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 April 30, 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
  incorporation or organization)                   Identification No.)

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: $1,466,479.


Common Stock, $.005 par value    5,161,230 Shares of Common Stock Outstanding
                                           as of April 30, 2001




Part 1:  Financial Information
Item 1:  Financial Statements


MEDICAL ADVISORY SYSTEMS, INC.


Consolidated Balance Sheet




                                               October 31,          April 30,
                                                      2000               2001
                                                 (Audited)         (Unaudited)

Assets

Current
  Cash and cash equivalents                    $ 2,615,842         $ 1,951,625
  Accounts receivable, less allowance
    for doubtful accounts of $115,542
    and $120,000                                   482,202             380,126
  Inventories                                       46,526              65,788
  Prepaid expenses and other                        20,189               1,308
                                               -----------         -----------

Total current assets                             3,164,759           2,398,847


Property and equipment, at cost, less
  accumulated depreciation and amortization
  (Note 1)                                       1,620,847           1,820,714

Purchased software, at cost, less accumulated
  amortization of $317,123 and $457,083          2,408,353           2,268,393

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

Deferred investment advisory costs (Note 4)        209,926             141,842

Intangible assets, net                              57,222              37,949
                                               -----------         -----------


                                               $ 8,614,028         $ 8,129,666
                                               ===========         ===========



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





MEDICAL ADVISORY SYSTEMS, INC.


Consolidated Balance Sheet




                                               October 31,          April 30,
                                                      2000               2001
                                                 (Audited)         (Unaudited)



Liabilities and Stockholders' equity


Current
  Current maturities of long-term debt         $     3,719         $     3,907
  Current maturities of capital lease
    obligations                                     29,428              30,170
  Accounts payable and accrued expenses            264,934             345,810
  Deferred income                                   21,699              15,955
                                               -----------         -----------


Total current liabilities                          319,780             395,842
                                               -----------         -----------


Long-term debt                                     126,661             124,653
Capital lease obligations                           68,424              53,334
                                               -----------         -----------


Total liabilities                                  514,865             573,829
                                               -----------         -----------



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          14,587,532
  Accumulated deficit                           (6,320,591)         (7,013,917)
  Treasury stock, at cost (50,000 shares)          (43,583)            (43,583)
                                               -----------         -----------


Total stockholders' equity                       8,099,163           7,555,837
                                               -----------         -----------


                                               $ 8,614,028         $ 8,129,666
                                               ===========         ===========


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




MEDICAL ADVISORY SYSTEMS, INC.


Consolidated Statements of Operations
                          (Unaudited)



Six months ended April 30,                               2000             2001


Revenue:

24/7 medical response and assistance services     $ 1,074,424      $ 1,763,421
ASP and WEB hosting services                           84,000          514,487
Interactive medical information services            3,510,952          381,644
Pharmaceutical kits and equipment                     309,634          388,109
Other services                                         54,966           43,361
                                                  -----------      -----------

Total Revenue                                       5,033,976        3,091,022
                                                  -----------      -----------

Operating Expenses:

24/7 medical response and assistance services         653,676        1,369,064
ASP and WEB hosting services                            2,827          107,907
Interactive medical information services            3,254,535          318,686
Pharmaceutical kits and equipment                     208,720          244,332
Other services                                         46,386           41,280
Salaries and wages                                    680,314          561,925
Other selling, general and administrative (Note 4)  1,111,624          758,655
Depreciation & amortization                            90,660          421,159
                                                  -----------      -----------


Total Operating Expenses                            6,048,742        3,823,008
                                                  -----------      -----------

Operating loss                                     (1,014,766)        (731,986)



Other Income/(Expense):
Interest income                                        31,833           51,576
Other income                                            8,663            7,190
Interest expense                                      (11,825)         (20,106)
                                                  -----------      -----------

Total Other Income/(Expense)                           28,671           38,660
                                                  -----------      -----------


Net loss                                          $  (986,095)     $  (693,326)
                                                  ===========      ===========


Basic and diluted loss per share                  $     (0.21)     $     (0.13)

Weighted average shares outstanding                 4,590,859        5,149,959

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





MEDICAL ADVISORY SYSTEMS, INC.


Consolidated Statements of Operations
                          (Unaudited)



Three months ended April 30,                             2000             2001


Revenue:

24/7 medical response and assistance services     $   755,533      $   773,119
ASP and WEB hosting services                           84,000          262,252
Interactive medical information services            1,275,523          176,736
Pharmaceutical kits and equipment                     156,252          225,385
Other services                                         43,723           28,987
                                                  -----------      -----------

Total Revenue                                       2,315,031        1,466,479
                                                  -----------      -----------



Operating Expenses:

24/7 medical response and assistance services         501,448          572,041
ASP and WEB hosting services                            2,827          100,482
Interactive medical information services            1,230,710          132,945
Pharmaceutical kits and equipment                      98,681          141,883
Other services                                         29,158           27,819
Salaries and wages                                    470,669          288,635
Other selling, general and administrative (Note 4)    506,618          395,656
Depreciation & amortization                            45,746          217,062
                                                  -----------      -----------

Total Operating Expenses                            2,885,857        1,876,523
                                                  -----------      -----------

Operating loss                                       (570,826)        (410,044)


Other Income/(Expense):
Interest income                                        24,694           19,802
Other income                                               77            7,164
Interest expense                                       (7,890)          (4,954)
                                                  -----------      -----------

Total Other Income/(Expense)                           16,881           22,012
                                                  -----------      -----------


Net loss                                          $  (553,945)     $  (388,032)

Basic and diluted loss per share                  $     (0.12)     $     (0.08)

Weighted average shares outstanding                 4,755,618        5,161,230

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




MEDICAL ADVISORY SYSTEMS, INC.


Consolidated Statements of Cash Flows



Six months ended April 30,                               2000             2001



Cash flows from operating activities:
 Net loss                                          $ (986,095)     $  (693,326)
 Adjustment to reconcile net loss
  to net cash provided by (used in)
     operating activities:
  Depreciation and amortization                        90,660          421,159
  Provision for doubtful accounts                      15,000            4,458
  Compensation expense for options and warrants       757,607           68,084
Changes in assets and liabilities:
  Accounts receivable                                (265,103)          97,618
  Inventory                                           (13,792)         (19,262)
  Prepaid expenses and other                             (749)          32,404
  Accounts payable and accrued expenses              (136,063)          80,876
  Deferred income                                     (10,127)          (5,744)
                                                  -----------      -----------

Net cash used in operating activities                (548,662)         (13,733)
                                                  -----------      -----------

Cash flows from investing activities:
  Purchase of property and equipment                 (143,771)        (475,316)
  Purchase of software                             (2,700,000)             -
  Investment in equity of affiliate                                   (159,000)
                                                  -----------      -----------
Net cash used in investing activities              (2,843,771)        (634,316)
                                                  -----------      -----------


Cash flows from financing activities
  Proceeds from sales of common stock               5,775,000               -
  Repayment of loans to banks and related parties     (15,558)         (16,168)
  Exercise of stock options                            18,500              -
                                                  -----------      -----------
Net cash provided by(used in) financing activities  5,777,942          (16,168)
                                                  -----------      -----------

  Net increase (decrease) in cash                   2,385,509         (664,217)

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

Cash at end of the period                         $ 3,317,458      $ 1,951,625

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




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.


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
$372,635 and $3,507,702 or 7% and 71% of consolidated revenues for
the six months ended April 30, 2001 and 2000, respectively.  Revenues
from AmericasDoctor.com, Inc. were $173,516 and $1,273,730 or 12%
and 55% of consolidated revenues for the three months ended April 30,
2001 and 2000, respectively.


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 $1,890,000 on April 30, 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.




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.


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 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.




Reclassifications

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


1. Property and
	Equipment
                   Property and equipment consists of the following:

                                    October 31,      April 30,    Estimated
                                           2000           2001    Useful lives

      Land                          $    65,078    $    65,078
      Buildings and improvement         955,802      1,630,534     10-20 years
      Furniture, fixtures and
      equipment                       1,212,782      1,247,327       3-5 years
      Construction in progress          374,984            -          20 years
                                    -----------    -----------

                                      2,608,646      2,942,939


      Less: Accumulated
      depreciation and amortization     987,799      1,122,225
                                    -----------    -----------

                                    $ 1,620,847    $ 1,820,714
                                    ===========    ===========



2. Investment in Affiliates

                   Investment in affiliates consists of the following:

                                    October 31,      April 30,
                                      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.



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 six months ended April 30, 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 $360,355 and
$2,652,498 respectively, in fees and professional liability insurance
premiums. There were no amounts payable to these affiliates at either
April 31, 2000 or 2001.



During 2000 the Company began construction of a new technology
facility.  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.




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.




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 six months ended April 30, 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 April 30, 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 April 30, 2001.  There were no
adjustments made in calculating the fair value to account vesting
provisions or for non-transferability of risk of forfeiture.




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:





Six months ended April 30,                      2000            2001

Net income (loss) applicable to
	common shareholders:
        as reported                     $   (986,095)   $   (693,326)
        pro forma                       $ (1,023,455)   $   (757,027)

Basic and diluted earnings (loss) per
	share:
        as reported                     $      (0.21)   $     (0.13)
        as pro forma                    $      (0.22)   $     (0.15)



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
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.



Six months ended                                Segment              Total
April 30, 2001                   Revenues       Profit(loss)        Assets


24/7 medical response &
        assistance services   $ 1,763,421       $   394,957    $ 1,217,204
ASP & WEB                         514,487           406,580      2,601,393
Interactive medical
information
        services                  381,644            62,958      1,491,554
Pharmaceutical kits and
        equipment                 388,109           143,777        182,690

Other services                     43,361             2,081         15,351
Unallocated corporate
        expenses                      -          (1,741,739)           -

Unallocated assets                    -                 -        2,621,474
                              -----------       -----------    -----------

                              $ 3,091,022       $  (731,986)   $ 8,129,666
                              ===========       ===========    ===========



Six months ended                                Segment              Total
April 30, 2000                   Revenues       Profit(loss)        Assets


24/7 medical response &
        assistance services   $ 1,074,424       $   420,748    $ 1,350,291
ASP & WEB                          84,000            81,173      2,700,000
Interactive medical
information
	services                3,510,952           256,417        730,773
Pharmaceutical kits and
	equipment                 309,634           100,914        116,262
Other services                     54,966             8,580            -
Unallocated corporate
	expenses                      -          (1,882,598)           -
Unallocated assets                    -                 -        3,649,116
                              -----------       -----------    -----------


                              $ 5,033,976       $(1,014,766)   $ 8,546,442
                              ===========       ===========    ===========



Three months ended                              Segment              Total
April 30, 2001                   Revenues       Profit(loss)        Assets

24/7 medical response &
        assistance services   $   773,119       $   201,078    $ 1,217,204
ASP & WEB                         262,252           161,770      2,601,393
Interactive medical
information
	services                  176,736            43,791      1,491,554
Pharmaceutical kits and
	equipment                 225,385            83,502        182,690
Other services                     28,987             1,168         15,351
Unallocated corporate
        expenses                      -            (901,353)           -
Unallocated assets                    -                 -        2,621,474
                              -----------       -----------    -----------

                              $ 1,466,479       $  (410,044)   $ 8,129,666
                              ===========       ===========    ===========



Three months ended                              Segment              Total
April 30, 2000                   Revenues       Profit(loss)        Assets


24/7 medical response &
        assistance services   $   755,533       $   254,085    $ 1,350,291
ASP & WEB                          84,000            81,173      2,700,000
Interactive medical
information
        services                1,275,523            14,565        730,773
Pharmaceutical kits and
	equipment                 156,252            57,571        116,262
Other services                     43,723            44,813            -
Unallocated corporate
	expenses                      -          (1,023,033)           -
Unallocated assets                    -                 -        3,649,116
                              -----------       -----------    -----------


                              $ 2,315,031       $  (570,826)   $ 8,546,442
                              ===========       ===========    ===========




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 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.


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 will provide the Company with the right to use
Jaspin's proprietary ChatCentre and RoomCentre software, including upgrades
and support.

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, Dr. Richard Seelig and Dr. Paul Sanberg were named. Through
this transaction Digital Angel Corporation will have access to 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.


NET LOSS

The Company's net loss for the first six months of FY 2001 was $693,326
compared to a net loss of $986,095 for the comparable period in FY 2000. The
net loss for the three months ended April 30, 2001 was $388,032 compared to
a net loss of $553,945 during the same period of fiscal 2000.
The decrease in the net loss is attributed primarily to operating income
generated by the ASP and WEB Hosting segment, which was introduced in the
second quarter of fiscal 2000.  The increased income was offset by higher
amortization expense associated with the deferred investment
advisory fees, increased amortization associated with the purchase of
eResearch Technology (eRT) software and increased payroll costs related to
new technology personnel and salary increases to existing employees.



24/7 MEDICAL RESPONSE AND ASSISTANCE SERVICES

Revenues in the first six months increased by 64% from $1,074,424 in the
first half of 2000 to $1,763,421 for the same period in fiscal 2001.
Operating expenses increased 109% from $653,676 in the first half of 2000 to
$1,369,064 in the first half of 2001. Operating income decreased from
$420,748 in the first half of 2000 to $394,357 in the first half of 2001.
This 6% decrease in operating income is primarily attributed to the reduction
in maritime revenues offset to some degree by an increase in assistance
services.  The second quarter revenues increased 2% from $755,533 in 2000 to
$773,119 in fiscal 2001.  Operating expenses increased by 14% during the
second quarter of 2001 from $501,448 in 2000 to $572,041 in 2001.  Operating
income decreased 21% from $254,085 in the second quarter of 2000 to $201,078
in the second quarter of 2001.  This decrease in operating income is also
attributed to the reduction in maritime revenues offset to some degree by an
increase in assistance services.


ASP and WEB HOSTING SERVICES

ASP and WEB Hosting Services had revenues for the first six months of 2001 of
$514,487, operating expenses of $107,907 and operating income of $406,580.
This program began in April 2000 and provided revenues of $84,000, operating
expenses of $2,827 and operating income of $81,173 in the first month of its
operations.  Revenues for the second quarter of 2001 were $262,252, operating
expenses were $100,482 and operating revenues were $161,770.   The revenue in
this segment is attributed primarily to a service agreement with eResearch
Technology (eRT). Under this agreement the Company is currently paid a flat
fee for providing ASP and hosting services.  The Company began providing these
services to eRT in April 2000.

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 $3,510,952 in the first half of 2000 to $381,644
in the first half of 2001.  Operating expenses decreased 90% from $3,254,535
in the first half of 2000 to $318,686 in the first half of 2001. Operating
income decreased 75% from $256,417 in the first half of 2000
to $62,958 in the first half of 2001.  The second quarter revenues decreased
by 86% from $1,275,523 in 2000 to $176,736 in 2001. Operating expenses
decreased by 89% during the second quarter of 2001 from $1,230,710 in 2000 to
$132,945 in 2001.  Operating income decreased 2% for the second quarter from
$44,813 in 2000 to $43,791 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.

Effective late March 2001, MAS began "live" testing of the Doc-talk service
on the DrKoop.com website.  This on-going test is undertaken as part of a
strategic relationship formed between the Company and DrKoop.com in late
October of 2000.  DrKoop.com is a leading Internet health network providing
information to consumers worldwide.

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 $78,475 or 25% from $309,634 in the first half of 2000 to
$388,109 in the first half of 2001.  Operating expenses increased by $35,612
or 17% from $208,720 in the first half of 2000 to $244,332 in the first half
of 2001.  Operating income increased by 42% or $42,863 from $100,914 in
fiscal 2000 to $143,777 in fiscal 2001.  The second quarter revenues
increased by 44% from $156,252 in 2000 to $225,386 in 2001. Operating expenses
increased by 44% during the second quarter of 2001 from $98,681 in 2000 to
$141,883 in 2001.  Operating income increased by 45% for the second quarter
from $57,571 in 2000 to $83,502 in 2001.  The growth of this segment is
attributed to an expanded customer base and the increased efficiency of
operations.  The pharmacy began operating out of the new pharmacy facility in
early January 2001.  Utilization of the new space has added to the
efficiencies of this division.


OTHER

Revenues from other health-related services, which consist of the medical
responder training programs and the medical clinic, decreased 21% from
$54,966 in the first half of 2000 to $43,361 in the first half of 2001.
Expenses decreased by 11% from $46,386 in the first half of 2000 to
$41,280 in the first half of 2001. Operating income decreased 76% from $8,580
in the first half of 2000 to $2,081 in the first half of 2001.  The second
quarter revenues decreased by 34% from $43,723 in 2000 to $28,987 in 2001.
Operating expenses decreased by 5% during the second quarter of 2001 from
$29,158 in 2000 to $27,819 in 2001.  Operating income decreased by 92%
for the second quarter from a profit of $14,565 in 2000 to $1,168 in 2001.
The reduction in training activities over the past 16 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.  Net income is expected to increase
throughout the year as a result of the Company's recent approval, by the
United States Coast Guard, of its expanded "Response to Illness and Injury
at Sea" training course.


SALARIES AND WAGES

Salaries and wages decreased $118,389 or 17% from $680,314 in the first half
of 2000 to $561,925 in the first half of 2001.  Expenses for the second
quarter decreased by 39% from $470,669 in 2000 and $288,635 in 2001.  The
decrease is attributed to the reduction of key Doc-Talk personnel offset by
regular and ordinary increases in compensation levels of existing personnel.


SELLING, GENERAL AND ADMINISTRATIVE

Selling, general and administrative expenses decreased 32% from $1,111,624 in
the first half of 2000 to $758,655 in the first half of 2001. During the
second quarter of 2001 the expenses were reduced $110,962 from 506,618 in
2000 to 395,656 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.


DEPRECIATION AND AMORTIZATION

Depreciation and amortization increased from $90,660 in the first half of 2000
to $421,159 in the first half of 2001, an increase of 365%.  Second quarter
expenses were $45,746 in 2000 and $217,062 in 2001 and increase of 374%.
This increase is due primarily to the amortization of new software and
hardware purchases related to the Company's ASP and WEB Hosting Services.


INCOME TAX BENEFIT/EXPENSE

The Company did not record an income tax provision or benefit for the six
months ended April 30, 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 $13,733 in the first six months of
fiscal 2001 compared to cash used in operations of $548,662 in the first half
of 2000.  This reduction in cash used in operating activities is due to a
reduction in the net loss 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 $16,168 related to the repayment
of debt.  Cash provided by financing in 2000 of $5,777,942 consisted
primarily of proceeds from the sale of common stock and warrants reduced by
repayment of debt.  The Company currently has a $500,000 credit agreement
with a local financial institution.  As of April 30, 2001 there was no
outstanding balance.  The agreement expires on October 31, 2001.

The Company has a strong cash position as of April 30, 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.


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.





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.
The 2001 Annual Meeting of Stockholders of Medical Advisory Systems, Inc. was
held at the Colony South Hotel and Conference Center on Thursday, April 12,
2001.  The following matters were presented and voted upon:

Elect seven directors to serve until next annual meeting of stockholders and
until their successors are elected and qualified.

Ronald W. Pickett    	For:	2,985,095	Withheld:	34,300
Mercedes Walton    	For:	2,985,095	Withheld:	34,300
Thomas M. Hall    	For:	2,985,095	Withheld:	34,300
David A. Loppert    	For:	2,985,095	Withheld:	34,300
Robert C. Goodwin Jr.   For:    2,985,095       Withheld:       34,300
Paul Ronald Sanberg    	For:	2,985,095	Withheld:	34,300
Richard F. Seelig    	For:	2,985,095	Withheld:	34,300

Ratified options granted under the Company's January 13, 2001 Amended and
Restated Employee and Directors Stock Option Plan.
For:   2,938,322		Against:   76,133	Abstentions:   6,950

Ratified the appointment of independent accountants for 2001.
For:   3,005,755                Against:   1,400        Abstentions:  12,750

Transact such other business as may properly come before the meeting or any
adjournment thereof.
For:   2,953,137		Against:   56,808	Abstentions:   9,460


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: 06/14/2001________		By: /s/ Dale L. Hutchins, Ph.D.


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