FORM 10-QSB
                       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 [FEE REQUIRED]
     For the quarter ended July 31, 2001
                                  ________________

                                          OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
         For the transition period from  _____________ to _____________
                           Commission file number  2-98314-W
                                    _____________

                             MEDICAL ADVISORY SYSTEMS, INC.
                                   ________________
                    (Name of small business issuer in its charter)


        Delaware                                       52-1233960
---------------------------------          -----------------------------
(State or other jurisdiction of          (IRS Employer Identification No.)
incorporation or organization)

8050 Southern Maryland Blvd., Owings, MD                  20736
------------------------------------------      ------------------------
(Address of principal executive offices)                (Zip Code)


                                     (301) 855-8070
                                     --------------

Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or
for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past
90 days.  Yes_X__ 		No____


Check if there is no disclosure of delinquent filers in response to Item
405 of Regulation S-B contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-QSB or any amendment of this Form 10-QSB [x]
  Issuer's revenues for its most recent fiscal quarter: $1,150,458.


Common Stock, $.005 par value                   5,121,230 Shares of
Common Stock Outstanding as of July 31, 2001







<PAGE>
Part 1:  Financial Information
Item 1:  Financial Statement


Medical Advisory Systems, Inc.

Consolidated Balance Sheets




                                                   October 31,        July 31,
                                                          2000            2001
------------------------------------------------------------------------------



                                                     (Audited)     (Unaudited)

Assets

Current
 Cash and cash equivalents                        $  2,615,842    $  1,819,231
 Accounts receivable, less allowance for
   doubtful accounts of $115,542 and $144,000          482,202         363,732
 Inventories                                            46,526          59,867
 Prepaid expenses and other                             20,189              -
                                                  ------------    ------------

Total current assets                                 3,164,759       2,242,830


 Property and equipment, at cost, less
  accumulated depreciation and amortization
   (Note 1)                                          1,620,847       1,753,440

 Purchased software, at cost, less accumulated
   amortization of $317,123 and $738,696             2,408,353       2,076,780

 Investment in affiliates (Note 2)                   1,152,921       1,461,921

 Deferred investment advisory costs (Note 4)           209,926         146,592

 Intangible assets, net                                 57,222          29,296

                                                  ------------    ------------

                                                  $  8,614,028    $  7,710,859
                                                  ============    ============

See accompanying summary of accounting policies and notes to consolidated
 financial statements.



<PAGE>
Medical Advisory Systems, Inc.

Consolidated Balance Sheets




                                                   October 31,        July 31,
                                                          2000            2001
------------------------------------------------------------------------------



                                                     (Audited)     (Unaudited)


Liabilities and Stockholders' equity

Current
 Current maturities of long-term debt             $      3,719    $      3,990
 Current maturities of capital lease obligations        29,428          30,931
 Accounts payable and accrued expenses                 264,934         310,079
 Deferred income                                        21,699          20,279
                                                  ------------    ------------

Total current liabilities                              319,780         365,279


Long-term debt                                         126,661         123,631
Capital lease obligations                               68,424          45,128
                                                   -----------     -----------

Total liabilities                                      514,865         534,038
                                                   -----------     -----------

Commitments and contingencies


Stockholders' equity (Notes 3, 4 and 5)
 Common stock; $.005 par value; 10,000,000 shares
  authorized; 5,121,230 and 4,889,129 shares issued
  and outstanding                                       25,605          25,805
 Additional paid-in capital                         14,437,732      14,654,032
 Accumulated deficit                                (6,320,591)     (7,459,433)
 Treasury stock, at cost (50,000 shares)               (43,583)        (43,583)
                                                   -----------     -----------

Total stockholders' equity                           8,099,163       7,176,821
                                                   -----------     -----------


                                                   $ 8,614,028     $ 7,710,859
                                                   ===========     ===========

See accompanying summary of accounting policies and notes to consolidated
 financial statements.


<PAGE>
Medical Advisory Systems, Inc.

Consolidated Statements of Operation
                         (Unaudited)



Nine months ended July 31,                                2000            2001
------------------------------------------------------------------------------

Revenue:

24/7 medical response and assistance services      $ 1,846,541     $ 2,498,360
ASP and WEB hosting services                           336,000         515,122
Interactive medical information services             4,656,340         534,731
Pharmaceutical kits and equipment                      547,469         605,060
Other services                                         127,192          88,207
                                                   -----------     -----------

Total Revenue                                        7,513,542       4,241,480
                                                   -----------     -----------

Operating Expenses:

24/7 medical response and assistance services        1,182,377       1,847,994
ASP and WEB hosting services                            25,355         160,890
Interactive medical information services             4,257,840         430,542
Pharmaceutical kits and equipment                      367,060         380,589
Other services                                          89,654          73,405
Salaries and wages                                     929,044         849,244
Other selling, general and administrative (Note 4)   1,480,748       1,061,548
Depreciation & amortization                            329,999         635,408
                                                   -----------     -----------

Total Operating Expenses                             8,662,077       5,439,620
                                                   -----------     -----------

Operating loss                                      (1,148,535)     (1,198,140)


Other Income/(Expense):
Interest income                                         77,384          68,087
Other income                                             9,326          16,068
Interest expense                                       (17,359)        (24,857)
                                                   -----------     -----------

Total Other Income/(Expense)                            69,351          59,298
                                                   -----------     -----------


Net loss                                           $(1,079,184)    $(1,138,842)

                                                   ===========     ===========

Basic and diluted loss per share                       $ (0.23)        $ (0.22)

Weighted average shares outstanding                  4,760,286       5,153,464

See accompanying summary of accounting policies and notes to consolidated
financial statements.



<PAGE>
Medical Advisory Systems, Inc.

Consolidated Statements of Operation
                         (Unaudited)



Three months ended,                                       2000            2001
------------------------------------------------------------------------------

Revenue:

24/7 medical response and assistance services      $   772,117     $   734,939
ASP and WEB hosting services                           252,000             635
Interactive medical information services             1,145,388         153,087
Pharmaceutical kits and equipment                      237,835         216,951
Other services                                          72,226          44,846
                                                   -----------     -----------

Total Revenue                                        2,479,566       1,150,458
                                                   -----------     -----------

Operating Expenses:

24/7 medical response and assistance services          528,701         478,930
ASP and WEB hosting services                            22,528          52,983
Interactive medical information services             1,003,305         111,856
Pharmaceutical kits and equipment                      158,340         136,257
Other services                                          43,268          32,125
Salaries and wages                                     248,730         287,319
Other selling, general and administrative (Note 4)     369,124         302,893
Depreciation & amortization                            239,339         214,249
                                                   -----------     -----------

Total Operating Expenses                             2,613,335       1,616,612
                                                   -----------     -----------

Operating loss                                        (133,769)       (466,154)

Other Income/(Expense):
Interest income                                         45,551          16,511
Other income                                               663           8,878
Interest expense                                        (5,534)         (4,751)

                                                   -----------     -----------

Total Other Income/(Expense)                            40,680          20,638
                                                   -----------     -----------

Net loss                                           $   (93,089)    $  (445,516)
                                                   ===========     ===========


Basic and diluted loss per share                       $ (0.02)        $ (0.09)

Weighted average shares outstanding                  5,095,457       5,161,230




<PAGE>
Medical Advisory Systems, Inc.

Consolidated Statements of Cash Flows
                          (Unaudited)





Nine months ended July 31,                                2000            2001


Cash flows from operating activities:
 Net loss                                          $(1,079,184)    $(1,138,842)
 Adjustment to reconcile net loss
  to net cash used in operating activities:
  Depreciation and amortization                        329,999         635,408
  Provision for doubtful accounts                       22,500          28,458
  Compensation expense for options and warrants        785,975         129,834

Changes in assets and liabilities:
  Accounts receivable                                 (243,532)         90,012
  Inventory                                               (418)        (13,341)
  Prepaid expenses and other                           (32,833)         38,938
  Accounts payable and accrued expenses                 41,161          45,145
  Deferred income                                      (30,887)         (1,420)
                                                   -----------     -----------

Net cash used in operating activities                 (207,219)       (185,808)
                                                   -----------     -----------

Cash flows from investing activities:
  Purchase of property and equipment                  (397,711)       (427,251)
  Purchase of software                              (2,700,000)             -
  Investment in equity of affiliate                   (401,308)       (159,000)
                                                   -----------     -----------

Net cash used in investing activities               (3,499,019)       (586,251)

                                                   -----------     -----------

Cash flows from financing activities
  Proceeds from sales of common stock                5,775,000              -
  Repayment of loans to banks                          (23,163)        (24,552)
  Exercise of stock options                             22,500              -
                                                   -----------     -----------

Net cash provided by (used in) financing activities  5,774,337         (24,552)
                                                   -----------     -----------

  Net increase (decrease) in cash                    2,068,099        (796,611)

  Cash at beginning of period                          931,949       2,615,842
                                                   -----------     -----------

  Cash at end of the period                        $ 3,000,048     $ 1,819,231
                                                   ===========     ===========
See accompanying summary of accounting policies and notes to consolidated
financial statements.


<PAGE>
Medical Advisory Systems, Inc.

Summary of Accounting Policies


Basis of Presentation

The consolidated financial statements include the accounts of Medical
Advisory Systems, Inc. (MAS or the Company) and its wholly-owned
subsidiaries, MAS Laboratories, Inc., Doc-Talk, Inc., and TLC., Inc.
Significant intercompany transactions have been eliminated in
consolidation.



Effective November 1, 1998, the Company began using the equity
method of accounting for its investment in AmericasDoctor.com. The
Company determined that the equity method was appropriate based on a
combination of its strict ownership percentage, which increased from 8%
in October 1998 to 13.5% in April 1999, coupled with the ability to have
a representative on the board of directors. Under the equity method,
original investments are recorded at cost, increased for subsequent
investments in and advances to the investee, and adjusted for the
Company's share of undistributed earnings and losses of the investee.

The Company's ownership interest was reduced to 5.3% on October 31,
1999 and further reduced to 2.3% on January 6, 2000.  Effective
November 1, 1999, the Company discontinued using the equity method
to account for its investment in AmericasDoctor.com and began to use
the cost method.


In May 2000, the Company purchased a 12% ownership interest in
CICP, the holding company for CORIS Group International ("CORIS").
The Company accounts for this investment using the cost method (see
Note 2).



In December 2000, the Company purchased a 15% ownership interest in
Jaspin Interactive, Inc. ("Jaspin"). The Company accounts for this
investment using the cost method (see Note 2).



Business Operations

The Company provides interactive medical information services via
"chats" over the internet and telephone, provides medical advice to
personnel on ocean-going vessels and other individuals or entities
located outside the continental United States, provides clinical research
software and WEB hosting services via the Company's call center and
operates an out-patient medical clinic.  MAS Laboratories is currently
inactive. The Company provides these various services through four
operating segments as described more fully in Note 8.

<PAGE>
Risks and Uncertainties

The Company provides medical information and assistance services and
related products and services through various methods of distribution.  A
portion of the Company's revenues result from providing medical
information to the public via the internet under a contract with
AmericasDoctor.com.  AmericasDoctor.com has an exclusive contract
with America Online (AOL) to be an anchor tenant on the AOL Health
Page.  Certain AOL subscribers can "chat" with the Company's doctors
located in its call center, which is staffed 24-hours-a-day. The Company
has amended its contract with AmericasDoctor.com to allow it to market
its internet chat service to other foreign and domestic customers.  The
Company believes that the ability to market to new customers worldwide
could ultimately lead to significantly greater internet chat revenue.



During fiscal 2000, the Company negotiated new strategic alliances in
the 24/7 medical response and assistance and the application service
provider services segments.  The Company plans to develop new
products and services in fiscal 2001 which should, if successful, replace
the revenue lost after amendment of the AmericasDoctor.com agreement.




Use of Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions particularly regarding valuation of accounts receivable,
recognition of liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements. Actual results could
differ from those estimates.




Concentrations of Credit Risk

Financial instruments and related items which potentially subject the
Company to concentrations of credit risk consist primarily of cash and
cash equivalents and trade receivables. The Company places its cash and
temporary cash investments with high credit quality institutions. At
times, such investments may be in excess of the FDIC insurance limit.
The Company's customers are not concentrated geographically and it
periodically reviews its trade receivables in determining its allowance for
doubtful accounts. Revenues from AmericasDoctor.com, Inc. were
$522,430 and $4,650,886 or 12% and 62% of consolidated revenues for
the nine months ended July 31, 2001 and 2000, respectively.  Revenues
from AmericasDoctor.com, Inc. were $149,795 and $1,143,184 or 13%
and 46% of consolidated revenues for the three months ended July 31,
2001 and 2000, respectively.

<PAGE>
Cash Equivalents

For purposes of the statements of cash flows, the Company considers all
highly liquid debt instruments purchased with a maturity date of three
months or less to be cash equivalents.  The Company had temporary
investments of $1,730,000 on July 31, 2001.



Inventories

Inventories are stated at the lower of cost or market determined by the
first-in, first-out (FIFO) method. Inventories consist of pharmaceuticals
available for sale.



Property and Equipment

Property and equipment are stated at cost. Depreciation is computed over
their estimated useful lives by the straight line method (see Note 1).



Deferred Investment Advisory Costs

Deferred investment advisory and public relations costs consist of the
estimated fair value of warrants issued to certain third parties for public
and investor relations services to be rendered over one and two year
periods. These amounts are being amortized on a straight line basis over
the lives of the service agreements.



Purchased Software

The Company capitalizes the cost of purchased software which is ready
for service.  These direct costs are amortized using the straight-line
method over five years which does not exceed the expected life of the
software.  The Company regularly reviews the carrying value of the
software and a loss is recognized when the value of the estimated
undiscounted cash flow benefit related to the asset falls below the
unamortized cost.



Impairment of Long-Lived Assets

Long-lived assets and certain identifiable intangibles held and used by
the Company are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be
recoverable. In addition, assets to be disposed of are reported at the
lower of the carrying amount or the fair value less costs to sell.



Revenue Recognition

Revenues from contracts that provide unlimited services are recognized
ratably over the term of the contract. Revenues from contracts based on
usage are recognized when the services are rendered. Other revenues are
recognized at the time services or goods are provided.



<PAGE>
Income Taxes

The Company accounts for income taxes in accordance with Statement
of Financial Accounting Standards No. 109. Accounting for Income
Taxes ("SFAS 109"). Under SFAS 109, deferred taxes are determined
using the liability method which requires the recognition of deferred tax
assets and liabilities based on differences between financial statement
and income tax bases using presently enacted tax rates.



Stock Based Compensation

The Company accounts for stock based compensation using the intrinsic
value method prescribed in Accounting Principle Board Opinion No. 25,
"Accounting for Stock Issued to Employees." The Company has adopted
the disclosure-only provisions of Statement of Financial Accounting
Standards No. 123, "Accounting for Stock Based Compensation" with
respect to options and warrants granted to employees.



Earnings Per Share

The Company follows Statement of Financial Accounting Standards No.
128, "Earnings Per Share," specifying the computation, presentation and
disclosure requirements of earnings per share information. Basic
earnings per share has been calculated based upon the weighted average
number of common shares outstanding. Stock options and warrants have
been excluded as common stock equivalents in the diluted earnings per
share because they are antidilutive.




Comprehensive Income

Statement of Financial Accounting Standards No. 130, "Reporting
Comprehensive Income" ("SFAS 130"), establishes standards for
reporting and display of comprehensive income, its components and
accumulated balances. Comprehensive income is defined to include all
changes in equity except those resulting from investments by owners and
distributions to owners. Among other disclosures, SFAS 130 requires
that all items that are required to be recognized under current accounting
standards as components of comprehensive income be reported in a
financial statement that is displayed with the same prominence as other
financial statements. The Company adopted SFAS 130 during the first
quarter of fiscal 1999 and has no items of comprehensive income to
report.

<PAGE>
Recent Accounting Pronouncements

In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 133, "Accounting for
Derivative Instruments" ("SFAS 133"). SFAS 133 establishes accounting
and reporting standards for derivative instruments and for hedging
activities. SFAS 133 requires that an entity recognize all derivatives as
either assets or liabilities and measure those instruments at fair market
value. Under certain circumstances, a portion of the derivative's gain or
loss is initially reported as a component of other comprehensive income
and subsequently reclassified into income when the transaction affects
earnings. For a derivative not designated as a hedging instrument, the
gain or loss is recognized in income in the period of change. SFAS 133
is effective for all fiscal quarters beginning after June 15, 2000 and
requires application prospectively. Presently, the Company does not use
derivative instruments either in hedging activities or as investments.
Accordingly, the adoption of SFAS 133 had no impact on its financial
position or results of operations.


In March 2000, the FASB issued interpretation No. 44 ("FIN 44"),
"Accounting for Certain Transactions Involving Stock Compensation, an
Interpretation of APB Opinion No. 25" FIN 44 clarifies the application
of APB No. 25.  FIN 44 clarifies the application of APB No. 25 for (a)
the definition of employee for purposes of applying APB No. 25, (b) the
criteria for determining whether a plan qualifies as a noncompensatory
plan, (c) the accounting consequences of various modifications to
previously fixed stock option or award, and (d) the accounting for an
exchange of stock compensation awards in a business combination.  FIN
44 is effective July 2, 2000 but certain conclusions cover specific events
that occur after either December 15, 1998 or January 12, 2000.  The
adoption of FIN 44 did not have an affect on the Company's financial
statements but may impact the accounting for grants or awards in future
periods.


In December 1999, the Securities and Exchange Commission ("SEC")
issued Staff Accounting Bulletin No. 101 which summarizes certain of
the SEC staff's views in applying generally accepted accounting
principles to revenue recognition in financial statements.  The staff
Accounting Bulletin is effective for the fiscal year beginning November
1, 2000.  The initial adoption of this guidance is not anticipated to have a
material impact on the Company's results of operations or financial
position, however, the guidance may impact the way in which the
company will account for future transactions.


<PAGE>
In July 2001, the FASB issued Statement of Financial Standards No.
142, "Accounting for Goodwill" ("SFAS 142"). SFAS 142 establishes
accounting standards for existing goodwill related to purchase business
combinations.  Under the Statement, the Company would discontinue the
periodic amortization of goodwill effective with adoption of the new
Statement.  Also, the Company would have to test any remaining
goodwill for possible impairment within six months of adopting the
Statement, and periodically thereafter, based on new valuation criteria
set forth in the Statement.  Further, the Statement has new criteria for
purchase price allocation.  The Statement becomes effective January 1,
2002.  The Company believes that adoption of the new Statement will
have no impact on the financial statements.



Reclassifications

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

<PAGE>
Medical Advisory Systems, Inc.

Notes to Consolidated Financial Statements


1. Property and Equipment


    Property and equipment consists of the following:


                                       October 31,     July 31,   Estimated
                                              2000         2001   Useful lives
    --------------------------------------------------------------------------

    Land                                $   65,078   $   65,078
    Buildings and improvement              955,802    1,630,535   10-20 years
    Furniture, fixtures and equipment    1,212,782    1,249,285     3-5 years
    Construction in progress               374,984           -       20 years
                                        ----------   ----------

                                         2,608,646    2,944,898


    Less: Accumulated depreciation
           and amortization                987,799    1,191,458
                                        ----------   ----------

                                        $1,620,847   $1,753,440
                                        ==========   ==========



2. Investment in Affiliates

    Investment in affiliates consists of the following:


                                             October 31,         July 31,
                                                    2000             2001
    --------------------------------------------------------------------------



    AmericasDoctor.com                       $   639,171      $   639,171
    CORIS                                        513,750          513,750
    Jaspin Interactive                                -           309,000
                                             -----------      -----------

                                             $ 1,152,921      $ 1,461,921
                                             ===========      ===========





     The Company's remaining investment in AmericasDoctor.com
     represents goodwill which has been assigned a five-year life. On October
     31, 1999, the Company's ownership interest was reduced to 5.3% and
     further reduced to 2.3% on January 6, 2000. Effective November 1,
     1999, the Company began to account for its investment using the cost
     method.


<PAGE>
     In May 2000, the Company purchased 12% of the outstanding common
     stock of CORIS of Paris, France for $400,000 in cash and 10,000 shares
     of its common stock with a fair value of $113,750 for a total investment
     of $513,750.  CORIS provides medical and non-medical travel assistance
     and insurance claims services to the travel industry and insurance clients
     through an independent network of 24-hour call centers in 37 countries.
     The investment agreement with CORIS calls for the development of
     international internet medical "chat" services and foreign language chat
     services in the U.S, using CORIS 24-hour call centers to provide
     infrastructure and personnel.  It also calls for CORIS to serve as the
     international arm of MAS' application service provider ("ASP")
     operations.  This investment has been accounted for using the cost
     method.



     In December 2000, the Company purchased a 15% ownership interest in
     Jaspin Interactive, Inc., ("Jaspin") a privately held company in Dulles,
     Virginia.  The Company paid $159,000 and issued 40,000 shares of the
     Company's common stock with a fair value of $150,000 for a total
     investment of $309,000 in exchange for shares of Jaspin.  Jaspin is an
     Internet and Online business solutions provider and software
     development company.




3. Related Party Transactions

Hall & Associates, P.A., Hall & AmDoc, Associates, P.A., and Hall &
DocTalk, Associates, P.A., which are owned by the Company's Chief
Executive Officer, Thomas M. Hall, M.D., provide medical professional
services to MAS. Amounts paid to these companies represent fees for
professional services rendered and premiums on professional liability
insurance. During the nine months ended July 31, 2001 and 2000, the
Company paid Hall & Associates, P.A., Hall & AmDoc, Associates, P.A.
and Hall & DocTalk, Associates, P.A., a combined total of $557,279 and
$3,544,052 respectively, in fees and professional liability insurance
premiums. The amounts payable to these affiliates at July 31, 2001 and
2000, were $24,156 and $143,202, respectively.



During 2000 the Company began construction of a new technology
facility (See Note 1).  The Company entered into an agreement with a
contractor, whose owners are related to the Company's President and
Chairman of the Board, to develop and construct the building.  The
amount of the contract, together with approved change orders was
approximately $670,000 which management believes approximates the
market value for the services rendered.

<PAGE>
4. Stockholder's Equity

In February 2001, the Company announced completion of Digital Angel
Corporation's purchase of a 16.6% interest in Medical Advisory Systems
from certain members of senior management.  In addition, the Company
expanded the Board of Directors from five to seven members.  Applied
Digital Solutions, Inc., parent company of Digital Angel Corporation,
has the authority to name four of the seven directors which give it
effective control of the Company.  The Company expects to generate
revenue for its ASP segment through an agreement with Digital Angel
Corporation in which it would provide a facility for management of
sensitive data and a full-time physician-staffed medical call center for
use by Digital Angel Corporation's customers and end-patients.  Applied
Digital Solutions is a publicly held information and solutions company
headquartered in Palm Beach, Florida.


In January 2000, the Company issued 95,180 shares of common stock in
connection with the exercise of previously recorded warrants issued to
third parties.  In December 2000, the Company issued 40,000 shares of
common stock as part of the purchase price for a 15% interest in a
privately-held company (see Note 2).



5. Stock Warrants

In May 2000, the Company issued 75,000 warrants to purchase its
common stock to an investment banking firm as consideration for
providing investment advisory services for two years. The holder of the
warrants may purchase 75,000 common shares at $10.50 per share,
subject to adjustment as specified in the warrant agreement, for up to one
year. There are no vesting requirements associated with these warrants.
The Company determined the estimated aggregate fair value of these
warrants on the date of grant to be $272,336 based on the Black-Scholes
valuation model. The Company recorded the $272,336 as deferred
investment advisory fees and is amortizing this cost to expenses over 24
months, the term of the agreement.



In March 2001, the Company issued 35,000 options to purchase its
common stock to an outside consulting firm as consideration for
providing marketing services for one year.  The holder of the warrants
may purchase 35,000 common shares at $3.90 per share.  These options
vest ratably over a three year period.  The Company determined the
estimated aggregate fair value of the options on the date of grant to be
$66,500 based on the Black-Scholes valuation model.  The Company
recorded the $66,500 as deferred investment advisory fees and is
amortizing this cost to expense over 12 months, the term of the
agreement.

<PAGE>
6. Stock Options

The Company has a nonqualified stock option plan to provide key employees
and non-employees the opportunity to participate in equity ownership.
Options may be granted at or below the fair market value of the stock and
have a five-year life (increased to ten years in December 1999). Options
granted to certain individuals vest ratably over three or four years. The
Company has reserved 1,000,000 common shares for exercise of these stock
options.



The following table summarizes the changes in options outstanding and the
related prices for the shares of the Company's common stock issued to key
employees of the Company for the nine months ended July 31, 2001:



                                                                     Exercise
                                                 Numbers of          Price Per
                                                 Shares                Share
         --------------------------------------------------------------------

         Options outstanding October 31,
         2000                                       419,820   $0.50 to $10.00

         Options granted                            819,000   $ 3.63 to $4.15

         Options exercised                               -                -
                                                  ---------   ---------------

         Options outstanding July 31, 2001        1,238,820   $0.50 to $10.00
                                                  ---------   ---------------

         Weighted average price of options
          outstanding                                                   $4.05
                                                                        -----



For SFAS No. 123 purposes, the weighted average fair value of each
option granted has been estimated as of the date of grant using the Black-
Scholes option pricing model with the following weighted average
assumptions: risk-free interest rate of 5.44%, expected volatility of 68%,
an expected option life of 3 years and a dividend payout rate of zero.
Using these assumptions, the weighted average fair value of stock options
granted is $1.96 for the period ended July 31, 2001.  There were no
adjustments made in calculating the fair value to account vesting
provisions or for non-transferability of risk of forfeiture.


<PAGE>
If the Company had elected to recognize compensation based on the fair
value at the grant dates for options issued under the plan described above,
consistent with the method prescribed by SFAS No. 123, net income (loss)
applicable to common shareholders and earning (loss) per share would
have been changed to the pro forma amounts indicated below:

   Nine months ended July 31,                       2000              2001
   --------------------------------------------------------------------------

   Net income (loss) applicable to
     common shareholders:
   as reported                               $(1,079,184)      $(1,138,842)
   pro forma                                 $(1,135,224)      $(1,234,394)

   Basic and diluted earnings (loss)
     per share:
     as reported                             $     (0.23)      $     (0.22)
     as pro forma                            $     (0.24)      $     (0.24)


7. Income Taxes

The Company has estimated its annual effective tax rate at 0% due to the
uncertainty over the level of earnings in 2001. Also, the Company has
net operating loss carryforwards of approximately $1.0 million for
income tax reporting purposes for which no income tax benefit has been
recorded due to the uncertainty over the generation of taxable income in
2001.


8. Operating Segments

The Company has four operating segments: Interactive medical
information services, 24/7 medical response and assistance services,
Pharmaceutical kits and equipment and ASP and WEB hosting services.
The Interactive medical information services segment provides 24 hour a
day medical information to the public via the internet as well as via the
telephone to individuals, groups and associations.  The 24/7 medical
response and assistance services segment provides medical advice to
ocean-going vessels and medical travel assistance services to multi-
national corporations, the international travel industry and health
maintenance organizations.  The Pharmaceutical kits and equipment
segment provides customized pharmaceutical and medical supply kits to
the maritime and aviation industries.  The ASP and WEB hosting
services segment allows the Company to function as an application
service provider for a clinical software research provider and to provide
other WEB hosting services.  In 2000, the Company changed its business
<PAGE>
to offer both Interactive Internet chats and telephone chats to the same
customer base using the same physicians.  Accordingly, the Company
views this as one segment and has reclassified prior year amounts to be
comparable with the current periods.  The Company evaluates
performance based on the operating results of the respective segments.
The accounting policies of the segments are the same as those described
in the summary of accounting policies.

Nine months ended                                    Segment             Total
July 31, 2001                          Revenues      Profit(loss)       Assets
------------------------------------------------------------------------------

24/7 medical response &
   assistance services               $2,498,360      $   650,366    $1,224,267
ASP & WEB                               515,122          354,232     2,385,780
Interactive medical information
   services                             534,731          104,189     1,454,911
Pharmaceutical kits and
   equipment                            605,060          224,471       158,565
Other services                           88,207           14,802        13,015
Unallocated corporate
   expenses                                  -        (2,546,200)           -
Unallocated assets                           -                -      2,474,321
                                     ----------      -----------    ----------

                                     $4,241,480      $(1,198,140)   $7,710,859
                                     ==========      ===========    ==========


Nine months ended                                    Segment             Total
July 31, 2000                          Revenues      Profit(loss)       Assets
------------------------------------------------------------------------------

24/7 medical response &
  assistance services                $1,846,541      $   664,164    $  740,767
ASP & WEB                               336,000          310,645     3,119,058
Interactive medical information
  services                            4,656,340          398,500     1,468,058
Pharmaceutical kits and
  equipment                             547,469          180,409       100,785
Other services                          127,192           37,538         9,101
Unallocated corporate
  expenses                                   -        (2,739,791)           -
Unallocated assets                           -                -      3,519,145
                                     ----------      -----------    ----------

                                     $7,513,542      $(1,148,535)   $8,956,914
                                     ==========      ===========    ==========

<PAGE>
Three months ended                                       Segment         Total
July 31, 2001                          Revenues      Profit(loss)       Assets
------------------------------------------------------------------------------

24/7 medical response &
  assistance services               $   734,939      $   256,009   $ 1,224,267
ASP & WEB                                   635          (52,348)    2,385,780
Interactive medical information
  services                              153,087           41,231     1,454,911
Pharmaceutical kits and
  equipment                             216,951           80,694       158,565
Other services                           44,846           12,721        13,015
Unallocated corporate
  expenses                                   -          (804,461)           -
Unallocated assets                           -                -      2,474,321
                                    -----------      -----------   -----------

                                    $ 1,150,458      $  (446,154)  $ 7,710,859
                                    ===========      ===========   ===========

Three months ended                                       Segment         Total
July 31, 2000                          Revenues      Profit(loss)       Assets
------------------------------------------------------------------------------

24/7 medical response &
  assistance services               $   772,117      $   243,416   $   740,767
ASP & WEB                               252,000          229,472     3,119,058
Interactive medical information
  services                            1,145,388          142,083     1,468,058
Pharmaceutical kits and
  equipment                             237,835           79,495       100,785
Other services                           72,226           28,958         9,101
Unallocated corporate
  expenses                                   -          (857,193)           -
Unallocated assets                           -                -      3,519,145
                                    ----------       -----------   -----------

                                   $ 2,479,566       $  (133,769)  $ 8,956,914
                                   ===========       ===========   ===========

<PAGE>
Medical Advisory Systems, Inc.

Management's Discussion and Analysis of Financial Condition and Results of
Operation
------------------------------------------------------------------------------
Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operation

Forward-Looking Information

The Private Securities Litigation Reform Act of 1995 provides
"safe harbor" for certain forward-looking statements made by the
Company in its disclosures to the public. There is certain
information contained herein, in the Company's press releases and
in oral statements made by authorized officers of the Company
that are forward-looking statements as defined by such Act. When
used herein in the Company's press releases and in such oral
statements, the words "estimate", "project", "anticipate",
"expect", "intend", "believe", "plan", and similar expressions are
intended to identify forward-looking statements.

The following selected financial data and Management's
Discussion and Analysis of Financial Condition and Results of
Operations should be read in conjunction with the Company's
interim financial statements and notes thereto, included elsewhere
in this Form 10QSB.

In fiscal 2000, the Company took steps to diversify the sources of
revenue to reduce its dependence on the interactive medical
information segment as its primary generator of revenue.  The
Company continues to explore strategic alliances and investments
in entities that can maximize the profitability of its 24/7
physician-staffed medical call center and the recently completed
ASP facility.  The current status of this diversification effort is set
forth below.

In February 2001, Digital Angel Corporation, a wholly owned
subsidiary of Applied Digital Solutions, Inc. purchased a 16.5%
interest in the Company from certain members of senior
management.  In conjunction with this transaction, the Company
has expanded the number of members to its Board from five to
seven.  Two members of the previous board resigned, and new
members Mercedes Walton (replaced by Richard Sullivan in
April 2001), David A. Loppert (replaced by Scott Silverman in
July 2001), Dr. Richard Seelig and Dr. Paul Sanberg were named.
Through this transaction Digital Angel Corporation will have to
the possibility of using the Company's secure, FDA-compliant
ASP computer facility for management of sensitive data and a
24/7 physician-staffed medical call center for use by its customers
and product end-users.  At this time the Company and Digital
Angel Corporation are developing various business and revenue
models for the on-going development and launch of a joint
product offering.

In December 2000, the Company purchased 15% of the issued
and outstanding common shares of Jaspin Interactive, Inc.
(Jaspin).  Jaspin is a software and web development company
headquartered in Dulles, Virginia.  The purchase price of the
shares was $159,000 and 40,000 restricted shares of the
Company's common stock.  The alliance provides the Company
with the right to use Jaspin's proprietary ChatCentre and
RoomCentre software, including upgrades and support.  The
Company uses this software to support the medical and
informational chat services it provides.   As of September 10,
2001, the Company has not executed any new agreements with
Jaspin nor has this alliance generated any revenue or expense for
the nine months ended July 31, 2001.
<PAGE>

In October 2000, the Company announced plans for a new
strategic relationship with drkoop.com, Inc., a leading Internet
health network that provides e-health solutions for business and
individual customers worldwide. As part of this relationship the
Company and drkoop.com, Inc. will jointly develop and promote
products and services.  The goal of this relationship is to leverage
the primary assets of both companies, adding new lines of
services to the drkoop.com network and increasing potential
revenue streams for both companies.  The Company and
drkoop.com are working to finalize an agreement to provide these
new products and services As of September 10, 2001 there has
been no change in the relationship between drkoop.com. and
Medical Advisory Systems, Inc.
On September 6, 2001 the Company announced that a new
traveler assistance and insurance service, Travelers Angel
Protection Plan, is expected to be launched by the Company on or
before October 01, 2001.  This program is being brought to the
public by Travelers Angel Assistance, Inc. a wholly owned
subsidiary of Medical Advisory Systems, Inc.  The Travelers
Angel Protection Plan product has a number of protection and
assistance benefits which are beneficial to both U.S. travelers and
travel agents alike.  These include some of the following benefits:
trip cancellation/interruption insurance, air flight accident
insurance, baggage loss insurance, 24/7 telephone access to U.S.
licensed physicians, and many more.  The insurance component
of the product is being underwritten by an unrelated third party
insurance company.  Initially the product will be marketed by an
existing network of travel agents.  The Company also expects to
generate sales via the internet sometime in fiscal 2002.  The
Company does not expect to have any significant revenues from
the Travelers Angel Protection Plan product in the fourth quarter
of 2001.

NET LOSS

The Company's net loss for the first nine months of FY 2001 was
$1,138,842 compared to a net loss of $1,079,184 for the
comparable period in FY 2000. The net loss for the three months
ended July 31, 2001 was $445,516 compared to a net loss of
$93,089 during the same period of fiscal 2000.  The increase in
the net loss for the nine months ended July 31, 2001is due
primarily to an increase in amortization expense related to new
hardware and software associated with the ASP/WEB Hosting
segment and a reduction in the operating profit generated by the
Interactive medical services segment offset by a reduction in
salaries and wages and other selling, general and administrative
expenses.  The increase in the net loss for the three months ended
July 31, 2001 is attributed primarily to a significant decline in the
revenue and related operating income generated from the
ASP/WEB Hosting segment and a reduction in the operating
profit generated by the Interactive Medical Services segment.

<PAGE>
24/7 MEDICAL RESPONSE AND ASSISTANCE SERVICES

Revenues in the first nine months increased by 35% from
$1,846,541 in the first nine months of 2000 to $2,498,360 for the
same period in fiscal 2001.  Operating expenses increased 56%
from $1,182,377 in the first nine months of 2000 to $1,847,994 in
the first nine months of 2001. Operating income decreased from
$664,164 in the first nine months of 2000 to $650,366 in the first
nine months of 2001.  The 2% decline in operating income was
due to an increase in general operating expenses.  The third
quarter revenues decreased 5% from $772,117 in 2000 to
$734,939 in fiscal 2001.  Operating expenses decreased by 9%
during the third quarter of 2001 from $528,701 in 2000 to
$478,930 in 2001.  Operating income increased 5% from
$243,416 in the third quarter of 2000 to $256,009 in the third
quarter of 2001.  This increase in operating income is attributed to
a reduction in maritime revenues offset by an increase in revenue
from assistance services.

ASP and WEB HOSTING SERVICES

ASP and WEB Hosting Services had revenues for the first nine
months of 2001 of $515,122, operating expenses of $160,890 and
operating income of $354,232.  This program began in April 2000
and provided revenues of $336,000, operating expenses of
$25,355 and operating income of $310,645 in the first four
months of its operations. The third quarter revenues decreased
99% from $252,000 in 2000 to $635 in fiscal 2001.  Operating
expenses increased by 135% during the third quarter of 2001
from $22,528 in 2000 to $52,983 in 2001.  Operating income
decreased 123% from $229,472 in the third quarter of 2000 to a
loss of $52,348 in the third quarter of 2001.  This loss is
attributed to a decrease in service revenue from eResearch
Technology (eRT), the primary customer for this service.  eRT
has informed MAS that they have no customers requiring this
service, and therefore they have discontinued monthly payment of
a service fee to support the Company's readiness to provide this
service.  Accordingly, the Company did not recognize any
revenue from eRT in the third quarter of 2001 and does not
expect to recognize any such revenue in the fourth quarter of
2001.  The decline in fourth quarter revenue and operating
income is estimated to be approximately $252,000 and $200,000
respectively.  Meanwhile, Management has taken steps to reduce
operating expense related to this program and is marketing
hosting services to other customers.

Due to the significant decline in cash flow related to the ASP
software intangible, there is the potential for an impairment
charge in the fourth quarter related to the carrying value of this
asset.  While the Company believes that eRT has a contractual
obligation to pay monthly service fees under an existing contract,
there can be no assurance that eRT will resume such payments.
Presently, the Company is exploring other alternatives for
generating cash flow from the sub-license of this software to
other entities.
<PAGE>
In February 2001, the Company began to offer its ASP and WEB
Hosting services to markets outside of the United States.  In late
February 2001, the Company signed an agreement with its first
international ASP client.  This agreement, signed with a leading
provider of clinical psychology and employee assistance services
to the French market, is to provide web development and Internet
Chat ASP services.  Under this agreement, the Company will
provide the client with 24-hour access to the chat application
software housed on servers in the Company's ASP hosting center
in Owings, Maryland.


INTERACTIVE MEDICAL INFORMATION SERVICES

Revenues decreased 89% from $4,656,340 in the first nine
months of 2000 to $534,731 in the first nine months of 2001.
Operating expenses decreased 90% from $4,257,840 in the first
nine months of 2000 to $430,542 in the first nine months of 2001.
Operating income decreased 74% from $398,500 in the first nine
months of 2000 to $104,189 in the first nine months of 2001.  The
third quarter revenues decreased by 87% from $1,145,388 in
2000 to $153,087 in 2001. Operating expenses decreased by 89%
during the third quarter of 2001 from $1,003,305 in 2000 to
$111,856 in 2001.  Operating income decreased 71% for the third
quarter from $142,083 in 2000 to $41,231 in 2001.The decline in
Interactive Medical Information Services is due primarily to the
reduction in the volume of real time internet chats owing to the
elimination, by AmericasDoctor.com, of unlimited, free to the
consumer access to the chat feature of the AmericasDoctor.com
website.  Further, in September 2000, the Company and
Americasdoctor.com amended their Call Center Service
Agreement.  Under the amended agreement, MAS earns revenue
based on a fixed fee per Internet chat plus a monthly access fee
compared to a cost plus 20% fee for Internet chats under the
previous agreement.  Additionally, as part of the amended Call
Center Agreement, the Company has negotiated better placement
of the Doc-Talk service link on the AmericasDoctor.com website
and a release from the exclusivity restrictions of the original
agreement.  With this release the Company is now afforded the
opportunity to pursue offering real-time, physician-based, Internet
chat domestically to any customer.
<PAGE>
In an effort to offset the decrease in operating income from this
segment, MAS has significantly reduced operating expenses and
consolidated personnel resources, including physicians, from the
real time interactive chat and Doc-Talk programs.  These two
programs, now merged as one, are known as Interactive Medical
Information Services.

At this time Medical Advisory Systems, Inc. expects the current
Interactive Medical Information Services revenue stream and
associated costs to remain constant at the present level.

PHARMACEUTICAL KITS AND SERVICES

Revenues increased $57,591 or 11% from $547,469 in the first
nine months of 2000 to $605,060 in the first nine months of 2001.
Operating expenses increased by $13,529 or 4% from $367,060
in the first nine months of 2000 to $380,589 in the first nine
months of 2001.  Operating income increased by 24% or $44,062
from $180,409 in fiscal 2000 to $224,471 in fiscal 2001.  The
third quarter revenues decreased by 9% from $237,835 in 2000 to
$216,951 in 2001. Operating expenses decreased by 14% during
the third quarter of 2001 from $158,340 in 2000 to $136,257 in
2001.  Operating income increased by 1% for the third quarter
from $79,495 in 2000 to $80,694 in 2001.  The pharmaceutical
distribution program began operating out of a new facility in early
January 2001.  Utilization of the new space has added to the
efficiencies of this division and has increased the amount of
product shipped from this facility.


OTHER

Revenues from other health-related services, which consist of the
medical responder training programs and the medical clinic,
decreased 31% from $127,192 in the first nine months of 2000 to
$88,207 in the first nine months of 2001.  Expenses decreased by
18% from $89,654 in the first nine months of 2000 to $73,405 in
the first nine months of 2001. Operating income decreased 61%
from $37,538 in the first nine of 2000 to $14,802 in the first nine
months of 2001.  The third quarter revenues decreased by 38%
from $72,226 in 2000 to $44,846 in 2001.  Operating expenses
decreased by 26% during the third quarter of 2001 from $43,268
in 2000 to $32,125 in 2001.  Operating income decreased by 56%
for the third quarter from a profit of $28,958 in 2000 to $12,721
<PAGE>
in 2001.  The reduction in training activities over the past 19
months is the result of regulatory changes promulgated by the
United States Coast Guard (USCG) pertaining to the training of
seafarers.  These regulatory changes resulted in a complete re-
write and re-submission for approval by the USCG of all medical
training courses to be conducted for seafarers.  Preferring to wait
for a USCG approved course, most customers postponed planned
training programs during this submission process.  Operating
income for this segment will exceed the forth quarter of 2000 as a
result of the recent approval by the United States Coast Guard of
the Company's expanded "Response to Illness and Injury at Sea"
training course.

SALARIES AND WAGES

Salaries and wages decreased $79,800 or 9% from $929,044 in
the first nine months of 2000 to $849,244 in the first nine months
of 2001.  Expenses for the third quarter increased by 16% from
$248,730 in 2000 to $287,319 in 2001.  The decrease in the nine
months ended July 31, 2001 is attributed to the reduction of key
Doc-Talk personnel.  The increase in the three months ended July
31, 2001 is due to regular and ordinary increases in compensation
levels of existing personnel.

SELLING, GENERAL AND ADMINISTRATIVE

Selling, general and administrative expenses decreased 28% from
$1,480,748 in the first nine months of 2000 to $1,061,548 in the
first nine months of 2001. During the third quarter of 2001 the
expenses were reduced $66,231 from 369,124 in 2000 to 302,893
in 2001. The decrease is due primarily to a reduction in non-cash
compensation expense related to options and warrants issued to
third parties in exchange for services and the success of an
ongoing cost reduction program.
<PAGE>
DEPRECIATION AND AMORTIZATION

Depreciation and amortization increased from $329,999 in the
first nine months of 2000 to $635,408 in the first nine months of
2001, an increase of 93%.  Third quarter expenses were $239,339
in 2000 and $214,249 in 2001, a decrease of 10%.  The increase
in the nine-month comparison is due primarily to the amortization
of new software and hardware purchases related to the company's
ASP and Web Hosting Service.

INCOME TAX BENEFIT/EXPENSE

The Company did not record an income tax provision or benefit
for the nine months ended July 31, 2000 and 2001 due to the net
loss for the periods.  The Company has provided a valuation
allowance related to the deferred tax asset represented by the net
operating losses due to the uncertainty surrounding the amount of
taxable income to be generated in fiscal 2001.

LIQUIDITY AND CAPITAL RESOURCES

Cash used in operating activities totaled $185,808 in the first nine
months of fiscal 2001 compared to cash used in operations of
$207,219 in the first nine months of 2000.  This improvement in
cash used in operating activities is due to a reduction in non-cash
compensation expense for options and warrants offset by
increased depreciation and amortization and more efficient
management of accounts payable and trade receivables.

Cash used by investing activities relates to capital expenditures
for construction of the new building, as well as the investment in
Jaspin completed in December 2000.

Cash used in financing activities in 2001 of $24,552 related to the
repayment of debt.  Cash provided by financing in 2000 of
$5,774,337 consisted primarily of proceeds from the sale of
common stock reduced by repayment of debt.

The Company currently has a $500,000 credit agreement with a
local financial institution.  As of July 31, 2001 there is no
outstanding balance.  The agreement expires on October 31,
2001.

The Company has a strong cash position as of July 31, 2001 and
relatively little debt.  Management believes the Company's cash
flow from operations will continue to improve throughout fiscal
2001 as it works to diversify its sources of operating revenue.
<PAGE>
RECENT ACCOUNTING PRONOUNCEMENTS

In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 133,
"Accounting for Derivative Instruments" ("SFAS 133"). SFAS
133 establishes accounting and reporting standards for derivative
instruments and for hedging activities. SFAS 133 requires that an
entity recognize all derivatives as either assets or liabilities and
measure those instruments at fair market value. Under certain
circumstances, a portion of the derivative's gain or loss is initially
reported as a component of other comprehensive income and
subsequently reclassified into income when the transaction affects
earnings. For a derivative not designated as a hedging instrument,
the gain or loss is recognized in income in the period of change.
SFAS 133 is effective for all fiscal quarters beginning after June
15, 2000 and requires application prospectively. Presently, the
Company does not use derivative instruments either in hedging
activities or as investments. Accordingly, the Company believes
that adoption of SFAS 133 will have no impact on its financial
position or results of operations.

In March 2000, the FASB issued interpretation No. 44 ("FIN
44"), "Accounting for Certain Transactions Involving Stock
Compensation, an Interpretation of APB Opinion No. 25" FIN 44
clarifies the application of APB No. 25.  FIN 44 clarifies the
application of APB No. 25 for (a) the definition of employee for
purposes of applying APB No. 25, (b) the criteria for determining
whether a plan qualifies as a noncompensatory plan, (c) the
accounting consequences of various modifications to previously
fixed stock option or award, and (d) the accounting for an
exchange of stock compensation awards in a business
combination.  FIN 44 did not have an affect on the Company's
financial statements but may impact the accounting for grants or
awards in future periods.

In December 1999, the Securities and Exchange Commission
("SEC") issued Staff Accounting Bulletin No. 101 that
summarizes certain of the SEC staff's views in applying generally
accepted accounting principles to revenue recognition in financial
statements.  The staff Accounting Bulletin is effective for the
fiscal year beginning November 1, 2000.  The initial adoption of
this guidance is not anticipated to have a material impact on the
Company's results of operations or financial position; however,
the guidance may impact the way in which the Company will
account for future transactions.
<PAGE>
In July 2001, the FASB issued Statement of Financial Standards
No. 142, "Accounting for Goodwill" ("SFAS 142"). SFAS 142
establishes accounting standards for existing goodwill related to
purchase business combinations.  Under the Statement, the
Company would discontinue the periodic amortization of
goodwill effective with adoption of the new Statement.  Also, the
Company would have to test any remaining goodwill for possible
impairment within six months of adopting the Statement, and
periodically thereafter, based on new valuation criteria set forth in
the Statement.  Further, the Statement has new criteria for
purchase price allocation.  The Statement becomes effective
January 1, 2002.  The Company believes that adoption of the new
Statement will have no impact on the financial statements.



<PAGE>
Part II - OTHER INFORMATION

Item 1. Legal Proceedings
	NONE
Item 2. Changes in Securities
NONE
Item 3.  Defaults from Senior Securities
	NONE
Item 4. Submission of Matters to a Vote of Security Holders.
	NONE
Item 5.  Other Information
	NONE
Item 6 Exhibits
	NONE




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.

MEDICAL ADVISORY
SYSTEMS, INC.
					  Registrant

Date: 09/14/2001________		By: /s/ Dale L. Hutchins, Ph.D.
                                        ------------------------------

                                        Dale L. Hutchins, Ph.D.
                                        Executive Vice President/
                                        Chief Operating Officer