<PAGE>
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)

[X]      Quarterly report pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934 For the quarterly period ended September 30, 2001.

                                       or

[ ]      Transition report pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934 For the transition period from to .

                        COMMISSION FILE NUMBER: 333-50119

                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
             (Exact name of registrant as specified in its charter)

         DELAWARE                                               13-3980412
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                            Identification Number)


     345 PARK AVENUE SOUTH
       NEW YORK, NEW YORK                                          10010
(Address of principal executive offices)                         (Zip Code)

        Registrant's telephone number, including area code (212) 779-9200


         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                              Yes [X]    No [ ]








As of November 14, 2001, there were 1,200,000 shares of the registrant's common
stock, $.01 par value outstanding, the majority of which were held by
affiliates.
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.

                                      INDEX
<TABLE>
<CAPTION>
PART I                                                                                               PAGE
                                                                                                     ----
<S>                                                                                                  <C>
FINANCIAL INFORMATION

         ITEM 1.  FINANCIAL  STATEMENTS

             Consolidated Balance Sheets at September 30, 2001 (unaudited)
                 and December 31, 2000.................................................................1
             Consolidated Statements of Operations (unaudited) for the Nine
                 Months Ended September 30, 2001 and 2000..............................................2
             Consolidated Statements of Operations (unaudited) for the Three
                 Months Ended September 30, 2001 and 2000..............................................3
             Consolidated Statement of Changes in Stockholders' Equity for
                 the Nine Months Ended September 30, 2001 (unaudited)..................................4
             Consolidated Statements of Cash Flows (unaudited) for the Nine Months
                 Ended September 30, 2001 and 2000.....................................................5
             Notes to Consolidated Financial Statements at
                 September 30, 2001 (unaudited).....................................................6-12


         ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
                   OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS...................................13

         ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
                   ABOUT MARKET RISK..................................................................19
PART II

OTHER INFORMATION

         ITEM 1.  LEGAL PROCEEDINGS...................................................................20

         ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS............................................20

         ITEM 3. DEFAULTS UPON SENIOR SECURITIES......................................................20

         ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS..................................20

         ITEM 5. OTHER INFORMATION....................................................................20

         ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.....................................................20
</TABLE>
<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
                           CONSOLIDATED BALANCE SHEETS
                        (IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
                                                                                 SEPTEMBER 30,     DECEMBER 31,
                                                                                     2001             2000
                                                                                 ------------      ------------
                                                                                 (unaudited)
<S>                                                                              <C>               <C>
                                     ASSETS

Current assets:
Cash and cash equivalents ................................................      $   1,264       $   2,263
Accounts receivable, net of allowance for doubtful accounts and returns of
   $2,519 and 2,836 respectively .........................................         16,723          19,613
Inventories, net .........................................................          1,495           1,561
Other current assets .....................................................          2,603           3,035
                                                                                ---------       ---------
      Total current assets ...............................................         22,085          26,472
Property, plant and equipment, net of accumulated depreciation and
   amortization of $13,567 and $10,045, respectively .....................         11,858          14,000
Intangible assets, net of accumulated amortization of $44,711 and $35,838,
   respectively ..........................................................        132,082         139,757
Goodwill, net of accumulated amortization of $45,330 and $35,881,
respectively .............................................................        144,201         148,083
Deferred financing costs, net of accumulated amortization of $3,751 and
   $2,969, respectively ..................................................          5,858           6,502
Other assets .............................................................            720           5,220
                                                                                ---------       ---------
       Total assets ......................................................      $ 316,804       $ 340,034
                                                                                =========       =========

                      LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable .........................................................      $   4,712       $   8,789
Accrued expenses .........................................................         10,272          10,435
Accrued interest payable .................................................          5,200             867
Deferred income (including deferred subscription income of $15,969 and
   $16,975, respectively) ................................................         20,061          21,891
                                                                                ---------       ---------
       Total current liabilities .........................................         40,245          41,982
Long-term debt:
Revolving credit
   facility ..............................................................         24,500          20,500
Senior notes .............................................................        175,000         175,000
Senior discount notes ....................................................         54,823          50,120
                                                                                ---------       ---------
           Total long-term debt ..........................................        254,323         245,620
Deferred income taxes ....................................................         27,516          29,827
Other noncurrent liabilities .............................................          6,886           6,877
                                                                                ---------       ---------
       Total liabilities .................................................        328,970         324,306
Stockholders' equity:
Common stock-$.01 par value; 2,000,000 shares authorized; 1,200,000 issued
and outstanding at September 30, 2001 and December 31, 2000 ..............             12              12
Paid-in-capital ..........................................................         96,466          96,466
Accumulated deficit ......................................................       (108,595)        (80,750)
Accumulated other comprehensive loss .....................................            (49)             --
                                                                                ---------       ---------
       Total stockholders' equity ........................................        (12,166)         15,728
                                                                                ---------       ---------
       Total liabilities and stockholders' equity ........................      $ 316,804       $ 340,034
                                                                                =========       =========
</TABLE>

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


                                       1
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (IN THOUSANDS)
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                FOR THE NINE MONTHS ENDED
                                                                                        SEPTEMBER 30,
                                                                              -------------------------------
                                                                                  2001               2000
                                                                              -----------        -----------
<S>                                                                           <C>                <C>
REVENUES:
Periodicals:
   Advertising......................................................          $    64,768        $    66,171
   Subscription.....................................................               17,311             17,766
Ancillary products and services.....................................               28,355             32,018
                                                                              -----------        -----------

   Total revenues...................................................              110,434            115,955
                                                                              -----------        -----------
OPERATING EXPENSES:
Editorial...........................................................               17,464             19,982
Production and distribution.........................................               23,425             23,374
Selling.............................................................               21,659             23,989
General and administrative..........................................               29,652             29,819
Depreciation and amortization.......................................               22,530             21,168
                                                                              -----------        -----------

   Total operating expenses.........................................              114,730            118,332
                                                                              -----------        -----------
   Operating loss...................................................               (4,296)            (2,377)
Interest expense....................................................              (19,882)           (19,176)
Other (loss) income, net............................................               (5,514)                57
                                                                              -----------        -----------

   Loss before income taxes.........................................              (29,692)           (21,496)

Benefit for income taxes............................................                1,847              2,305
                                                                              -----------        -----------

   Net loss.........................................................          $   (27,845)       $   (19,191)
                                                                              ===========        ===========
</TABLE>


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



                                       2
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (IN THOUSANDS)
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                 FOR THE THREE MONTHS ENDED
                                                                                       SEPTEMBER 30,
                                                                              ------------------------------
                                                                                  2001               2000
                                                                              -----------        -----------
<S>                                                                           <C>                <C>
REVENUES:
Periodicals:
   Advertising......................................................          $    20,209        $    21,212
   Subscription.....................................................                5,754              5,881
Ancillary products and services.....................................                7,640              9,332
                                                                              -----------        -----------

   Total revenues...................................................               33,603             36,425
                                                                              -----------        -----------
OPERATING EXPENSES:
Editorial...........................................................                5,693              6,317
Production and distribution.........................................                6,790              7,275
Selling.............................................................                6,826              7,403
General and administrative..........................................                9,443              9,496
Depreciation and amortization.......................................                7,536              6,904
                                                                              -----------        -----------

   Total operating expenses.........................................               36,288             37,395
                                                                              -----------        -----------
   Operating loss...................................................               (2,685)              (970)
Interest expense....................................................               (6,660)            (6,568)
Other (loss) income, net............................................                 (843)                27
                                                                              ------------       -----------

   Loss before income taxes.........................................              (10,188)            (7,511)
Benefit for income taxes............................................                  805                694
                                                                              -----------        -----------

   Net loss.........................................................          $    (9,383)       $    (6,817)
                                                                              ===========        ===========
</TABLE>


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



                                       3
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                        (IN THOUSANDS, EXCEPT SHARE DATA)
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                                      ACCUMULATED
                                                                        ADDITIONAL                       OTHER
                                                                         PAID-IN       ACCUMULATED   COMPREHENSIVE
                                            SHARES       PAR VALUE       CAPITAL         DEFICIT          LOSS           TOTAL
                                          ----------     ---------      ---------      ----------      ---------       ----------
                                                 COMMON STOCK
                                          ------------------------
<S>                                       <C>            <C>            <C>            <C>             <C>             <C>
Balance at December 31, 2000 .......      1,200,000      $      12      $  96,466      $ (80,750)      $      --       $  15,728
Net loss ...........................             --             --             --        (27,845)             --         (27,845)
Unrealized loss on equity securities
  available for sale, net of tax ...             --             --             --             --             (49)            (49)
                                          ---------      ---------      ---------      ---------       ---------       ---------
    Total comprehensive loss .......             --             --             --             --              --         (27,894)
Balance at September 30, 2001 ......      1,200,000      $      12      $  96,466      $(108,595)      $     (49)      $ (12,166)
                                          =========      =========      =========      =========       =========       =========
</TABLE>


     The accompanying notes to the consolidated financial statements are an
                        integral part of this statement.



                                       4
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                        FOR THE NINE MONTHS ENDED
                                                                                SEPTEMBER 30,
                                                                        -------------------------
                                                                           2001           2000
                                                                         --------       --------
<S>                                                                     <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ..........................................................      $(27,845)      $(19,191)
Adjustments to reconcile net loss to net cash provided by operating
   activities:
Depreciation and amortization .....................................        22,530         21,168
Non-cash interest .................................................           782            739
Loss on sale of assets ............................................           872             --
Impairment of private equity investments ..........................         4,700             --
Accretion of interest on senior discount notes ....................         4,703          4,162
   Decrease (increase) in:
Accounts receivable, net ..........................................         2,829         (3,081)
Inventories .......................................................          (144)           (95)
Other current assets ..............................................           290         (2,996)
Other assets ......................................................           306            (38)
   (Decrease) increase in:
Accounts payable ..................................................        (4,102)        (3,851)
Accrued expenses ..................................................        (1,002)          (841)
Accrued interest payable ..........................................         4,332          4,285
Deferred income ...................................................        (2,711)            (4)
Other noncurrent liabilities ......................................        (2,303)        (1,772)
                                                                         --------       --------
   Total adjustments ..............................................        31,082         17,676
                                                                         --------       --------
   Net cash provided by (used in) in operating activities .........         3,237         (1,515)
                                                                         --------       --------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ..............................................        (2,476)        (4,039)
Proceeds received from sale of assets .............................           300          9,184
Purchase of business ..............................................        (5,922)        (4,950)
Purchase of trade name ............................................            --            (20)
                                                                         --------       --------
   Net cash (used in) provided by investing activities ............        (8,098)           175
                                                                         --------       --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Drawdown under revolving credit facility ..........................         4,000             --
Payment of deferred financing costs ...............................          (138)            --
                                                                         --------       --------
   Net cash provided by financing activities ......................         3,862             --
                                                                         --------       --------
   Net decrease in cash ...........................................          (999)        (1,340)
                                                                         --------       --------

CASH, beginning of period .........................................         2,263          1,598
                                                                         --------       --------

CASH, end of period ...............................................      $  1,264       $    258
                                                                         ========       ========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period:
   Income taxes ...................................................      $    863       $    112
                                                                         ========       ========
   Interest .......................................................      $ 10,082       $  9,799
                                                                         ========       ========
Non-cash:
   Preferred membership interest received from sale of Business ...      $     --       $  2,500
                                                                         ========       ========
</TABLE>

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



                                       5
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001
                                   (UNAUDITED)

1. ORGANIZATION & OPERATIONS

         American Lawyer Media Holdings, Inc. (the "Company") is the parent
company of American Lawyer Media, Inc. ("ALM"). The Company publishes legal
publications, including The American Lawyer, New York Law Journal, The National
Law Journal and Corporate Counsel. The Company's operations are based in New
York with regional offices in nine states, the District of Columbia and London,
England.

         On January 31, 2001, the Company consummated the acquisition of
substantially all of the assets and certain of the liabilities of Haslam
Publications ("Haslam"). Haslam is the leading publisher of jury verdict and
settlement research data in California.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management , the interim financial
statements include all adjustments, which are of a normal recurring nature, that
management considers necessary to fairly present the financial position and the
results of operations for such periods. Results of operations of interim periods
are not necessarily indicative of results for a full year. These financial
statements should be read in conjunction with the audited consolidated financial
statements in the Company's Annual Report on Form 10-K for December 31, 2000.

Principles of Consolidation

         The consolidated financial statements include the accounts of American
Lawyer Media Holdings, Inc. and its wholly-owned subsidiaries, which unless the
context otherwise requires, are collectively referred to herein as the
"Company". Intercompany transactions and balances have been eliminated in
consolidation.

Use of Estimates

         The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

Concentrations of Credit Risk

         The Company's financial instruments that are exposed to concentration
of credit risk consist primarily of cash and cash equivalents and trade accounts
receivable. The Company



                                       6
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001
                                   (UNAUDITED)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

believes it is not exposed to any significant credit risk related to cash and
cash equivalents. Concentrations of credit risk with respect to trade accounts
receivable are, except for amounts due from legal advertising agents, generally
limited due to the large number of customers comprising the Company's customer
base. Legal advertising agents do not have significant liquid net worth and, as
a result, the Company is exposed to a certain level of credit concentration risk
in this area, for which the Company believes it has adequately provided.

Revenue Recognition

         Periodical advertising revenues are generated from the placement of
display and classified advertisements, as well as legal notices, in the
Company's publications. Advertising revenue is recognized upon release of the
related publications.

         Periodical subscription revenues are recognized on a pro rata basis as
issues of a subscription are served.

         Ancillary products and services revenues consist principally of
newsletter subscriptions, sales of professional books, seminar and trade show
revenues, revenues from jury verdict and settlement research. In addition,
ancillary products and services revenues include third party printing revenue
until July 2001 at which point the assets from the Florida printing operations
were sold and such third party printing ceased. Book revenues are recognized
upon shipment and are reflected net of estimated returns. Newsletter revenues
are recognized on the same basis as periodical subscription revenues. Seminar
and trade show revenues are recognized when the seminar or trade show is held.
Jury verdict and settlement research revenues are recognized upon fulfillment of
orders. Printing revenues are recorded upon shipment.

Deferred Subscription Income

         Deferred subscription income results from advance payments or orders
for subscriptions received from subscribers and is amortized on a straight-line
basis over the life of the subscription as issues are served. Subscription
receivables of approximately $2,566,100 and $2,631,500 are included in accounts
receivable in the accompanying consolidated September 30, 2001 and December 31,
2000 balance sheets, respectively.

Advertising and Promotion Expenditures

         Advertising and promotion expenditures totaled approximately $1,569,700
and $1,573,000 for the three months ended September 30, 2001 and 2000,
respectively, and $5,302,400 and $5,943,000 for the nine months ended September
30, 2001 and 2000, respectively. These costs are expensed as the related
advertisement or campaign is released.

Cash and Cash Equivalents

         The Company considers time deposits and certificates of deposit with
original maturities of three months or less to be cash equivalents.



                                       7
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001
                                   (UNAUDITED)


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Inventories

         Inventories consist principally of paper and related binding materials
utilized by the Company and its outside printers and professional books
published and sold by the Company. Inventories are determined by the average
cost method and are stated at the lower of cost or market.

Accounting for Long-Lived Assets

         In accordance with Statement of Financial Accounting Standards ("SFAS")
No. 121 "Accounting for the Impairment of Long-Lived Assets to be Disposed of,"
the Company periodically reviews long-lived assets and certain identifiable
intangibles for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be fully recoverable. Impairment of
long-lived assets exists if, at a minimum, the future expected cash flows
(undiscounted and without interest charges) from an entity's operations are less
than the carrying value of these assets. The Company does not believe that any
such impairment has occurred related to goodwill or intangibles. Reference is
made in Note 4 for write-downs taken on available for sale investments.

Property, Plant and Equipment

         Property, plant and equipment is stated at cost. Significant
improvements are capitalized, while expenditures for maintenance and repairs are
charged to expense as incurred. Depreciation is calculated using the
straight-line method over the following estimated useful lives:
<TABLE>
<CAPTION>
<S>                                     <C>
Buildings ........................      25 years
Furniture, machinery and equipment      5-9 years
Computer equipment and software ..      3-6 years
</TABLE>

         Leasehold improvements are amortized over the shorter of the remaining
lease term or the estimated useful life.

Goodwill

          Goodwill represents the excess of purchase price over the fair value
of net assets acquired. It is stated at cost less accumulated amortization and
is amortized on a straight-line basis over a fifteen-year useful life. The
Company periodically assesses the recoverability of goodwill by determining
whether the amortization of goodwill over its estimated remaining life can be
recovered through projected undiscounted future consolidated operating cash
flows.

Intangible Assets

         Intangible assets represent advertiser commitments, uniform resource
locators, trademarks, copyrights, customer and subscriber lists and non-compete
agreements. They are stated at cost less accumulated amortization and are
amortized on a straight-line basis over a weighted average useful life of
fifteen years.

                                       8
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001
                                   (UNAUDITED)


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

New Accounting Pronouncements

         On June 30, 2001, the Financial Accounting Standards Board ("FASB")
issued SFAS No. 141, "Business Combinations" and SFAS No. 142, "Goodwill and
Other Intangible Assets". SFAS No. 141 requires all business combinations
initiated after June 30, 2001 to be accounted for using the purchase method of
accounting and eliminates the pooling method of accounting. With adoption of
SFAS No. 142, effective January 1, 2002, goodwill will no longer be subject to
amortization over its estimated useful life. However, goodwill will be subject
to at least an annual assessment for impairment and more frequently if
circumstances indicate a possible impairment. Companies must perform a
fair-value-based goodwill impairment test. In addition, under SFAS 142, an
acquired intangible asset should be separately recognized if the benefit of the
intangible is obtained through contractual or other legal rights, or if the
intangible asset can be sold, transferred, licensed, rented, or exchanged.
Intangible assets will be amortized over their useful lives. The Company is
assessing the impact of SFAS 142 and is evaluating whether or not it will incur
an impairment charge in accordance with the adoption of this statement.

         In August 2001, the FASB issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets." This statement supersedes SFAS No.
121, "Accounting for the Impairment of Long-Lived Assets." This statement also
supersedes the accounting and reporting provisions of Accounting Principles
Board ("APB") Opinion 30, "Reporting the Results of Operations - Reporting the
Effects of Disposal of a segment of a Business, and Extraordinary, Unusual and
Infrequently Occurring Events and Transactions", relating to the disposal of a
segment of a business. SFAS No. 121 did not address the accounting for a segment
of a business accounted for as a discontinued under APB Opinion 30 and therefore
two accounting models existed for long-lived assets to be disposed of. SFAS No.
144 established one accounting model for long-lived assets (including those
accounted for as a discontinued operation) to be disposed of by sale and
resolved certain implementation issues related to SFAS No. 121. SFAS No. 144
will be effective for fiscal years beginning after December 15, 2001. The
Company is required to adopt SFAS No. 144 in the first quarter of 2002 and is
currently assessing the impact on its result of operations and financial
position.

Income Taxes

         Income taxes are recognized during the year in which transactions enter
into the determination of financial statement income. Deferred taxes are
provided for temporary differences between amounts of assets and liabilities for
financial reporting purposes and such amounts as measured pursuant to the tax
laws. The federal income tax benefit is recorded in the accompanying
consolidated statements of operations, reflecting the fact that the Company
files a consolidated tax return with ALM.

3. DEBT

         On December 22, 1997, ALM issued $175,000,000 aggregate principal
amount of 9.75% Senior Notes (the "Senior Notes") due December 15, 2007. The
Senior Notes are unsecured general senior obligations of ALM and are fully and
unconditionally guaranteed, on a joint and several and senior unsecured basis,
by each of ALM's existing


                                       9
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001
                                   (UNAUDITED)


3. DEBT (CONTINUED)

and future subsidiaries. The subsidiary guarantors comprise all of the direct
and indirect subsidiaries of ALM and each of the subsidiary guarantors is a
wholly-owned subsidiary of ALM. Separate financial statements of, and other
disclosures concerning, the subsidiary guarantors are not included herein
because of the subsidiary guarantors' full and unconditional guarantee of the
Senior Notes and management's determination that separate financial statements
and other disclosures concerning the subsidiary guarantors are not material and
would not provide any additional meaningful disclosure. The Senior Notes may be
redeemed at any time by ALM, in whole or in part, at various redemption prices
that include accrued and unpaid interest. The Senior Notes contain certain
covenants that, among other things, limit the incurrence of additional
indebtedness by ALM and its subsidiaries, the payment of dividends and other
restricted payments by ALM and its subsidiaries, asset sales, transactions with
affiliates, the incurrence of liens and mergers and consolidations. Assuming
there is no redemption of the Senior Notes prior to maturity, the entire
principal will be payable on December 15, 2007.

         In December 1997, the Company issued $63,275,000 aggregate principal
amount at maturity of 12.25% Senior Discount Notes due 2008 (the "Discount
Notes"), at a discount rate of $553.14 per Discount Note. The Discount Notes
accrete interest compounded semi-annually at a rate of 12.25% to an aggregate
principal amount of $63,275,000 by December 2002. Commencing in June 2003, cash
interest will be payable semi-annually until maturity each June 15 and December
15. The Discount Notes are senior, unsecured obligations of the Company. The
Discount Notes may be redeemed at any time by the Company, in whole or in part,
at various redemption prices that include accrued and unpaid interest. The
Discount Notes contain certain covenants that, among other things, limit the
incurrence of additional indebtedness by the Company and its subsidiaries, the
payment of dividends and other restricted payments by the Company and its
subsidiaries, asset sales, transactions with affiliates, incurrence of liens and
mergers and consolidations and restrict distributions from certain restricted
subsidiaries. Finance costs, totaling $1,693,000, have been capitalized and are
being amortized over the term of the Discount Notes. Assuming there is no
redemption of the Discount Notes prior to maturity, the entire principal will be
payable on December 15, 2008.

         On March 25, 1998, the Company and ALM signed a credit agreement with
various banks that has a combined revolving commitment in the initial principal
amount of $40,000,000 (the "Revolving Credit Facility"). Finance costs
associated with the Revolving Credit Facility have been capitalized and are
being amortized over the term of the agreement. The Revolving Credit Facility is
guaranteed by the Company and by all subsidiaries of ALM. In addition, the
Revolving Credit Facility is secured by a first priority security interest in
substantially all of the properties and assets of ALM and its domestic
subsidiaries, including a pledge of all of the stock of such subsidiaries, and a
pledge by the Company of all of the stock of ALM. The Revolving Credit Facility
bears interest at a fluctuating rate determined by reference to (i) the base
rate plus a margin ranging from .25% to 1.5%, or (ii) the Eurodollar Rate plus a
margin ranging from 1.25% to 2.5%, as the case may be. The applicable margin is
based on ALM's total consolidated leverage ratio. The base rate equals the
higher of (a) the rate of interest publicly announced from time to time by Bank
of America as its reference rate, or (b) the Federal funds rate plus .5%. The
Eurodollar Rate is based on (i) the interest rate per annum at which deposits in
U.S. Dollars are offered by Bank of America's applicable lending office to major
banks in the offshore market



                                       10
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001
                                   (UNAUDITED)


3. DEBT (CONTINUED)

account in an aggregate principal amount approximately equal to the amount of
the loan made to ALM and (ii) the maximum reserve percentage in effect under
regulations issued from time to time by the Federal Reserve Board. ALM is also
required to pay customary fees with respect to the Revolving Credit Facility,
including an up-front arrangement fee, annual administrative agency fees and
commitment fees on the unused portion of the Revolving Credit Facility. The
Revolving Credit Facility includes both affirmative and negative covenants that
include meeting certain financial ratios. Assuming there is no repayment of the
Revolving Credit Facility prior to term, the entire amount will be payable on
March 31, 2003.

         Effective March 29, 1999, the Company and ALM amended the Revolving
Credit Facility to limit ALM's ability to borrow in excess of $20,000,000 under
the Revolving Credit Facility until certain ratios are achieved. This amendment
also adjusted certain covenants contained in the original Revolving Credit
Facility.

         Effective July 20, 1999, the Revolving Credit Facility was further
amended to permit for the sale of the Company's Internet business to Law.com,
Inc. and to modify certain debt covenants.

         Effective March 28, 2000, the Revolving Credit Facility was further
amended to modify certain of the debt covenants, to permit the sale of the
Company's business constituting The Daily Deal and Corporate Control Alert (the
"Business") to The Daily Deal, L.L.C., a limit described above from $20.0
million to $22.5 million.

         Effective January 10, 2001, the Revolving Credit Facility was further
amended to modify certain of the covenants, to permit the Haslam acquisition and
to increase the borrowing limit described above from $22.5 million to $29.0
million.

         Effective August 10, 2001, the Revolving Credit Facility was amended to
permanently reduce the aggregate revolving commitment to $29.0 million and to
clarify certain sections as well as to waive compliance with certain of the
covenants at June 30, 2001.

         Effective October 15, 2001, the Company received a waiver of compliance
with certain of the covenants at September 30, 2001 and at December 31, 2001.
The Company and lenders under the Revolving Credit Facility are discussing
further amendments to the Revolving Credit Facility.

         At September 30, 2001, the amount outstanding under the Revolving
Credit Facility was $24.5 million. The available balance under the unused
commitment is reduced by any letters of credit outstanding, which totaled
$1,121,000 at June 30, 2001. A 10% increase in the average interest rate of
borrowing under the Revolving Credit Facility during the nine months ended
September 30, 2001 would have increased the Company's net loss to approximately
$27,996,000.



                                       11
<PAGE>
                      AMERICAN LAWYER MEDIA HOLDINGS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001
                                   (UNAUDITED)


4. OTHER (LOSS) INCOME

         During the second quarter of 2001, the Company wrote off certain
available for sale investments as the decline in value of these investments has
been deemed to be other than temporary. This write-down of $4.7 million has been
included in other (loss) income.

         During the third quarter of 2001, the Company sold certain assets
associated with its printing facility in Florida. The Company recognized a net
loss of approximately $0.9 million from the sale of these assets and other costs
directly associated with the transaction.

5. RESTRUCTURING CHARGE

         During the second quarter of 2001, upon the decision to restructure
certain of its operations, the Company accrued approximately $1.7 million of
restructuring charges. These charges primarily relate to severance arrangements
and have been included in operating income. As of September 30, 2001,
approximately $0.7 million, representing the unpaid charges, is included in
accrued expenses.



                                       12
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

         The following discussion should be read in conjunction with the
historical consolidated financial statements of the Company, including the notes
thereto, included elsewhere in this Form 10-Q.

         Any statements in this quarterly report concerning the Company's
business outlook or future economic performance, anticipated profitability,
revenues, expenses or other financial items, together with other statements that
are not historical facts, are "forward-looking statements" as that term is
defined under the federal securities laws. Forward-looking statements are
subject to risks, uncertainties and other factors that could cause actual
results to differ materially from those stated in such statements. Such risks,
uncertainties and factors include, but are not limited to, changes in the levels
of advertising revenues, changes and delays in new product introductions,
customer acceptance of new products and general economic conditions, as well as
other risks detailed in the Company's filings with the Securities and Exchange
Commission.

OVERVIEW

         The following discussion compares the financial results of the Company
for the nine and three months ended September 30, 2001 to the nine and three
months ended September 30, 2000.

         In February 2000, the Company discontinued publication of four of its
weekly newsletters. In July 2000, the Company discontinued publication of the
remaining two weekly newsletters.

         On March 28, 2000, the Company sold the business of the Company and
certain of the Company's wholly-owned subsidiaries constituting The Daily Deal
and Corporate Control Alert (the "Business") to The Deal, L.L.C., a limited
liability company (the "Purchaser"), owned by substantially all of the same
stockholders as Holdings. The consideration for the sale was $7.5 million in
cash and $2.5 million face amount of a membership interest in the Purchaser (the
"Preferred Membership Interest"). The Preferred Membership Interest is included
in Other Assets on the Balance Sheet. The Preferred Membership Interest accrues
at 12.25% compounded annually and is convertible into 3.0% of the common equity
of the Purchaser. In addition, the Purchaser paid the Company $1.68 million,
representing the aggregate amount of operating losses incurred by the Company in
connection with the operation of the Business for the month of March 2000. Due
to the entire nature of the transaction, the Company has fully reserved against
the Preferred Membership Interest from inception to the dividend date in Other
Assets on the Balance Sheet.

         On May 15, 2000, the Company consummated the acquisition of
substantially all of the assets and certain of the liabilities of Moran
Publishing Company, Inc., the leading publisher of jury verdict and settlement
research data in New York State.

         On December 27, 2000, the Company consummated the acquisition of rights
and related assets relating to two leading regional trade shows in the United
Kingdom from Nationwide Exhibitions (UK) Ltd. Under the agreement, the Company
has purchased rights and related assets for Solicitors, The National Legal
Office and Legal Services Exhibition and The National Accountancy Exhibition.

                                       13
<PAGE>
         On January 31, 2001, the Company consummated the acquisition
substantially all of the assets of and certain of the liabilities of Haslam
Publications ("Haslam"), the leading publisher of jury verdict and settlement
research data in California.

         During the second quarter of 2001, the Company recorded a one-time
pretax restructuring charge of $1.7 million. Restructuring component costs
primarily consisted of severance, related payroll taxes and outside consulting
services. At September 30, 2001, $1.0 million was charged against the recorded
accrual.

         In addition, during the second quarter of 2001, the Company recorded a
permanent impairment of $4.7 million at June 30, 2001 on its private equity
investments.

         In July 2001, the Company sold certain of its assets associated with
its Florida printing facility. In connection with the sale of the net assets,
the Company recorded a loss of $0.9 million.

RESULTS OF OPERATIONS

         Nine Months Ended September 30, 2001 Compared to Nine Months Ended
September 30, 2000

         Overview. Revenues decreased by $5.6 million, or 4.8%, from $116.0
million for the nine months ended September 30, 2000 to $110.4 million for the
nine months ended September 30, 2001. Total operating expenses decreased $3.6
million, or 3.0%, from $118.3 million for the nine months ended September 30,
2000 to $114.7 million for the nine months ended September 30, 2001. As a
result, the net operating loss totaled $4.3 million for the nine months ended
September 30, 2001 as compared to a net operating loss of $2.4 million for the
nine months ended September 30, 2000. Earnings before interest, income taxes,
depreciation and amortization and other extraordinary gains and losses
("EBITDA") showed a slight decline of $0.6 million, or 3.0%, from $18.8 million
for the nine months ended September 30, 2000 to $18.2 million for the nine
months ended September 30, 2001. Total operating expenses and EBITDA for 2001
include a $1.7 million pre-tax restructuring charge. Excluding this
restructuring charge, total operating expenses during 2001 would have decreased
$5.3 million, or 4.5%, and EBITDA would have increased $1.1 million, or 6.0%,
during the nine months ended September 30, 2001 over the same period during
2000. Excluding the restructuring charge, the increase in EBITDA during the nine
months ended September 30, 2001 resulted primarily from operating expenses
declining at a quicker pace than revenue.

          Revenues during the nine months ended September 30, 2001 reflect the
impact of the general slowdown within the economy. Revenue declines for the nine
months ended September 2001 from the nine months ended September 30, 2000
primarily resulted from lower content licensing fees and royalty fees, the
elimination of $0.5 million of revenue resulting from the sale of the Business
and the discontinuation of the weekly newsletter division in 2000 along with
declines in advertising, subscription and printing revenue. Partially offsetting
this decline are increased revenues realized in new publications, and the
Company's acquisitions during 2000 and 2001. Lower operating expenses during
2001 were realized in the editorial, selling and general and administrative
expense categories, partially offset by increased depreciation and amortization
expense. Lower operating expenses primarily resulted from the sale of the
Business and the discontinuation of the weekly newsletter division, lower direct
costs related to the reduction of revenue and cost containment efforts by the
Company. This decrease in operating expenses was partially offset by increased
costs related to new publications and acquisitions made during 2000


                                       14
<PAGE>
and 2001 along with the restructuring charge recorded during the second quarter
of 2001 and increased depreciation and amortization expenses from additional
goodwill, intangibles and capital assets recorded during 2000 and 2001.

         Revenues. Revenues decreased by $5.6 million, or 4.8%, from $116.0
million for the nine months ended September 30, 2000 to $110.4 million for the
nine months ended September 30, 2001. Advertising revenues decreased $1.4
million, from $66.2 million for the nine months ended September 30, 2000 to
$64.8 million for the nine months ended September 30, 2001. The decline in
advertising revenue primarily resulted from a decrease in classified advertising
revenue of $3.7 million across all of the Company's core publications. Partially
offsetting this decline was strong growth in law firm advertising revenue, which
grew $2.2 million, or 30.1%, from $7.3 million for the nine months ended
September 30, 2000 to $9.5 million for the nine months ended September 30, 2001.
Increased advertising pages and increased frequency in publishing two
publications contributed to $1.5 million of the growth in law firm advertising
revenue and new publications in 2001 contributed to the other $0.7 million in
growth.

         Subscription revenues decreased $0.5 million, or 2.6%, from $17.8
million for the nine months ended September 30, 2000 to $17.3 million for the
nine months ended September 30, 2001. The decline in subscription revenue in
2001 resulted primarily from slight declines in two of the Company's core
publications.

         Revenues from ancillary products and services decreased $3.7 million,
or 11.4%, from $32.0 million for the nine months ended September 30, 2000 to
$28.4 million for the nine months ended September 30, 2001. A decline in
revenues from ancillary products and services resulted primarily from lower
content licensing and royalty fees, lower printing revenue resulting from the
sale of certain of the assets of the Florida printing operations early in the
third quarter of 2001 and lower seminar revenue due to a decline in attendance.
These declines were partially offset by revenue growth in information services,
book sales, domestic tradeshows and overseas tradeshows acquired during 2000.

         Operating expenses. Total operating expenses decreased $3.6 million, or
3.0%, from $118.3 million for the nine months ended September 30, 2000 to $114.7
million for the nine months ended September 30, 2001. Lower operating expenses
during 2001 were primarily realized in the editorial and selling expense
categories partially offset by higher depreciation and amortization expense.
Included in operating expenses for 2001 is a one-time restructuring charge of
$1.7 million. Excluding this charge, total operating expenses decreased $5.3
million, or 4.5%. Lower operating expenses of $6.7 million primarily resulted
from the sale of the Business and the discontinuation of the weekly newsletter
division, lower expenses directly related to the reduction in revenue recorded
during the period, along with savings from cost containment efforts by the
Company. This decrease in operating expenses was partially offset by increased
costs related to new publications and acquisitions made during 2000 and 2001 and
increased depreciation and amortization expenses from additional goodwill,
intangibles and capital assets recorded during 2000 and 2001. The new
acquisitions commenced in 2000 and 2001 are fully reflected in the results for
the nine months ended September 30, 2001, while the results for the nine months
ended September 30, 2000 only reflected a portion of those expenses.

         Editorial expenses decreased $2.5 million, or 12.6%, from $20.0 million
for the nine months ended September 30, 2000 to $17.5 million for the nine
months ended September 30, 2001. The decrease primarily resulted from reduced
editorial expenses of $2.6 million from the sale of the Business along with the
discontinuation of the weekly newsletter division in 2000 and


                                       15
<PAGE>
lower expenses related to the reduction of content fees. This decrease was
partially offset by increases related to new publications and acquisitions made
during 2000 and 2001.

         Production and distribution expenses remained flat at $23.4 million for
both the nine months ended September 30, 2001 and 2000. Although there was no
overall change in this category, increased expenses of $1.5 million were
recorded from new publications and acquisitions made during 2000 and 2001. These
increases were fully offset by lower expenses of $0.8 million from the sale of
the Business along with the discontinuation of the weekly newsletter division in
2000, the sale of the Company's Florida printing operations early in the third
quarter of 2001 and lower production expenses resulting from office automation.

         Selling expenses decreased $2.3 million, or 9.7%, from $24.0 million
for the nine months ended September 30, 2000 to $21.7 million for the nine
months ended September 30, 2001. The decrease was primarily attributable to
lower selling expenses of $1.4 million from the sale of the Business along with
the discontinuation of the weekly newsletter division in 2000, which primarily
reduced display advertising, circulation and telemarketing selling expenses. In
addition, lower overall selling expenses in the Company's core publications of
$1.7 million were incurred in 2001. These decreases were partially offset by
increased expenses related to new publications and acquisitions made during 2000
and 2001.

         General and administrative expenses decreased $0.1 million, or 0.6%,
from $29.8 million for the nine months ended September 30, 2000 to $29.7 million
for the nine months ended September 30, 2001. Included in general and
administrative expenses for 2001 is the one-time restructuring charge of $1.7
million. Excluding this charge, general and administrative expenses decreased
$1.8 million, or 6.2%. The decrease resulted from savings of $1.9 million from
the sale of the Business and the discontinuation of the weekly newsletter
division in 2000. In addition, a reduction in corporate salaries and incentives,
bad debt and general insurance costs contributed to the expense reduction in
2001. Partially offsetting these reductions were higher costs related to new
publications and acquisitions made during 2000 and 2001 along with increased
legal and professional fees.

         Depreciation and amortization expenses increased $1.4 million, or 6.4%,
from $21.2 million for the nine months ended September 30, 2000 to $22.5 million
for the nine months ended September 30, 2001. Higher depreciation and
amortization expenses resulted from the continuation of system enhancements and
upgrades, facilities and equipment modernization and computer equipment
purchases throughout 2000 and 2001. Increased goodwill and intangible assets
recorded from acquisitions in 2000 and the first quarter of 2001 also
contributed to the increased expense in this category.

         Operating loss. As a result of the above factors, operating loss
totaled $4.3 million for the nine months ended September 30, 2001 as compared to
an operating loss of $2.4 million for the nine months ended September 30, 2000.
EBITDA decreased $0.6 million, or 3.0%, from $18.8 million for the nine months
ended September 30, 2000 to $18.2 million for the nine months ended September
30, 2001. Excluding the one-time restructuring charge, the Company's operating
loss would have increased $0.2 million and EBITDA would have grown $1.1 million
during the nine months ended September 30, 2001 over the same period during
2000.



                                       16
<PAGE>
         Three Months Ended September 30, 2001 Compared to Three Months Ended
September 30, 2000

         Overview. Revenues decreased by $2.8 million, or 7.7%, from $36.4
million for the quarter ended September 30, 2000 to $33.6 million for the
quarter ended September 30, 2001. Total operating expenses decreased $1.1
million, or 3.0%, from $37.4 million for the quarter ended September 30, 2000 to
$36.3 million for the quarter ended September 30, 2001. As a result, the net
operating loss totaled $2.7 million for the quarter ended September 30, 2001 as
compared to a net operating loss of $1.0 million for the quarter ended September
30, 2000. EBITDA decreased $1.1 million, or 18.2%, from $5.9 million for the
quarter ended September 30, 2000 to $4.9 million for the quarter ended September
30, 2001. The increase in net operating loss and the decrease in EBITDA during
the three months ended September 30, 2001 as compared to the three months ended
September 30, 2000 resulted primarily from revenues declining at a quicker pace
than operating expenses.

          Revenue declines for the quarter ended September 30, 2001 from the
quarter ended September 30, 2000 reflect the impact of the general slowdown
within the economy and primarily resulted from lower content licensing fees and
royalty fees and declines in classified advertising and printing revenue.
Partially offsetting this decline are increased revenues from law firm
advertising and book sales, new publications and the Company's acquisitions
during 2000 and 2001. Lower operating expenses during 2001 were realized in the
editorial, selling and general and administrative expense categories but were
partially offset by increased depreciation and amortization expense as a result
of a decline in direct cost related to the reduction of revenue and cost
containment efforts by the Company.

         Revenues. Revenues decreased by $2.8 million, or 7.7%, from $36.4
million for the quarter ended September 30, 2000 to $33.6 million for the
quarter ended September 30, 2001. Advertising revenues decreased $1.0 million,
or 4.7%, from $21.2 million for the quarter ended September 30, 2000 to $20.2
million for the quarter ended September 30, 2001. The decline in advertising
revenue primarily resulted from a decrease in classified advertising revenue of
$1.6 million due to volume declines across all of the Company's core
publications. Also contributing to this decline were decreases in legal notice
advertising of $0.1 million and directories revenue of $0.2 million during the
quarter ended September 30, 2001 over the same period last year. Partially
offsetting these declines were continued growth in law firm advertising, which
grew $0.5 million, or 22.4%, from $2.5 million for the quarter ended September
30, 2000 to $3.0 million for the quarter ended September 30, 2001, along with an
increase in display advertising revenue of $0.3 million. Increased advertising
pages and increased frequency in publishing two publications contributed to $0.3
million of the growth in law firm advertising revenue and new publications in
2001 contributed to the other $0.2 million in growth.

         Subscription revenues decreased $0.1 million, or 2.2%, from $5.9
million for the quarter ended September 30, 2000 to $5.8 million for the quarter
ended September 30, 2001. The decline in subscription revenues in 2001 resulted
primarily from a slight decline in the Company's national publications.

         Revenues from ancillary products and services decreased $1.7 million,
or 18.1%, from $9.3 million for the quarter ended September 30, 2000 to $7.6
million for the quarter ended September 30, 2001. A decline in revenues from
ancillary products and services resulted primarily from lower content licensing
and royalty fees, lower printing revenue resulting from the sale of the Florida
printing operations early in the third quarter of 2001, lower domestic seminar
revenue due to a decline in attendance and declines in custom publication
revenue. These declines were partially offset by revenue growth in book sales,
information services and domestic tradeshows.


                                       17
<PAGE>
         Operating expenses. Total operating expenses decreased $1.1 million, or
3.0%, from $37.4 million for the quarter ended September 30, 2000 to $36.3
million for the quarter ended September 30, 2001. Lower operating expenses
during the third quarter of 2001 as compared to the third quarter of 2000
resulted primarily from decreases in editorial, production and selling expenses
of $1.7 million directly related to decreases in revenue and to cost containment
efforts. These decreases were partially offset by an increase of $0.6 million in
depreciation and amortization expenses.

         Editorial expenses decreased $0.6 million, or 9.9%, from $6.3 million
for the quarter ended September 30, 2000 to $5.7 million for the quarter ended
September 30, 2001. The decrease resulted from reduced editorial expenses due to
the discontinuation of the weekly newsletter division in 2000, direct costs
related to the reduction of content revenue and cost containment efforts within
the core publications.

         Production and distribution expenses decreased $0.5 million, or 6.7%,
from $7.3 million for the quarter ended September 30, 2000 to $6.8 million for
the quarter ended September 30, 2001. The decrease in production and
distribution expenses was primarily attributable to the sale of the Company's
Florida printing operations early in the third quarter of 2001 and lower
production expenses resulting from office automation. This decrease was
partially offset by higher trade show production expenses directly related to
the growth in tradeshow revenue in the third quarter of 2001.

         Selling expenses decreased $0.6 million, or 7.8%, from $7.4 million for
the quarter ended September 30, 2000 to $6.8 million for the quarter ended
September 30, 2001. The decrease was primarily attributable to lower selling
expenses directly related to the decline in revenues for the quarter ended
September 20, 2001 and the Company's cost containment efforts. This decline was
primarily recorded in display, classified and law firm selling expenses and was
partially offset by an increase in legal advertising expenses.

         General and administrative expenses decreased $0.1 million from $9.5
million for the quarter ended September 30, 2000 to $9.4 million for the quarter
ended September 30, 2001. The decrease resulted primarily from savings of $0.3
million from the discontinuation of the weekly newsletter division in 2000 and
$0.3 million from cost containment efforts. These decreases were partially
offset by an increase of $0.4 million related to new publications and
acquisitions made during 2000 and 2001, along with increased legal and
professional fees.

         Depreciation and amortization expenses increased $0.6 million, or 9.2%,
from $6.9 million for the quarter ended September 30, 2000 to $7.5 million for
the quarter ended September 30, 2001. Higher depreciation and amortization
expenses resulted from the continuation of system enhancements and upgrades,
facilities and equipment modernization and computer equipment purchases
throughout 2000 and 2001. Increased goodwill and intangible assets recorded from
acquisitions in 2000 and the first quarter of 2001 also contributed to the
year-over-year increased expense in this category.

         Operating loss. As a result of the above factors, the operating loss
totaled $2.7 million for the quarter ended September 30, 2001 as compared to an
operating loss of $1.0 million for the quarter ended September 30, 2000. EBITDA
decreased $1.0 million, or 18.2%, from $5.9 million for the quarter ended
September 30, 2000 to $4.9 million for the quarter ended September 30, 2001.




                                       18
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

         Capital expenditures. Capital expenditures decreased $1.5 million, or
38.7%, from $4.0 million for the nine months ended September 30, 2000 compared
to $2.5 million for the nine months ended September 30, 2001. Capital
expenditures for the 2000 period included costs of $0.4 million attributable to
the Business prior to its sale and higher costs relating to the initial outlay
for the Company's investment in new editorial and advertising systems to support
new initiatives and the expansion of existing products. Capital expenditures for
2001 primarily result from database development, enhancements to existing
computer systems and facilities and equipment modernization.

         Net cash provided by operating activities. Net cash provided by
operating activities was $3.2 million for the nine months ended September 30,
2001, which primarily reflects depreciation and amortization of $22.5 million, a
decrease of $4.7 million in investment of private equity securities, accretion
of interest on senior discount notes of $4.7 million, an increase in accrued
interest payable of $4.3 million, a decrease in accounts receivable of $2.8
million, loss from the sale of certain assets related to the Florida printing
facility of $0.9 million and an increase in non-cash interest of $0.8 million,
partially offset by a net loss of $27.8 million, a decrease in accounts payable
and accrued expenses of $5.1 million, a decrease in deferred income of $2.7
million and a decrease in other non-current liabilities of $2.3 million.

         Net cash used in investing activities. Net cash used in investing
activities was $8.1 million for the nine months ended September 30, 2001,
resulting from the Haslam acquisition in January 2001 and capital expenditures
made during the 2001 period.

          Net cash provided by financing activities. Net cash provided by
financing activities totaled $3.9 million for the nine months ended September
30, 2001, which reflects a net drawdown of $4.0 million under the Company's
Revolving Credit Facility partially offset by financing fees paid.

         Liquidity. The Company's principal sources of funds are anticipated to
be cash flows from operating activities, which may be supplemented by borrowings
under the Revolving Credit Facility. The Revolving Credit Facility has $24.5
million outstanding as of September 30, 2001 and accrues interest as described
in Note 3 to the Consolidated Financial Statements. For details relating to the
terms of the Revolving Credit Facility and current amendments and waivers
received, see Note 3 to the Consolidated Financial Statements. The Company
believes that these funds will be sufficient to meet its current financial
obligations, including the payment of principal and interest on the $175,000,000
of 9.75% Senior Notes and the outstanding balance under the Company's Revolving
Credit Facility, working capital, capital expenditures and other obligations. No
assurance can be given, however, that this will be the case. The Company's
future operating performance and ability to service or refinance the Company's
debt and to repay, extend or refinance any credit agreements to which it is a
party will be subject to future economic conditions and to financial, business
and other factors, many of which are beyond the Company's control.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
        RISK

        See footnote 3 to the Consolidated Financial Statements.



                                       19
<PAGE>
                                     PART II
                                OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

         The Company is a party to various litigation matters incidental to the
conduct of its business. The Company does not believe that the outcome of any of
the matters in which it is currently involved will have a material adverse
effect on its financial condition or the results of its operations.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

         None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

         None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         None.

ITEM 5. OTHER INFORMATION

         None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

         (a)   Exhibits.

         10.4 (vi)  Sixth Amendment and Waiver to Credit Agreement, dated as of
                    August 10, 2001, among the Company, ALM, various banks and
                    Bank of America, N.A.

         10.4 (vii) Waiver to Credit Agreement, dated as of September 28, 2001,
                    among the Company, ALM, various banks and Bank of America,
                    N.A.

         (b)   Reports on Form 8-K.

         None.





                                       20
<PAGE>
                                   SIGNATURES

         Pursuant to 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 hereunto duly authorized.

                  AMERICAN LAWYER MEDIA HOLDINGS, INC.

                  November 14, 2001       /s/ WILLIAM L. POLLAK
                                      -------------------------------------
                                              William L. Pollak
                                      President and Chief Executive Officer

                  November 14, 2001       /s/ STEPHEN C. JACOBS
                                      ------------------------------------------
                                                Stephen C. Jacobs
                                      Vice President and Chief Financial Officer