<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                    FORM 10-Q

(Mark One)

  [X]         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
              EXCHANGE ACT OF 1934
              For the quarterly period ended September 30, 2001

                                       OR

  [   ]       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
              SECURITIES EXCHANGE ACT OF 1934
              For the transition period from __________ to ___________.

                         Commission file Number: 0-26126


                            SEROLOGICALS CORPORATION
             (Exact Name of Registrant as Specified in its Charter)

                  Delaware                             58-2142225
      (State or other jurisdiction of               (I.R.S. Employer
        incorporation or organization)           Identification Number)

             5655 Spalding Drive
              Norcross, Georgia                          30092
            (Address of principal                      (Zip Code)
               executive offices)

                                 (678) 728-2000
               (Registrant's Telephone Number Including Area Code)


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  [ ]

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

               Class                      Outstanding at November 9, 2001
               -----                      -------------------------------
Common Stock, $.01 par value per share               24,102,325

<PAGE>
                                      INDEX

                    SEROLOGICALS CORPORATION AND SUBSIDIARIES

<TABLE>
<S>                                                                                                 <C>
PART I.

Item 1.  Financial Statements (Unaudited)

   Consolidated Balance Sheets -

        September 30, 2001 and December 31, 2000.................................................   3

   Consolidated Statements of Income -
        For the three and nine months ended September 30, 2001
         and September 24, 2000..................................................................   4

   Consolidated Statements of Cash Flows -
        For the nine months ended September 30, 2001 and September 24, 2000......................   5

   Notes to Consolidated Financial Statements....................................................6-12

Item 2.  Management's Discussion and Analysis of Financial
             Condition and Results of Operations................................................13-20

Item 3.  Quantitative and Qualitative Disclosure about Market Risk...............................  21


PART II.

Item 1.  Legal Proceedings. .....................................................................  21
Item 6.  Exhibits and Reports on Form 8-K........................................................  21

SIGNATURES.......................................................................................  22
</TABLE>


                                        2
<PAGE>

PART I.

ITEM 1.  FINANCIAL STATEMENTS

                    SEROLOGICALS CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                 (IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                         SEPTEMBER 30,        DECEMBER 31,
                                                             2001                2000
                                                         ------------        -------------
<S>                                                       <C>                 <C>

                                             ASSETS
CURRENT ASSETS:
  Cash and cash equivalents .......................        $  48,744         $  22,492
  Trade accounts receivable, net ..................           15,596            13,127
  Inventories .....................................           19,993            21,186
  Income tax receivable ...........................            4,220             3,937
  Other current assets ............................            4,659             7,172
                                                           ---------         ---------
  Total current assets ............................           93,212            67,914
                                                           ---------         ---------
PROPERTY AND EQUIPMENT, net .......................           33,111            32,952
                                                           ---------         ---------
OTHER ASSETS:
  Goodwill, net ...................................           27,572            28,628
  Other, net ......................................            1,441             2,001
                                                           ---------         ---------
  Total other assets ..............................           29,013            30,629
                                                           ---------         ---------
                                                           $ 155,336         $ 131,495
                                                           =========         =========

            LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Current maturities of capital lease obligations          $      --         $      13
  Accounts payable ................................            2,107             3,280
  Accrued liabilities .............................            6,491             7,798
  Deferred revenue ................................              199                33
                                                           ---------         ---------
  Total current liabilities .......................            8,797            11,124
                                                           ---------         ---------
DEFERRED INCOME TAXES .............................            1,127             1,336
                                                           ---------         ---------
OTHER LIABILITIES .................................              328               328
                                                           ---------         ---------
STOCKHOLDERS' EQUITY:
  Common stock ....................................              273               261
  Additional paid-in capital ......................          111,783            97,420
  Retained earnings ...............................           53,402            41,170
  Accumulated other comprehensive loss ............             (374)             (144)
  Less: treasury stock, at cost ...................          (20,000)          (20,000)
                                                           ---------         ---------
  Total stockholders' equity ......................          145,084           118,707
                                                           ---------         ---------
                                                           $ 155,336         $ 131,495
                                                           =========         =========
</TABLE>


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


                                        3
<PAGE>


                    SEROLOGICALS CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                             THREE MONTHS ENDED             NINE MONTHS ENDED
                                        -----------------------------   ----------------------------
                                          SEPT. 30,         SEPT. 24,      SEPT. 30,      SEPT. 24,
                                            2001              2000           2001           2000
                                        ------------    ------------    ------------    ------------
<S>                                     <C>             <C>             <C>             <C>
Net sales ...........................   $     25,876    $     38,708    $     79,515    $    116,941
Costs and expenses:
  Cost of sales .....................         14,334          26,694          41,864          83,015
  Selling, general and administrative
   expenses..........................          6,446           5,796          17,914          16,675
  Interest (income) expense, net ....           (296)            390          (1,008)          1,276
  Other expense, net ................            467             475           1,050           2,021
  Special charges (credits), net ....            200            (550)            363           1,212
                                        ------------    ------------    ------------    ------------
Income before income taxes ..........          4,725           5,903          19,332          12,742
Provision for income taxes ..........          1,701           2,125           7,101           4,587
                                        ------------    ------------    ------------    ------------
Net income ..........................   $      3,024    $      3,778    $     12,231    $      8,155
                                        ============    ============    ============    ============

Net income per common share:
    Basic ...........................   $       0.13    $       0.17    $       0.52    $       0.36
                                        ============    ============    ============    ============
    Diluted .........................   $       0.12    $       0.16    $       0.50    $       0.35
                                        ============    ============    ============    ============

Weighted average shares:
    Basic ...........................     23,967,446      22,661,338      23,628,005      22,857,943
                                        ============    ============    ============    ============
    Diluted .........................     24,633,354      23,003,558      24,338,792      23,248,405
                                        ============    ============    ============    ============
</TABLE>


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


                                        4
<PAGE>
                    SEROLOGICALS CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                           NINE MONTHS ENDED
                                                                          ---------------------
                                                                          SEPT. 30,   SEPT. 24,
                                                                             2001       2000
                                                                          --------    --------
<S>                                                                       <C>         <C>
OPERATING ACTIVITIES:
  Net income ..........................................................   $ 12,231    $  8,155

  Adjustments to reconcile net income to net cash provided by operating
     activities:
      Depreciation and amortization ...................................      4,492       5,678
      Loss on disposal of assets ......................................         39        --
      Tax benefit from exercise of stock options ......................      3,201       2,342
      Non-cash special credits ........................................       (762)     (1,572)

  Changes in operating assets and liabilities:
     Trade accounts receivable ........................................     (2,469)      9,145
     Inventories ......................................................      1,193       6,797
     Income tax receivable ............................................       (283)      3,087
     Other current assets .............................................      2,513      (2,284)
     Accounts payable .................................................     (1,173)     (1,981)
     Accrued liabilities ..............................................       (546)     (2,510)
     Deferred revenue .................................................        166      (1,350)
     Other, net .......................................................        129      (1,168)
                                                                          --------    --------

      Total adjustments ...............................................      6,500      16,184
                                                                          --------    --------

         Net cash provided by operating activities ....................     18,731      24,339
                                                                          --------    --------

INVESTING ACTIVITIES:
  Purchases of property and equipment .................................     (3,612)     (7,245)
  Purchases of business, net of cash acquired .........................       --        (3,460)
  Disposition of business, net of cash expenses paid ..................       --        20,156
                                                                          --------    --------

         Net cash (used in) provided by investing activities ..........     (3,612)      9,451
                                                                          --------    --------


FINANCING ACTIVITIES:
  Net repayments on revolving line of credit ..........................       --       (30,000)
  Payments on long-term debt and capital lease obligations ............        (13)     (2,545)
  Repurchases of common stock .........................................        --        (2,977)
  Proceeds from employee stock plans ..................................     11,146       2,214
                                                                          --------    --------

         Net cash provided by (used in) financing activities ..........     11,133     (33,308)
                                                                          --------    --------

Net increase in cash and cash equivalents .............................     26,252         482
Cash and cash equivalents, beginning of period ........................     22,492       3,294
                                                                          --------    --------
Cash and cash equivalents, end of period ..............................   $ 48,744    $  3,776
                                                                          ========    ========

SUPPLEMENTAL DISCLOSURES:
Interest Paid .........................................................   $    194    $  1,628
                                                                          --------    --------
Taxes Paid ............................................................   $  5,384    $    758
                                                                          --------    --------
</TABLE>


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


                                        5
<PAGE>
                    SEROLOGICALS CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001
                                   (UNAUDITED)


FORWARD LOOKING STATEMENTS

         This Quarterly Report on Form 10-Q contains certain "forward looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, which generally can be identified by the use of forward looking
terminology such as "may," "will," "expect," "anticipate," "intend," "estimate,"
"plan," "believe," or "continue" or the negative thereof or other variations
thereon or similar terminology. These forward-looking statements include,
without limitation, the demand for Bovine Serum Albumin ("BSA"); the impact on
the business from the unpredictability of customer ordering patterns within the
Therapeutic Products segment; the level of and timing of capital expenditures
during 2001; the timing, financing and impact of the acquisition of Intergen
Company during the fourth quarter of 2001; and the sufficiency of capital and
liquidity to fund operations, capital expenditures, and acquisitions. These
forward looking statements are subject to certain risks and uncertainties, such
as changes in the economy or market conditions, changes in financial, banking
and capital markets, changes in customers' needs or abilities to manufacture
products, changes in government policy or regulations, the ability to attract
and retain qualified donors, and other factors discussed in Part I of the
Company's Annual Report on Form 10-K for the year ended December 31, 2000, which
could cause actual results to differ materially.


1.       ORGANIZATION AND BASIS OF PRESENTATION

         Organization

         Serologicals Corporation (together with its subsidiaries, the "Company"
or "Serologicals") is a worldwide provider of biological products to life
science companies. The Company's products are used in the further development of
diagnostic, vaccine and therapeutic products. The Company provides value-added
antibody based products that are used as the active ingredients in therapeutic
products for the treatment and management of diseases such as Rh incompatibility
in newborns, rabies and hepatitis, and in diagnostic products such as blood
typing reagents and diagnostic test kits. Additionally, the Company, through its
protein fractionation facility, provides a variety of proteins used in the
manufacturing of diagnostic reagents and cell culture media components for use
as additives in biotech products.

         As of November 10, 2001, the Company conducted its operations through a
national network of 17 donor centers that specialize in the collection of
specialty antibodies. The Company operates laboratories in the United States and
in Scotland, two U.S. Food and Drug Administration ("FDA") licensed monoclonal
antibody manufacturing facilities in Scotland, and a FDA-registered blood
protein fractionation facility located in Kankakee, Illinois.

         Basis of Presentation

         The accompanying unaudited consolidated financial statements include
the accounts of Serologicals and its subsidiaries. All significant intercompany
accounts and transactions have been eliminated in consolidation. The
accompanying statements have been prepared in accordance with accounting
principles generally accepted in the United States for interim financial
information and the instructions to Form 10-Q. Accordingly, they do not include
all of the information and footnotes required by accounting principles generally
accepted in the United States for complete financial statements. In the opinion
of management, the accompanying unaudited condensed consolidated financial
statements reflect all adjustments, which are of a normal recurring nature, to
present fairly Serologicals' financial position, results of operations and cash
flows at the dates and for the periods presented. Interim results of operations
are not necessarily indicative of results to be expected for the


                                        6
<PAGE>

full year. The interim financial statements should be read in conjunction with
the audited consolidated financial statements as of December 31, 2000 and the
notes thereto included in the Company's Annual Report on Form 10-K for the year
ended December 31, 2000.

         Certain prior year amounts have been reclassified to conform to the
current year presentation.

         Earnings Per Share

         Basic earnings per share are calculated by dividing net income by the
weighted average number of common shares outstanding during the period. Diluted
earnings per share are calculated based on the weighted average number of common
shares outstanding plus other potentially dilutive shares.

         The following table sets forth the calculation of basic and diluted
earnings per share (in thousands, except per share amounts):

<TABLE>
<CAPTION>

                                                              THREE MONTHS ENDED              NINE MONTHS ENDED
                                                            ------------------------      -------------------------
                                                            SEPT. 30       SEPT. 24,      SEPT. 30        SEPT. 24,
                                                              2001           2000           2001            2000
                                                            --------      ----------      --------       ----------
<S>                                                         <C>           <C>             <C>             <C>
Basic earnings per share:
  Net income                                                  $ 3,024        $ 3,778        $12,231        $ 8,155
  Weighted average shares of common stock outstanding          23,967         22,661         23,628         22,858
                                                              -------        -------        -------        -------
     Net income per share                                     $  0.13        $ 0 .17        $  0.52        $  0.36
                                                              =======        =======        =======        =======
Diluted earnings per share:
  Net income                                                  $ 3,024        $ 3,778        $12,231        $ 8,155
  Plus:  interest expense on convertible indebtedness,
             net of tax                                            --             17             --             50
                                                              -------        -------        -------        -------
    Net income, as adjusted                                   $ 3,024        $ 3,795        $12,231        $ 8,205
                                                              -------        -------        -------        -------

  Weighted average shares of common stock outstanding          23,967         22,661         23,628         22,858
  Effect of dilutive securities:
    Stock options and warrants                                    654            151            700            204
    Convertible indebtedness                                       --            182             --            182
    Common stock awards                                            12              9             11              4
                                                              -------        -------        -------        -------
  Weighted average shares of common stock outstanding,
      including dilutive instruments                           24,633         23,003         24,339         23,248
                                                              =======        =======        =======        =======
    Net income per share                                      $  0.12        $  0.16        $  0.50        $  0.35
                                                              =======        =======        =======        =======
</TABLE>

         The following shares were excluded from the calculation of dilutive
earnings per share for the periods indicated as the option price exceeded the
average market price for the Company's stock and thus their effect would have
been anti-dilutive (in thousands):

<TABLE>
<CAPTION>

        THREE MONTHS ENDED               NINE MONTHS ENDED
    ----------------------------      ------------------------
    SEPT. 30,        SEPT. 24,        SEPT. 30,     SEPT. 24,
      2001              2000             2001         2000
    ---------      -----------        ---------     ---------
    <S>            <C>                <C>           <C>
      296           2,245                 340          2,243
</TABLE>


                                        7
<PAGE>

         Comprehensive Income

         The following table sets forth the calculation of the Company's
comprehensive income for the periods indicated below (in thousands):

<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED                 NINE MONTHS ENDED
                                                              ------------------------------     ------------------------------
                                                                SEPT. 30,        SEPT. 24,         SEPT. 30,        SEPT. 24,
                                                                  2001             2000              2001             2000
                                                              -------------    -------------     -------------    --------------
<S>                                                           <C>              <C>              <C>               <C>
Net income, as reported                                             $ 3,024          $ 3,778          $ 12,231          $ 8,155
Other comprehensive income (loss), net of tax:
     Foreign currency translation adjustments                           340             (242)             (230)            (707)
                                                              -------------    -------------     -------------    -------------
Other comprehensive income (loss), net of tax                           340             (242)             (230)            (707)
                                                              -------------    -------------     -------------    -------------
Comprehensive income                                                $ 3,364          $ 3,536          $ 12,001          $ 7,448
                                                              =============    =============     =============    =============
</TABLE>

         Recent Accounting Pronouncements

         In June 2001, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 141, "Business Combinations"
("SFAS No. 141"), and Statement of Financial Accounting Standards No. 142,
"Goodwill and Other Intangible Assets." SFAS No. 141 supersedes Accounting
Principles Board ("APB") Opinion No. 16, and SFAS No. 38, "Accounting for
Preacquisition Contingencies of Purchased Enterprises." This Standard prescribes
the accounting principles for business combinations and requires that all
business combinations be accounted for using the purchase method of accounting.
This Standard is effective for all business combinations initiated after June
30, 2001.

         SFAS No. 142 supersedes APB Opinion No. 17, "Intangible Assets." This
Standard prescribes the accounting practices for acquired goodwill and other
intangible assets. Under this Standard, goodwill will no longer be amortized to
earnings, but instead will be reviewed periodically (at least annually) for
impairment. During the first nine months of 2001, the Company recorded goodwill
amortization expense totaling $1,056,000. The Company will continue to amortize
goodwill acquired prior to June 30, 2001 until the adoption date, however,
goodwill related to acquisitions subsequent to June 30, 2001 will not be
amortized. The Company will adopt this Standard on December 31, 2001. The impact
of adopting this Standard has not yet been determined.

         In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset
Retirement Obligations." This Standard addresses financial accounting and
reporting for asset retirement costs of long-lived assets resulting from legal
obligations associated with acquisition, construction or development
transactions. The Company plans to adopt this in the first quarter of 2003. The
adoption of this Standard is not expected to have a material impact on the
Company's financial position or results of operations.

         In August 2001, the FASB issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets." This Standard supersedes SFAS No.
121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed Of." This standard clarifies accounting and reporting for
assets held for sale, scheduled for abandonment or other disposal, and
recognition of impairment loss related to the carrying value of long-lived
assets. This Standard is effective for fiscal years beginning after December 15,
2001. The adoption of this Standard is not expected to have a material impact on
the Company's financial position or results of operations.


                                        8
<PAGE>
2.       SPECIAL CHARGES (CREDITS), NET


         During the third quarter of 2001, the Company recorded severance costs
payable to its former Chief Financial Officer totaling $200,000. This amount
will be paid out over a one-year period commencing October 2001.

         Additionally, during the second quarter of 2001, the Company reversed
approximately $762,000 of previously accrued amounts related to the cancellation
of a software development contract in 1999. During 2001, the Company received a
favorable ruling in its arbitration case related to these costs in which the
arbitrator ruled that the Company has no further obligation to the vendor.

         Also, during the second quarter of 2001, the Company wrote off
approximately $925,000 of incremental external due diligence costs related to
the evaluation of a potential acquisition which at the time the Company did not
consider probable of being completed.

         On August 21, 2000, the Company completed the sale of substantially all
of the long-term assets of its Seramed, Inc. subsidiary and its subsidiaries
(collectively, "Seramed") to Aventis Bio-Services, Inc ("Aventis"). The Company
received gross proceeds from the sale totaling approximately $21.3 million, and
recognized a gain on the disposal of $545,000. Prior to the sale, an asset
impairment charge of $276,000 was recorded, along with approximately $1.3
million of charges associated with termination benefits, lease termination
costs, and other costs associated with the divestiture of the non-specialty
business.

         The following table summarizes the activity in the accrual for
termination benefits through September 30, 2001:

<TABLE>
<CAPTION>
         (in thousands)
                                                         ADDITIONS
                                                         TO RESERVE
                                          BALANCE,       CHARGED TO          CASH                        BALANCE,
                DESCRIPTION               12/31/00         EXPENSE         PAYMENTS         OTHER         9/30/01
     ---------------------------------- -------------- ---------------- ---------------- ------------- ---------------
<S>                                     <C>            <C>              <C>              <C>           <C>
     Employee termination costs         $    470       $    200         $   (428)        $   --        $    242
</TABLE>

          The remaining liability, which relates to three individuals, is
  included in "Accrued liabilities" in the Consolidated Balance Sheets. Of this
  amount, approximately $83,000 will be paid in 2001 with the balance to be paid
  in 2002.


  3.     DIVESTITURE OF BUSINESS

         On August 21, 2000, the Company completed the sale of substantially all
  of the long-term assets of Seramed, which operated 47 donor centers that
  primarily collected source plasma. The results of operations of Seramed were
  previously reported in the Therapeutic Products segment. See Note 3 to the
  Company's Annual Report on Form 10-K for the year ended December 31, 2000 for
  additional information related to the divestiture.

         The following table summarizes the results of operations for Seramed as
  included in the Consolidated Statements of Income for the three and nine
  months ended September 24, 2000 (in thousands):

                                        9
<PAGE>

<TABLE>
<CAPTION>
                                                                             THREE          NINE
                                                                             MONTHS        MONTHS
                                                                           -----------   ---------
        <S>                                                                <C>           <C>
        Net sales.....................................................      $ 13,592      $ 51,819
        Gross profit..................................................           350         1,473
        Selling, general and administrative expenses (1)..............           ---           287
        Other expense, net............................................           137           989
        Special (credits) charges, net................................          (545)          961
        Income (loss) before income taxes.............................           758          (764)
</TABLE>

        (1) Does not include allocation of corporate overhead.

         The following table summarizes the results of Serologicals on a pro
  forma basis (excluding the results of Seramed) for the three and nine months
  ended September 24, 2000. These results do not purport to represent what the
  results of operations for Serologicals would actually have been or to be
  indicative of the future results of operations of Serologicals (in thousands,
  except per share amounts).

<TABLE>
<CAPTION>
                                                                             THREE          NINE
                                                                             MONTHS         MONTHS
                                                                           ----------    -----------
        <S>                                                                <C>            <C>
        Net sales.....................................................     $   25,116     $ 65,122
        Gross profit..................................................         11,664       32,453
        Special (credits) charges, net................................             (5)         251
        Net income....................................................          3,546        9,415
        Basic earnings per share......................................           0.16         0.41
        Diluted earnings per share....................................           0.15         0.40
</TABLE>

4.       SEGMENT INFORMATION

         Serologicals conducts its business primarily through two business
segments, the Therapeutic Products segment and the Diagnostic Products segment.
These segments were determined based primarily on the differing nature of the
ultimate end use of the products, the differing production and other value-added
processes performed with respect to the products and, to a lesser extent, the
differing customer bases to which each reportable segment sells its products.
The remainder of our operations that do not otherwise fall into one of these two
segments, as well as general, unallocated corporate overhead expenses, are
reported in the category entitled "Corporate and Other."

         The activities of the Therapeutic Products segment primarily include
the collection and sale of specialty human antibodies that are used as the
active ingredients in therapeutic products for the treatment and management of
various diseases. Prior to August 2000, the Company also operated 47 donor
centers specializing in the collection of source plasma. In August 2000 the
Company divested substantially all of the long-term assets of its source plasma
business, the results of which are included in the Therapeutic Products segment.
The activities of the Diagnostic Products segment include the Company's
monoclonal antibody production facilities and certain human-sourced, polyclonal
antibodies. While an increasing number of Serologicals Proteins' products (such
as EX-CYTE(R)) are being used in therapeutic end products, the management of
this business is performed within the Company's diagnostic business unit and,
accordingly, is included in the Diagnostic Products reportable business segment.
The antibodies and other proteins provided by the Diagnostic Products segment
are used in diagnostic products such as blood typing reagents and diagnostic
test kits and as nutrient additives in biotech products.


                                       10
<PAGE>
         Selected financial information is reported below for the three and nine
months ended September 30, 2001 and September 24, 2000 (in thousands):

<TABLE>
<CAPTION>
                                              THREE MONTHS ENDED                NINE MONTHS ENDED
                                          --------------------------       ----------------------------
                                           SEPT. 30,      SEPT. 24,         SEPT. 30,       SEPT. 24,
                                             2001           2000              2001            2000
                                          -----------    -----------       -----------    -------------
<S>                                       <C>            <C>               <C>            <C>
Net sales-unaffiliated customers:
  Therapeutic Products                       $ 14,049        $27,951           $41,583         $ 84,012
  Diagnostic Products                          11,827         10,757            37,932           32,929
                                          -----------    -----------       -----------    -------------
  Total                                      $ 25,876        $38,708           $79,515        $ 116,941
                                          ===========    ===========       ===========    =============


Segment operating income:
  Therapeutic Products                        $ 3,290        $ 5,394          $ 11,777         $ 11,596
  Diagnostic Products                           3,949          3,161            14,453           12,588
  Corporate/Other                              (2,143)        (2,337)           (6,493)          (6,933)
                                          -----------    -----------       -----------    -------------
  Total                                         5,096          6,218            19,737           17,251
                                          -----------    -----------       -----------    -------------

Reconciling items:
  Interest (income) expense, net                 (296)           390            (1,008)           1,276
  Other expense, net                              467            475             1,050            2,021
  Special charges (credits), net                  200           (550)              363            1,212
                                          -----------    -----------       -----------    -------------
Income before income taxes                     $4,725        $ 5,903           $19,332         $ 12,742
                                          ===========    ===========       ===========    =============
</TABLE>

         Segment operating income is defined as earnings before income taxes,
interest, amortization, foreign currency gains and losses, special charges and
credits and other non-operating income and expenses. "Corporate and Other"
includes general corporate expenses other than those directly attributable to an
operating segment. Serologicals had no material intersegment sales during 2001
or 2000.


5.       COMMITMENTS AND CONTINGENCIES

         Litigation

         The Company is involved in certain litigation arising in the ordinary
course of business. In management's opinion, the ultimate resolution of these
matters will not have a material adverse effect on the Company's financial
position or results of operations.

         During 2000, twelve complaints were filed against the Company and
certain of its current and former executive officers and directors which allege
violations of the Securities Exchange Act of 1934, including Sections 10(b) and
20(a) thereof and Rule 10b-5 promulgated thereunder. During the third quarter of
2000, the complaints were consolidated and a lead plaintiff was named. A
consolidated complaint was filed on October 10, 2000 which also seeks the
court's certification of the litigation as class action on behalf of all
purchases of the Company's stock between April 27, 1999 and April 10, 2000. On
November 30, 2000, the Company and the other defendants filed a motion to
dismiss the consolidated complaint. On January 17, 2001, the plaintiff filed an
opposition to the motion to dismiss. On April 20, 2001, a hearing was held on
the motion to dismiss. On September 5, 2001, the Court granted the motion to
dismiss the complaint in its entirety with prejudice and ruled that the
plaintiffs would not be allowed to amend the complaint. On September 19, 2001,
the plaintiffs filed a motion to amend the judgement and/or for relief arguing
that they should have been allowed to amend the


                                       11
<PAGE>
complaint. The Company responded by filing a brief supporting the Court's
dismissal of the complaint. The Court has not yet ruled on the plaintiffs'
motion. If the Court reverses its decision, or if plaintiffs seek and receive a
reversal from the court of appeals, the Company intends to defend the lawsuits
vigorously.

6.       SUBSEQUENT EVENTS

         On November 5, 2001, the Company entered into an agreement to purchase
Intergen Company. The purchase price is $45 million, less the amounts necessary
to complete the expansion of Intergen's manufacturing facility located in
Toronto, Canada. Additionally, the agreement provides the opportunity for
the seller to earn additional consideration upon Intergen achieving certain
financial results. The purchase will be financed with cash on hand, and is
expected to close during the fourth quarter of 2001. Intergen is a privately
owned life sciences Company headquartered in Purchase, New York, that
manufactures and distributes a variety of biological products and innovative
technologies to the life sciences industry.


                                       12
<PAGE>



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

OVERVIEW

         The Company is a worldwide provider of biological products to life
science companies. The Company's products are used in the further development of
diagnostic, vaccine and therapeutic products. The Company provides value-added
antibody-based products that are used as the active ingredients in therapeutic
products for the treatment and management of diseases such as Rh incompatibility
in newborns, rabies and hepatitis and in diagnostic products such as blood
typing reagents and diagnostic test kits. As of November 12, 2001, the Company
conducted its operations through a national network of 17 donor centers that
specialize in the collection of specialty human antibodies. The Company operates
a protein fractionation facility in Kankakee, Illinois ("Serologicals Proteins",
or "Proteins") that provides a variety of proteins used in diagnostic reagents
and cell culture media components for use as additives in biotech products. A
number of these products, such as bovine serum albumin ("BSA"), are primarily
supplied to life science companies for use in diagnostic reagents. Proteins also
provides a line of highly purified animal proteins known as cell culture media
components that are used primarily by biopharmaceutical and biotechnology
companies as nutrient additives in cell culture media. One example of these
media components is EX-CYTE(R), which is produced through a patented
manufacturing process. Additionally, the Company operates two monoclonal
antibody facilities in Scotland that are engaged in the development,
manufacturing and sale of monoclonal antibodies and related products such as red
cells.

         For management purposes, the operations of the Company's subsidiaries
are organized into two primary operating segments, Therapeutic Products and
Diagnostic Products. These segments are based primarily on the differing nature
of the ultimate end use of the Company's products, the differing production,
manufacturing and other value-added processes performed by the Company with
respect to the products and, to a lesser extent, the differing customer bases to
which each reportable segment sells its products.

         The activities of the Therapeutic Products segment primarily include
the collection and sale of specialty human antibodies that are used as the
active ingredients in therapeutic products for the treatment and management of
various diseases. Prior to August 2000, the Company also operated 47 donor
centers specializing in the collection of source plasma. In August 2000 the
Company divested substantially all of the long-term assets of its source plasma
business, the results of which are included in the Therapeutic Products segment.
The Therapeutics Product segment has a relatively small number of customers, and
as a result this segment of the Company is vulnerable to the unpredictability of
its customers' ordering patterns.

         The activities of the Diagnostic Products segment include the Company's
monoclonal antibody production facilities and certain human-sourced, polyclonal
antibodies. While an increasing number of Proteins' products (such as
EX-CYTE(R)) are being used in therapeutic end products, the management of this
business is performed within the Company's diagnostic business unit and,
accordingly, is included in the Diagnostic Products reportable business segment.
The antibodies and other proteins provided by the Diagnostic Products segment
are used in diagnostic products such as blood typing reagents and diagnostic
test kits and as nutrient additives in biotech products.


                                       13
<PAGE>

RESULTS OF OPERATIONS

         The following discussion and analysis of the Company's financial
condition and results of operations should be read in conjunction with the
Consolidated Financial Statements and Notes thereto.

         The following table sets forth certain operating data of the Company as
a percentage of net sales for the periods indicated below.

<TABLE>
<CAPTION>

                                                           THREE MONTHS ENDED               NINE MONTHS ENDED
                                                    ----------------------------       --------------------------
                                                       SEPT. 30,       SEPT. 24,        SEPT. 30,      SEPT. 24,
                                                          2001           2000              2001         2000
                                                     ------------     ----------       -----------    ----------
<S>                                                     <C>            <C>              <C>            <C>

Net sales                                                  100.0%          100.0%          100.0%          100.0%
Gross profit                                                44.6%           31.0%           47.4%           29.0%
Selling, general and administrative
  expenses                                                  24.9%           15.0%           22.5%           14.3%
Net income before special charges                           12.2%            8.9%           15.7%            7.6%
Net income                                                  11.7%            9.8%           15.4%            7.0%

</TABLE>

         The results of operations for the quarter and year-to-date periods
ended September 24, 2000 include the results of Seramed, which was divested in
August 2000 as previously discussed. All of the consolidated and Therapeutic
Products segment comparisons discussed below are impacted by the divestiture.
Additionally, the first nine months of 2001 includes net sales totaling
approximately $760,000 of remaining Seramed inventory that had previously been
fully reserved. There were no sales of this fully reserved Seramed inventory
during the third quarter of 2001.


Quarters Ended September 30, 2001 and September 24, 2000

NET SALES

Consolidated

         Consolidated net sales decreased approximately $12.8 million, or 33%,
from $38.7 million in 2000 to $25.9 million in 2001. The decrease was primarily
attributable to the decreased sales contribution of $13.6 million from Seramed,
and lower sales of specialty antibodies, partially offset by increased sales of
Diagnostic products.

         Excluding Seramed, net sales increased approximately $760,000, or 3%,
from $25.1 million in 2000 to $25.9 million in 2001.


Therapeutic Products

         Net sales of Therapeutic Products decreased approximately $13.9,
million from $28.0 million in 2000 to $14.1 million in 2001. The decrease was
primarily due to the decreased sales of source plasma resulting from the Seramed
divestiture. Sales of anti-rabies antibodies increased over 100% from the prior
year, while sales of anti-D declined and anti-hepatitis sales were essentially
unchanged from prior year levels.

         Excluding the results of Seramed, therapeutic product sales decreased
$310,000, or 2%, from $14.4 million in 2000 to $14.1 million in 2001.

                                       14
<PAGE>
Diagnostic Products

         Net sales of Diagnostic Products increased approximately $1.0 million,
or 10%, from $10.8 million in 2000 to $11.8 million in 2001. This increase was
primarily attributable to revenue growth from blood protein products. Sales of
blood protein products increased approximately $1.3 million, or 24%, from $5.5
million in 2000 to $6.8 million in 2001. This increase was primarily a result of
increased sales of EX-CYTE(R), which increased $1.7 million over the prior year,
from $2.3 million to $4.0 million. Sales of other blood protein products,
primarily BSA, decreased 11% compared to the prior year, as overall market
demand for BSA has decreased this year. Net sales of monoclonal antibodies
totaling approximately $3.7 million were essentially unchanged from the prior
year. Additionally, sales of primarily human-sourced antibodies used in blood
typing reagents and for diagnostic test kits totaled $1.4 million, compared with
$1.5 million in the prior year period.

GROSS PROFIT

Consolidated

         Consolidated gross profit decreased approximately $472,000, from $12.0
million in the third quarter of 2000 to $11.5 million during 2001. This decrease
was due to the decline in sales of relatively higher margin anti-D antibodies
compared with the prior year, offset in part by increased sales of Diagnostic
products, primarily EX-CYTE(R). Consolidated gross margins increased from 31% in
2000 to 45% in 2001. The increase was primarily due to the increased sales of
EX-CYTE(R), combined with the favorable impact of the divestiture of the
relatively low margin source plasma business during 2000.

         Excluding Seramed, gross profit decreased from $11.7 million in 2000 to
$11.6 million in 2001, and gross margins decreased slightly from 46% in 2000 to
45% in 2001.

Therapeutic Products

         Gross profit from Therapeutic Products decreased approximately $1.8
million, from $7.0 million in 2000 to $5.2 million in 2001. This decrease was
due primarily to the decreased anti-D sales that resulted in anti-D representing
a significantly lower percentage of total therapeutic sales in the current
period compared with 2000. Gross margins on Therapeutic Products were 37% in the
third quarter of 2001 compared with 25% in the prior year. This increase was due
primarily to improved profit margins on the anti-hepatitis and anti-rabies
products compared to the prior year quarter, combined with the favorable impact
from the divestiture of Seramed.

         Excluding Seramed, gross profit decreased approximately $1.4 million,
from $6.6 million in 2000 to $5.2 million in the current year, and gross margins
decreased from 46% to 37% due primarily to the decreased anti-D sales previously
mentioned.

Diagnostic Products

         Gross profit from Diagnostic Products increased approximately $1.3
million, or 25%, from $5.1 million in 2000 to $6.4 million in 2001, due
primarily to higher sales of relatively higher margin EX-CYTE(R). Gross margins
on Diagnostic Products increased from 47% in 2000 to 54% during 2001, primarily
as a result of the increased EX-CYTE(R) sales during 2001, combined with the
impact on the third quarter of 2000 of recognizing additional inventory reserves
on certain blood protein products.


                                       15
<PAGE>

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

         Selling, general and administrative expenses increased approximately
$649,000, or 11%, from $5.8 million in the third quarter of 2000 to $6.4 million
in 2001. The increase was primarily attributable to increased costs associated
with research and development and higher professional fees.

INTEREST EXPENSE, NET

         Net interest decreased $687,000, from net interest expense of $390,000
in 2000 to net interest income of $296,000 in the current year. The decrease was
due to the Company maintaining significantly higher cash balances during the
third quarter of 2001 and no debt outstanding in the current year, compared with
an average debt balance of over $14.0 million in the prior period.

SPECIAL CHARGES (CREDITS)

         During the third quarter of 2001 the Company recorded a charge of
$200,000 representing severance costs associated with the departure of the
Company's Chief Financial Officer. This severance will be paid out over a
one-year period beginning in October 2001.

         During the third quarter of 2000, the Company recorded a gain of
approximately $545,000 from the divestiture of the Seramed business.


Nine Months Ended September 30, 2001 and September 24, 2000

NET SALES

Consolidated

         Consolidated net sales decreased approximately $37.4 million, or 32%,
from $116.9 million in 2000 to $79.5 million in 2001. The decrease was primarily
attributable to the decreased sales contribution of $51.1 million from Seramed,
offset by increased sales of specialty antibody products and diagnostic
products.

         Excluding Seramed, net sales increased $13.6 million, or 21%, from
$65.1 million in 2000 to $78.7 million in 2001.

Therapeutic Products

         Net sales of Therapeutic Products decreased approximately $42.4
million, or 51%, from $84.0 million in 2000 to $41.6 million in 2001. The
majority of the decrease was due to the net reduction of sales from Seramed
totaling $51.1 million, offset by increased sales of specialty antibodies. Sales
of specialty antibodies increased $6.5 million, or 20%, from $32.7 million in
2000 to $39.2 million in 2001. The increased sales of specialty antibodies were
largely due to increases in sales of anti-hepatitis antibodies, which increased
48% over the prior year due to continued increases in demand for this product,
and anti-rabies antibodies, which increased 71% over the prior year.

         Excluding Seramed, net sales of Therapeutic Products increased
approximately $8.6 million from $32.2 million in 2000 to $40.8 million in 2001.


                                       16
<PAGE>


Diagnostic Products

         Net sales of Diagnostic Products increased approximately $5.0 million,
or 15%, from $32.9 million in 2000 to $37.9 million in 2001. Sales of blood
protein products increased approximately $3.8 million, or 22% from $17.2 million
in 2000 to $21.0 million in 2001. The increase in blood protein sales was
largely attributable to EX-CYTE(R), which increased $4.7 million, or 61% over
the prior year, while other blood protein products (primarily BSA) declined 10%
compared with the prior year. The remainder of the increase was attributable to
a $1.2 million increase in sales of monoclonal antibodies and related products,
and an increase of approximately $200,000 in sales of primarily human-sourced
antibodies used in blood typing reagents and for diagnostic test kits.


GROSS PROFIT

Consolidated

         Consolidated gross profit increased approximately $3.7 million, or 11%,
from $33.9 million in 2000 to $37.6 million during 2001. This increase was due
to increased sales of relatively higher margin specialty antibodies, the
positive impact of divesting the lower margin source plasma business (with the
exception of the $760,000 of source plasma sales reported in 2001 previously
discussed) and increased sales of diagnostic products. Gross margin increased
from 29% in 2000 to 47% in 2001.

         Excluding Seramed, gross profit increased $4.3 million, or 13%, from
$32.5 million in 2000 to $36.8 million in 2001, and gross margins declined
slightly from 50% in 2000 to 47% in 2001.

Therapeutic Products

         Gross profit from Therapeutic Products increased approximately
$219,000, from $16.1 million in 2000 to $16.3 million in 2001. Gross margins
increased from 19% in 2000 to 39% for the first nine months of 2001. The margin
increase is due to the impact of the divestiture of Seramed, the relatively
higher percentage of anti-D sales to total Therapeutic sales in 2001 compared
with 2000, and the increased sales of anti-hepatitis and anti-rabies antibodies.

         Excluding Seramed, gross profit increased approximately $791,000, or 5%
from $14.7 million in 2000 to $15.4 million in 2001, and gross margins decreased
from 46% in 2000 to 38% in 2001. These decreased margins are primarily due to
anti-D representing a significantly lower percentage of total Therapeutic
Product sales during 2001.

Diagnostic Products

         Gross profit from Diagnostic Products increased approximately $3.5
million, or 20%, from $17.8 million in 2000 to $21.3 million in 2001. The
increase was primarily attributable to increased sales, particularly of
relatively higher margin EX-CYTE(R), as well as increased sales of monoclonal
antibodies used for further manufacturing in blood typing reagents. Gross
margins on Diagnostic Products increased from 54% in 2000 to 56% in 2001,
primarily due to the increased EX-CYTE(R) sales and the impact of an additional
inventory reserve taken in 2000.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

         Selling, general and administrative expenses increased approximately
$1.2 million, or 7%, from $16.7 million in 2000 to $17.9 million in 2001. The
increase was primarily attributable to higher corporate expenses, including
personnel costs and increased professional fees.


                                     17

<PAGE>

INTEREST (INCOME) EXPENSE, NET

         Net interest decreased approximately $2.3 million, from net interest
expense of $1.3 million in 2000 to net interest income of $1.0 million in 2001.
The decrease was due to the Company maintaining significantly higher cash
balances during the first nine months of 2001 and no debt outstanding in the
current year, compared with an average debt balance of over $20 million in the
prior year.

OTHER EXPENSE, NET

         Other expense, net, which consists primarily of amortization of
goodwill and other intangible assets and gains and losses from foreign currency
transactions, decreased approximately $970,000, from $2.0 million in 2000 to
$1.0 million in 2001. The decrease was due to lower goodwill amortization as a
result of the divestiture of Seramed.

SPECIAL CHARGES

         During 2001, the Company recorded a charge of $200,000 representing
severance costs associated with the departure of the Company's Chief Financial
Officer. This severance will be paid out over a one-year period beginning in
October 2001.

         Additionally, during 2001 the Company reversed approximately $762,000
of previously accrued amounts related to the cancellation of a software
development contract in 1999, under which a third party vendor was assisting the
Company in developing a donor center automation system. This amount had been
accrued as part of a $4.2 million charge to write off previously capitalized
costs and accrue for estimated remaining costs related to the project. During
2001, the Company received a favorable ruling in its arbitration case related to
these costs in which the arbitrator ruled that the Company has no further
obligation to the vendor.

         Also, during the second quarter of 2001, the Company wrote off
approximately $925,000 of incremental external due diligence costs related to
the evaluation of a potential acquisition which at the time the Company did not
consider probable of being completed.

         During the first nine months of 2000, the Company recorded certain
items related to the divestiture of Seramed. Prior to the sale, an asset
impairment charge of $276,000 was recorded, along with approximately $1.3
million of charges associated with termination benefits, lease termination
costs, and other costs associated with the divestiture of the non-specialty
business. The sale of Seramed closed in August 2000, and the Company recognized
a gain on the disposal of approximately $545,000.


                                       18
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

         The following table sets forth certain indicators of financial
condition and liquidity of the Company as of September 30, 2001 and December 31,
2000:

<TABLE>
<CAPTION>
                                                                 SEPTEMBER 30,       December 31,
                                                                      2001               2000
                                                               ---------------       -------------
<S>                                                            <C>                   <C>

Cash and cash equivalents                                            $ 48,744            $ 22,492
Working capital                                                        84,415              56,790
Total long-term debt and capital lease obligations                        ---                  13
Stockholders' equity                                                  145,084             118,707

</TABLE>

         Serologicals has three principal sources of near-term liquidity: (i)
existing cash and cash equivalents; (ii) cash generated by operations, and (iii)
available borrowing capacity under the revolving credit facility (the
"Revolver"), which provides for a maximum borrowing capacity of $75 million.
Management believes the Company's liquidity and capital resources are sufficient
to meet its working capital, capital expenditure and other anticipated cash
requirements over the next twelve months, including the acquisition and
integration of Intergen Company, and may be available for use in other
acquisitions.

         During the first nine months of 2001, net cash provided by operating
activities was $18.7 million compared with $24.3 million during the first nine
months of 2000, a decrease of $5.6 million. This decrease was primarily
attributable to a larger investment in working capital versus the prior year and
lower non-cash depreciation and amortization charges due to the divestiture of
Seramed, partially offset by a $4.1 million increase in net income and a $1.7
million net increase from the tax benefit from the exercise of stock options and
non-cash special charges. The increased investment in working capital was in
large part due to an increase in accounts receivable of $2.5 million compared
with a $9.1 million decrease in the prior year, a decrease in inventory of $1.2
million compared with a decrease of $6.8 million in 2000, and a decrease in
other current assets of $2.5 million in 2001 compared with an increase of $2.3
million in 2000. The increase in accounts receivable was attributable to timing
of shipments as there was a large quantity of shipments that occurred near the
end of the third quarter of 2001, whereas the decrease in accounts receivable in
the prior year was a result of the significant shipment volume which occurred in
the fourth quarter of 1999 which were paid in the first quarter of 2000. The
decrease in other current assets for 2001 was primarily due to the receipt of
proceeds from an insurance claim that was settled in 2000, receipt of a payroll
tax related refund, and the receipt of proceeds from stock options that were
exercised near the end of 2000.

         Net cash used in investing activities during the first nine months of
2001 was $3.6 million as compared to net cash provided by investing activities
of $9.5 million in the prior year. Investing activities for 2001 consisted of
capital expenditures, primarily related to the relocation of the Company's
corporate headquarters, completion of various expansion projects at Serologicals
Proteins, and various information technology initiatives. Investing activities
for 2000 consisted of proceeds from the disposition of Seramed, offset by a
payment of $3.5 million representing a final net asset settlement related to the
Company's 1999 acquisition of the Proteins business, and capital expenditures of
$7.2 million.

         The Company anticipates capital expenditures for the remainder of
fiscal year 2001 to be approximately $2 to $3 million. Planned expenditures
include the following: (i) expansion of its monoclonal manufacturing facility in
Scotland; (ii) various donor center renovations and relocations; and (iii)
various information systems initiatives.


                                       19

<PAGE>
         Net cash provided by financing activities was $11.1 million in 2001
compared to cash used of $33.3 million in 2000. During the first nine months of
2001, the Company received cash proceeds of approximately $11.1 million from the
exercise of employee stock options and for the purchase of stock through other
Company stock ownership plans. Financing activities for the first nine months of
2000 included repayment of $30.0 million on the Revolver, repayment of $2.5
million of convertible debt, the repurchase of approximately 657,000 shares of
stock under the Company's previous stock repurchase program, and proceeds from
the exercise of employee stock options and other Company sponsored stock plans.

Pending Acquisition

         On November 5, 2001, the Company entered into an agreement to purchase
Intergen Company. The purchase price is $45 million, less the amounts necessary
to complete the expansion of Intergen's manufacturing facility located in
Toronto, Canada. Additionally, the agreement provides the opportunity for
the seller to earn additional consideration upon Intergen achieving certain
financial results. The purchase will be financed with cash on hand, and is
expected to close during the fourth quarter of 2001.

RECENT ACCOUNTING PRONOUNCEMENTS

         In June 2001, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 141, "Business Combinations" ("SFAS
No.141"), and Statement of Financial Accounting Standards No. 142, "Goodwill and
Other Intangible Assets." SFAS No. 141 supersedes Accounting Principles Board
("APB") Opinion No. 16, and SFAS No. 38, "Accounting for Preacquisition
Contingencies of Purchased Enterprises." This Standard prescribes the accounting
principles for business combinations and requires that all business combinations
be accounted for using the purchase method of accounting. This Standard is
effective for all business combinations initiated after June 30, 2001.

         SFAS No. 142 supersedes APB Opinion No. 17, "Intangible Assets." This
Standard prescribes the accounting practices for acquired goodwill and other
intangible assets. Under this Standard, goodwill will no longer be amortized to
earnings, but instead will be reviewed periodically (at least annually) for
impairment. During the first nine months of 2001, the Company recorded goodwill
amortization expense totaling $1,056,000. The Company will continue to amortize
goodwill acquired prior to June 30, 2001 until the adoption date, however,
goodwill related to acquisitions subsequent to June 30, 2001 will not be
amortized. The Company will adopt this Standard on December 31, 2001. The impact
of adopting this Standard has not yet been determined.

         In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset
Retirement Obligations." This Standard addresses financial accounting and
reporting for asset retirement costs of long-lived assets resulting from legal
obligations associated with acquisition, construction or development
transactions. The Company plans to adopt this in the first quarter of 2003. The
adoption of this Standard is not expected to have a material impact on the
Company's financial position or results of operations.

         In August 2001, the FASB issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets." This Standard supersedes SFAS No.
121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed Of." This standard clarifies accounting and reporting for
assets held for sale, scheduled for abandonment or other disposal, and
recognition of impairment loss related to the carrying value of long-lived
assets. This Standard is effective for fiscal years beginning after December 15,
2001. The adoption of this Standard is not expected to have a material impact on
the Company's financial position or results of operations.


                                       20
<PAGE>

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


         There have been no material changes regarding the Company's market risk
position from the information provided in its Annual Report on Form 10-K for the
fiscal year ended December 31, 2000. The quantitative and qualitative
disclosures about market risk are discussed under the caption "Market Risk" in
Item 7-Management's Discussion and Analysis of Financial Condition and Results
of Operations, contained in the Company's Form 10-K.


PART II.

ITEM 1.  LEGAL PROCEEDINGS

         The Company is involved in certain litigation arising in the ordinary
course of business. In management's opinion, the ultimate resolution of these
matters will not have a material adverse effect on the Company's financial
position or results of operations.

         During 2000, twelve complaints were filed against the Company and
certain of its current and former executive officers and directors which allege
violations of the Securities Exchange Act of 1934, including Sections 10(b) and
20(a) thereof and Rule 10b-5 promulgated thereunder. During the third quarter of
2000, the complaints were consolidated and a lead plaintiff was named. A
consolidated complaint was filed on October 10, 2000 which also seeks the
court's certification of the litigation as class action on behalf of all
purchases of the Company's stock between April 27, 1999 and April 10, 2000. On
November 30, 2000, the Company and the other defendants filed a motion to
dismiss the consolidated complaint. On January 17, 2001, the plaintiff filed an
opposition to the motion to dismiss. On April 20, 2001, a hearing was held on
the motion to dismiss. On September 5, 2001, the Court granted the motion to
dismiss the complaint in its entirety with prejudice and ruled that the
plaintiffs would not be allowed to amend the complaint. On September 19, 2001,
the plaintiffs filed a motion to amend the judgement and/or for relief arguing
that they should have been allowed to amend the complaint. The Company responded
by filing a brief supporting the Court's dismissal of the complaint. The Court
has not yet ruled on the plaintiffs' motion. If the Court reverses its decision,
or if plaintiffs seek and receive a reversal from the court of appeals, the
Company intends to defend the lawsuits vigorously.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         a.       Exhibits (numbered in accordance with Item 601 of Regulation
                  S-K):

                  10.1     Employment Agreement between the Company and Robert
                           P. Collins
                  10.2     Employment Agreement between the Company and Harold
                           W. Ingalls
                  10.3     Employment Agreement between the Company and Thomas
                           H. Trobaugh
                  10.4     Severance Agreement between the Company and Peter J.
                           Pizzo, III

         b.       Reports on Form 8-K:

                  None


                                       21
<PAGE>


                                   SIGNATURES

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


                                  SEROLOGICALS CORPORATION
                                  ------------------------
                                  (Registrant)


Date: November 13, 2001                       By:    /s/ Harold W. Ingalls
                                                     ------------------------
                                                     Harold W. Ingalls
                                                     Vice President Finance and
                                                     Chief Financial Officer


                                               By:   /s/ Samuel R. Schwartz
                                                     --------------------------
                                                     Samuel R. Schwartz
                                                     Corporate Controller and
                                                     Chief Accounting Officer


                                       22