U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB



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

     For the quarterly period ended                      Commission file
             June 30, 2006                               Number 0-26150


                         MILE MARKER INTERNATIONAL, INC.
                         -------------------------------
        (Exact Name of Small Business Issuer As Specified In Its Charter)

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

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

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

      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 __X__         No _____


                      APPLICABLE ONLY TO CORPORATE ISSUERS

     On June 30, 2006, the Small Business Issuer had outstanding 9,952,117
shares of common stock, $.001 par value.



<PAGE>


                         MILE MARKER INTERNATIONAL, INC.

                                      INDEX
                                                                        Page No.

PART I     FINANCIAL INFORMATION

Item 1.    Financial Statements

           Condensed Consolidated Balance Sheets, June 30, 2006,
            and December 31, 2005.......................................      4

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

           Condensed Consolidated Statements of Income, Six Months
            ended June 30, 2006, and June 30, 2005......................      6

           Condensed Consolidated Statements of Cash Flows, Six
            Months ended June 30, 2006, and June 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......................................     14


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..............................     15

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


                                       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 in general 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.

                           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.


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

ASSETS                                                            2006            2005
                                                            --------------------------------
CURRENT ASSETS
<S>                                                                <C>             <C>
  Cash                                                             $253,117        $172,306
  Accounts Receivable, net of allowance for doubtful
   accounts of $17,000 and $5,000, respectively                   3,066,755       3,448,848
  Inventories                                                     6,332,495       6,204,563
  Deferred Tax Asset                                                 69,483          58,553
  Prepaid Expenses                                                  231,247         162,507
                                                            --------------------------------
     Total Current Assets                                         9,953,097      10,046,777

PROPERTY, PLANT AND EQUIPMENT, NET                                2,195,506       2,153,436
INTANGIBLE ASSETS, NET                                              121,453          85,251
OTHER ASSETS                                                         90,550          92,873
                                                            --------------------------------
       Total Assets                                             $12,360,606     $12,378,337
                                                            ================================

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
  Notes Payable - Line of Credit                                 $4,967,173      $4,399,238
  Accounts Payable                                                  609,450       1,068,321
  Income Taxes Payable                                              574,314         887,417
  Other Liabilities                                                  26,057               -
  Accrued Liabilities                                               209,866         222,639
                                                            --------------------------------
     Total Current Liabilities                                    6,386,860       6,577,615

DEFERRED TAX LIABILITY                                               98,032         108,847
                                                            --------------------------------
       Total Liabilities                                          6,484,892       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
 June 30, 2006 and December 31, 2005, respectively                   10,181          10,215
Additional Paid-in Capital                                        1,048,404       1,118,388
Less Treasury Shares (229,000 and 249,155 Shares at Cost)          (468,456)       (490,270)
Retained Earnings                                                 5,285,928       5,053,542
Foreign Exchange Translation Adjustments                               (343)              -
                                                            --------------------------------
       Total Shareholders' Equity                                 5,875,714       5,691,875

                                                            --------------------------------
Total Liabilities & Shareholders' Equity                        $12,360,606     $12,378,337
                                                            ================================
</TABLE>

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


                                       4
<PAGE>


<TABLE>
<CAPTION>
                MILE MARKER INTERNATIONAL, INC. AND SUBSIDIARIES
                  Condensed Consolidated Statements of Income
                          Three Months Ended June 30,
                                   UNAUDITED

                                                                  2006            2005
                                                            --------------------------------

<S>                                                              <C>             <C>
Sales                                                            $4,949,473      $6,020,205
Cost of Sales                                                     3,062,538       3,420,189
                                                            --------------------------------
        Gross Profit                                              1,886,935       2,600,016
                                                            --------------------------------

Selling Expenses                                                    471,358         365,707
                                                            --------------------------------

General and Administrative Expenses
  Salaries and Wages                                                690,944         647,043
  Insurance Costs                                                   142,216         129,976
  Professional Fees                                                  50,717          76,074
  Depreciation and Amortization                                      81,861          67,173
  Rent Expense                                                       50,496          41,359
  Vehicle Expenses                                                   26,134          15,165
  Research & Development                                             17,676           7,458
  Other Expenses                                                    133,213         105,744
                                                            --------------------------------
     Total General and Administrative Expenses                    1,193,257       1,089,992
                                                            --------------------------------
        Total Expenses                                            1,664,615       1,455,699
                                                            --------------------------------

Income from Operations                                              222,320       1,144,317
                                                            --------------------------------

Interest Expense                                                     91,872          69,654
                                                            --------------------------------

Income before Provision for Income Taxes                            130,448       1,074,663

Provision for Income Taxes                                           69,800         387,991
                                                            --------------------------------

     Net Income                                                     $60,648        $686,672
                                                            ================================

Per Share Data:
  Weighted Average Shares Outstanding - Basic                     9,954,199      10,023,393
  Weighted Average Shares Outstanding - Diluted                   9,969,392      10,100,537

  Earnings per Common Share - Basic                                   $0.01           $0.07
  Earnings per Common Share - Diluted                                 $0.01           $0.07
</TABLE>

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


                                       5
<PAGE>


<TABLE>
<CAPTION>
                MILE MARKER INTERNATIONAL, INC. AND SUBSIDIARIES
                  Condensed Consolidated Statements of Income
                           Six Months Ended June 30,
                                   UNAUDITED

                                                                  2006            2005
                                                            --------------------------------

<S>                                                             <C>             <C>
Sales                                                           $12,239,274     $13,501,928
Cost of Sales                                                     7,246,162       7,385,003
                                                            --------------------------------
        Gross Profit                                              4,993,112       6,116,925
                                                            --------------------------------

Selling Expenses                                                    917,420         724,628
                                                            --------------------------------

General and Administrative Expenses
  Salaries and Wages                                              1,410,901       1,610,253
  Insurance Costs                                                   286,284         245,802
  Professional Fees                                                 182,369         179,774
  Depreciation and Amortization                                     156,584         134,905
  Rent Expense                                                       99,494          62,170
  Vehicle Expenses                                                   43,628          30,192
  Research & Development                                             32,796          20,869
  Other Expenses                                                    264,781         240,052
                                                            --------------------------------
     Total General and Administrative Expenses                    2,476,837       2,524,017
                                                            --------------------------------
        Total Expenses                                            3,394,257       3,248,645
                                                            --------------------------------

Income from Operations                                            1,598,855       2,868,280
                                                            --------------------------------

Interest Expense                                                    168,435         124,345
                                                            --------------------------------

Income before Provision for Income Taxes                          1,430,420       2,743,935

Provision for Income Taxes                                          575,152       1,015,235
                                                            --------------------------------

     Net Income                                                    $855,268      $1,728,700
                                                            ================================

Per Share Data:
  Weighted Average Shares Outstanding - Basic                     9,958,855      10,018,858
  Weighted Average Shares Outstanding - Diluted                   9,982,573      10,095,769

  Earnings per Common Share - Basic                                   $0.09           $0.17
  Earnings per Common Share - Diluted                                 $0.09           $0.17
</TABLE>

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


                                       6
<PAGE>


<TABLE>
<CAPTION>
                MILE MARKER INTERNATIONAL, INC. AND SUBSIDIARIES
                Condensed Consolidated Statements of Cash Flows
                           Six Months Ended June 30,
                                   UNAUDITED

                                                                       2006            2005
                                                            --------------------------------
OPERATING ACTIVITIES:
<S>                                                                <C>           <C>
Net income                                                         $855,268      $1,728,700
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
  Depreciation and amortization                                     160,880         152,301
  Deferred income taxes                                             (21,745)        (12,009)
  Inventory obsolescense reserves                                    14,687          12,458
  Bad debt provisions                                                17,130          18,506
(Increase) decrease in:
    Accounts receivable                                             364,962         (95,116)
    Inventories                                                    (142,619)     (1,124,517)
    Prepaid expenses                                                (68,740)        (80,502)
    Other assets                                                      2,367         (44,921)
(Decrease) increase in:
    Accounts payable                                               (458,871)        474,168
    Income taxes payable                                           (313,103)     (1,152,756)
    Other liabilities                                                26,057               -
    Accrued liabilities                                             (12,773)        (15,787)
                                                            --------------------------------
Net cash provided by/(used in) operating activities                 423,500        (139,475)

INVESTING ACTIVITIES:
Additions to intangible assets                                      (60,175)        (47,854)
Acquisitions of property and equipment - net                       (179,019)        (77,948)
                                                            --------------------------------
Net cash (used in) investing activities                            (239,194)       (125,802)

FINANCING ACTIVITIES
Proceeds from (repayment of) short term borrowing - net             567,935       1,961,000
Purchase of treasury stock                                          (48,205)              -
Proceeds from common shares sold pursuant to options                      -          31,500
Payment of dividends                                               (622,882)     (1,878,926)
                                                            --------------------------------
Net cash (used in)/provided by financing activities                (103,152)        113,574

Effect of exchange rate fluctuations on cash                           (343)              -

Increase/(decrease) in Cash                                          80,811        (151,703)

Cash at Beginning of Period                                         172,306         334,208

                                                            --------------------------------
Cash at End of Period                                              $253,117        $182,505
                                                            ================================

Supplemental disclosure of cash flow information:
   Cash paid during the period for interest                        $167,206        $118,696
   Cash paid during the period for income taxes                    $910,000      $2,180,000
</TABLE>

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


                                       7
<PAGE>


                         MILE MARKER INTERNATIONAL, INC.
              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 by the weighted average
number of shares outstanding during the period. The diluted share base for the
periods ended June 30, 2006, and June 30, 2005, includes incremental shares for
stock options outstanding during those periods.

Note 2: Shareholders' Equity

     229,000 shares of the Company's common stock were held in the Company's
treasury as of June 30, 2006, following the purchase of 4,000 shares during the
second quarter of 2006 for $11,005, the purchase of 10,000 shares during the
first quarter of 2006 for $37,200, and the retirement and cancellation of 34,155
treasury shares.


                                       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 June 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 $29,968 in the second quarter of 2006, and provisions
totaling $33,000 were added to the warranty reserve during the second quarter of
2006. As of June 30, 2006, the Company's warranty reserve balance was $85,571.

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 second quarter of 2006, $9,652 of additional reserves were
provided for potentially uncollectible receivables based on a
customer-by-customer analysis, $10,593 was written off as bad debts and $5,400
was recovered. As of June 30, 2006, the Company's Reserve for Uncollectible
Accounts was $17,062.

Note 6: Customer Concentration Risks

     During the quarter ended June 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 second quarter of 2006, the Company's largest customer accounted
for $2,056,309, or approximately 41.5%, of the Company's total sales and
$799,505, or approximately 26.1%, of its accounts receivable as of June 30, 2006

     During the second quarter of 2006, the Company's second largest customer
accounted for $600,307, or approximately 12.1%, of the Company's total sales and
$923,440, or approximately 30.1%, of its accounts receivable as of June 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 second quarter of 2006,
additional reserves for obsolete and slow-moving inventory of $8,129 were
provided, and no obsolete or slow-moving inventory was disposed of and written
off. As of June 30, 2006, this reserve amounted to $101,727.

Note 8: Lender Loan Covenants

     During the quarter ended June 30, 2006, the Company was required by its
lender to maintain a minimum Tangible Net Worth of $4,899,706, a minimum Fixed
Charge Coverage Ratio in excess of 1.00 and minimum EBITDA (Earnings Before
Interest, Taxes, Depreciation and Amortization) of $1,000,000. As of June 30,
2006, the Company was in compliance with the Tangible Net Worth requirement and
the Fixed Charge Coverage Ratio but did not meet the minimum EBITDA requirement.
Minimum Tangible Net Worth was $5,523,013, the Fixed Charge Coverage Ratio was
1.31 and EBITDA was $334,012. On July 18, 2006, the Company's lender waived the
Company's technical default of its EBITDA requirement as of June 30, 2006, and
permanently removed this requirement from the Loan Agreement entirely. While the
Company has historically received waivers for any technical defaults of these
ratios, the likely consequence of 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 six months and the three months ended June 30,
2006 and June 30, 2005:


                                       10
<PAGE>

<TABLE>
<CAPTION>

                                              Six Months                Three Months
                                          2006          2005         2006          2005
                                       ------------------------   ------------------------
<S>                                        <C>           <C>          <C>           <C>
Sales                                      100.0%        100.0%       100.0%        100.0%
Cost of Sales                               59.2%         54.7%        61.9%         56.8%
                                       ------------------------   ------------------------
     Gross Profit                           40.8%         45.3%        38.1%         43.2%
Selling Expenses                             7.5%          5.4%         9.5%          6.1%
General & Administrative Expenses           20.2%         18.7%        24.1%         18.1%
                                       ------------------------   ------------------------
     Income from Operations                 13.1%         21.2%         4.5%         19.0%
Interest Expense                             1.4%          0.9%         1.9%          1.2%
                                       ------------------------   ------------------------
     Income Before Income Taxes             11.7%         20.3%         2.6%         17.8%
Income Taxes                                 4.7%          7.5%         1.4%          6.4%
                                       ------------------------   ------------------------
     Net Income                              7.0%         12.8%         1.2%         11.4%
                                       ========================   ========================
</TABLE>


     Sales of $12,239,274 for the six months ended June 30, 2006, were
$1,262,654, or approximately 9%, less than sales of $13,501,928 during the first
six months of 2005. This sales decrease was due chiefly to $1,105,216 less
military sales in the first half of 2006 than in the comparable period of 2005.
Military sales were $1,260,834 in the first half of 2006, compared to $2,366,050
during the same period in 2005, a decrease of approximately 47%. During the
second quarter of 2006, military sales amounted to $137,265, compared to
$518,028 during the same period in 2005. The major reasons for the decreases in
military sales were the U.S. military budgetary considerations and priorities
which have recently been discussed in the media.

     Commercial sales were $10,978,440 in the first six months of 2006, compared
to $11,135,878 during the same period in 2005, a decrease of $157,438, or
approximately 1%. Commercial sales during the second quarter of 2006 amounted to
$4,812,208, compared to $5,502,177 for the same period in 2005, a decrease of
$689,969, or approximately 13%. The main reasons for these decreases in
commercial sales were reduced orders from the Company's major Original Equipment
Manufacturer (OEM) and typical seasonal factors affecting the Company's major
retail distributors.

     The Company's gross margins on sales decreased from 45.3% in the first half
of 2005 to 40.8% in the first half of 2006. During the second quarter of 2006,
gross margins decreased to 38.1% from 43.2%, compared to the second quarter of
2005. These decreases were due to a continuing shift in the Company's product
sales 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 second quarter of 2006.


                                       11
<PAGE>

     Selling costs increased by $192,792, or approximately 27%, from $724,628 in
the first half of 2005 to $917,420 in the first half of 2006, primarily due to
greater travel costs in connection with the Company's China operations as well
as more sales commissions, sales discounts and promotional costs. During the
second quarter of 2006, selling costs increased by $105,651, or approximately
29%, from $365,707 in the second quarter of 2005 to $471,358.

     General and administrative expenses for the six months ended June 30, 2006,
decreased by $47,180, or about 2%, from $2,524,017 in the first six months of
2005 to $2,476,837 in the first half of 2006. The decrease in general and
administrative expenses in the first six months of 2006 is primarily due to a
$199,352 decrease in salaries and wages from first half 2005 levels. Most of
this decrease was due to the elimination of the annual performance bonuses for
the Company's officers in the first quarter of 2006 compared to 2005. Offsetting
this decrease were increases of $40,482 in insurance expenses, $37,324 in rent
expenses and $21,679 in depreciation expenses during the first six month period.

     For the three months ended June 30, 2006, general and administrative
expenses increased by $103,265, or about 9%, from $1,089,992 in the second
quarter of 2005 to $1,193,257 in the second quarter of 2006. These quarterly
increases occurred in all expense categories during the quarter, except for
professional fees, which were $25,357 less in the second quarter of 2006
compared to the same period in 2005.

     The Company's results of operations for the first six months of 2006
reflected operating income of $1,598,855 compared to income from operations of
$2,868,280 during the same period in 2005, a decrease of $1,269,425, or
approximately 44%. Other expenses, consisting of interest, were $44,090 more in
the first six months of 2006 than the comparable period in 2005 primarily due to
higher interest rates on working capital borrowings. During the six months
ending June 30, 2006, the Company recorded income before taxes of $1,430,420
compared to income before taxes of $2,743,935 during the same period in 2005.
The Company's net income of $855,268 after taxes in the first half of 2006 was
$873,432, or approximately 51%, lower than the net income of $1,728,700 for the
first six months of 2005. The net income in the first six months of 2006
represented earnings per share of $0.09, both primary and fully diluted,
compared to $0.17 earnings per share during the same period in 2005.

     During the second quarter of 2006, the Company's results of operations
reflected operating income of $222,320, compared to income from operations of
$1,144,317 during the same period in 2005, a decrease of $921,997, or
approximately 81%. Other expenses, consisting of interest, were $22,218 more in
the second quarter of 2006 than the comparable period in 2005, primarily due to
higher interest rates on working capital borrowings. During the three months
ending June 30, 2006, the Company recorded income before taxes of $130,448
compared to income before taxes of $1,074,663 during the same period in 2005.
The Company's net income of $60,648 after taxes in the second quarter of 2006
was $626,024 or approximately 91%, lower than the net income of $686,672 for the
second quarter of 2005. Net income for the three months ended June 30, 2006,
represented earnings per share of $0.01, both primary and fully diluted,
compared to $0.07 earnings per share during the same period in 2005.


                                       12
<PAGE>

     The primary reason for the lower net income in the second quarter of 2006
compared to the comparable period in 2005 was the negative effect of lower sales
and gross margins in 2006 on the Company's operating leverage. The main
contributing factors for this sales decrease were the lack of direct military
sales and the significant slowdown in commercial sales revenues. Commercial
sales declined by $1,354,024, or approximately 22%, from $6,166,232 in the first
quarter of 2006 to $4,812,208 in the second quarter of 2006 mainly due to
reduced OEM orders from the manufacturer of new Humvee vehicles and other
seasonal factors. However, the Company's investments in inventory, staff and
facilities were based on a much higher level of anticipated sales due to the
substantial backlog of potential military orders. As we have previously
indicated, 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. There were sales of only $137,265 in military spare parts
in the second quarter of 2006, compared to $1,123,569 of military winch sales in
the first quarter of 2006, a decrease of $986,304, or approximately 88%. While
commercial sales have more recently represented an increasing proportion of the
Company's total sales, the Company's total sales in the future will continue to
be affected significantly by its 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 timing of such
potentially large orders is intermittent and unpredictable, and the order
quantities are neither guaranteed nor assured, but the Company must be prepared
to meet such orders on a timely basis when they are received. Media reports
indicate that the US Army's equipment budget for Fiscal Year 2007 is anticipated
to triple to $12 billion from $4 billion in previous years, that $5 billion of
previous years' allocations for equipment expenses have been deferred and that
many Humvee vehicles are awaiting 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 the 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 are
expected to supplement such sales growth.

LIQUIDITY AND CAPITAL RESOURCES

     Net working capital increased by $97,075 to $3,566,237 on June 30, 2006,
from $3,469,162 on December 31, 2005, and the Company's current ratio increased
to 1.56 at June 30, 2006, compared to 1.53 at December 31, 2005. The Company's
current assets decreased by $93,680 to $9,953,097 at June 30, 2006, compared to
$10,046,777 at December 31, 2005. Most of this decrease in current assets was
due to a decrease of $382,093 in accounts receivable from December 31, 2005,
levels, offset by $288,413 of increases in other current assets, primarily
inventories, which increased by $127,932.


                                       13
<PAGE>

     The Company's current liabilities decreased by a net $190,755, from
$6,577,615 on December 31, 2005, to $6,386,860 on June 30, 2006. Most of this
decrease in current liabilities was due to a reduction of $458,871 in accounts
payable and $313,103 in income taxes payable, offset by an increase of $567,935
in outstanding borrowings. Borrowings under the Company's working capital line
of credit increased from $4,399,238 on December 31, 2005, to $4,967,173 on June
30, 2006.

     During the first six months of 2006, the Company generated $423,500 of cash
flow from operations. Major cash uses during this period were $622,882 for
dividends to shareholders, $179,019 for capital expenditures and $48,205 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 anticipates
having more than adequate capital and liquidity for its foreseeable operational
needs.

     The Company did not pay its dividend during the second quarter of 2006.
Since the Company has historically paid out a substantial portion of its
earnings in the form of dividends to its shareholders, the Company intends to
continue its practice of paying quarterly cash dividends subject, of course, to
adequate earnings and periodic determinations that such cash dividends are in
the best interest of the shareholders and that the Company's capital and lender
requirements have been satisfied. Our dividend policy may be affected by, among
other matters, the views of our management and Board of Directors on the
anticipated earnings of the Company, the Company's capital and lender
requirements and the Company's overall financial condition.

     The Company's cash balances increased by $80,811 from a December 31, 2005,
level of $172,306 to $253,117 on June 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.

     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 new 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 June 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 second
quarter that have materially affected, or are reasonably likely to affect, the
Company's internal control over financial reporting.


                                       14
<PAGE>

                           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 June, 2006:

              Small Business Issuer Purchases of Equity Securities

                                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


5/1/06-5/31/06       2,000       $2.80         2,000             129,845

6/1/06-6/30/06       2,000       $2.70         2,000             127,845



Item 3.  Defaults Upon Senior Securities

     None


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<PAGE>


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)



        8/03/06                                     /s/  Richard E. Aho
-------------------------                   ------------------------------------
        (Date)                                  Richard E. Aho, President and
                                                   Chief Executive Officer


        8/03/06                                     /s/  Alvin A. Hirsch
-------------------------                   ------------------------------------
        (Date)                              Alvin A. Hirsch, Secretary/Treasurer
                                                and Chief Financial Officer,
                                                Principal Accounting Officer




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