<PAGE>

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


                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549


                                   FORM 10-Q

(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 1999.
                                                         --------------

[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM________________
     TO_______________


                       Commission file number:  0-28420
                                                -------


                              Integ Incorporated
                              ------------------
            (Exact name of registrant as specified in its charter)


             Minnesota                                  41-1670176
             ---------                                  ----------
     (State of Incorporation)               (I.R.S. Employer Identification No.)

     2800 Patton Road, St. Paul, MN                       55113
     ------------------------------                     -----------
     (Address of principal executive offices)           (Zip Code)


                       Telephone Number:  (651) 639-8816
                       ---------------------------------
             (Registrant's telephone number, including area code)



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

As of August 9, 1999, the registrant had 9,657,784 shares of $.01 par value
common stock issued and outstanding.


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

<PAGE>

                              INTEG INCORPORATED

                                     INDEX
                                     -----



PART I.   FINANCIAL INFORMATION                                            Page
                                                                           ----

 Item 1.  Financial Statements

          Balance Sheets as of June 30, 1999 and December 31, 1998          3

          Statements of Operations for the three and six months
          ended June 30, 1999 and 1998 and for the period from
          April 3, 1990 (inception) through June 30, 1999                   4

          Statements of Cash Flows for the three and six months
          ended June 30, 1999 and 1998 and for the period from
          April 3, 1990 (inception) through June 30, 1999                   5

          Notes to Financial Statements                                     6

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

 Item 3.  Quantitative and Qualitative Disclosures About Market Risk       12


PART II.  OTHER INFORMATION

 Item 2.  Changes in Securities (Use of proceeds from public offering)     12

 Item 4.  Submission of Matters to a Vote of Security Holders              12

 Item 6.  Exhibits and Reports on Form 8-K                                 13

SIGNATURES                                                                 14

                                       2
<PAGE>


                              Integ Incorporated
                         (A Development Stage Company)
                                Balance Sheets

<TABLE>
<CAPTION>
                                                                        June 30                 December 31
                                                                          1999                      1998
                                                                    ---------------           ---------------
                                                                      (unaudited)
<S>                                                                 <C>                       <C>
Assets
------
Current assets:
     Cash and cash equivalents                                      $     6,042,625           $    11,175,695
     Prepaid expenses                                                       213,507                   132,229
                                                                    ---------------           ---------------
Total current assets                                                      6,256,132                11,307,924
                                                                    ---------------           ---------------


Furniture and equipment                                                   9,548,952                 9,538,478
Less accumulated depreciation                                            (3,261,939)               (2,715,684)
                                                                    ---------------           ---------------
                                                                          6,287,013                 6,822,794

Other assets                                                                 14,955                    23,883
                                                                    ---------------           ---------------

Total assets                                                        $    12,558,101           $    18,154,601
                                                                    ===============           ===============


Liabilities and shareholders' equity
------------------------------------
Current liabilities:
     Accounts payable and accrued expenses                          $       662,798           $     1,013,581
     Current portion of capital lease obligations                            75,745                   145,761
     Current portion of long-term debt                                    1,388,950                 1,251,247
                                                                    ---------------           ---------------
Total current liabilities                                                 2,127,493                 2,410,589
                                                                    ---------------           ---------------


Long-term liabilities:
     Capital lease obligations, less current portion                            630                    14,178
     Long-term debt, less current portion                                 1,939,919                 2,672,018
                                                                    ---------------           ---------------
Total long-term liabilities                                               1,940,549                 2,686,196
                                                                    ---------------           ---------------


Shareholders' equity:
     Common Stock                                                            96,578                    95,807
     Additional paid-in capital                                          54,711,805                54,616,721
     Deficit accumulated during the development stage                   (46,209,038)              (41,524,253)
                                                                    ---------------           ---------------
                                                                          8,599,345                13,188,275
     Deferred compensation                                                 (109,285)                 (130,459)
                                                                    ---------------           ---------------
Total shareholders' equity                                                8,490,059                13,057,816
                                                                    ---------------           ---------------

Total liabilities and shareholders' equity                          $    12,558,101           $    18,154,601
                                                                    ===============           ===============
</TABLE>

                                       3
<PAGE>

                              Integ Incorporated
                         (A Development Stage Company)
                            Statement of Operations
                                  (unaudited)

<TABLE>
<CAPTION>
                                                                                                      Period from
                                                                                                     April 3, 1990
                                            Three Months Ended             Six Months Ended         (Inception) to
                                                  June 30                       June 30                 June 30
                                        ---------------------------   ---------------------------
                                            1999           1998            1999          1998             1999
                                        ------------   ------------   ------------   ------------   --------------
<S>                                     <C>            <C>            <C>            <C>            <C>
Operating expenses:
  Research and development              $    586,255   $  1,597,242   $  1,378,588   $  3,303,144   $   22,920,736
  Manufacturing development                  495,732        602,899      1,085,581      1,283,171        8,253,857
  Clinical and regulatory                     81,156        295,030        230,212        623,198        3,727,034
  General and administrative               1,429,134        552,861      1,806,723      1,051,304       10,322,755
  Sales and marketing                          7,807        259,892         29,973        342,348        2,630,428
                                        ------------   ------------   ------------   ------------   --------------

Operating loss                            (2,600,084)    (3,307,924)    (4,531,077)    (6,603,165)     (47,854,810)
                                        ------------   ------------   ------------   ------------   --------------

Other income (expense):
  Interest income                             95,371        241,849        221,957        525,510        4,650,955
  Interest expense                          (180,490)      (309,531)      (375,503)      (605,610)      (2,877,301)
  Other (net)                                   (241)        91,873           (160)        94,648         (127,880)
                                        ------------   ------------   ------------   ------------   --------------
                                             (85,360)        24,191       (153,705)        14,548        1,645,775
                                        ------------   ------------   ------------   ------------   --------------

Net loss for the period and
deficit accumulated during
the development stage                   $ (2,685,444)  $ (3,283,733)  $ (4,684,782)  $ (6,588,617)  $  (46,209,035)
                                        ============   ============   ============   ============   ==============

Net loss per share:
  Basic and diluted                           ($0.28)        ($0.35)        ($0.49)        ($0.70)         ($14.19)
                                        ============   ============   ============   ============   ==============

Weighted average number of
common shares outstanding:
  Basic and diluted                        9,657,290      9,462,297      9,637,243      9,430,701        3,257,448
                                        ============   ============   ============   ============   ==============
</TABLE>

                                       4

<PAGE>

                              Integ Incorporated
                         (A Development Stage Company)
                           Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                                                                     Period from
                                                                                                                     April 3, 1990
                                                              Three Months Ended           Six Months Ended         (Inception) to
                                                                    June 30                     June 30                 June 30
                                                        ---------------------------   ---------------------------
                                                             1999          1998           1999           1998            1999
                                                        ------------   ------------   ------------   ------------   --------------
<S>                                                     <C>            <C>            <C>            <C>            <C>
Operating activities:
  Net loss                                              $ (2,685,445)  $ (3,293,733)  $ (4,684,783)  $ (6,598,617)  $ (46,209,036)
  Adjustments to reconcile net loss to cash used
  in operating activities:
    Depreciation                                             274,264        269,264        548,529        525,438       3,301,044
    Deferred compensation amortization                        10,587         22,423         21,174         52,227       1,111,894
    Amortization of loan committment fee                         -           96,207            -          196,822         250,074
    Stock grants in lieu of compensation                                                    94,893                         94,893
    Loss (gain) on sale of equipment and
      deposit write-off                                         (901)           -             (901)           -            94,744
    Value of options and warrants related to debt
      financing, lease guarantee, extension of
      options and consulting services                          3,826          4,586          7,652          9,212         378,788
    Changes in operating assets and liabilities:
      Receivables                                                -              -              -              -           (28,829)
      Prepaid expenses and other assets                     (104,750)        23,465        (81,278)        17,846         151,247
      Accounts payable and accrued expenses                 (188,736)       158,584       (349,510)        (9,783)        664,071
                                                        ------------   ------------   ------------   ------------   -------------
        Net cash used in operating activities             (2,691,155)    (2,719,204)    (4,444,225)    (5,806,855)    (40,191,111)
                                                        ------------   ------------   ------------   ------------   -------------

Investing activities:
  Purchase of furniture and equipment                        (10,022)      (992,042)       (15,347)    (1,161,851)     (8,885,374)
  Proceeds from sale of furniture and equipment                3,500            -            3,500            -            51,440
                                                        ------------   ------------   ------------   ------------   -------------
    Net cash used in investing activities                     (6,522)      (992,042)       (11,847)    (1,161,851)     (8,833,934)
                                                        ------------   ------------   ------------   ------------   -------------

Financing activities:
  Proceeds from sale of Convertible Preferred Stock              -              -              -              -        22,789,732
  Proceeds from bridge loan debt                                 -              -              -              -         2,900,000
  Proceeds from borrowings under loan agreement                  -              -              -          754,989       5,486,446
  Payments on long-term debt                                (304,616)      (198,250)      (594,396)      (382,962)     (2,010,261)
  Payments on capital lease obligations                      (42,269)       (38,258)       (83,564)       (75,881)       (617,690)
  Proceeds from sale of Common Stock                             962          4,687            962         82,199      26,519,443
                                                        ------------   ------------   ------------   ------------   -------------
    Net cash provided by financing activities               (345,923)      (231,821)      (676,998)       378,345      55,067,670
                                                        ------------   ------------   ------------   ------------   -------------

(Decrease) increase in cash and cash equivalents          (3,043,601)    (3,943,067)    (5,133,070)    (6,590,361)      6,042,625

Cash and cash equivalents at beginning of period           9,086,226     19,129,463     11,175,695     21,776,757             -
                                                        ------------   ------------   ------------   ------------   -------------

Cash and cash equivalents at end of period              $  6,042,625   $ 15,186,396   $  6,042,625   $ 15,186,396   $   6,042,625
                                                        ============   ============   ============   ============   =============
</TABLE>

                                       5

<PAGE>

                              INTEG INCORPORATED
                         (A Development Stage Company)
                         Notes To Financial Statements
                                  (unaudited)

(1)   Basis of Presentation

The accompanying financial statements, which are unaudited except for the
balance sheet as of December 31, 1998, have been prepared in accordance with
instructions to Form 10-Q and do not include all the information and notes
required by Generally Accepted Accounting Principles for complete financial
statements.  In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included.  These financial statements should be read in conjunction with the
financial statements and accompanying notes from the Company's Annual Report on
Form 10-K for the year ended December 31, 1998 filed with the Securities and
Exchange Commission.

(2)   Net Loss Per Share

Net loss per share is computed using the weighted average number of shares of
common stock outstanding during the periods presented.  In 1997, the Financial
Accounting Standards Board issued Statement No. 128, Earnings per Share.
Statement 128 replaced the calculation of primary and fully diluted earnings per
share with basic and diluted earnings per share.  Unlike primary earnings per
share, basic earnings per share excludes any dilutive effects of options,
warrants and convertible securities.  Diluted earnings per share is very similar
to the previously reported fully diluted earnings per share.  All earnings per
share amounts for all periods have been presented, and where appropriate,
restated to conform to the Statement 128 requirements.

(3)   Equipment Loan Agreement

During 1996, the Company entered into an equipment loan agreement, which
provides for borrowings up to $12.5 million to finance the purchase of equipment
and fixtures including automated manufacturing equipment and tooling.  Loans are
paid back monthly over a four-year period.  The obligation of the lender to make
additional loans expired December 31, 1998.  The Company borrowed a total of
$5.5 million under the agreement.

                                       6
<PAGE>

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

Cautionary Statement

This Quarterly Report on Form 10-Q contains forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995.  When used in
this Form 10-Q and in future filings by the Company with the Securities and
Exchange Commission, in the Company's press releases and in oral statements made
with the approval of an authorized executive officer, the words or phrases
"believes," "anticipates," "expects," "intends," "will likely result,"
"estimates," "projects" or similar expressions are intended to identify such
forward-looking statements, but are not the exclusive means of identifying such
statements.  These forward-looking statements involve risks and uncertainties
that may cause the Company's actual results to differ materially from the
results discussed in the forward-looking statements.  Factors that might cause
such differences include, but are not limited to, the following: risks
associated with the development of a new technology; dependence on the LifeGuide
System, which is still under development; uncertainty of market acceptance;
risks associated with the Company's history of operating losses and expectation
of future losses; risks associated with the corporate alliance; risks associated
with accumulated deficit; limited clinical testing experience; uncertainty of
obtaining Food and Drug Administration clearances or approvals; heightened
competition; risk of technological obsolescence; risks associated with the lack
of manufacturing capability and dependence on suppliers;  risks associated with
the company's dependence on proprietary technology, including those related to
adequacy of patent and trade secret protection; risks associated with retaining
key personnel and attracting additional qualified skilled personnel; risks
associated with future capital requirements; and the risks associated with
product liability and limited insurance coverage.

The Company wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made.  The Company
undertakes no obligation to revise any forward-looking statements in order to
reflect events or circumstances after the date of such statements.  Readers are
urged to carefully review and consider the various disclosures made by the
Company in this report and in the Company's other reports filed with the
Securities and Exchange Commission that attempt to advise interested parties of
the risks and factors that may affect the Company's business.  Such forward-
looking statements are qualified in their entirety by the cautions and risk
factors set forth under "Cautionary Statement" filed as Exhibit 99.1 to this
Quarterly Report on Form 10-Q.

General

Integ, a development stage company, was incorporated on April 3, 1990 to develop
the LifeGuide(TM) System, a next generation, hand-held glucose monitoring
product for use by people with diabetes that avoids the pain and blood
associated with conventional "finger-stick" technologies.  Utilizing the
Company's proprietary interstitial fluid sampling technology, the LifeGuide
System will allow people with diabetes to frequently self-monitor their glucose
levels without repeatedly enduring the pain of lancing their fingers to obtain a
blood sample.

                                       7
<PAGE>

From inception through June 30, 1999, the Company has incurred losses totaling
$46.2 million, consisting of $22.9 million of research and development expenses,
$10.3 million of general and administrative expenses, $8.2 million of
manufacturing development expenses and $4.8 million of other expenses net of
interest income.  The Company's activities have consisted primarily of research
and product development, product design, and development of the manufacturing
equipment and processes and marketing strategies needed for the introduction of
the LifeGuide System.  The Company has generated no revenue and has sustained
significant operating losses each year since inception.  The Company expects
such losses to continue for the next several years.

The Company announced in September 1998 that it had engaged U.S. Bancorp Piper
Jaffray to explore potential corporate alliances.

On April 5, 1999 the Company announced that it had entered into a strategic
alliance with Amira Medical to jointly develop a new generation of home glucose
monitoring tests utilizing interstitial fluid (ISF).  Under the alliance,
products to be developed will combine Integ's ISF collection technology with the
Amira's glucose measurement technologies.  Both companies will contribute
resources to the products' development, which will be manufactured by the
Company and commercialized by Amira.

As part of the strategic alliance agreement, the Company will have the option at
a future date, to merge with Amira, subject to certain conditions.  The complete
terms of the agreement are available as an exhibit to the Integ Current Report
on Form 8-K filed with the Securities and Exchange Commission on April 9, 1999.

As part of the strategic alliance the Company and Amira have established a joint
product development plan. This plan involves four product platform phases:
feasibility, calibration, clinical and commercial. The Company has completed the
feasibility phase of the plan, where it demonstrated the ability to measure ISF
glucose using the Amira AtLast(TM) system in a non-integrated fashion.  The
Company is currently in the calibration phase of the joint development plan.
The Company has established a new budget in support of this joint development
plan, which takes into account the contributions that Amira is making toward
completion of LifeGuide product development. This budget became effective June
1, 1999.

The Company's future success is dependent upon the successful development of the
LifeGuide System, the development of which is ongoing and the complete efficacy
of which has not yet been demonstrated, and upon its ability to exercise its
option to merge with Amira.  The Company is currently focused on the research
and development activities necessary to complete the LifeGuide System in order
to meet the product specifications and initiate clinical trials.

Results of Operations

Comparison of Three and Six Months Ended June 30, 1999 and 1998

General:  The Company's net loss totaled $2.7 million and $4.7 million for the
three and six months ended June 30, 1999, as compared to $3.3 million and $6.6
million for the same periods in 1998.  The company's net loss for the 1st
quarter ended March 31, 1999 was $2.0 million. The Company incurred a one-time
special charge of $1,075,000 during the second quarter associated with the
formation of the strategic alliance with Amira.  The Company expects net losses
to continue for the next several years.

                                       8
<PAGE>

Research and development expenses:  Research and development expenses decreased
to $586,000 during the three months ended June 30, 1999 from $1,597,000 during
the same period in 1998.  This decrease was primarily attributable to decreased
staffing costs ($266,000), the elimination of the allocation of pilot plant
costs from manufacturing development ($239,000), decreased consulting expenses
($400,000), decreased severance expenses ($96,000), prototype expenses ($30,000)
as well as lab supply expense ($15,000).  These decreases were partially offset
by an increase patent legal expense of ($35,000).  For the first six months of
1999 expenses decreased to $1,379,000 from $3,303,000 during the same period in
1998.  This decrease was primarily attributable to decreased staffing costs
($504,000), the elimination of the allocation of pilot plant costs allocated
from manufacturing development ($520,000), decreased consulting expenses
($639,000), severance expenses ($96,000), prototype expenses ($85,000),
recruitment expense ($51,000), lab supply expense ($27,000) as well as a
decrease in other expenses of ($34,000).  These decreases were partially offset
by an increase patent legal expense of ($31,000).

Manufacturing development expenses:  Manufacturing development expenses
decreased to $496,000 during the three months ended June 30, 1999 from $603,000
during the same period in 1998. The decrease in manufacturing development
expenses is primarily attributable to decreased staffing costs ($57,000),
prototype tooling expenses ($149,000), severance expense ($78,000), training and
development expense ($29,000) as well as a decrease in other expenses of
($34,000). These decreases were partially offset by the elimination of the
allocation of pilot plant costs to research and development ($240,000). For the
first six months of 1999 expenses decreased to $1,086,000 from $1,283,000 for
the same period in 1998.  The decrease in manufacturing development expenses is
primarily attributable to decreased staffing costs ($97,000), decreased
prototype tooling expenses ($397,000), severance expense ($78,000), training and
development expense ($29,000), travel expense ($32,000) as well as a decrease in
other expenses of ($84,000). These decreases were partially offset by the
elimination of the allocation of pilot plant costs to research and development
($520,000).

Clinical and regulatory expenses:  Clinical and regulatory expenses decreased to
$81,000 during the three months ended June 30, 1999 from $295,000 during the
same period in 1998.  This decrease is primarily attributable to decreased
staffing costs ($137,000), severance expense ($39,000) as well as decreased
other expenses ($38,000). For the first six months of 1999 expenses decreased to
$230,000 from $623,000 for the same period in 1998.  The decrease is primarily
attributable to decreased staffing costs ($288,000), severance expense
($39,000), consulting expenses ($19,000), recruitment expenses ($10,000) as well
as other expenses of ($37,000).

General and administrative expenses:  General and administrative expenses
increased to $1,429,000 during the three months ended June 30, 1999 from
$553,000 during the same period in 1998. The increase is primarily attributable
to a one-time special charge of $1,075,000 associated with the formation of the
strategic alliance with Amira.  This increase was partially offset by decreases
in staffing costs ($107,000), recruitment expenses ($33,000), depreciation
expense ($35,000), director fees and expenses ($18,000) as well as other
expenses ($6,000).  For the first six months ended June 30, 1999 expenses
increased to $1,807,000 from $1,051,000 for the same period in 1998.  The
increase is primarily attributable to a one-time special charge of $1,075,000
associated with the formation of the strategic alliance with Amira and an
increase in consulting expenses ($16,000).  The increase was partially offset by
decreases in staffing costs ($262,000) as well as recruitment expenses
($73,000).

                                       9
<PAGE>

Sales and marketing expenses:  Sales and marketing expenses decreased to $8,000
during the three months ended June 30, 1999 from $260,000 during the same period
in 1998.  This decrease is primarily attributable to decreased staffing costs
($33,000), severance costs ($173,000), consulting costs ($23,000) as well as
other expenses ($23,000).  For the first six months ended June 30, 1999 expenses
decreased to $30,000 from $342,000 for the same period in 1998.  This decrease
is primarily attributable to decreased staffing costs ($80,000), severance costs
($173,000), consulting costs ($36,000) as well as other expenses ($23,000).

Interest income:  Interest income decreased to $95,000 and $222,000 during the
three and six month periods ended June 30, 1999, from $242,000 and $526,000
during the same period in 1998.  The decrease resulted from lower average
balances of cash and cash equivalents.

Interest expense:  Interest expense decreased to $180,000 and $376,000 during
the three and six month periods ended June 30, 1999, from $310,000 and $606,000
during the same period in 1998.  The decrease in interest expense is
attributable to payments made on long-term debt and capital leases. On June 30,
1999, the Company's long term liabilities, including current portions, were
$3,405,000 as compared to $4,260,000 on June 30, 1998.

Liquidity and Capital Resources

The Company's operations since inception have been funded by net proceeds from
the sale of Common and Preferred Stock totaling approximately $52 million and
proceeds from borrowing under an equipment loan agreement totaling approximately
$5.5 million.  As of June 30, 1999, the Company had cash and cash equivalents of
approximately $6.0 million and working capital of $4.1 million.

The Company believes that its current cash balances will be sufficient to fund
its operations until sometime in mid 2000. The Company's future liquidity and
capital requirements will depend on numerous factors, including the success of
its strategic alliance with Amira and the Company's ability to exercise its
option to merge with subsidiary of Amira, when or if the performance of the
LifeGuide System meets the required performance specifications, the extent to
which the Company's LifeGuide System gains market acceptance, the timing of
regulatory actions regarding the LifeGuide System, manufacturing activities, the
results of clinical trials and competition.

As part of the strategic alliance with Amira, the Company agreed that it would
not take any actions outside the ordinary course of business which would result
in a liability or an obligation to make payments, and would not issue any debt
or debt securities without Amira's consent, and that the amount of any of these
types of liabilities would be deducted from the consideration payable by Amira
in connection with the merger of Integ with a subsidiary of Amira. Integ also
agreed that it would not incur any liabilities or obligations to make payments
in excess of $1,000,000 in the ordinary course of business without Amira's
consent. The Company cannot predict whether these agreements will adversely
affect its ability to meet its future liquidity and capital requirements.

See Exhibit 99.1 to this Form 10-Q for the quarter ended June 30, 1999 for a
more detailed description of the factors that may affect the Company's future
liquidity and capital requirements.

                                       10
<PAGE>

General Description of the Year 2000 Issue and the Nature and Effects of the
Year 2000 on Information Technology (IT) and non-IT Systems

     The Year 2000 Issue is the result of computer programs that were written
using two digits rather than four to define the applicable year. Any of the
Company's computer programs or hardware that have date-sensitive software or
embedded chips may recognize a date using "00" as the year 1900 rather than the
year 2000. This could result in a system failure or miscalculations causing
disruptions of operations, including, among other things, a temporary inability
to process transactions, send invoices, or engage in similar normal business
activities.

     The Company's plan to resolve the Year 2000 Issue involves the following
four phases: assessment, remediation, testing, and implementation. The
assessment of all of its systems that could be significantly affected by the
Year 2000 Issue is complete.

     The remediation phase has one item yet to complete. The telephone system
upgrade installation is expected to be completed in August 1999.  Final testing
and full implementation for all systems will be completed by September 30, 1999.

     The Company has also completed the gathering of information about the Year
2000 compliance status of its significant suppliers and subcontractors (external
agents).  No significant issues with any of the suppliers have been identified.

     The Company has been utilizing both internal and external resources to
reprogram or replace, test and implement its systems and equipment for Year 2000
modifications. The Company has incurred approximately $10,000 in expenses
related to the Year 2000 project, and the total cost to complete all upgrades
will not exceed $20,000.  All Year 2000 related expenses are being funded
through operations.

     Management of the Company believes it has an effective program in place to
resolve the Year 2000 issue in a timely manner.  As noted above, the Company has
not yet completed all necessary phases of its Year 2000 program.  However, in
the event that the Company does not complete all phases, the critical activities
will not be disrupted or delayed after January 1, 2000.

     The Company currently has no contingency plans in place in the event it
does not complete the remaining phases of its Year 2000 program. The Company has
evaluated the status of its Year 2000 remediation efforts and has determined
that no contingency plans are needed because of the completion or actions on all
critical systems.

                                       11
<PAGE>

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

The Company has no derivative financial instruments or derivative commodity
instruments in its cash and cash equivalents investments.  The Company's cash
and cash equivalents are invested in highly liquid vehicles, including money
market accounts and high-grade commercial paper as guided by the company's
investment policy.  As a result of the Company's investment policy, a decrease
in the interest rate earned would not be material to the Company's results.  All
of the Company's transactions are conducted in US dollars.  Accordingly, the
Company is not exposed to foreign currency risk.


                          Part II.  OTHER INFORMATION

Item 2:   Changes in Securities (Use of proceeds from public offering)

The net offering proceeds to the Company from its initial public offering in
1996, after deducting expenses, were approximately $26.1 million.  The Company
has used the net offering proceeds to the Company for the following purposes in
the approximate amounts set forth below:

       Investment in short-term, interest bearing securities;
         primarily investment grade commercial paper             $ 6,013,000
         and money market funds
       Capital expenditures                                        2,340,000
       Research and development and clinical and regulatory
         preparation                                               9,607,000
       Manufacturing scale-up and marketing activities             4,366,000
       Working capital and other general corporate purposes        3,774,000
                                                                 -----------
             Total use of proceeds                               $26,100,000
                                                                 -----------

Except for officer compensation and relocation payments totaling $1,672,399 in
the aggregate, director compensation totaling $231,500 in the aggregate, and
consulting fees paid to a director totaling $151,875, none of such payments were
paid directly or indirectly to (i) officers or directors of the Company or their
affiliates, (ii) persons owning 10% or more of the Company's equity securities
or (iii) affiliates of the Company.

Item 4:   Submission of Matters to a Vote of Security Holders

On June 17, 1999, the Company held a regular meeting of its shareholders, at
which the shareholders voted on the following matters:

                                       12
<PAGE>

1.   To elect Robert S. Nickoloff and Winston R. Wallin to the Board of
     Directors of the Company to serve for three year terms that will expire at
     the Company's annual shareholder meeting in 2002. The vote on this
     resolution was as follows:

        Robert S. Nickoloff:  8,838,453 For; 0 Against; 70,568 Abstain
                              ---------      -          ------
        Winston R. Wallin:    8,838,253 For; 0 Against; 70,768 Abstain
                              ---------      -          ------

     The terms of the following directors also continued after the meeting:
     Frank B. Bennett, Robert R. Momsen and Walter L. Sembrowich, Ph.D. (terms
     expiring at the Company's annual shareholder meeting in 2001) and Mark B.
     Knudson, Ph.D. and Susan L. Critzer (terms expiring at the Company's annual
     shareholder meeting in 2000).

2.   To ratify the appointment of Ernst & Young LLP as the Company's independent
     auditors for the fiscal year ending December 31, 1999. The vote on this
     resolution was as follows:

     8,840,836 For; 34,485 Against; 33,700 Abstain; 0 Broker non-vote
     ---------      ------          ------          -

Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits filed herewith.

                 3.1     Amended and Restated Articles of Incorporation of the
                         Company (incorporated by reference to Exhibit 3.2 to
                         the Company's Registration Statement on Form S-1 (SEC
                         File No. 333-4352)).

                 3.2     Amended Bylaws of the Company (incorporated by
                         reference to Exhibit 3.3 to the Company's Registration
                         Statement of Form S-1 (SEC File No. 333-4352)).

                 10.1    Development and License Agreement, dated as of April 2,
                         1999, by and between the Company and Amira Medical
                         (incorporated by reference to Exhibit 10.1 of the
                         Company's Current Report on Form 8-K dated April
                         2,1999)

                 10.2    Option Agreement, dated as of April 2, 1999, by and
                         between the Company and Amira Medical (incorporated by
                         reference to Exhibit 10.2 of the Company's Current
                         Report on Form 8-K dated April 2, 1999.

                 27      Financial Data Schedule.

                 99.1    Cautionary Statement.

          (b)  A current report on Form 8-K dated April 2, 1999 was filed during
               this quarter reporting the strategic alliance between the Company
               and Amira Medical.

                                       13
<PAGE>

                                  SIGNATURES


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



                                   INTEG INCORPORATED
                                       (Registrant)



Date:  August 13, 1999             By:  /s/ Susan L. Critzer
                                        --------------------
                                        Susan L. Critzer
                                        President and Chief Executive Officer
                                        Interim Chief Financial Officer
                                        (principal executive officer, principal
                                        financial and accounting officer)

                                       14
<PAGE>

                                 EXHIBIT INDEX


Exhibit             Description
-------             -----------

27.                 Financial Data Schedule (Electronically Filed).

99.1                Cautionary Statement.