U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                    Form 10-Q

             [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended              February 28, 2001
                               -------------------------------------------------

             [ ] TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE
                                  EXCHANGE ACT

   For the transition period from ___________________to_________________________

                        Commission File Number 000-21623

                             OBIE MEDIA CORPORATION
--------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)

         OREGON                                                  93-0966515
--------------------------------------------------------------------------------
(State or other jurisdiction of                             (IRS Employer
incorporation or organization)                               Identification No.)


4211 West 11th Ave., Eugene, Oregon                  97402
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

               541-686-8400                            FAX 541-345-4339
--------------------------------------------------------------------------------
                           (Issuer's telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.           YES  [ X ]      NO [   ]
                                                  -----

     As of April 1, 2001,  5,896,232  shares of the  issuer's  common stock were
outstanding.
<PAGE>
<TABLE>
<CAPTION>
                             OBIE MEDIA CORPORATION
                                    FORM 10-Q
                                      INDEX


<S>                                                                                       <C>
PART 1 - FINANCIAL INFORMATION                                                            Page

Item 1.  Financial Statements

         Consolidated Balance Sheets as of February 28, 2001 and November 30, 2000          2

         Consolidated Statements of Operations for the quarters ended February 28, 2001
                  and February 29, 2000                                                     3

         Consolidated Statements of Cash Flows for the quarters ended
                  February 28, 2001 and February 29, 2000                                   4

         Notes to Financial Statements                                                      5

Item 2.  Management's Discussion and Analysis of Financial Condition and
                  Results of Operations                                                     7

Item 3.  Quantitative and Qualitative Disclosures about Market Risk                         9


PART II - OTHER INFORMATION

Item 4.  Submission of Matters to Vote of Security Holders                                  9

Item 6.  Exhibits and Reports on Form 8-K                                                   9
</TABLE>


                                       1
<PAGE>
Item 1.  Financial Statements
<TABLE>
<CAPTION>
                             OBIE MEDIA CORPORATION
                           Consolidated Balance Sheets
                                   (Unaudited)

                                     ASSETS

                                                            February 28,    November 30,
                                                                2001            2000
                                                           -------------  -------------
<S>                                                        <C>            <C>
CURRENT ASSETS:
    Cash                                                     $  233,518      $ 634,633
    Accounts receivable, net                                 10,951,892     11,174,866
    Prepaids and other current assets                         4,939,182      4,837,954
    Deferred income taxes                                       419,258        419,258
                                                           -------------  -------------
        Total current assets                                 16,543,850     17,066,711

Property and equipment, net                                  16,712,767     16,770,943
Goodwill, net                                                 6,293,478      6,423,335
Other assets                                                    557,270        577,066
                                                           -------------  -------------
                                                            $40,107,365    $40,838,055
                                                           =============  =============


         LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
    Current portion of long-term debt                       $  188,888       $200,888
    Line of credit                                             400,000            ---
    Accounts payable                                         2,379,011      1,979,305
    Accrued expenses                                         1,600,717      1,623,581
    Income taxes payable                                        53,741        497,504
    Deferred revenue                                         1,970,417      2,221,423
                                                           ------------   ------------
        Total current liabilities                            6,592,774      6,522,701

Deferred income taxes                                        1,360,392      1,360,392
Long-term debt, less current portion                        13,692,818     13,694,941
                                                           ------------   ------------
       Total liabilities                                    15,053,210     15,055,333
                                                           ------------   ------------

Minority interest in subsidiary                                 35,424         35,424

Shareholders' equity:
    Preferred stock, without par value, 10,000,000 shares
        authorized, no shares issued or outstanding                ---            ---
    Common stock, without par value; 20,000,000 shares
        authorized, 5,896,232 shares issued and
        outstanding                                         16,960,365     16,960,365
    Note receivable from shareholder                          (59,895)        (59,895)
    Options issued for common stock                            211,763        211,763
    Foreign currency translation                                 (353)         (2,203)
    Retained earnings                                        1,314,077      2,114,567
                                                           ------------   ------------
        Total shareholders' equity                          18,425,957     19,224,597
                                                           ------------   ------------
                                                           $40,107,365    $40,838,055
                                                           ============   ============
</TABLE>

See accompanying notes


                                       2
<PAGE>
                             OBIE MEDIA CORPORATION
                      Consolidated Statements of Operations
                                   (Unaudited)

                                                    Three Months Ended
                                                    ------------------
                                                February 28,   February 29,
                                                -----------    ------------
                                                    2001          2000
                                               -------------  -------------
REVENUES:
  Transit advertising                           $10,917,225     $7,831,173
  Outdoor advertising                             1,767,273      1,482,096
                                               -------------  -------------
  Gross revenue                                  12,684,498      9,313,269
  Less - Agency commissions                       (960,966)      (767,446)
                                               -------------  -------------
      Net revenues                               11,723,532      8,545,823

OPERATING EXPENSES:
  Direct advertising expenses                     9,945,242      6,454,209
  General and administrative                      2,055,276      1,575,766
  Start-up costs                                    297,136         31,132
  Depreciation and amortization                     491,963        421,020
                                               -------------  -------------
      Operating income (loss)                   (1,066,085)         63,696

OTHER EXPENSE:
  Interest expense                                  283,070        215,392
                                               -------------  -------------
     Loss before income taxes                   (1,349,155)      (151,696)

BENEFIT FROM INCOME TAXES                         (548,665)       (59,161)
                                               -------------  -------------
NET LOSS                                         $(800,490)      ($92,535)
                                               =============  =============

Loss per share:
    Basic                                           ($0.14)        ($0.02)
    Diluted                                         ($0.14)        ($0.02)




See accompanying notes



                                       3

<PAGE>
<TABLE>
<CAPTION>
                             OBIE MEDIA CORPORATION
                      Consolidated Statements of Cash Flows
                                   (Unaudited)

                                                            Three Months ended
                                                        February 28,     February 29,
                                                            2001             2000
                                                        ------------     ------------
<S>                                                     <C>              <C>
Cash Flows From Operating Activities:
    Net loss                                              $(800,490)        $(92,535)
    Adjustments to reconcile net loss to net cash
        used in operating activities:
          Depreciation and amortization                     491,963          421,020
          Changes in operating assets and liabilities      (189,303)        (337,295)
                                                        ------------     ------------
             Net cash used in operating activities         (497,830)          (8,810)
                                                        ------------     ------------

Cash Flows From Investing Activities:
    Capital expenditures                                   (310,808)      (2,912,495)
    Other
                                                             19,796          (20,358)
                                                        ------------     ------------
            Net cash used in investing activities          (291,012)      (2,932,853)
                                                        ------------     ------------

Cash Flows From Financing Activities:
    Net borrowing (payments) on line of credit              400,000         (465,084)
    Borrowings of long-term debt                             ----          4,000,000
    Net payments on long-term debt                          (14,123)        (712,012)
    Other                                                    ----             99,771
                                                        ------------     ------------
            Net cash provided by financing activities       385,877        2,922,675
                                                        ------------     ------------

Effect of exchange rate changes on cash                       1,850           (2,498)

                                                        ------------     ------------
Net decrease in cash                                       (401,115)         (21,486)
Cash, beginning of period                                   634,633           34,224
                                                        ------------     ------------
Cash, end of period                                        $233,518          $12,738
                                                        ============     ============

Supplemental Disclosure:
    Issuance of stock to employee benefit plan                ----          $ 91,160
    Interest capitalized                                      ----             3,808

Cash Paid for Interest                                     $328,030        $ 195,983

Cash Paid for Taxes                                         $40,950          $29,912
</TABLE>

See accompanying notes

                                       4
<PAGE>

                             OBIE MEDIA CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.  Basis of Presentation

         The  interim  financial  statements  have been  prepared  by Obie Media
Corporation  ("Obie Media," the "Company,"  "We," "Us," or "Our") without audit.
In the opinion of management,  the accompanying  unaudited financial  statements
contain all  adjustments  necessary to present fairly the financial  position of
the Company as of February 28, 2001 and  November  30, 2000,  and the results of
operations and cash flows of the Company for the three months ended February 28,
2001 and February 29, 2000, as applicable.  The condensed consolidated financial
statements  include the  accounts of the Company and its  subsidiaries,  and all
significant  intercompany  accounts and  transactions  have been  eliminated  in
consolidation.

     Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting  principles
have been  condensed  or omitted as permitted  by rules and  regulations  of the
Securities  and  Exchange  Commission.  The  organization  and  business  of the
Company,  accounting  policies followed by the Company and other information are
contained in the notes to the Company's  financial  statements  filed as part of
the Company's  November 30, 2000 Form 10-K. This quarterly report should be read
in conjunction with such annual report.


2.       Debt Agreements

         In February  2001 the Company and U.S.  Bank agreed on a new  financing
arrangement.  The arrangement includes a $16 million term loan revolver and a $6
million  working  capital  revolver.  Interest  rates on each,  at the Company's
option,  are  based  upon a range  of  basis  points  above  either  the  London
Inter-Bank  Offering rate (LIBOR) or U.S.  Bank's prime rate, the range is based
upon  certain  financial  ratio  requirements.  The  Company  used the term loan
revolver to refinance all existing debt,  including the then outstanding line of
credit.  The term loan revolver does not require any  principal  payments  until
fiscal 2002. The effective rate on the term loan and working capital revolver at
February 28, 2001 was 7.28% and 8.50%,  respectively.  Amounts outstanding under
the working capital revolver were $400,000 at February 28, 2001.

         The  Company's  Term  Loan  Agreement   contains  certain   restrictive
covenants  including  maintenance of certain  financial  ratios and debt service
coverage.  The Company was in compliance with these covenants as of February 28,
2001.

3.       Earnings Per Share

         Basic earnings per share (EPS) is calculated using the weighted average
number of common shares outstanding for the period and diluted EPS is calculated
using  the  weighted  average  number  of  common  shares  and  dilutive  common
equivalent  shares  outstanding.  The following is a reconciliation of the basic
and diluted shares used in the per share calculation:

                                                     Three Months Ended
                                                 February  28,  February 29,
                                                 -------------  ------------
                                                      2001          2000
                                                 -------------  ------------
Basic shares (weighted average)                    5,896,232     5,871,699
Dilutive effect of stock options                        --            --
                                                   ---------     ---------
Diluted shares                                     5,896,232     5,871,699
                                                   =========     =========

At  February  28 and 29,  2001 and 2000  respectively,  the  Company had options
outstanding  covering  709,146 and 458,497 shares of the Company's common stock,
respectively,  that were not  considered in the dilutive EPS  calculation  since
they would have been antidilutive.




                                       5
<PAGE>
4.       Comprehensive Income

         In June 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 130 "Reporting Comprehensive Income" (SFAS
130).  This  statement   establishes  standards  for  reporting  and  displaying
comprehensive  income  and  its  components  in a full  set  of  general-purpose
financial  statements.  The  objective of SFAS 130 is to report a measure of all
changes in equity of an  enterprise  that  result  from  transactions  and other
economic events of the period other than transactions with owners. Comprehensive
loss did not  materially  differ  from  reported  net loss for the  three  month
periods ended February 28 and 29, 2001 and 2000, respectively.


5.       New Accounting Pronouncements

         In  June  2000  the  FASB  issued  Statement  of  Financial  Accounting
Standards No. 138,  "Accounting for Certain  Derivative  Instruments and Certain
Hedging  Activities - an amendment of FASB  Statement No. 133" ("SFAS 138").  In
June 1999 the FASB issued Statement of Financial  Accounting Standards No. 137 -
"Accounting  for Derivative  Instruments and Hedging  Activities"  ("SFAS 137").
SFAS 137 is an amendment to Statement of Financial Accounting Standards No. 133,
"Accounting for Derivative Instruments and Hedging Activities". SFAS 133 and 138
establish  accounting and reporting  standards for all  derivative  instruments.
SFAS 133 and 138 are effective for fiscal years  beginning  after June 15, 2000.
The Company  adopted SFAS 133 and 138 for its fiscal year beginning  December 1,
2000. The Company does not currently have any derivative instruments nor does it
participate in hedging activities, and therefore the adoption of these standards
did not have any impact on its financial position or results of operations.

         In December 1999 the  Securities and Exchange  Commission  issued Staff
Accounting Bulletin No. 101 ("SAB 101"). SAB 101 summarized certain areas of the
staff's views in applying  generally accepted  accounting  principles to revenue
recognition  in financial  statements.  In June 2000,  SAB 101B was issued which
deferred  the  implementation  date of SAB 101 until the  fourth  quarter of the
first fiscal year beginning after December 15, 1999. The Company does not expect
that SAB 101 will  have a  significant  impact  on its  financial  condition  or
results of operations.

6.       Reclassifications

         Certain  amounts  previously   reported  in  the  Company's   financial
statements  as of  November  30, 2000 have been  reclassified  to conform to the
current fiscal year presentation.





















                                       6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

         The following  discussion includes various  forward-looking  statements
that involve a number of risks and  uncertainties.  The Company's actual results
could differ materially from the forward-looking statements.  Factors that could
cause or  contribute  to such  differences  include:  the  inability  to finance
expected  operations  or  strategic  developments;  a decline  in the demand for
advertising   in  the  areas  where  the  Company   conducts  its  business;   a
deterioration  of business  conditions  generally  in those  areas;  slower than
expected  acceptance of the Company's  innovative display products;  competitive
factors,  including  increased  competition and price pressures;  changes in the
seasonality of our business;  changes in regulatory or other  external  factors;
failure to  successfully  conclude  negotiations  on pending  transactions or to
successfully  assimilate expanded operations,  inability to generate advertising
revenues to meet  contractual  guarantees,  and  cancellation or interruption of
contracts with governmental  agencies, as well as those factors listed from time
to time in the Company's SEC reports.

Recent Developments

         On March 1, 2001 the Company was notified  that it had been selected as
the successful  bidder for a new contract for bus advertising for the Milwaukee,
Wisconsin  transit  District for a five year  period.  We have been serving that
transit market since April of 1992.

         The company intends to acquire additional  digital production  printing
equipment  during the second  quarter of 2001.  This  purchase  will  supplement
existing  equipment  used to produce  transit  and outdoor  advertising  display
content which is currently producing at capacity.  This additional capacity will
allow us to produce,  for our  customers,  a  significant  amount of product now
being  subcontracted to outside vendors.  The purchase will be financed from our
working capital line of credit.

Comparison  of the  Three  Months  Ended  February  28 and 29,  2001  and  2000,
respectively

         Gross revenues  increased $3.4 million,  or 36.2%, to $12.7 million for
the three  months ended  February 28, 2001 from $9.3 million for the  comparable
period in fiscal 2000.  Transit  revenues  increased $3.1 million,  or 39.4%, to
$10.9 million for the three months ended February 28, 2001 from $7.8 million for
the first  quarter  of fiscal  2000.  This  increase  was due to volume and rate
increases  in our  existing  markets,  as well as revenues  associated  with new
transit operations in Chicago.  Outdoor advertising revenues increased $285,000,
or 19.2%, to $1.8 million for the first quarter of fiscal 2001 from $1.5 million
for the  comparable  period in fiscal  2000,  primarily  as a result of revenues
associated  with our  acquisition of outdoor  advertising  displays in the third
quarter of fiscal  2000.  Agency  commissions  paid to third  parties  increased
$193,000, or 25.2%, to $1.0 million for the three months ended February 28, 2001
from  $767,000 for the first  quarter of fiscal 2000,  primarily due to revenues
associated with new transit operations in Chicago. As a result of the foregoing,
net revenues  increased $3.2 million,  or 37.2%,  to $11.7 million for the first
quarter of 2001 from $8.5 million for the comparable period in fiscal 2000.

         Direct advertising  expenses increased $3.5 million,  or 54.1%, to $9.9
million for the three months  ended  February 28, 2001 from $6.5 million for the
comparable period in fiscal 2000. Direct advertising  expenses  increased,  as a
percentage of gross revenues, to 78.4% for the first quarter of fiscal 2001 from
69.3% for the same period in fiscal 2000.  This  increase  was due  primarily to
increased  transit  occupancy  costs in 2001 versus 2000,  as a result of higher
revenue sharing rates on certain new and renewed contracts.

         General and administrative  expenses increased  $480,000,  or 30.4%, to
$2.1 million for the three months ended  February 28, 2001 from $1.6 million for
the  comparable  period in fiscal 2000.  The increase  resulted  primarily  from
increases in personnel and related costs  associated with managing the growth of
our  transit  business,   plus  additional   accounting  and  credit  management
resources.  General  and  administrative  expenses,  as a  percentage  of  gross
revenues,  decreased  to 16.2% for the first  quarter of 2001 from 16.9% for the
same period in fiscal 2000.

         Start-up  costs  increased  to  $297,000  for the  three  months  ended
February  28,  2001 from  $31,000  for the  comparable  period  in fiscal  2000.
Start-up costs include expenses incurred in new markets before we begin its sale
operations,  as well  as  costs  incurred  in  obtaining  new  transit  district
contracts.  The increase in the first quarter of 2001


                                       7
<PAGE>
was due primarily to costs  related to the start up of the Chicago,  San Antonio
and Tampa transit markets as well as expanded national sales support.

         Depreciation and amortization  expenses increased $71,000, or 16.9%, to
$492,000  for the three months  ended  February  28, 2001 from  $421,000 for the
comparable  period in fiscal 2000. This increase was primarily due to the impact
of capital  expenditures for outdoor advertising  displays incurred in first and
third quarter of 2000, as well as our investment in equipment in new markets and
our upgrading of computer capabilities in our existing markets.

         As a result of the  above  factors,  operating  income  decreased  $1.1
million to a loss of $1.1 million for the three months ended  February 28, 2001,
compared to operating  income of $64,000 for the three months ended February 29,
2000.  As mentioned  above,  increased  start up and general and  administrative
costs,  business  seasonality  and increased  transit  occupancy  costs were the
primary reasons for the decrease.  These results were in line with  management's
expectations.

         Interest expense  increased  $68,000 or 31.4% to $283,000 for the three
months  ended  February  28, 2001 as compared to $215,000 for the same period in
2000.

         Benefit from income taxes increased  $490,000 to $549,000 for the three
months  ended  February 28, 2001,  from a $59,000 for the  comparable  period in
fiscal 2000. The Company's effective tax rate was 40.7% for the first quarter of
2001 as  compared to 39.0% for the  comparable  period in 2000.  The  difference
between the statutory  United States  federal  income tax rate and the effective
tax rates is primarily the result of the aggregate effect of foreign,  state and
local taxes.

         As a result of the foregoing factors,  the Company's net loss increased
$708,000 to $800,000 for the three  months ended  February 28, 2001 from $93,000
for the same period in fiscal  2000.  This result was in line with  management's
expectations.


Liquidity and Capital Resources

         We have  historically  satisfied our working capital  requirements with
cash from  operations and revolving  credit  borrowings.  Our working capital at
February  28, 2001 and November  30, 2000 was $10.0  million and $10.5  million,
respectively.  At February 28, 2001,  Obie Media had  outstanding  borrowings of
$14.3  million,  of  which  $13.2  million  was  pursuant  to  long-term  credit
agreements,  $400,000 was pursuant to our operating line of credit, and $689,000
was  related  to other  indebtedness.  Our  indebtedness  is  collateralized  by
substantially  all of our  assets.  See  Note  2 to our  condensed  consolidated
financial  statements.  At February 28, 2001, available borrowing capacity under
the line of credit, based on collateralized accounts, was $5.6 million.

         Obie Media's net cash used in operating  activities was $498,000 during
the  three  months  ended  February  28,  2001 as  compared  to net cash used in
operating activities of $9,000 for the same period in fiscal 2000.

         Net cash used in  investing  activities  was  $291,000 and $2.9 million
during  the  three  months  ended  February  28,  2001 and  February  29,  2000,
respectively.  The difference in these expenditures  during the comparable three
month periods was principally  related to the acquisition of  approximately  200
outdoor  advertising  displays for approximately  $2.5 million which occurred in
the  first  quarter  of  fiscal  2000.  We have a  $400,000  commitment  for the
acquisition of digital production  equipment (see Recent Developments above) and
a $175,000 commitment for the acquisition of outdoor advertising displays during
the second quarter of 2001.  There are no other material future  commitments for
capital  expenditures,  and we anticipate that additional capital  expenditures,
excluding those related to any future  acquisitions,  may be up to an additional
$900,000 during the remainder of fiscal 2001.

         Net cash provided by financing activities was $386,000 and $2.9 million
during  the  three  months  ended  February  28,  2001 and  February  29,  2000,
respectively.  The  difference is primarily  the result of increased  borrowings
used to finance our acquisition of outdoor advertising displays in first quarter
of fiscal 2000.

         We plan to pursue  continued  growth by seeking  new  transit  district
agreements,   acquiring   out-of-home   advertising  companies  or  assets,  and
constructing new outdoor advertising  displays.  We intend to finance our future
expansion  activities using a combination of internal and external  sources.  We
believe that internally  generated funds and funds available for borrowing under
our bank  credit  facilities  will be  sufficient  to satisfy  all debt  service
obligations  and to


                                       8
<PAGE>
finance our existing operations, including anticipated capital expenditures, but
excluding  possible  acquisitions,  through fiscal 2001. Future  acquisitions by
Obie Media, if any, may require additional debt or equity financing.

Seasonality

         Obie  Media's  revenues  and  operating   results   historically   have
fluctuated by season,  generally  following the advertising  trends in our major
transit  markets.  Typically,  our results of  operations  are  strongest in the
fourth  quarter and weakest in the first quarter of our fiscal year. Our transit
advertising operations are more seasonal than our outdoor advertising operations
as our outdoor advertising display space, unlike our transit advertising display
space, is and has been sold nearly  exclusively by means of 12-month  contracts.
We believe  that the  seasonality  of our revenues  and  operating  results will
increase as our transit  advertising  operations continue to expand more rapidly
than  our  outdoor  advertising  operations.  This  seasonality,  together  with
fluctuations  in general and  regional  economic  conditions  and the timing and
expenses  related to acquisitions,  the obtaining of new transit  agreements and
other actions we have taken to implement our growth  strategy,  have contributed
to fluctuations in our periodic  operating results.  These  fluctuations  likely
will continue.  Accordingly,  our results of operations in any period may not be
indicative of the results that may be expected for any future period.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

         We have not entered into derivative  financial  instruments.  We may be
exposed to future interest rate changes on our debt. The effective interest rate
on the term loan and working  capital  revolvers  at February 28, 2001 was 7.28%
and 8.5%,  respectively.  We do not believe  that a  hypothetical  10% change in
interest rates would have a material effect on our cash flows.


PART II - OTHER INFORMATION


Item 4. Submission of Matters to Vote of Security Holders

No matters were  submitted to security  holders for vote during the three months
ending February 28, 2001.

Item 6. Exhibits and Reports on Form 8-K

No Forms 8-K were filed by the company  during the three months  ended  February
28, 2001.




Signature

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.


                                Obie Media Corporation



 Date April 13, 2001            By: /s/ Gary F. Livesay *
                                        Gary F. Livesay
                                        Vice President - Chief Financial Officer

                                    * Signing on behalf of the registrant as
                                      principal financial and accounting officer







                                       9