----------           -------------------------------------------------------
    (Date)            Richard E. Aho, President and
                         Chief Executive Officer

  11/03/06            /s/  Alvin A. Hirsch
-----------           -------------------------------------------------------
    (Date)             Alvin A. Hirsch, Secretary/Treasurer
                       and Chief Financial Officer
                       Principal Accounting Officer


                                       17