<PAGE>

                                   FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, DC  20549


(Mark One)

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


     For the quarterly period ended                March 31, 2000
                                    ------------------------------------------


                                       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                      0-13716
                      ----------------------------------------------------------

                        NORTH PITTSBURGH SYSTEMS, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


        Pennsylvania                                  25-1485389
--------------------------------         ------------------------------------
(State or other jurisdiction of          (I.R.S. Employer Identification No.)
 incorporation or organization)

              4008 Gibsonia Road, Gibsonia, Pennsylvania 15044-9311
-------------------------------------------------------------------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                               724-443-9600
-------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                No Change
-------------------------------------------------------------------------------
   (Former name, former address and former 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 preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days.

                              YES  X    NO_____
                                  ----

                      APPLICABLE ONLY TO CORPORATE USERS:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

                            Common Stock Outstanding
                            ------------------------

At April 20, 2000, the Registrant had 15,005,000 shares of common stock
outstanding, par value $.15625 per share, the only class of such stock issued.
<PAGE>

                                     PART I
                                     ITEM 1
                              FINANCIAL STATEMENTS
                NORTH PITTSBURGH SYSTEMS, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
                     (Thousands - Except Per Share Amounts)

<TABLE>
<CAPTION>


                                                           For the Three Months
                                                              Ended March 31
                                                           --------------------
                                                              2000       1999
                                                           --------    --------
<S>                                                        <C>        <C>
Operating revenues:
  Local network services                                    $ 3,613   $ 3,332
  Long distance and access services                          12,896    11,886
  Directory advertising, billing & other services               667       695
  Telecommunication equipment sales                             601       608
  Other operating revenues                                    1,275     1,156
                                                            -------   -------

     Total Operating Revenues                                19,052    17,677


Operating expenses:
  Network and other operating expenses                        9,393     7,130
  Depreciation and amortization                               3,878     3,218
  State and local taxes                                         931       801
  Telecommunication equipment expenses                          556       607
                                                            -------   -------

     Total Operating Expenses                                14,758    11,756
                                                            -------   -------

   Net Operating Revenues                                     4,294     5,921


Other expense (income), net:
  Interest expense                                              639       510
  Interest income                                              (283)     (267)
  Sundry expense (income), net                                 (247)      (17)
                                                            -------   -------

                                                                109       226
                                                            -------   -------

     Earnings before income taxes                             4,185     5,695

Income taxes                                                  1,749     2,279
                                                            -------   -------

     Net earnings                                           $ 2,436   $ 3,416
                                                            =======   =======


Weighted average common shares outstanding                   15,005    15,005
                                                            =======   =======

Basic and diluted earnings per share of
  common stock                                                 $.16      $.23
                                                            =======   =======

Dividends per share of common stock                            $.16      $.16
                                                            =======   =======

</TABLE>

     See accompanying notes to condensed consolidated financial statements.
<PAGE>

                NORTH PITTSBURGH SYSTEMS, INC. AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEETS
                             (Thousands of Dollars)
<TABLE>
<CAPTION>
                                                                (Unaudited)
                                                                  Mar. 31     Dec. 31
              ASSETS                                               2000       1999
              ------                                             --------   --------
<S>                                                              <C>        <C>
Current Assets:
  Cash and temporary investments                                 $  9,437   $ 12,480
  Marketable securities available for sale                         17,635     17,022

  Accounts receivable:
   Customers, net of allowance for doubtful accounts of
     $327 and $356, respectively                                    4,821      4,975
   Access service settlements and other                             7,691      7,842
  Prepaid expenses                                                    445        614
  Inventories of construction and operating materials and
   supplies                                                         5,181      4,754
  Prepaid taxes                                                       872          -
  Deferred income tax                                                   -        199
                                                                 --------   --------

     Total current assets                                          46,082     47,886
                                                                 --------   --------

  Property, plant and equipment:
   Land                                                               475        475
   Buildings                                                       11,854     11,622
   Equipment                                                      161,286    154,061
                                                                 --------   --------

                                                                  173,615    166,158
  Less accumulated depreciation and amortization                   90,388     86,688
                                                                 --------   --------

                                                                   83,277     79,470
  Construction in progress                                         10,527      8,279
                                                                 --------   --------
     Total property, plant and equipment, net                      93,754     87,749

Investments                                                         9,720      9,615
Deferred financing costs                                              742        764
Prepaid pension cost                                                  116        465
Other assets                                                        1,323      1,313
                                                                 --------   --------

                                                                 $151,737   $147,792
                                                                 ========   ========

     LIABILITIES AND SHAREHOLDERS' EQUITY
     ------------------------------------

Current liabilities:
  Current portion of long-term debt                              $  2,825   $  2,629
  Accounts payable                                                  7,692      7,086
  Dividend payable                                                  2,401      2,401
  Other accrued liabilities                                         2,787      2,724
  Federal and state income taxes                                    1,127        305
                                                                 --------   --------

     Total current liabilities                                     16,832     15,145
                                                                 --------   --------

Long-term debt                                                     40,413     38,940

Deferred income taxes                                               9,641      9,526
Accrued postretirement benefits                                     5,464      5,122
Other liabilities                                                   1,831      1,812

Shareholders' equity:
  Capital stock/Common stock                                        2,350      2,350
  Capital in excess of par value                                    2,215      2,215
  Retained earnings                                                72,382     72,347
  Less cost of treasury stock (2000 and 1999-35,000 shares)          (508)      (508)
  Accumulated other comprehensive income-unrealized gain
   on available for sale securities, net                            1,117        843
                                                                 --------   --------

     Total shareholders' equity                                    77,556     77,247
                                                                 --------   --------

                                                                 $151,737   $147,792
                                                                 ========   ========
</TABLE>
     See accompanying notes to condensed consolidated financial statements.

                                       2
<PAGE>

                NORTH PITTSBURGH SYSTEMS, INC. AND SUBSIDIARIES

               CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                             (Thousands of Dollars)
<TABLE>
<CAPTION>


                                                                        For the Three Months
                                                                           Ended Mar. 31
                                                                        --------------------
                                                                           2000       1999
                                                                        ---------   --------
<S>                                                                     <C>         <C>
Cash from operating activities:
  Net earnings                                                            $ 2,436   $ 3,416
  Adjustments to reconcile net earnings to net cash from
   operating activities:

     Depreciation and amortization                                          3,878     3,218
     Gain on sale of marketable securities                                    (24)      (12)
     Equity (income) losses of affiliated companies                          (205)     (149)
     Changes in assets and liabilities:
      Accounts receivable                                                     305       186
      Inventories of construction and operating materials
       and supplies                                                          (427)       99
      Deferred financing costs, prepaid pension cost
       and other assets                                                       361      (180)
      Prepaid taxes                                                          (872)     (862)
      Accounts payable                                                        606      (560)
      Other accrued liabilities                                                82      (424)
      Accrued postretirement benefits                                         342        38
      Federal and state income taxes                                          942     1,806
      Other, net                                                              167       185
                                                                          -------   -------
          Total adjustments                                                 5,155     3,345
                                                                          -------   -------

          Net cash from operating activities                                7,591     6,761
                                                                          -------   -------

Cash used for investing activities:
  Expenditures for property and equipment                                  (9,890)   (7,766)
  Net salvage on retirements                                                    9      (102)
                                                                          -------   -------

          Net capital additions                                            (9,881)   (7,868)
                                                                          -------   -------

  Purchase of marketable securities available for sale                     (2,845)   (2,514)
  Proceeds from sale of marketable securities available for sale            2,724     1,984
  Distributions from affiliated entities                                      100         -
                                                                          -------   -------

          Net cash used for investing activities                           (9,902)   (8,398)
                                                                          -------   -------

Cash used for financing activities:
  Cash dividends                                                           (2,401)   (2,251)
  Retirement of debt                                                         (654)     (462)
  Proceeds from issuance of new debt                                        2,323         -
                                                                          -------   -------

          Net cash used for financing activities                             (732)   (2,713)
                                                                          -------   -------

Net (decrease) increase in cash and temporary investments                  (3,043)   (4,350)

Cash and temporary investments at beginning of period                      12,480    16,786
                                                                          -------   -------

Cash and temporary investments at end of period                           $ 9,437   $12,436
                                                                          =======   =======

Interest paid                                                             $   618   $   488
                                                                          =======   =======

Income taxes paid                                                         $   614   $   342
                                                                          =======   =======

</TABLE>


     See accompanying notes to condensed consolidated financial statements.

                                       3
<PAGE>

                NORTH PITTSBURGH SYSTEMS, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(1)  GENERAL
     -------

     The condensed consolidated financial statements included herein have been
     prepared by the Registrant, without audit, pursuant to the rules and
     regulations of the Securities and Exchange Commission.  Consolidated herein
     are the financial results of the Registrant's wholly-owned subsidiaries,
     North Pittsburgh Telephone Company (North Pittsburgh), Penn Telecom, Inc.
     (Penn Telecom) and Pinnatech, Inc. (Pinnatech).  Certain information and
     footnote disclosures normally included in financial statements prepared in
     accordance with generally accepted accounting principles have been
     condensed or omitted pursuant to such rules and regulations.  Nevertheless,
     the Registrant believes that its disclosures herein are adequate to make
     the information presented not misleading and, in the opinion of management,
     all adjustments (which consisted only of normal recurring accruals)
     necessary to present fairly the results of operations for the interim
     periods have been reflected.  These condensed consolidated financial
     statements should be read in conjunction with the financial statements and
     the notes thereto included in the Registrant's latest annual report to the
     Securities and Exchange Commission on Form 10-K.

(2)  COMPREHENSIVE INCOME
     --------------------

     Statement of Financial Accounting Standards No. 130, "Reporting
     Comprehensive Income" (SFAS 130) establishes requirements for disclosure of
     comprehensive income.  The objective of SFAS 130 is to report all changes
     in equity that result from transactions and economic events other than
     transactions with owners.  Comprehensive income is the total of net income
     and all other non-owner changes in equity.  The reconciliation of net
     income to comprehensive income (loss) is as follows (in thousands):


                                  For the Three Months
                                     Ended Mar. 31
                                  --------------------
                                       2000    1999
                                       ----    ----
        Net income                   $2,436  $3,416
        Unrealized gain (loss) on
           marketable securities        274     189
                                     ------  ------

        Comprehensive income         $2,710  $3,605
                                     ======  ======



                                    PART I

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

The statements contained in this "Management's Discussion and Analysis of
Pinancial Condition and Results of Operations" which are not historical are
"forward looking statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. These forward looking statements represent
the Registrant's present expectations or beliefs concerning future events. The
Registrant cautions that such statements are qualified by important factors that
could cause actual results to differ materially from those in the forward
looking statements. Thus, results actually achieved may differ materially from
expected results included in these statements.

1.   Financial Condition
     -------------------

     (a)  General
          -------

     There were no material changes in the Registrant's consolidated general
     financial condition from the end of its preceding fiscal year on December
     31, 1999 to March 31, 2000, the end of the three-month period reported
     herein.

     (b) Liquidity and Capital Resources
         -------------------------------

     Consolidated capital expenditure commitments for the purchase and
     installation of communications and other equipment at March 31, 2000
     amounted to approximately $6,910,000, with such amount being part of the
     2000 construction program, which is expected to be in excess of $27
     million.  Funds for financing construction expenditures in the three-month
     period ended March 31, 2000 were generated from internal sources and debt
     financing.

                                       4
<PAGE>

     Based on its 2000 construction budget and projected cash flows, the
     Registrant anticipates cash flows provided by operating activities and cash
     reserves in 2000 to be sufficient to service long-term debt, to pay
     dividends and to finance approximately 25% to 50% of capital additions. The
     balance of capital additions will be financed from debt financing available
     from the Rural Utilities Service. At March 31, 2000, construction work in
     progress was $10,527,000.

     The Registrant and its subsidiaries have not experienced any difficulty in
     the past meeting either long-term or short-term cash commitments.  Cash
     flow generated through regular operations has been adequate to not only
     finance a significant portion of the capital requirements of the Registrant
     as discussed above but also to meet principal and interest payments on
     long-term debt and all working capital requirements.  It is anticipated
     that future long-term interest and principal payments will be made from the
     same source of internally generated funds.

     (c)  Regulatory/Competition
          ----------------------

     North Pittsburgh is currently under rate-of-return regulation within the
     intrastate jurisdiction.  However, in July of 1998, North Pittsburgh joined
     with 18 other companies and filed for an alternative form of regulation to
     replace traditional rate base/rate-of-return regulation.  In the filing,
     North Pittsburgh proposed a price cap plan whereby rates for noncompetitive
     services are allowed to be increased based on an index that measures
     general economy wide price increases. Under the proposed plan, services may
     also be declared competitive and thereby freed from all rate regulation. In
     return for regulation under the price cap plan, North Pittsburgh has also
     proposed a network modernization plan. The Pennsylvania Public Utility
     Commission (PA PUC) entered an Order on January 20, 2000 modifying North
     Pittsburgh's plan for alternative regulation. On February 4, 2000, North
     Pittsburgh filed a Petition for Reconsideration seeking clarification
     and/or modification of the PA PUC's original Order. The PA PUC responded to
     the Petition for Reconsideration with an Order entered on March 30, 2000 in
     which it granted, in part, and denied, in part, portions of North
     Pittsburgh's Petition. North Pittsburgh has accepted the modified Chapter
     30 plan and will begin implementation upon final order of the PA PUC which
     is expected sometime during the third quarter of 2000.

     On September 30, 1999, the PA PUC issued an Order dealing with a variety of
     issues impacting Local Exchange Carriers in Pennsylvania.  Referred to as
     the Global Proceeding, the Order dealt with certain issues that affect
     North Pittsburgh.  Specifically, the Order allows North Pittsburgh to
     rebalance and lower access charges in order to prepare North Pittsburgh to
     meet competition when it is introduced in the North Pittsburgh serving
     area.  The reduction in access charges is to be offset by reimbursements
     from an interim state universal service fund that is funded by all
     telecommunication providers (excluding wireless) in the state.  While a
     number of parties, including North Pittsburgh, have filed court appeals
     regarding other issues in the same Order, the rebalancing and lowering of
     access charges and the implementation of universal service funding is
     expected to move forward and should be implemented before the end of the
     second quarter of 2000.  Because the rebalancing and reduction of access
     charges is offset by reimbursement from the fund, North Pittsburgh does not
     expect any significant impact on operations or revenues in regard to the
     Global Order regardless of the outcome of the pending court appeals.

     The Federal Communications Commission (FCC) continues to work on
     Rulemakings that will further spell out the specifics of the
     Telecommunications Act of 1996 (the 1996 Act).  The PA PUC must then
     finalize its course of action to fully implement the 1996 Act, or to the
     extent possible and permissible, change the manner in which such
     regulations are implemented in Pennsylvania before the impact on North
     Pittsburgh, a Rural Telephone Company under the 1996 Act, can be fully
     understood and measured.  However, the clear intent of the 1996 Act is to
     open up the local exchange market to competition.  The 1996 Act appears to
     mandate, among other items, that North Pittsburgh, at some point in time,
     permit the resale of its services at wholesale rates, provide number
     portability, if feasible, provide dialing parity, provide interconnection
     to any requesting carrier for the transmission and routing of telephone
     exchange service and exchange access and provide access to network
     elements. North Pittsburgh along with 17 other rural companies in
     Pennsylvania was granted a temporary suspension of the interconnection
     requirements in the 1996 Act that expires on July 10, 2000.  North
     Pittsburgh recently filed a petition seeking further extension of the
     suspension until July

                                       5
<PAGE>

     10, 2001. A decision by the PA PUC on the suspension extension is expected
     during the second or third quarter of 2000.

     The 1996 Act, FCC and PA PUC regulatory proceedings and the thrust towards
     a fully competitive marketplace have created some uncertainty in respect to
     the levels of North Pittsburgh's revenue growth in the future.  However,
     its unique location in a growing commercial/residential suburban traffic
     corridor to the north of the City of Pittsburgh, its state-of-the-art
     switching transmission and transport facilities and its extensive fiber
     network place North Pittsburgh in a solid position to meet competition and
     minimize any loss of revenues.  In addition, North Pittsburgh continues to
     make its network flexible and responsive to the needs of its customers to
     meet competitive threats.  New services, access line growth and anticipated
     usage growth are expected to lessen or offset any reductions in North
     Pittsburgh's revenue sources.


2.   Results of Operations
     ---------------------

     Total operating revenues increased $1,375,000 (7.5%) in the three-month
     period ended March 31, 2000 over the comparable period in 1999.  This
     change was due to an increase in local network services of $281,000 (8.4%),
     and an increase in long distance and access services of $1,010,000 (3.5%).
     Increased local network service revenues were attributable to customer
     growth, growth in second lines and expanded penetration of enhanced
     services. Higher long distance and access services revenues were generally
     the result of an increase in the number of customers and minutes of use.

     Total operating expenses for the three-month period ended March 31, 2000
     increased $3,002,000 (25.5%) over the preceding year.  That change was
     principally the result of an increase in network and other operating
     expenses of $2,263,000 (31.7%), and an increase in depreciation and
     amortization of $660,000 (20.5%).  The increase in network and other
     operating expenses consisted of an increase in personnel costs due to an
     expansion of existing business and an increase in personnel and other
     expenses due to start-up activities of Competitive Local Exchange Carrier
     and Internet-related services.  The increase in depreciation and
     amortization was the direct result of the growth in fixed assets to serve
     current and future customer needs.  The increase in total operating
     revenues discussed above coupled with the increase in total operating
     expenses resulted in net operating revenues being $1,627,000 (27.5%)
     lower for the first quarter of 2000 compared to the first quarter of 1999.

     Interest expense increased $129,000 (25.3%) due to an increased level of
     debt financing in 2000.  The decrease in net operating revenues for the
     three-month period ended March 31, 2000, in conjunction with the increase
     in Sundry income, net, resulted in a decrease of $1,510,000 (26.5%) in
     earnings before income taxes.

3.   New Accounting Pronouncements
     -----------------------------

     In June, 1998, the Financial Accounting Standards Board issued SFAS No.
     133, "Accounting for Derivative Instruments and Hedging Activities".  The
     pronouncement is effective for the Registrant's year beginning January 1,
     2001.  The Registrant does not expect this pronouncement will have a
     significant impact on the consolidated financial statements.



                                     PART I

                                     ITEM 3

                    QUANTITATIVE AND QUALITATIVE DISCLOSURES

                               ABOUT MARKET RISK



1.   There have been no material changes in reported market risks faced by the
     Registrant since December 31, 1999.

                                       6
<PAGE>

                                   SIGNATURES



     Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                    NORTH PITTSBURGH SYSTEMS, INC.
                                    ------------------------------
                                    (Registrant)



Date     May 1, 2000                   /s/  N. W. Barthlow
    ____________________            __________________________________________
                                    N. W. Barthlow, Vice President & Secretary



Date     May 1, 2000                  /s/  A. P. Kimble
    ____________________            __________________________________________
                                    A. P. Kimble, Vice President & Treasurer

                                       7
<PAGE>

                                    PART II

                               OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K
         --------------------------------

         (a) Exhibits - Exhibit Index for Quarterly Reports on Form 10-Q.
             --------
<TABLE>
<CAPTION>

Exhibit
Number                       Subject                           Applicability
-------                      -------                           -------------
<S>          <C>                                      <C>

 (2)         Plan of acquisition, reorganization,     Not Applicable
             arrangement, liquidation or
             succession

 (3) (i)     Articles of Incorporation                Provided in Quarterly Report
                                                      on Form 10-Q for the quarter
                                                      ended June 30, 1996 and
                                                      Incorporated Herein by
                                                      Reference.

 (3) (ii)    By-Laws                                  Provided in Annual Report
                                                      on Form 10-K for the year
                                                      ended December 31, 1998
                                                      and Incorporated Herein by
                                                      Reference.

 (4)         Instruments defining the rights of       Provided in Registration of
             security holders including indentures    Securities of Certain
                                                      Successor Issuers on Form
                                                      8-B filed on June 25, 1985
                                                      and Incorporated Herein by
                                                      Reference.

 (10)        Material Contracts                       Provided in Quarterly Report on
                                                      Form 10-Q for the quarter ended
                                                      September 30, 1999 and
                                                      Incorporated Herein by
                                                      Reference.

 (11)        Statement of computation of earnings     Attached Hereto
             per share

 (15)        Letter re unaudited interim financial    Not Applicable
             information

 (18)        Letter re change in accounting           Not Applicable
             principles

 (19)        Report furnished to security holders     Not Applicable

 (22)        Published report regarding matters       Not Applicable
             submitted to a vote of security holders

 (23)        Consents of experts and counsel          Not Applicable

 (24)        Power of attorney                        Not Applicable

 (27)        Financial Data Schedule                  Attached Hereto

 (99)        Additional exhibits                      Not Applicable

</TABLE>
      (b) Reports on Form 8-K - No reports on Form 8-K were filed during the
          -------------------
          quarter ended March 31, 2000.

                                       8