UNITED STATES
                       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 June 30, 2008

                                       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 0-3936

                           ORBIT INTERNATIONAL CORP.
             (Exact name of registrant as specified in its charter)

           DELAWARE                                      11-1826363
  (State or other jurisdiction of                    (I.R.S. Employer
   incorporation or organization)                    Identification Number)

   80 CABOT COURT, HAUPPAUGE, NEW YORK                    11788
 (Address of principal executive offices)               (Zip Code)

                                  631-435-8300
              (Registrant's telephone number, including area code)

                                      N/A
   (Former name, former address and formal fiscal year, if changed since last
                                    report)

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  past 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  ___
        -

Indicate  by  check mark whether the Registrant is a large accelerated filer, an
accelerated  filer,  a  non-accelerated  filer,  or a smaller reporting company.
          Large  accelerated  filer       Accelerated  Filer
          Non-accelerated  filer          Smaller  reporting  company X

Indicate  by  check mark whether the registrant is a shell company(as defined in
Rule  12b-2  of  the  Exchange  Act):  Yes___  No  X
                                                  --

The  number  of shares outstanding of registrant's Common Stock, par value $.10,
as  of  August  8,  2008  was  4,750,091.
                               ---------
<PAGE>
<TABLE>
<CAPTION>


                                                INDEX


                                                                                              Page No.
                                                                                               ---------
<S>        <C>                                                               <C>                <C>
Part I.    Financial Information:

           Item 1 - Financial Statements:

           Condensed Consolidated Balance Sheet -
           June 30, 2008(unaudited) and December 31, 2007                                         3-4

           Condensed Consolidated Statement of Operations
           for the Six and Three Months Ended
           June 30, 2008 and 2007 (unaudited)                                                      5

           Condensed Consolidated Statement of Cash Flows
           for the Six Months Ended June 30, 2008 and 2007 (unaudited)                             6

           Notes to Condensed Consolidated Financial Statements (unaudited)                       7-16

           Item 2 - Management's Discussion and Analysis of Financial
                    Condition and Results of Operations                                          17-27

           Item 3. - Quantitative and Qualitative Disclosures
                     About Market Risk                                                             27

           Item 4T. - Controls and Procedures                                                      27

Part II.   Other Information:

           Item 4 - Submission of Matters to a Vote of Security Holders                            28

           Item 6 - Exhibits                                                                       28

           Signatures                                                                              29

           Exhibits                                                                               30-35
  </TABLE>


<PAGE>


<TABLE>
<CAPTION>


                                PART I - FINANCIAL INFORMATION


Item 1.     FINANCIAL STATEMENTS

                          ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
                             CONDENSED CONSOLIDATED BALANCE SHEET


                                                           June 30,     December 31,
                                                             2008          2007
                                                           --------    -------------
                                                         (unaudited)
ASSETS

Current assets:
<S>                          <C>                                       <C>          <C>
    Cash and cash equivalents                             $ 2,171,000  $ 3,576,000
    Investments in marketable securities                    3,102,000    3,997,000
    Accounts receivable (less allowance for
     doubtful accounts of $145,000)                         3,561,000    4,561,000
    Inventories                                            11,750,000   10,453,000
    Costs and estimated earnings in excess
     of billings on uncompleted contracts                     644,000      136,000
    Deferred tax asset                                        987,000    1,025,000
    Other current assets                                      167,000      331,000
                                                          -----------  -----------

                             Total current assets          22,382,000   24,079,000

Property and equipment, net                                   637,000      691,000

Goodwill                                                    9,732,000    9,634,000

Intangible assets, net                                      2,645,000    2,969,000

Deferred tax asset                                          1,833,000    1,678,000

Other assets                                                  632,000      634,000
                                                           ----------   ----------

                             TOTAL ASSETS                 $37,861,000  $39,685,000
                                                          ===========  ===========










See accompanying notes.
</TABLE>


<PAGE>

<TABLE>
<CAPTION>



                                        ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
                                           CONDENSED CONSOLIDATED BALANCE SHEET
                                                        (continued)


                                                            June 30,     December 31,
                                                              2008          2007
                                                         -----------    -----------
                                                          (unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------------
Current liabilities:
<S>                                         <C>                                                  <C>           <C>
   Current portion of long-term obligations             $ 1,777,000   $ 1,777,000
   Note payable - bank                                      100,000       699,000
   Accounts payable                                       1,205,000     1,384,000
   Income taxes payable                                       7,000       162,000
   Accrued expenses                                       1,227,000     1,395,000
   Customer advances                                        576,000       163,000
   Deferred income                                          143,000       332,000
                                                       ------------  ------------

  Total current liabilities                               5,035,000     5,912,000

Deferred tax liability                                      715,000       595,000

Deferred income                                             299,000       342,000

Long-term obligations, net of current
 maturities                                               5,918,000     6,753,000
                                                         -----------   ----------

    Total liabilities                                    11,967,000    13,602,000
                                                        ------------  -----------

STOCKHOLDERS' EQUITY

Common stock - $.10 par value, 10,000,000 shares
 authorized, 4,750,000 and 4,724,000 shares issued
 and outstanding at 2008 and 2007, respectively            475,000        472,000
Additional paid-in capital                              20,860,000     20,766,000
Accumulated other comprehensive loss, net of tax           (24,000)       (33,000)
Retained earnings                                        4,583,000      4,878,000
                                                       -----------   ------------

  Total stockholders' equity                            25,894,000     26,083,000
                                                       -----------   ------------


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $ 37,861,000    $39,685,000
                                                      ============    ===========



<FN>



                                                  See accompanying notes.
</TABLE>


<TABLE>
<CAPTION>

<PAGE>


                                       ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
                                     CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                                                       (unaudited)




                                                       Six Months Ended                        Three Months Ended
                                                            June 30,                                June 30,
                                                  2008                   2007               2008                2007
                                                -------                 ------             -----               ------
<S>                                    <C>                       <C>                       <C>          <C>          <C>
Net sales                                    $12,483,000              $12,374,000       $5,873,000           $6,154,000

Cost of sales                                  7,518,000                6,913,000        3,543,000            3,438,000
                                              -----------             -----------       -----------           ---------

Gross profit                                   4,965,000                5,461,000        2,330,000            2,716,000
                                              -----------             -----------       -----------           ---------

Selling, general and
 administrative
  expenses                                     5,249,000                4,459,000        2,631,000            2,238,000
Interest expense                                 182,000                  182,000           80,000               87,000
Investment and
 other income, net                              (178,000)               ( 255,000)        ( 82,000)            (126,000)
                                              ----------               -----------      -----------          -----------
(Loss) income before
 provision for
  income taxes                                  (288,000)               1,075,000         (299,000)             517,000

Provision for
  income taxes                                     7,000                   25,000            7,000               15,000
                                              ----------                ---------        ---------            ----------

NET(LOSS) INCOME                               $(295,000)              $1,050,000        $(306,000)            $502,000
                                               =========               ==========        =========             =========

Net (loss) income per
common share:


     Basic                                     $   (.07)               $  .24            $ (.07)                  $.12
     Diluted                                   $   (.07)               $  .23            $ (.07)                  $.11
<FN>




                                                 See accompanying notes.

</TABLE>

<PAGE>

<TABLE>
<CAPTION>



                                                 ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
                                               CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                                                (unaudited)

                                                                      Six Months Ended
                                                                         June 30,
<S>                                                            <C>                                           <C>
                                                                 2008                  2007
                                                               ------                 ------
Cash flows from operating activities:
  Net (loss) income                                          $(295,000)             $ 1,050,000
  Adjustments to reconcile net (loss) income
   to net cash used in operating activities:
  Share-based compensation expense                              94,000                   88,000
  Amortization of intangible assets                            324,000                  218,000
  Depreciation and amortization                                100,000                   61,000
  Gain on sale of marketable securities                           -                     (15,000)
  Bond premium amortization                                      8,000                    7,000
  Bad Debt                                                        -                      12,000
  Deferred income                                             (232,000)                 (42,000)

Changes in operating assets and liabilities:
 Accounts receivable, net                                    1,000,000                  141,000
 Inventories                                                (1,297,000)              (1,181,000)
 Costs and estimated earnings in excess of
  billings on uncompleted contracts                           (508,000)                    -
 Due from ICS sellers                                          103,000                     -
 Other current assets                                           19,000                   (7,000)
 Other assets                                                    2,000                   (9,000)
 Accounts payable                                             (179,000)                 327,000
 Accrued expenses                                             (168,000)                (122,000)
 Income taxes payable                                         (155,000)                    -
 Customer advances                                             413,000                 (659,000)
                                                           ------------              -----------

Net cash used in operating activities                         (771,000)                (131,000)

Cash flows from investing activities:

 Additional ICS acquisition costs                              (56,000)                     -
 Purchases of property and equipment                           (46,000)                 (65,000)
 Sale of marketable securities                               1,717,000                  522,000
 Purchase of marketable securities                            (816,000)              (1,113,000)
                                                            -----------             ------------

Net cash provided by (used in) investing activities            799,000                 (656,000)

Cash flows from financing activities:

 Proceeds from issuance of long-term debt                      527,000                1,050,000
 Stock option exercises                                          1,000                   14,000
 Repayments of long-term debt                               (1,961,000)              (1,712,000)
                                                           ------------              -----------

Net cash used in financing activities                       (1,433,000)                (648,000)
                                                            ----------               -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS                   (1,405,000)              (1,435,000)
                                                            -----------              -----------

Cash and cash equivalents - January 1                        3,576,000                3,935,000
                                                             ---------               -----------

CASH AND CASH EQUIVALENTS - June 30                        $ 2,171,000              $ 2,500,000
                                                           ===========              ============

Supplemental cash flow information:

Cash paid for interest                                    $    190,000                 $218,000
                                                          ============                 ========



See accompanying notes
<FN>


</TABLE>


<PAGE>



                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)



(NOTE 1) - Basis of Presentation and Summary of Significant Accounting Policies:
 ------    ---------------------------------------------------------------------


     The  financial information herein is unaudited.  However, in the opinion of
management, such information reflects all adjustments (consisting only of normal
recurring  accruals)  necessary  for  a  fair  presentation  of  the  results of
operations  for  the  periods  being reported.  Additionally, it should be noted
that  the  accompanying  consolidated  financial  statements  do  not purport to
contain  complete  disclosures  required  for  annual  financial  statements  in
conformity  with  generally  accepted  accounting  principles.

     The  results of operations for the six and three months ended June 30, 2008
are  not necessarily indicative of the results of operations for the full fiscal
year  ending  December  31,  2008.

     These  condensed consolidated statements should be read in conjunction with
the  Company's  consolidated  financial  statements  for  the  fiscal year ended
December  31,  2007  contained  in  the  Company's  Form  10-K.

     The  Company  recognizes a substantial portion of its revenue upon delivery
of  product,  however,  revenue  and costs under larger, long-term contracts are
reported  on  the  percentage-of-completion method. For projects where materials
have  been purchased but have not been placed into production, the costs of such
materials  are  excluded  from  costs  incurred for the purpose of measuring the
extent  of  progress toward completion. The amount of earnings recognized at the
financial  statement date is based on an efforts-expended method, which measures
the  degree  of  completion  on  a contract based on the amount of labor dollars
incurred  compared to the total labor dollars expected to complete the contract.
When  an  ultimate loss is indicated on a contract, the entire estimated loss is
recorded  in  the  period.  Assets  related  to  these contracts are included in
current  assets  as  they  will  be  liquidated in the normal course of contract
completion,  although  this  may  require  more  than  one  year.

     At June 30, 2008, the Company has various stock-based employee compensation
plans.  These plans provide for the granting of nonqualified and incentive stock
options  as  well  as  restricted  stock  awards  to officers, key employees and
nonemployee  directors.  The  terms  and vesting schedules of stock-based awards
vary  by  type  of  grant  and  generally  the awards vest based upon time-based
conditions.  Share-based  compensation  expense  was $94,000 and $51,000 for the
six  and  three  months  ended  June 30, 2008, respectively, and was $88,000 and
$38,000  for  the  comparable  2007  periods.

     The Company estimated the fair value of its stock option awards on the date
of grant using the Black-Scholes valuation model. The assumptions used for stock
grants  issued  during  the  following  periods  were  as  follows:

                                                                     (continued)
<PAGE>

                  ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                                  (continued)

                                                  Six  Months  Ended
                                                      June  30,
                                               2008                2007
                                               ----                ----
Expected  Volatility                     49.16%  to  49.62%       51.19%
Risk-free  interest  rate                 3.70%  to   4.16%        5.02%
Expected  life  of  options  (in  years)        3.6                 3.6
Dividend  Yield                                  -                   -

     Expected  volatility  assumptions  utilized for 2008 and 2007 were based on
the  volatility  of the Company's stock price for 3.6 years prior to grant date.
The  risk-free  rate  is  derived  from the 10 year U.S. treasury yield on grant
date.  Expected  life  for  2008  and  2007 was based on prior history of option
activity.  Dividend  yield is based on prior history of cash dividends declared.

     The  Company's  stock-based  employee  compensation  plans  allow  for  the
issuance  of  restricted  stock  awards  that  may  not  be  sold  or  otherwise
transferred  until  certain  restrictions  have lapsed. The unearned stock-based
compensation  related  to  restricted  stock  granted  is  being  amortized  to
compensation  expense over the vesting period. The share based expense for these
awards  was  determined  based on the market price of the Company's stock at the
date  of  grant  applied  to the total number of shares that were anticipated to
vest.  As  of June 30, 2008, the Company had unearned compensation of $1,111,000
associated  with  these  awards.

     Stock  option activity during the six months ended June 30, 2008, under all
stock  option  plans  is  as  follows:

                                        Average
                                        Weighted         Remaining
                                        Average         Contractual
                          Number  of    Exercise           Term
                           Shares        Price          (in  years)
                           ------        -----          -----------

Options  outstanding,
 January  1,  2008         599,000       $3.15               4

Granted                      9,000        7.51              10

Forfeited                   (4,000)       9.21               -

Exercised                   (1,000)       1.26               -
                            -------       ----             ----

Options  outstanding,
 June  30,  2008           603,000       $3.17              4
                           =======       =====             ===

Outstanding  exercisable
 at  June  30,  2008       589,000       $3.06              4
                           =======       =====             ===


     At  June  30, 2008 the aggregate intrinsic value of options outstanding and
exercisable  was  $2,357,000.

     The  following  table  summarizes  the  Company's  nonvested  stock  option
activity  for  the  six  months  ended  June  30,  2008:

                                                                     (continued)
<PAGE>

                  ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                                  (continued)

                             Number  of        Weighted-Average
                             Shares         Grant-Date  Fair  Value
                             ------        -----------------------

Nonvested  stock  options
 at  January  1,  2008         9,000                   $3.82

Granted                        9,000                    3.06

Vested                        (3,000)                   3.92

Forfeited                     (4,000)                   4.74
                              -------                   ----

Nonvested  stock  options
 at  June  30,  2008          11,000                   $3.29
                              ======                   =====

     At  June 30, 2008, there was approximately $18,000 of unearned compensation
cost  related  to the above non-vested stock options. The cost is expected to be
recognized  over  the  next  twelve  months.

     The  Company's only asset or liability that is measured at fair value  on a
recurring  basis  is  marketable  securities,  based  on quoted market prices in
active  markets.

     The  Company  had  $1,375,000 invested in Auction Market Securities at June
30,  2008,  which  are  included  in Investments in Marketable Securities on the
Company's  Balance  Sheet.  Failed  auctions  have  created liquidity issues for
investors.  However,  the  Company  has  redeemed $900,000 of its auction market
securities  at  par  since  January 1, 2008. All of the Company's Auction Market
Securities  are  held at Merrill Lynch who has agreed to buy back the securities
from  its  investors  beginning in 2009. All interest payments relating to these
securities  are  current.

(Note  2)  -  Acquisition:
---------     ------------

     On  December  19,  2007,  the  Company  acquired  all  of  the  issued  and
outstanding  stock  of  Integrated  Consulting  Services,  Inc. d/b/a Integrated
Combat Systems, Inc. ("ICS"). The reasons for the acquisition were the expansion
of  both  customer  and  product  bases,  cross-marketing  opportunities and the
accretion  to  earnings.  The  acquisition  was effective December 31, 2007. The
total transaction value was approximately $6,650,000 consisting of $5,400,000 in
cash,  of  which  $4,500,000  was  funded  by a term loan, approximately 120,000
shares  of  Orbit  stock valued at approximately $1,000,000 (based on the volume
weighted  average  closing  price  of  the Company's common stock for the twenty
consecutive  trading  days ending December 14, 2007), and approximately $250,000
of  direct  costs  related  to  the  purchase  of  ICS. Additionally, there is a
contingent  earn  out  of  $1,000,000 payable over the next three years based on
ICS's  ability  to  attain  certain revenue levels over the three years. The ICS
acquisition  was  accounted  for  as  a  purchase,  and  accordingly, the assets
purchased and liabilities assumed are included in the consolidated balance sheet
as of December 31,  2007. The results of operations for the six and three months
ended  June  30,  2008 include the operations of ICS for the entire period since
the  acquisition  was  completed  effective  December  31,  2007.
                                                                     (continued)
<PAGE>

                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                                  (continued)

     In  accordance with SFAS No. 141, Business Combinations, the purchase price
was  allocated  to  the  tangible and intangible assets acquired and liabilities
assumed  based  on  their  estimated fair values. The excess purchase price over
those  fair values is recorded as goodwill. The fair values assigned to tangible
and  intangible  assets  acquired and liabilities assumed are based on estimates
and  assumptions  made  by management. In accordance with SFAS No. 142, Goodwill
and  Other  Intangible Assets, goodwill is not amortized but will be reviewed at
least  annually  for  impairment.  Purchased intangible assets with finite lives
will  be  amortized  on  a  straight-line  basis over their respective estimated
useful lives. Any additional goodwill relating to the $1,000,000 contingent earn
out  based on ICS's ability to attain certain revenue levels over the next three
years  will be recorded, if necessary, in future years. The total purchase price
has  been  allocated  as  follows:

Tangible assets and liabilities:
Cash                                         $1,942,000
Accounts receivable                             579,000
Inventory                                       352,000
Other current assets                            273,000
Property and equipment                          260,000
Other long term assets                           11,000
Accounts payable                               (111,000)
Note payable                                 (1,997,000)
Accrued expenses                                (73,000)
Income tax payable                             (132,000)
Deferred income                                (247,000)
                                                --------

Total net tangible assets and liabilities       857,000

Amortizable intangible assets:
Customer relationships                        2,000,000
Non-compete agreement                           100,000
Contract backlog                                100,000
                                             -----------

Total amortizable intangible assets           2,200,000

Goodwill                                      3,597,000
                                              ---------

Total purchase price                         $6,654,000
                                             ==========

     The  following  summarized  pro  forma  financial  information presents the
combined  results  of  the  Company as if the ICS acquisition had occurred as of
January 1, 2007. Adjustments, which reflect amortization of purchased intangible
assets, interest on debt to finance the acquisition, elimination of intercompany
sales  and purchases, recalculation of bonuses due to adjustments to net income,
adjustment to income taxes payable, and reversal of interest expense incurred by
ICS  have  been made to the combined results of operations for the six and three
months  ended  June  30,  2007.  The  unaudited  summarized  pro forma financial
information  is  presented  for  informational  purposes  only  and  may  not be
indicative  of  what  the  actual  results of operations would have been had the
acquisition  occurred  at  the  beginning  of  the periods presented nor does it
purport  to  represent  the  results  of  operations  for  future  periods.
                                                                     (continued)
<PAGE>
                  ORBIT  INTERNATIONAL  CORP.  AND  SUBSIDIARIES
                NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                                  (continued)

                            Six Months Ended                Three Months Ended
                                June 30,                        June 30,
                                  2007                            2007
                      (Pro forma and Unaudited)       (Pro forma and Unaudited)
                       ------------------------       -------------------------

Net  Sales                      $15,766,000                    $8,057,000
----------                      ============                    ==========

Net  Income                       2,004,000                     1,131,000
-----------                       =========                      ========

Basic  earnings  per  share         0.45                           0.26
---------------------------         ====                           ====

Diluted  earnings  per  share       0.42                           0.24
-----------------------------       ====                           ====

(NOTE  3)  -  Financing  Arrangements:
--------      -----------------------

     In  December  2007,  the  Company entered into an amended $3,000,000 credit
facility  with a commercial lender secured by accounts receivable, inventory and
property and equipment. The agreement will continue from year to year thereafter
unless  sooner  terminated for an event of default including non-compliance with
financial  covenants.  Loans  under  the  facility will bear interest equal to a
certain  percentage  depending  on  a  matrix  related  to  a  certain financial
covenant,  as  defined,  plus the one-month London Inter-bank offer rate (LIBOR)
(2.46%  at  June  30,  2008).  Outstanding  borrowings  under  the facility were
$100,000  at  June  30,  2008.

     In  April  2005,  the Company entered into a five-year $5,000,000 Term Loan
Agreement  with  the  same  aforementioned  lender to finance the acquisition of
Tulip.  The  Term  Loan,  which  requires  compliance  with  certain  financial
covenants,  has  fifty-nine  (59)  monthly  principal  payments of approximately
$60,000  and  a sixtieth (60th) payment of $1,488,000 in 2010. In December 2007,
the  interest rate was amended and the loan currently bears interest equal to an
applicable  margin based on a matrix related to a certain financial covenant, as
defined,  plus  the  one-month LIBOR. The loan's unpaid balance at June 30, 2008
was  approximately  $2,798,000.

     In  April  2005, the Company entered into a five year $2,000,000 Promissory
Note  with the selling shareholders of Tulip at an interest rate of prime (5.00%
at  June  30,  2008)  plus  2.00%. Principal payments of $100,000 were made on a
quarterly  basis  along  with  accrued  interest.  In  June  2007,  the  Company
refinanced the balance due on the Promissory Note of $1,050,000 with its primary
commercial  lender. Under the terms of the new loan, monthly payments of $35,000
will be made over a thirty-month period, which commenced August 2007, along with
accrued  interest  at  a  rate  of 1.15% plus the one-month LIBOR. The term loan
requires  compliance  with  certain  financial  covenants.  In December 2007 the
interest  rate  was  amended  to  equal  an  applicable margin based on a matrix
related  to  a certain financial covenant, as defined, plus the one-month LIBOR.
The  loan's  unpaid  balance  at  June  30,  2008  was  approximately  $665,000.


                                                                     (continued)
<PAGE>
                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                                  (continued)

     In December 2007, the Company entered into a five year $4,500,000 Term Loan
Agreement with same aforementioned lender to finance the acquisition of ICS. The
term  loan,  which  requires  compliance  with  certain financial covenants, has
fifty-nine  (59) monthly payments of approximately $54,000 and a sixtieth (60th)
payment  of  approximately  $1,339,000.  The  loan  bears  interest equal to the
one-month  LIBOR  rate, plus an applicable margin based on a matrix related to a
certain  financial  covenant,  as defined. The loan's unpaid balance at June 30,
2008  was  approximately  $4,232,000.


(NOTE 4) - Income (Loss) Per Share:
 ------    -----------------------


     The following table sets forth the computation of basic and diluted income
(loss) per common share:


                                      Six Months Ended       Three Months Ended
                                          June 30,                June 30,
                                     2008         2007       2008          2007
                                     ----         ----       ----          ----
Denominator:
 Denominator  for  basic
  Income  (loss)  per  share  -
  weighted-average common shares    4,504,000  4,309,000   4,508,000   4,312,000

Effect  of  dilutive  securities:
  Employee  and  directors
   stock  options                       -        227,000        -        230,000

Unearned  portion  of  restricted
     stock  awards                      -        109,000         -       110,000
                                    --------    --------     -------     -------
Denominator  for  diluted
 Income  (loss)  per  share  -
 weighted-average  common
 shares  and  assumed  conversion   4,504,000  4,645,000   4,508,000   4,652,000
                                    =========  ========    =========   =========


     The numerator for basic and diluted income (loss) per share for the six and
three  month  periods  ended  June  30,  2008  and  2007  is  net  income(loss).

     During  the  six  and three months ended June 30, 2008, the Company had net
losses  and  therefore  did  not  include 273,000 and 256,000 incremental common
shares,  respectively,  in  its calculation of diluted net loss per common share
since  an  inclusion  of  such  securities  would  be  anti-dilutive.

     Options  to  purchase 10,000 shares of common stock were outstanding during
the  six  and  three  months  ended  June 30, 2007, but were not included in the
computation  of diluted earnings per share. The inclusion of these options would
have  been  anti-dilutive due to the options' exercise prices being greater than
the  average  market  price of the Company's common shares during the respective
periods.


                                                                     (continued)
<PAGE>
                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                                  (continued)

     Approximately  281,000  and 224,000 shares of common stock were outstanding
during  the six and three months ended June 30, 2008 and 2007, respectively, but
were  not  included in the computation of basic earnings per share. These shares
were  excluded  because  they represent the unvested portion of restricted stock
awards.

(NOTE  5)  -  Cost  of  Sales:
 -------      ---------------

     For  interim periods, the Company estimates its inventory and related gross
profit.

(NOTE 6) - Inventories:
-------    -----------

     Inventories are comprised of the following:

                            June 30,     December 31,
                              2008           2007
                              ----            ----

Raw Materials            $ 6,909,000     $ 6,146,000
Work-in-process            4,090,000       3,639,000
Finished goods               751,000         668,000
                          ----------     -----------
     TOTAL               $11,750,000     $10,453,000
                          ==========     ===========

(NOTE 7) - Comprehensive Income(Loss):
-------    --------------------------

     For the six and three months ended June 30, 2008, total comprehensive loss,
net  of  tax was $286,000 and $289,000, respectively. For the comparable periods
during  2007,  total  comprehensive  income  was  $1,016,000  and  $477,000,
respectively.  Comprehensive  income  (loss)  consists  of net income (loss) and
unrealized  gains  and  losses  on  marketable  securities.

(NOTE 8) - Business Segments:
--------   -----------------

     The  Company  operates  through  two  business  segments.  The  Electronics
Segment  is  comprised  of  the  Orbit  Instrument  Division  and  Tulip and ICS
Subsidiaries. The Orbit Instrument Division and Tulip are engaged in the design,
manufacture  and  sale  of  customized electronic components and subsystems. ICS
performs  system  integration for Gun Weapons Systems and Fire Control Interface
as  well  as  logistics  support  and  documentation.  The Company's Power Units
Segment,  through  the  Behlman  Electronics, Inc. subsidiary, is engaged in the
design,  manufacture  and  sale of distortion free commercial power units, power
conversion  devices  and  electronic  devices  for  measurement and display. The
results  of  operations for the six and three months ended June 30, 2008 include
the  operations of ICS for the entire period since the acquisition was completed
effective  December  31,  2007.

     The  Company's  reportable segments are business units that offer different
products.  The  reportable  segments  are  each  managed  separately  as  they
manufacture  and  distribute  distinct  products  with  different  production
processes.

     The following is the Company's business segment information for the six and
three  month  periods  ended  June  30,  2008  and  2007:
                                                                     (continued)
<PAGE>
                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                                  (continued)
<TABLE>
<CAPTION>
                                            Six Months Ended                         Three Months Ended
                                                 June 30,                                 June 30,
                                        2008              2007                   2008                  2007
                                       -----             -----                  -----                  -----
<S>                             <C>                   <C>           <C>           <C>          <C>          <C>
Net sales:
  Electronics
  Domestic                          $ 7,013,000      $ 7,918,000              $3,016,000            $4,017,000
  Foreign                               779,000          535,000                 435,000               236,000
                                     ----------      -----------               ---------            ----------
     Total Electronics                7,792,000        8,453,000               3,451,000             4,253,000
  Power Units
  Domestic                            3,771,000        3,435,000               1,951,000             1,580,000
  Foreign                               950,000          486,000                 501,000               321,000
                                     ----------      -----------              ----------             ---------
      Total Power Units               4,721,000        3,921,000               2,452,000             1,901,000
  Intersegment sales                    (30,000)            -                    (30,000)                 -
                                     ----------       ----------               ---------             ---------
 Total                              $12,483,000      $12,374,000              $5,873,000            $6,154,000
                                    ===========      ===========               =========             =========

(Loss) income from operations:
 Electronics                        $  (170,000)     $ 1,510,000              $ (278,000)           $  751,000
 Power Units                            546,000          200,000                 323,000                89,000
Intersegment profit                      (4,000)            -                     (4,000)                  -
 General corporate
  expenses not
  allocated                            (656,000)        (708,000)               (342,000)             (362,000)
Interest expense                       (182,000)        (182,000)                (80,000)              (87,000)
Investment and other income             178,000          255,000                  82,000               126,000
                                    -----------     ------------                ------------        -----------
(Loss) income before
  income taxes                      $  (288,000)     $ 1,075,000              $( 299,000)           $  517,000
                                    ===========      ===========              ===========           ===========



</TABLE>

20


(NOTE 9) - Goodwill and Other Intangible Assets:
--------   -------------------------------------

     The  Company  applies  SFAS  No. 142, Goodwill and Other Intangible Assets.
SFAS  142 requires that an intangible asset with a finite life be amortized over
its  useful  life  and that goodwill and other intangible assets with indefinite
lives  not  be  amortized  but  evaluated  for  impairment.

     At  June  30,  2008,  the  Company's  intangible assets other than goodwill
consist  of  the  following:

                        Estimated       Gross                          Net
                         Useful         Carrying    Accumulated      Carrying
                          Life          Value       Amortization      Value
                          ----          -----          ------------   -----
Customer relationships  15 Years      $2,000,000    $  ( 67,000)   $1,933,000
Contract backlog       1-5 Years       1,750,000     (1,121,000)      629,000
Non-Compete Agreements   3 Years         415,000       (332,000)       83,000
                                         -------     ----------     ---------
                                      $4,165,000    $(1,520,000)   $2,645,000
                                      ==========    ============   ==========

                                                                     (continued)
<PAGE>
                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                                  (continued)

     At  December  31, 2007, the Company's intangible assets other than goodwill
consist  of  the  following:

                         Estimated     Gross                        Net
                         Useful        Carrying     Accumulated     Carrying
                         Life          Value        Amortization    Value
                         ----          -----         ------------ ---------
Customer relationships  15 Years      $2,000,000           -      $2,000,000
Contract backlog       1-5 Years       1,750,000       (907,000)     843,000
Non-Compete Agreements   3 Years         415,000       (289,000)     126,000
                                         -------      ----------  -----------
                                      $4,165,000    $(1,196,000)  $2,969,000
                                      ==========    ===========    ==========


Amortization expense for the next five years is expected to be as follows:
                       Year ending December 31,

                       2008          $    299,000
                       2009               497,000
                       2010               250,000
                       2011               133,000
                       2012               133,000
                       2013               133,000
                                         ---------
                       Total           $1,445,000
                                       ==========

     The  Company  recognized  amortization expense of $324,000 and $148,000 for
the six and three months ended June 30, 2008 and 2007, respectively. The Company
recorded  amortization  expense  of  $218,000 and $109,000, respectively, in the
comparable  2007  periods.

(NOTE  10)  -  Income  Taxes:
----------     --------------

     For  the six and three months ended June 30, 2008, the Company utilized net
operating  loss  carryforwards  to offset income taxes except for a $7,000 state
and  local  income  tax expense in Kentucky. For the comparable periods in 2007,
the  Company  utilized  net  operating loss carryforwards to offset income taxes
except  for  a  $15,000  and  $10,000 state income tax expense, respectively, in
Pennsylvania.

     The  Company recognized a $120,000 and $59,000 deferred tax expense for the
six  and  three  months  ended  June  30,  2008,  respectively. This expense was
recorded  since the Company's deferred tax liability relating to its goodwill is
required  to  be  separately  stated  on its financial statements apart from its
deferred  tax  asset. Also, during the six and three months ended June 30, 2008,
the  Company  recorded  a  deferred  tax  benefit  of  $120,000  and  $59,000,
respectively,  by  reducing  its  valuation allowance on its deferred tax asset.
This  was  due to an increase in the Company's projected future profitability as
well  as  an increase in the probability of attaining that profitability. During
the  six  months  ended  June  30, 2008,  the Company also recorded a net $3,000
decrease  in  its  deferred tax asset due to the tax benefit associated with its
unrealized  holding loss on marketable securities and the tax benefit associated
with  stock  options  exercised.

                                                                     (continued)
<PAGE>
                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                                  (continued)

     On  January  1,  2007,  the  Company adopted Financial Accounting Standards
Board("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income Taxes
-  an  interpretation  of FASB Statement No. 109"("FIN 48"). This interpretation
provides  criteria for the recognition, measurement, presentation and disclosure
of  uncertain  tax  positions.  A  tax benefit from an uncertain position may be
recognized only if it is "more likely that not" that the position is sustainable
based  on  its  technical  merits.  Additionally,  FIN  48  provides guidance on
derecognition,  classification,  interest  and  penalties, accounting in interim
periods,  disclosure  and  transition.  There  was  no  impact  of FIN 48 to the
Company's  consolidated  financial position, results of operations or cash flows
for  the  six  and  three  month  periods  ending  June  30,  2008  and  2007.

(NOTE  11)  -  Related  Party  Transactions:
----------     -----------------------------

     Tulip  leases  its  facilities from a limited partnership, the ownership of
which  is  controlled  by  the former shareholders of Tulip. The five-year lease
commenced  April  2005 and provides for monthly payments of $9,100 and increases
by  2%  each  year for the first two renewal periods and by 3% for the final two
renewal  periods.  For  the six and three months ending June 30, 2008, the total
amount  paid  under  this  lease  was  approximately  $58,000  and  $30,000,
respectively.  For  the  comparable periods in 2007 the amounts were $56,000 and
$28,000,  respectively.

(NOTE  12)  -  Recent  Accounting  Pronouncements:
----------     -----------------------------------

     In  April,  2008,  the  FASB  issued  FSP FASB 142-3, "Determination of the
Useful  Life  of Intangible Assets" ("FSP 142-3").  FSP 142-3 amends the factors
that  should  be considered in developing assumptions about renewal or extension
used  in  estimating the useful life of a recognized intangible asset under SFAS
No.  142,  "Goodwill  and  Other Intangible Assets" ("SFAS 142") and expands the
disclosure  requirements of SFAS 142.  The provisions of FSP 142-3 are effective
for  the  Company  as  of  January  1,  2009.   The  provisions of FSP 142-3 for
determining  the  useful  life of a recognized intangible asset shall be applied
prospectively  to  intangible  assets  acquired  after the effective date.   The
disclosure  requirements shall be applied prospectively to all intangible assets
recognized  as  of,  and  subsequent  to,  the  effective  date.  The Company is
currently evaluating the impact of the adoption of FSP 142-3 on its consolidated
financial  statements.

<PAGE>
Item 2.
                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Executive  Overview
-------------------

     The  results  of  operations for the three months and six months ended June
30,  2008  include  the results of ICS which was acquired effective December 31,
2007.  The  Company  recorded  a decrease in revenues for the three months ended
June  30,  2008 due to a shipment delay of a product covered under a substantial
contract for the Orbit Instrument Division.  Net sales decreased by 4.6% for the
quarter but exclusive of ICS, net sales would have decreased by 25.7%.  However,
sales from the Company's Power Group increased by 29.0% for the quarter compared
to  the  prior  year.  Due  to  lower gross margins, higher selling, general and
administrative  expenses  and  decreased  investment and other income during the
current period, the Company recorded a net loss of $306,000 for the three months
ended  June  30,  2008,  compared to net income of $502,000 for the three months
ended  June  30,  2007.   Net  sales  increased  by  0.9% for the six months but
exclusive  of ICS, net sales would have decreased by 19.3%.  However, sales from
the  Company's Power Group increased by 20.4% for the six months compared to the
prior  year.  Due  to  lower  gross  margins,  higher  selling,  general  and
administrative  expenses  and  decreased  investment and other income during the
current  period,  the Company recorded a net loss of $295,000 for the six months
ended  June  30,  2008,  compared to net income of $1,050,000 for the six months
ended  June 30, 2007. Our backlog at June 30, 2008 was approximately $15,300,000
compared  to $16,900,000 at June 30, 2007.  Backlog was $13,700,000 at March 31,
2008.  The  Company expects increased bookings in the coming months. There is no
seasonality  to  the  Company's  business.  Our shipping schedules are generally
determined  by  the  shipping schedules outlined in the purchase orders received
from  our  customers.  Both of our operating segments are pursuing a significant
amount  of  business  opportunities  and  our confidence level remains high with
respect  to  receiving  many  of  the  orders we are pursuing although timing is
always  an uncertainty.  Nevertheless, we remain very encouraged by our business
environment  and we expect much improved operating results in the second half of
2008.  Our  success  of  the  past  few years has significantly strengthened our
balance  sheet  evidenced  by  our  4.5 to 1 current ratio at June 30, 2008.  We
currently  have  a  $3,000,000  credit  facility  in  place.

Critical  Accounting  Policies
------------------------------

     The  discussion  and  analysis of the Company's financial condition and the
results  of  its  operations are based on the Company's financial statements and
the  data  used  to  prepare them.  The Company's financial statements have been
prepared  based on accounting principles generally accepted in the United States
of  America.  On  an  on-going basis, we re-evaluate our judgments and estimates
including  those  related to inventory valuation, the valuation allowance on the
Company's  deferred  tax  asset,  goodwill  impairment, valuation of share-based
compensation  and  revenue and cost recognition on long-term contracts accounted
for  under  the  percentage-of-completion method.  These estimates and judgments
are  based  on  historical  experience  and  various  other assumptions that are
believed  to  be reasonable under current business conditions and circumstances.
Actual  results  may  differ from these estimates under different assumptions or
conditions.  The  Company  believes  the  following critical accounting policies
affect  more  significant  judgments  and  estimates  in  the preparation of the
consolidated  financial  statements.

Inventories
-----------

     Inventory  is  valued at the lower of cost (specific, average and first-in,
first-out  basis)  or market.  Inventory items are reviewed regularly for excess
and obsolete inventory based on an estimated forecast of product demand.  Demand
for  the Company's products can be forecasted based on current backlog, customer
options  to  reorder  under existing contracts, the need to retrofit older units
and  parts  needed for general repairs.  Although the Company makes every effort
to  insure  the  accuracy  of  its  forecasts  of  future  product  demand,  any
significant  unanticipated changes in demand or technological developments could
have  an impact on the level of obsolete material in its inventory and operating
results  could  be affected, accordingly.  However, world events have forced our
country  into various situations of conflict whereby equipment is used and parts
may  be  needed for repair.  This could lead to increased product demand as well
as  the  use  of  some  older  inventory  items  that the Company had previously
determined  obsolete.

Deferred  tax  asset
--------------------

     At  June  30,  2008,  the  Company had an alternative minimum tax credit of
approximately  $573,000  with  no  limitation  on  the  carry-forward period and
federal and state net operating loss carry-forwards of approximately $21,000,000
and  $7,000,000,  respectively  that  expire  through  2025.  Approximately,
$17,000,000  of  federal  net  operating  loss  carry-forwards  expire  between
2010-2012.  In  addition,  the  Company  receives  a  tax  deduction  when their
employees  exercise  their  non-qualified  stock  options thereby increasing the
Company's  deferred  tax  asset.  The  Company  records a valuation allowance to
reduce  its deferred tax asset when it is more likely than not that a portion of
the  amount  may not be realized.  The Company estimates its valuation allowance
based  on  an  estimated  forecast of its future profitability.  Any significant
changes  in future profitability resulting from variations in future revenues or
expenses  could  affect  the  valuation  allowance on its deferred tax asset and
operating results could be affected, accordingly. Due to the Company's record of
profitability,  the  acquisition  of  ICS,  and  the unprecedented amount of new
opportunities  in  the prototype and preproduction stage,  the Company increased
its  projection  for profitability for future periods and increased its estimate
of  probability  that  it  will attain those profit levels; thereby reducing its
valuation  allowance  on  its  deferred  tax  asset.

Impairment  of  Goodwill
------------------------

     The  Company has significant intangible assets including goodwill and other
acquired  intangibles.  In  determining the recoverability of goodwill and other
intangibles,  assumptions must be made regarding estimated future cash flows and
other  factors to determine the fair value of the assets.  If these estimates or
their  related  assumptions change in the future, the Company may be required to
record impairment charges for those assets not previously recorded.  The Company
applies Statement of Financial Accounting Standards No. 142, "Goodwill and Other
Intangible Assets" ("SFAS 142").  Under the provisions of SFAS 142, the costs of
certain  intangible  assets  are no longer subject to amortization.  These costs
are  reviewed  for  potential  impairment  on  an annual basis. During the first
quarter  of  2008,  the  Company  determined that there was no impairment to its
goodwill  and  other  intangible  assets

Share-Based  Compensation
-------------------------

     Effective  January  1,  2006,  the  Company  began  recognizing share-based
compensation under SFAS No. 123(R), which requires the measurement at fair value
and  recognition  of  compensation  expense  for  all  share-based awards. Total
share-based  compensation  expense was $94,000 and $51,000 for the six and three
months  ended  June  30, 2008, respectively, compared to $88,000 and $38,000 for
the  respective  prior  year  periods. The estimated fair value of stock options
granted  was  calculated  using the Black-Scholes model. This model requires the
use  of  input  assumptions.  These  assumptions  include  expected  volatility,
expected  life,  expected  dividend rate, and expected risk-free rate of return.

Revenue  and  Cost  Recognition
-------------------------------

     Revenue  and  costs  under  larger, long-term contracts are reported on the
percentage-of-completion  method.  For  projects  where  materials  have  been
purchased  but  have  not been placed in production, the costs of such materials
are  excluded  from  costs  incurred  for the purpose of measuring the extent of
progress  toward  completion. The amount of earnings recognized at the financial
statement date is based on an efforts-expended method, which measures the degree
of  completion  on  a  contract  based  on  the amount of labor dollars incurred
compared  to  the total labor dollars expected to complete the contract. When an
ultimate  loss is indicated on a contract, the entire estimated loss is recorded
in  the period. Assets related to these contracts are included in current assets
as they will be liquidated in the normal course of contract completion, although
this  may  require  more  than  one  year.


Results of Operations
---------------------


Three month period ended June 30, 2008 v. June 30, 2007
-------------------------------------------------------

     The  Company  currently  operates  in  two  industry  segments.  Its  Orbit
Instrument  Division  and  its  Tulip  subsidiary  are engaged in the design and
manufacture  of  electronic  components  and  subsystems  and its ICS subsidiary
performs  system  integration for Gun Weapons Systems and Fire Control Interface
as  well  as logistics support and documentation (the "Electronics Group").  Its
Behlman  subsidiary is engaged in the design and manufacture of commercial power
units (the "Power Group").  The results of operations for the three months ended
June  30,  2008  include  the  operations of ICS for the entire period since the
acquisition  was  completed  effective,  December  31,  2007.

     Consolidated  net  sales  for  the  three  month period ended June 30, 2008
decreased by 4.6% to $5,873,000 from $6,154,000 for the three month period ended
June  30,  2007 despite the inclusion of ICS in the current period and increased
sales  from  the  Power  Group.  Sales  from  the Electronics Group decreased by
18.9%,  despite the inclusion of ICS in the current period.  During the quarter,
the  Company's  Orbit  Instrument  Division  was  verbally advised by one of its
customers  to  provide  support  for several modifications to a product that was
under  a  substantial  contract  with  many  of the units scheduled for shipment
during  the  second quarter.  As a result of this request, those deliveries were
delayed  to a later, yet undetermined date resulting in significantly lower than
expected  revenues  for  the  operating  unit.  This  loss  of sales, along with
decreased  sales from the Company's Tulip subsidiary resulted in the significant
decrease in sales for the Electronics Group despite the inclusion of ICS.  Sales
from the Power Group increased by 29.0% for the quarter as compared to the prior
year.

     Gross profit, as a percentage of sales, for the three months ended June 30,
2008  decreased  to  39.7%  from 44.1% for the three month period ended June 30,
2007.  This  decrease  resulted  from  a  lower  gross profit from the Company's
Electronics  Group  due  to  a  decrease in sales from both the Orbit Instrument
Division  and  Tulip  and  despite  approximately  $190,000 of deferred warranty
income  recorded  by  ICS  during the quarter; and despite a higher gross profit
from  the  Power  Group  principally  due to increased sales and to product mix.

     Selling,  general  and  administrative  expenses  increased  by  17.6%  to
$2,631,000  for  the  three month period ended June 30, 2008 from $2,238,000 for
the  three  month period ended June 30, 2007 principally due to the inclusion of
ICS's  selling,  general  and  administrative  costs  of $410,000 in the current
period.  Selling, general and administrative expenses, as a percentage of sales,
for the three month period ended June 30, 2008 increased to 44.8% from 36.4% for
the three month period ended June 30, 2007 principally due to the aforementioned
increase  in  costs  along  with  the  reduction  in  sales from the Electronics
Segment.

     Interest  expense  for  the  three  months ended June 30, 2008 decreased to
$80,000  from $87,000 for the three months ended June 30, 2007 due to a decrease
in  interest rates and despite an increase in the amounts owed to lenders in the
current  period  due  to  the  acquisition  of  ICS.

     Investment  and other income for the three month period ended June 30, 2008
decreased  to  $82,000  from  $126,000 for the three-month period ended June 30,
2007  principally  due  to a decrease in the amounts invested during the current
period  and  to  a  decrease  in  interest  rates.

     Loss  before  income  tax provision was $299,000 for the three months ended
June  30, 2008 compared to income before tax provision of $517,000 for the three
months  ended  June 30, 2007.  The decrease in income was principally due to the
decrease  in sales from both the Orbit Instrument Division and Tulip, a decrease
in  gross profit, an increase in selling, general and administrative expenses, a
decrease  in  investment  and  other income and despite the decrease in interest
expense  and  increased  revenues  and  profitability  from  the  Power  Group.

     The  income  tax  provision  for  the  three months ended June 30, 2008 was
$7,000  compared  to $15,000 for the three months ended June 30, 2007 consisting
of  state  income  taxes  that  cannot be offset by any state net operating loss
carry-forwards.

As  a result of the foregoing, net loss for the three months ended June 30, 2008
was  $306,000 compared to net income of $502,000 for the three months ended June
30,  2007.

     Earnings  before interest, taxes and depreciation and amortization (EBITDA)
for  the three months ended June 30, 2008 decreased to a loss of $21,000 for the
three  months  ended  June 30, 2008 compared to income of $743,000 for the three
months  ended  June  30, 2007.  Listed below is the EBITDA reconciliation to net
income:

                                         Three  months  ended
                                              June  30,
                                    2008                     2007
                                    ----                     ----

Net (loss)  income               $(306,000)              $502,000
Interest  expense                   80,000                 87,000
Income  tax  expense                 7,000                 15,000
Depreciation  and  amortization    198,000                139,000
                                   -------                -------
EBITDA                          $  (21,000)              $743,000
                                ==========               ========


     EBITDA  is  a  Non-GAAP financial measure and should not be construed as an
alternative  to net income. An element of the Company's growth strategy has been
through  strategic acquisitions which have been substantially funded through the
issuance  of  debt.  This  has  resulted  in  significant  interest  expense and
amortization  expense. EBITDA is presented as additional information because the
Company  believes  it  is useful to our investors and management as a measure of
cash  generated by our business operations that will be used to service our debt
and  fund  future  acquisitions  as  well  as  provide  an additional element of
operating  performance.

Six month period ended June 30, 2008 v. June 30, 2007
-----------------------------------------------------

     Consolidated  net  sales  for  the  six  month  period  ended June 30, 2008
increased by 0.9% to $12,483,000 from $12,374,000 for the six month period ended
June  30,  2007  due to the inclusion of ICS in the current period and increased
sales from the Power Group.  Sales from the Electronics Group decreased by 7.8%,
despite  the  inclusion  of  ICS  in  the  current six month period.  During the
current  period, the Company's Orbit Instrument Division was verbally advised by
one  of  its customers to provide support for several modifications to a product
that  was  under  a  substantial  contract  with many of the units scheduled for
shipment  during  the  second  quarter.  As  a  result  of  this  request, those
deliveries  were  delayed  to  a  later,  yet  undetermined  date  resulting  in
significantly  lower  than  expected  revenues  for  the  operating  unit.  In
addition,  the  Orbit Instrument Division also experienced an unrelated customer
delivery  issue  in  the  first quarter of the current period that resulted in a
shipment shortfall for that period, which was not resolved by June 30, 2008. The
Company still expects this issue to be resolved by year-end. This loss of sales,
along  with  decreased sales from the Company's Tulip subsidiary resulted in the
decrease  in sales for the Electronics Group despite the inclusion of ICS in the
current  period.  Sales  from the Power Group increased by 20.4% for the current
six  month  period  compared  to  the  prior  year.

     Gross  profit,  as a percentage of sales, for the six months ended June 30,
2008 decreased to 39.8% from 44.1% for the six month period ended June 30, 2007.
This  decrease resulted from a lower gross profit from the Company's Electronics
Group  due  to  a  decrease in sales from both the Orbit Instrument Division and
Tulip and despite approximately $190,000 of deferred warranty income recorded by
ICS  during  the  period; and despite a higher gross profit from the Power Group
principally  due  to  increased  sales  and  to  product  mix.

     Selling,  general  and  administrative  expenses  increased  by  17.7%  to
$5,249,000  for the six month period ended June 30, 2008 from $4,459,000 for the
six  month  period ended June 30, 2007 principally due to the inclusion of ICS's
selling,  general  and  administrative  costs of $842,000 in the current period.
Selling,  general and administrative expenses, as a percentage of sales, for the
six  month  period ended June 30, 2008 increased to 42.0% from 36.0% for the six
month  period ended June 30, 2007 principally due to the aforementioned increase
in  costs  along  with  the  reduction  in  sales  from the Electronics Segment.

     Interest  expense  for  the  six months ended June 30, 2008 of $182,000 was
equal to the amount that was reported for the six months ended June 30, 2007 due
to  an  increase in the amounts owed to lenders in the current period due to the
acquisition  of  ICS  that  was  offset  by  a  decrease  in  interest  rates.

     Investment  and  other  income for the six month period ended June 30, 2008
decreased to $178,000 from $255,000 for the six-month period ended June 30, 2007
principally  due to a decrease in the amounts invested during the current period
and  to  a  decrease  in  interest  rates.

     Loss before income tax provision was $288,000 for the six months ended June
30,  2008  compared  to  income  before  tax provision of $1,075,000 for the six
months  ended  June 30, 2007.  The decrease in income was principally due to the
decrease  in sales from both the Orbit Instrument Division and Tulip, a decrease
in  gross profit, an increase in selling, general and administrative expenses, a
decrease  in  investment  and  other  income  and despite increased revenues and
profitability  from  the  Power  Group.

The  income  tax  provision  for  the  six months ended June 30, 2008 was $7,000
compared  to  $25,000 for the six months ended June 30, 2007 consisting of state
income  taxes  that  cannot  be  offset  by  any  state  net  operating  loss
carry-forwards.

As  a  result  of the foregoing, net loss for the six months ended June 30, 2008
was  $295,000 compared to net income of $1,050,000 for the six months ended June
30,  2007.

     Earnings  before interest, taxes and depreciation and amortization (EBITDA)
for  the six months ended June 30, 2008 decreased to $318,000 for the six months
ended  June  30,  2008  compared to $1,535,000 for the six months ended June 30,
2007.  Listed  below  is  the  EBITDA  reconciliation  to  net  income:

                                             Six  months  ended
                                                  June  30,
                                        2008                     2007
                                        ----                     ----

Net (loss) income                    $(295,000)            $1,050,000
Interest  expense                      182,000                182,000
Income  tax  expense                     7,000                 25,000
Depreciation  and  amortization        424,000                278,000
                                       -------                -------
EBITDA                              $  318,000             $1,535,000
                                    ==========             ==========


Material  Change  in  Financial  Condition
------------------------------------------

     Working  capital  decreased  to  $17,347,000  at  June 30, 2008 compared to
$18,167,000  at  December  31,  2007.  The  ratio  of  current assets to current
liabilities  was  4.5 to 1 at June 30, 2008 compared to 4.1 to 1 at December 31,
2007.

     Net  cash  used  in operations for the six month period ended June 30, 2008
was  $771,000,  primarily  attributable  to the net loss for the period, the non
cash  deferred income, an increase in inventory and costs and estimated earnings
in  excess  of  billings,  a  decrease in accounts payable, accrued expenses and
income taxes payable and despite the non cash amortization of intangible assets,
the  decrease in accounts receivable and the increase in customer advances.  Net
cash  used  in  operations  for  the  six-month  period  ended June 30, 2007 was
$131,000,  primarily  attributable to the increase in inventory and the decrease
in  accrued  expenses and customer advances that was partially offset by the net
income  for  the  period,  the  non-cash  amortization of intangible assets, the
decrease  in  accounts  receivable  and  the  increase  in  accounts  payable.

Cash flows provided by investing activities was $799,000, primarily attributable
to  the  sale of marketable securities that was partially offset by the purchase
of  marketable securities, the purchase of property and equipment and additional
costs  associated  with  the  ICS  acquisition.  Cash  flows  used  in investing
activities  for  the  six-month  period  ended  June  30,  2007  was  $656,000,
attributable to the purchase of marketable securities and property and equipment
that  was  partially  offset  by  the  sale  of  marketable  securities.

     Cash  flows  used  in  financing  activities  was  $1,433,000,  primarily
attributable  to  the repayment of long term debt that was partially offset from
loan  proceeds  from the Company's line of credit.  Cash flows used in financing
activities  for  the  six-month  period  ended  June  30,  2007  was  $648,000,
attributable  to  the  repayments of long term debt that was partially offset by
the  issuance  of  long  term  debt.

     In  December  2007,  the  Company entered into an amended $3,000,000 credit
facility  with a commercial lender secured by accounts receivable, inventory and
property  and  equipment.  In  April  2005, the Company entered into a five-year
$5,000,000  Term  Loan  Agreement  to  finance  the acquisition of Tulip and its
manufacturing affiliate.  In December 2007, the Company entered into a five-year
$4,500,000 Term Loan Agreement to finance the acquisition of ICS.  In connection
with the new Term Loan entered into in December 2007, the interest rates on both
Term  Loan  Agreements  and  the credit facility were amended to equal a certain
percentage  plus  the one month LIBOR depending on a matrix related to a certain
financial covenant.  At June 30, 2008, the interest rate was equal to the sum of
1.50%  plus  the  one-month LIBOR (2.46% at June 30, 2008).  The credit facility
will continue from year to year unless sooner terminated for an event of default
including  non-compliance  with certain financial covenants.  Principal payments
under  the  two  term  loan  facilities  are  approximately  $113,000 per month.

In  April  2005, the Company entered into a five year $2,000,000 Promissory Note
with  the  selling shareholders of Tulip at an interest rate of prime plus 2.00%
(5.00%  at  June  30,  2008).  Principal  payments  of  $100,000  were made on a
quarterly  basis  along  with  accrued  interest.  In  June  2007,  the  Company
refinanced the balance due on the Promissory Note of $1,050,000 with its primary
commercial  lender.  Under  the  terms  of  a new Term Loan, monthly payments of
$35,000 will be made over a thirty-month period along with accrued interest at a
rate  of  1.50%  plus  the  one-month  LIBOR.

          The  Company's  contractual obligations and commitments as of June 30,
2008,  are  summarized  as  follows:
                                     Less  than      1-2           3-5
                          Total      One  Year      Years        Years
                          -----      ----------     ------      ------
Long-term  debt        $7,695,000    $1,777,000   $3,614,000  $2,304,000
Note  Payable             100,000       100,000        -           -
Employment
 Contracts              4,717,000     1,962,000    2,755,000       -
Operating  leases       2,775,000       739,000    1,144,000     892,000
                        ---------     ---------    ---------     -------
Total  contractual
Obligations           $15,287,000    $4,578,000   $7,513,000  $3,196,000
                      ===========    ==========   ==========  ==========


     The  Company's  existing  capital  resources,  including  its  bank  credit
facilities  and  its  cash  flow  from operations are expected to be adequate to
cover  the  Company's  cash  requirements  for  the  foreseeable  future.

     Inflation  has  not  materially  impacted  the  operations  of the Company.

Certain  Material  Trends
-------------------------

     During  the  second  quarter,  the  Company's Orbit Instrument Division was
verbally  advised  by  one of its customers to provide support for the immediate
development  of  certain modifications to a product for the Division.  This "out
of  scope" support caused a delay in a significant amount of shipments scheduled
for  the  quarter  which resulted in a decrease in revenue and profitability for
the  three  and  six month periods ended June 30, 2008.  The Division is working
closely  with  this  customer  and once the testing is completed of the modified
unit,  the  Company  expects  deliveries to recommence on an expedited basis. In
addition,  the  Orbit Instrument Division also experienced an unrelated customer
delivery  issue  in  the  first quarter of the current period that resulted in a
shipment shortfall for that period, which was not resolved by June 30, 2008. The
Company  still  expects  this  issue  to  be  resolved  by  year-end.

     In  April  2005,  the  Company  completed  the acquisition of Tulip and its
operations  became  part  of the Company's Electronics Group.  In December 2007,
the  Company  completed  the  acquisition  of  ICS which also became part of the
Electronics  Group.  The  Company's Electronics Group and the Custom Division of
its  Power  Group  are  heavily  dependent  on military spending.  The events of
September  11,  2001  have  put  a  tremendous  emphasis on defense and homeland
security  spending  and  the  Company  has  benefited from an increasing defense
budget.   Although  the  Electronics  Group and the Custom Division of the Power
Group  are  pursuing several opportunities for reorders, as well as new contract
awards,  the  Company  has  normally found it difficult to predict the timing of
such  awards.  In  addition,  the  Company  has  an  unprecedented amount of new
opportunities  that  are  in  the  prototype  or  pre-production  stage.  These
opportunities  generally  move  to  a  production  stage at a later date but the
timing  of  such  is  also  uncertain.

     There  is no seasonality to the Company's business.  The Company's revenues
are  generally  determined  by  the  shipping schedules outlined in the purchase
orders  received  from  its  customers.  The  Company  stratifies  all  the
opportunities  it  is  pursuing  by  various  confidence  levels.  The  Company
generally realizes a very high success rate with those opportunities to which it
applies a high confidence level.  The Company currently has a significant amount
of  potential  contract  awards to which it has applied a high confidence level.
However, because it is difficult to predict the timing of awards for most of the
opportunities  the Company is pursuing, it is also difficult to predict when the
Company will commence shipping under these contracts.  A delay in the receipt of
any  contract  from  its  customer  ultimately  causes  a corresponding delay in
shipments  under  that  contract.

Despite the increase in military spending, the Company still faces a challenging
environment.  The  government is emphasizing the engineering of new and improved
weaponry  and  it  continues  to be our challenge to work with each of our prime
contractors  so  that  we  can  participate on these new programs.  In addition,
these  new  contracts  require incurring up-front design, engineering, prototype
and  pre-production  costs.  While  the  Company  attempts to negotiate contract
awards  for  reimbursement  of  product  development, there is no assurance that
sufficient  monies  will  be  set  aside  by its customers, including the United
States  Government,  for  such  effort.  In  addition, even if the United States
Government  agrees  to reimburse development costs, there is still a significant
risk  of  cost  overrun  that  may  not  be reimbursable.  Furthermore, once the
Company has completed the design and pre-production stage, there is no assurance
that funding will be provided for future production.  In such event, even if the
Company is reimbursed its development costs it will not generate any significant
profits.

     The  Company  is  heavily  dependent  upon military spending as a source of
revenues  and  income.  However,  even  increased  military  spending  does  not
necessarily  guarantee the Company of increased revenues, particularly, when the
allocation  of  budget  dollars  may  vary  depending  on what may be needed for
specific  military  conflicts   Any  future  reductions in the level of military
spending  by  the  United States Government due to budget constraints or for any
other  reason, could have a negative impact on the Company's future revenues and
earnings.  In  addition, due to major consolidations in the defense industry, it
has  become  more difficult to avoid dependence on certain customers for revenue
and  income.  Behlman's  line  of  commercial  products  gives  the Company some
diversity  and  the  addition  of  Tulip  gives  the  Electronics Segment a more
diversified  customer  base.

     The  Company's  business  strategy  is  to  expand  its  operations through
strategic,  accretive acquisitions.  Through the past several years, the Company
reviewed  various  potential  acquisitions  and  believes  there  are  numerous
opportunities  presently available.  In April 2005, it completed the acquisition
of  Tulip  and  in  December  2007,  it completed the acquisition of ICS.    The
Company  has  received  offers  from  several  financial  institutions that have
expressed  an  interest  in  helping  the  Company  with  acquisition financing.
However,  there  can  be  no assurance it will obtain the necessary financing to
complete  additional acquisitions and even if it does, there can be no assurance
that  we  will have sufficient income from operations of such acquired companies
to satisfy the interest payments, in which case, we will be required to pay them
out  of  Orbit's  operations  which  may  be  adversely  affected.  The  Company
continues  to  review  acquisition  candidates but there is no assurance that an
acquisition  will  be  completed  in  2008.

During  the  second  quarter of 2007, the Company expanded the activities of its
investment  banker  to  include the pursuit of alternative strategies, including
the  potential sale of the Company as a means of enhancing shareholder value. In
June 2008, the Company terminated such activities with the investment banker but
continues  to  pursue  strategic  alternatives  to  enhance  shareholder  value.
However,  there  is  no  assurance  that  a  sale  or any of the other strategic
alternatives  will  be  accomplished.

Forward  Looking  Statements
----------------------------

     Statements  in  this  Item  2  "Management's  Discussion  and  Analysis  of
Financial  Condition  and  Results of Operations" and elsewhere in this document
are  certain  statements which are not historical or current fact and constitute
"forward-looking  statements"  within the meaning of such term in Section 27A of
the  Securities  Act  of  1933 and Section 21E of the Securities Exchange Act of
1934.  Such  forward-looking  statements  involve  known  and  unknown  risks,
uncertainties  and  other  factors  that  could  cause  the  actual financial or
operating  results of the Company to be materially different from the historical
results  or from any future results expressed or implied by such forward-looking
statements.  Such  forward looking statements are based on our best estimates of
future results, performance or achievements, based on current conditions and the
most  recent results of the Company.  In addition to statements which explicitly
describe  such risks and uncertainties, readers are urged to consider statements
labeled  with  the  terms "may", "will", "potential", "opportunity", "believes",
"belief",  "expects",  "intends",  "estimates",  "anticipates"  or "plans" to be
uncertain  and  forward-looking. The forward-looking statements contained herein
are  also  subject generally to other risks and uncertainties that are described
from  time  to  time  in the Company's reports and registration statements filed
with  the  Securities  and  Exchange  Commission.


Item  3.     QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

     See Part II, Item 6A "Quantitative and Qualitative Disclosures About Market
Risk",  of  the  Company's  Annual Report on Form 10-K for the fiscal year ended
December  31,  2007  for  a discussion of the Company's exposure to market risk.
There have been no material changes to the Company's market risk exposures since
December  31,  2007.

Item  4T.     CONTROLS  AND  PROCEDURES

Disclosure  Controls  and  Procedures

     The  Company's  management,  with  the participation of the Company's chief
executive  officer  and chief financial officer, has evaluated the effectiveness
of  the Company's disclosure controls and procedures (as such term is defined in
Rules  13a-15(e)  and  15d-15(e)  under  the Securities Exchange Act of 1934, as
amended  (the  "  Exchange  Act  ")) as of the end of the period covered by this
report.  Based  on  such  evaluation,  the Company's chief executive officer and
chief  financial  officer have concluded that, as of the end of such period, the
Company's  disclosure  controls  and procedures are effective (i) to ensure that
information required to be disclosed by the Company in the reports that it files
or  submits  under  the  Exchange  Act  is  recorded,  processed, summarized and
reported,  within  the  time  periods specified in the SEC's rules and forms and
(ii)  to  ensure that information required to be disclosed by the Company in the
reports  that  it submits under the Exchange Act is accumulated and communicated
to  its  management,  including  the Company's principal executive and principal
financial  officers, or persons performing similar functions, as appropriate, to
allow  timely  decisions  regarding  required  disclosure.

Internal  Control  over  Financial  reporting

     There  has  been no change to the Company's internal control over financial
reporting  (as  such  term is defined in Rules 13a-15(f) and 15d-15(f) under the
Exchange  Act)  during  the three months ended June 30, 2008 that has materially
affected,  or  is  reasonably  likely to materially affect, our internal control
over  financial  reporting.



<PAGE>
PART  II-  OTHER  INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS
          None
ITEM  2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS
          None
ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES
          None
ITEM  4.  SUBMISSIONS  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

     An Annual Meeting of Stockholders of the Company was held on June 18, 2008.
The  holders of 4,723,753 shares of Common Stock of the Company were entitled to
vote  at  the  meeting,  the  holders  of  4,372,822  shares of Common Stock, or
approximately 93% of shares entitled to vote at the meeting, were represented by
proxy.  The  following  action  took  place:
1.     The  stockholders voted for the election of each of the following persons
nominated  to  serve  as a Director of the Company until the next annual meeting
and  until his successor is elected and qualified:  Dennis Sunshine by 3,908,334
votes for and 464,488 against, Bruce Reissman by 3,907,922 votes for and 464,900
against,  Mitchell  Binder  by  3,900,098  votes for and 472,724 against, Robert
Mitzman  by  3,908,084  votes  for  and  464,738  against,  Bernard Karcinell by
3,900,073 votes for and 472,749 against, Lee Feinberg by 3,907,734 votes for and
465,088  against,  Sohail  Malad by 4,347,280 for and 25,542 against and Fredric
Gruder  by  4,347,280  for  and  25,542  against.
2.     The  stockholders  voted  4,368,898  for and 2,273 against the resolution
relating  to  the  appointment  of  McGladrey  &  Pullen  LLP as the independent
auditors  and  accountants  for the Company for the year ended December 31, 2008
(1,649  votes  abstained).
ITEM  5.  OTHER  INFORMATION
          None
ITEM  6.  EXHIBITS
          Exhibit  Number     Description
          ---------------     -----------
               31.1*         Certification  of  the  Chief  Executive
                             Officer  Required  by  Rule  13a-14  (a)  or
                             Rule  15d-14(a).
               31.2*         Certification  of  the  Chief  Financial
                             Officer  Required  by  Rule  13a-14  (a)  or
                             Rule  15d-14(a).
               32.1*         Certification  of  the  Chief  Executive
                             Officer  Required  by  Rule  13a-14(b)  or
                             Rule  15d-14(b)  and  18  U.S.C.  1350.
               32.2*         Certification  of  the  Chief  Financial
                             Officer  Required  by  Rule  13a-14(b)  or
                             Rule  15d-14(b)  and  18  U.S.C.  1350.
_________________
*Filed  with  this  report.



                                   SIGNATURES
                                   ----------

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


                           ORBIT INTERNATIONAL CORP.
                           ------------------------
                                   Registrant


Dated:     August 14, 2008     /s/ Dennis Sunshine
                               -------------------
                              Dennis Sunshine, President,
                              Chief Executive Officer and
                              Director



Dated:     August 14, 2008     /s/Mitchell Binder
                               ------------------
                              Mitchell Binder, Executive
                              Vice President, Chief
                              Financial Officer
                              and Director