FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549


              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                         For Quarter Ended June 30, 2003

                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                For the Transition Period from _______ to _______

                         Commission file number 33-20432

                       MAGNITUDE INFORMATION SYSTEMS, INC.
                       -----------------------------------
             (Exact Name of Registrant as Specified in its Charter)

                          Delaware                     75-2228828
               ------------------------------      ---------------------
              (State or other Jurisdiction of        (IRS Employer
               Incorporation or Organization)       Identification No.)

                     401 State Route 24, Chester, New Jersey 07930
                     ---------------------------------------------
               (Address of Principal Executive Office) (Zip Code)

                                 (908) 879-2722
                                 --------------
               (Registrant's telephone number including area code)


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports)  and  (2)  has  been  subject  to such  filing
requirements for the past 90 days.

                             Yes   x           No
                                 ------           ------

      The number of shares of Registrant's Common Stock, $0.0001 par value,
            outstanding as of July 15, 2003, was 66,804,104 shares.

<PAGE>



              MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES



                                      INDEX
                                      -----

                                                                            Page
                                                                          Number
                                                                          ------

PART  1  -  FINANCIAL INFORMATION

Item 1   Financial Statements (unaudited)

         Consolidated Balance Sheet
          - June 30, 2003                                                     3

         Consolidated Statements of Operations
          - Three and six months ended June 30, 2003 and 2002                 4

         Consolidated Statements of Cash Flows
          - Six months ended June 30, 2003 and 2002                           5

         Notes to Consolidated Financial Statements                       6 - 12


Item 2   Management's Discussion and Analysis of Financial Condition
         and Results of Operations                                       13 - 14

Item 3   Controls and Procedures                                              14


PART II  -  OTHER INFORMATION                                                 15


SIGNATURES                                                                    16


Certifications pursuant to Sections 906 and 302 of the
Sarbanes-Oxley Act of 2002                                               17 - 19


                                       2
<PAGE>

PART I  - Item 1

               MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)
<TABLE>
<CAPTION>

ASSETS                                                                          June 30, 2003
                                                                                -------------
<S>                                                                             <C>
  Current Assets
  Cash  ...............................................................           $    26,182
  Accounts receivable, net of allowance for
     doubtful accounts of 212..........................................                41,919
  Miscellaneous receivables............................................                 2,271
  Inventories .........................................................                26,917
  Prepaid expenses ....................................................               100,673
                                                                                -------------
     Total Current Assets .............................................               197,962
  Property and equipment, net of accumulated
     depreciation of $221,504..........................................                12,504
  Software, net of accumulated amortization of $807,379 ...............               699,911
  Other assets ........................................................                23,784
                                                                                -------------
TOTAL ASSETS ..........................................................               934,161
                                                                                =============
LIABILITIES AND STOCKHOLDERS' EQUITY (IMPAIRMENT)
LIABILITIES
  Accounts payable and accrued expenses ...............................               760,404
  Deferred revenue.....................................................                12,048
  Dividends payable ...................................................               306,966
  Loans and notes payable .............................................               378,057
  Current maturities long-term debt ...................................               108,419
  Current maturities lease obligations ................................                   511
                                                                                -------------
     Total Current Liabilities ........................................             1,566,405
  Long-term debt, less current portion ................................               200,000
                                                                                -------------
TOTAL LIABILITIES .....................................................             1,766,405

STOCKHOLDERS' EQUITY (IMPAIRMENT)
  Preferred Stock, $0.001 par value, non-voting, 3,000,000 shares authorized:
  2,500 shares have been designated Cumulative Preferred Stock,
  of which 1 share is issued and outstanding ..........................                     0
  300,000 shares have been designated Series A Convertible Preferred Stock,
  350,000 shares have been designated Series B Convertible Preferred Stock,
  120,000 shares have been designated Series C Convertible Preferred Stock,
  500,000 shares have been designated Series D Convertible Preferred Stock,
  of which a combined total 195,968 shares are issued and outstanding                     196
  Common Stock, $0.0001 par value, 100,000,000 shares authorized,
  66,804,104 shares are issued and outstanding.........................                 6,680
  Stock subscriptions receivable.......................................                (3,297)
  Additional paid-in capital ..........................................            21,786,054
  Accumulated deficit .................................................           (22,621,877)
                                                                                -------------
TOTAL STOCKHOLDERS' EQUITY (IMPAIRMENT)................................              (832,244)

TOTAL LIABILITIES AND EQUITY (IMPAIRMENT) .............................           $   934,161
                                                                                =============
                 See notes to consolidated financial statements

</TABLE>


                                       3
<PAGE>


               MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                           Three Months Ended                  Six Months Ended
                                                                June 30,                            June 30,
                                                     -------------------------------    -------------------------------
                                                           2003             2002            2003               2002
                                                     -------------     -------------    -------------     -------------
<S>                                                  <C>               <C>              <C>               <C>
Total Revenues...................................    $      33,107     $      92,492    $      68,559     $     131,384

  Cost of Goods Sold ............................           38,980            38,937           77,967            77,878
                                                     -------------     -------------    -------------     -------------
Gross Profit ....................................           (5,873)           53,555           (9,408)           53,506

  Selling expenses ..............................          139,049           219,029          293,645           374,248
  General & administrative expenses .............          468,826           602,909          988,528         1,028,870
                                                     -------------     -------------    -------------     -------------

Operating (Loss).................................         (613,748)         (768,383)      (1,291,581)       (1,349,612)

  Interest expense, net..........................          (24,612)           (5,420)         (31,195)          (23,431)
Non-Operating (Expense)..........................          (24,612)           (5,420)         (31,195)          (23,431)
                                                     -------------     -------------    -------------     -------------

Net (Loss) before taxes..........................         (638,360)         (773,803)      (1,322,776)       (1,373,043)

  Provision for income taxes.....................                0                 0                0                 0
Net (Loss) ......................................    $    (638,360)    $    (773,803)    $ (1,322,776)    $  (1,373,043)
                                                     =============     =============     ============     =============

Dividends accrued on preferred stock.............           28,817            31,005           57,634            62,797

Net (Loss) applicable to common shareholders         $    (667,177)    $    (804,808)   $  (1,380,410)    $  (1,435,840)
                                                     =============     =============    =============     =============
Loss per Common Share ...........................    $       (0.01)    $       (0.02)   $       (0.02)    $       (0.04)
                                                     =============     =============    =============     =============
Weighted Average Number of
  Common Shares Outstanding .....................       65,661,771        45,272,482       63,232,175        38,069,983
                                                     =============     =============    =============     =============

</TABLE>




                 See notes to consolidated financial statements


                                       4
<PAGE>


               MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                             Six Months Ended
                                                                                June 30,
                                                                  -----------------------------------
                                                                       2003                  2002
                                                                  --------------       --------------
<S>                                                               <C>                  <C>
Cash Flows from Operating Activities
  Net (loss).........................................                $(1,322,776)      $   (1,373,043)
  Adjustments to net (loss)
   Depreciation and amortization ....................                     93,456              102,057
   Stock & options issued for debt and expenses                          182,937              321,685
  Decreases (increases) in Assets
   Accounts receivable ..............................                      3,875                3,025
   Miscellaneous receivables.........................                      1,458               19,363
   Inventories.......................................                         30                    -
   Prepaid expenses .................................                    (87,057)             (69,266)
  Increases (decreases) in Liabilities
   Deferred revenues.................................                     (3,198)             (12,658)
   Change in prepayments.............................                    (14,075)                   -
   Accounts payable and accrued expenses ............                    208,236             (340,917)
                                                                  --------------       --------------
Net Cash (Used) by Operating Activities                                 (937,114)          (1,349,754)

Cash Flows from Investing Activities
   Purchases of equipment and fixtures ..............                     (1,885)              (2,596)
                                                                  --------------       --------------
Net Cash (Used) by Investing Activities                                   (1,885)              (2,596)

Cash Flows from Financing Activities
   Proceeds from loans and notes payable ............                    316,763                    -
   Repayment of loans and notes .....................                    (16,706)            (252,500)
   Issuance of common and preferred stock ...........                    655,148            1,689,330
                                                                  --------------       --------------
Net Cash Provided by Financing Activities                                955,205            1,436,830
Net Increase (Decrease) in Cash .....................                     16,206               84,480
Cash at Beginning of Period .........................                      9,976               15,229
                                                                  --------------       -------------
Cash at End of Period ...............................             $       26,182       $       99,709
                                                                  ==============       ==============

</TABLE>




                 See notes to consolidated financial statements


                                       5
<PAGE>

               MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2003

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  Nature of Organization

     Magnitude  Information  Systems,  Inc. (the "Company" or  "Magnitude")  was
     incorporated  as a Delaware  corporation  on April 19,  1988 under the name
     Fortunistics  Inc. On November  18, 1998,  the Company  changed its name to
     Magnitude Information Systems, Inc.

     The  Company's  primary  product  is an  integrated  suite  of  proprietary
     software modules marketed under the name ErgoManager(TM) which are designed
     to help individual computer users and businesses increase  productivity and
     reduce the risk of potentially  preventable repetitive stress injury (RSI).
     These  software  modules  can be  applied  individually  or  together  in a
     comprehensive ergonomic and early intervention program that seeks to modify
     a user's  behavior by  monitoring  computer  usage  patterns  over time and
     warning the user when to break a dangerous trend in repetitive  usage of an
     input  device,  such as a keyboard or mouse.  The product was  developed to
     train people working on computers,  monitor computer-use related activities
     and evaluate a user's risk exposure and  propensity  towards injury or loss
     of effectiveness in connection with his/her day-to-day work. Moreover,  the
     software  enables a company to not only  address the issue of health  risks
     involving  employees and to minimize resulting potential  liabilities,  but
     delivers a powerful tool to increase overall productivity.

     On June 24,  1997,  the  Company  extended  a stock  exchange  offer to the
     shareholders of Magnitude, Inc., a Delaware corporation and manufacturer of
     ergonomic  keyboarding systems. At the time of this submission,  holders of
     99.4% of  Magnitude,  Inc.  common stock have tendered  their  shares.  The
     remaining  Magnitude,  Inc.  shareholders hold a minority interest which is
     valued at $0. The Company and Magnitude,  Inc. remain as two separate legal
     entities  whereby  Magnitude,  Inc.  operates as a subsidiary  of Magnitude
     Information  Systems,  Inc. The operations of the newly combined entity are
     currently comprised solely of the operations of Magnitude, Inc.

  Basis of Presentation

     The  accompanying  unaudited  consolidated  financial  statements have been
     prepared in accordance with generally  accepted  accounting  principles for
     interim  financial  statements and with the instructions to Form 10-QSB and
     Article 10 of Regulation S-X.  Accordingly,  they do not include all of the
     information and disclosures required for annual financial statements. These
     financial  statements  should be read in conjunction  with the consolidated
     financial statements and related footnotes included in the Company's annual
     report  on Form  10-KSB  for the  year  ended  December  31,  2002  and its
     quarterly report on Form 10-QSB for the quarter ended March 31, 2003.

     In the opinion of the Company's management,  all adjustments (consisting of
     normal  recurring  accruals)  necessary  to present  fairly  the  Company's
     financial  position as of June 30, 2003,  the results of operations for the
     three and six months  ended June 30, 2003 and 2002,  and the cash flows for
     the six months ended June 30, 2003 and 2002, have been included.



                                       6
<PAGE>


               MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2003

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

  Principles of Consolidation

     The  consolidated  financial  statements  include the accounts of Magnitude
     Information  Systems,   Inc.  and  its  subsidiary   Magnitude,   Inc.  All
     significant inter-company balances and transactions have been eliminated.

  Inventories

     Inventory  consists of finished  goods that are stated at the lower of cost
     (determined by the first-in, first out method) or market.

  Depreciation and Amortization

     Property,  plant  and  equipment  are  recorded  at cost.  Depreciation  on
     equipment, furniture and fixtures and leasehold improvements is computed on
     the  straight-line  method over the  estimated  useful lives of such assets
     between 3-10 years.  Maintenance  and repairs are charged to  operations as
     incurred. Software assets are amortized on the straight-line method over 10
     years.  Software  assets  are  capitalized  at  the  fair  value  of  stock
     exchanged/granted  upon  acquisition and are amortized on the straight line
     method on a  product-by-product  basis over the estimated  economic life of
     the products which has been determined to be 10 years.

  Securities Issued for Services

     The Company accounts for stock, stock options and stock warrants issued for
     services and  compensation  by employees  under the intrinsic value method.
     For non-employees, the fair market value of the Company's stock on the date
     of stock issuance or option grant is used.  Effective  January 1, 1996, the
     Company adopted Statement of Financial  Accounting Standard (SFAS) No. 123,
     "Accounting  for  Stock-based   Compensation".   The  statement   generally
     suggests,   but  does  not  require,   employee  stock-based   compensation
     transactions  be  accounted  for  based on the fair  value of the  services
     rendered or the fair value of the equity instruments  issued,  whichever is
     more reliably  measurable.  As permitted by the statement,  the Company has
     elected to continue to follow the  requirements  of  Accounting  Principles
     Board  Opinion  No. 25,  "Accounting  for Stock  Issued to  Employees"  for
     employees  under the intrinsic  value method.  The adoption of SFAS No. 123
     does not have a material impact on the financial statements.

  Income Taxes

     The  Company  provides  for  income  taxes  based  on  enacted  tax law and
     statutory  tax rates at which items of income and  expenses are expected to
     be settled in the Company's income tax return. Certain items of revenue and
     expense are reported for Federal  income tax purposes in different  periods
     than for financial reporting purposes, thereby resulting in deferred income
     taxes.  Deferred taxes are also  recognized  for operating  losses that are
     available  to  offset  future  taxable  income.  Valuation  allowances  are
     established  when  necessary  to reduce  deferred  tax assets to the amount
     expected to be realized.  The Company has incurred net operating losses for
     financial-reporting  and tax-reporting purposes.  Accordingly,  for Federal
     income tax purposes,  the benefit for income taxes has been offset entirely
     by a valuation allowance against the related federal deferred tax asset for
     the year ended December 31, 2002.





                                       7
<PAGE>


               MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2003

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

     Net Loss Per Share Net loss per share, in accordance with the provisions of
     Financial  Accounting  Standards  Board No.  128,  "Earnings  Per Share" is
     computed by dividing net loss by the weighted  average  number of shares of
     Common Stock outstanding  during the period.  Common Stock equivalents have
     not  been  included  in  this   computation   since  the  effect  would  be
     anti-dilutive.

  Revenue Recognition

     The  Company's  revenue   recognition  policy  for  software  sales  is  in
     accordance  with  Accounting   Statement  of  Position  97-2.   Revenue  is
     recognized at the time of licensing provided that the resulting  receivable
     position is deemed  probable of  collection  and is fixed or  determinable.
     Revenue  from  software  maintenance  contracts  is  recognized  ratably as
     earned.  Where a sales contract  includes multiple  elements,  revenues are
     allocated  to the  various  elements  based on  Company-specific  objective
     evidence of fair value,  regardless of any separate prices for each element
     that may be stated within the contract.

  Use of Estimates

     The  preparation  of financial  statements  in  conformity  with  generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions  that affect the reported amounts of assets and liabilities and
     disclosure  of  contingent  assets  and  liabilities  at  the  date  of the
     financial  statements  and the  reported  amounts of revenues  and expenses
     during  the  reporting  period.  Actual  results  could  differ  from those
     estimates.


GOING CONCERN

The ability of the Company to continue its operations is dependent on increasing
sales and obtaining  additional  capital and financing.  In their report for the
fiscal year ended December 31, 2002, our auditors had expressed an opinion that,
as a result of the losses  incurred  and the relative  lack of working  capital,
there was  substantial  doubt  regarding  our  ability  to  continue  as a going
concern.  The accompanying  financial  statements do not include any adjustments
that might be  necessary  if the  Company  were  unable to  continue  as a going
concern.  During  the last two  years and the  first  two  quarters  in 2003 the
Company has relied on the private placement of its common and preferred stock to
fund its  operations.  Management's  plans are to  continue  seeking  additional
working   capital   through  equity  and  debt   placements   with  private  and
institutional investors.




                                       8
<PAGE>


               MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2003

PREPAID EXPENSES

     Prepaid  expenses at the end of the quarter  included a position of $50,000
     representing  the  unamortized  portion  of  part  of the  Company's  chief
     executive officer's base salary for the remainder of the current year which
     was prepaid in January 2003 in the form of restricted common stock, in lieu
     of cash (see "Related Party Transactions").

CONCENTRATIONS OF BUSINESS AND CREDIT RISK

     The Company  maintains cash balances in a financial  institution  which are
     insured  by the  Federal  Deposit  Insurance  Corporation  up to  $100,000.
     Balances in these  accounts  may, at times,  exceed the  federally  insured
     limits.

     The Company  provides  credit in the normal course of business to customers
     located  throughout  the U.S. and overseas.  The Company  performs  ongoing
     credit  evaluations of its customers and maintains  allowances for doubtful
     accounts  based  on  factors   surrounding  the  credit  risk  of  specific
     customers, historical trends, and other information.

PROPERTY AND EQUIPMENT

     Property and equipment consist of the following at June 30, 2003:
              Equipment                                            $     128,743
              Furniture and fixtures                                      75,530
              Leasehold improvements                                      29,735
                                                                   -------------
                                                                         234,008

              Less accumulated depreciation                              221,504
                                                                   -------------
                            Total                                  $      12,504
                                                                   =============

Depreciation  expense  charged to operations was $15,497 in the first six months
of 2003 and $24,098 in the first six months of 2002.

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts  payable and accrued  expenses  consisted of the  following at June 30,
2003:

              Accounts payable                                     $     499,522

              Accrued interest                                            64,096

              Accrued commissions                                         17,766

              Accrued salaries, bonuses and vacations                    110,102

              Accrued professional fees                                   58,066

              Miscellaneous accruals                                      10,852
                                                                   -------------

                            Total                                  $     760,404
                                                                   =============





                                       9
<PAGE>


               MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2003
<TABLE>
<CAPTION>

DEFERRED REVENUES
<S>                                                                                    <C>
     Deferred revenues at June 30, 2003, consist of prepaid software maintenance
     and support charges which are amortized ratably over the remaining duration
     of the underlying maintenance agreements.

LOANS AND NOTES PAYABLE

     At June 30,  2003,  Magnitude,  Inc. and the Company had  borrowings  under
     short term loan agreements with the following terms and conditions:

          On December 4, 1996, Magnitude, Inc. repurchased 500,000 shares of its
          common stock and retired same  against  issuance of a promissory  note
          maturing twelve months  thereafter  accruing  interest at 5% per annum
          and due December 4, 1998. This note is overdue at June 30, 2003 and no
          demand for payment has been made.                                            $   75,000

          At December 31, 1999 the Company had  $1,475,000 of notes  outstanding
          related to a June 1995  private  placement  offering.  During 2000 the
          holders  of  $1,450,000  worth  of  notes  agreed  to  accept  partial
          repayment of approximately  30% of the note balances and converted the
          remaining balances into common shares or convertible preferred shares.
          The total amount of non-converted  notes  outstanding at June 30, 2003
          is $25,000. Attempts to locate the holder of this note, to settle this
          liability, have been unsuccessful.                                               25,000

          Cash advances by three directors and officers of the Company,  payable
          on demand, carrying interest at the rate of 10% per annum.                      151,500

          Note dated December 31, 2002 due upon demand carrying  interest at the
          rate of 10% per annum.  Note  carries an option to convert  the entire
          principal  balance into  restricted  shares of the Company at $.10 per
          share.                                                                           25,000

          Note dated  April 25,  2003,  due  October 25,  2003,  originally  for
          $57,000,  carrying  interest  at the  rate of 15% per  annum.  Note is
          secured by accounts  receivables  and carries a provision  for earlier
          repayment from the proceeds of  receivables  collections or other fund
          receipts.                                                                        47,794

          Note dated June 2, 2003, due December 2, 2003, issued to a relative of
          a director and carrying interest at the rate of 10% per annum.                   53,763
                                                                                       -----------
              Total                                                                    $  378,057
                                                                                       ===========
</TABLE>




                                       10
<PAGE>



<TABLE>
<CAPTION>

LONG TERM DEBT
<S>                                                                                    <C>
  Long-term debt as of June 30, 2003, is comprised of the following:

     Pursuant to the February 2, 1998,  Agreement and Plan of Merger with Rolina
     Corporation,  the Company had issued  155,556  shares (the "Shares") of its
     common stock to the principal of Rolina Corporation who currently serves as
     the Company's Chief Executive Officer and Board Chairman,  and had issued a
     Put Option for such Shares at a price of $2.41 per share in accordance with
     the provisions  contained therein,  with notice for exercise eligible to be
     given at any time after  February 1, 2000, and before 5:00 p.m. on the 90th
     day thereafter.  This liability was converted into a Company obligation for
     $274,890  maturing  March  31,  2002 and a demand  loan for  $100,000  both
     carrying  interest at the rate of 7% per year payable  monthly.  The demand
     portion of this note was repaid in April 2002 and the due date for $274,890
     of the remaining  balance was extended to July 1, 2003.  Subsequently,  the
     maturity of the unpaid balance was changed to a portion of $74,890  payable
     on demand,  and a portion of $200,000 due and payable on July 1, 2004.  The
     obligation  includes  an  option  to  the  holder  for  conversion  of  the
     outstanding principal into shares of the Company's common stock at the rate
     of $0.10 per share.                                                               $   274,890

     Discounted present value of a non-interest  bearing $70,000 settlement with
     a  former  investor  of  Magnitude,  Inc.  to be paid in  monthly  payments
     commencing  July 1, 1997.  The imputed  interest  rate used to discount the
     note is 8% per annum. This obligation is in default.

                                                                                            33,529
                                                                                       -----------
             Total                                                                         308,419
             Less current maturities                                                       108,419
                                                                                       -----------
             Long-term debt, net of current maturities                                 $   200,000
                                                                                       ===========

  INCOME TAXES

     At December 31, 2002,  the Company had net  operating  loss  carry-forwards
     approximating  $19,300,000  for federal  income tax  purposes  which expire
     between  the  years  2007  and  2022  and are  subject  to  certain  annual
     limitations.  At December 31, 2002, the Company has available approximately
     $7,800,000 of net operating losses to  carry-forward  and which may be used
     to reduce future state taxable income which expire December 31, 2009.

     The Company's total deferred tax asset and valuation  allowance at December
     31, 2002 are as follows:

            Total deferred tax asset, non-current                                      $ 6,700,000
            Less valuation allowance                                                     6,700,000
                                                                                       -----------
                                                                                       $         -
            Net deferred tax asset                                                     ===========

</TABLE>

COMMITMENTS AND CONTINGENCIES

   Lease Agreement

     On March 15, 2000,  the Company  entered into a lease  agreement for office
     space which is utilized for the  Company's  principal  offices.  Such lease
     commenced April 15, 2000 and expires on March 31, 2005 and requires monthly
     payments of $6,500 from April 15, 2000 through  March 31,  2002;  of $6,695
     thereafter  through March 31, 2003; of $6,896 thereafter  through March 31,
     2004; and of $7,103  thereafter  through March 31, 2005. In August 2002 the
     Company  subleased  additional  office  space at this  location  commencing
     September 1, 2002 and expiring  December  31, 2003.  The sublease  requires
     monthly payments of $1,955 throughout the sublease term.



                                       11
<PAGE>


               MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2003

COMMITMENTS AND CONTINGENCIES, continued


     Under the lease agreements,  the Company is required to make future minimum
     lease  payments  as follows  in  addition  to a  pro-rata  share of certain
     operating expenses:

          Year Ending December 31,
                  2003                                                 $ 105,609
                  2004                                                    84,615
                  2005                                                    21,309
                                                                       ---------
                  Total                                                $ 211,533
                                                                       =========

  Employment Agreements

     The  Company  has  entered  into  employment  agreements  with  certain key
     personnel  which provide for a base salary,  yearly bonuses in common stock
     and/or  options  of the  Company  and other  benefits.  Termination  of the
     agreements may be made by either party with advance notice.

RELATED PARTY TRANSACTIONS

     In January 2003, the Company and its President and Chief Executive  Officer
     agreed to convert  most of his base  salary for the  remainder  of the year
     2003 into restricted  common stock in lieu of cash at the rate of $0.10 per
     share, for a total amount of $100,000.

     During the first  quarter in 2003,  an outside  director of the Company was
     awarded a stock grant for 200,000  restricted  common shares,  for services
     rendered.  The same director converted $20,500 in accrued expenses incurred
     on behalf of the Company, into 205,000 restricted shares.

     During  the  first  quarter  in 2003,  the  Company's  President  and Chief
     Executive  Officer and an outside  director of the  Company  extended  cash
     advances to the Company, totaling $92,500, repayable on demand and carrying
     interest at the rate of 10% per annum.

     During the second  quarter in 2003, an outside  director of the Company was
     awarded a stock grant for 163,500  restricted  common shares,  for services
     rendered.

     During  the second  quarter  in 2003,  the  Company's  President  and Chief
     Executive  Officer and an outside  director of the  Company  extended  cash
     advances  to the  Company,  totaling  $151,500,  repayable  on  demand  and
     carrying interest at the rate of 10% per annum.

     In a meeting of the board of directors  of the Company on May 29, 2003,  in
     consideration  of the Company's  President's  role in augmenting  available
     working capital through salary  conversion and direct cash loans, the board
     approved a reduction  in the  exercise  price of stock  options for a total
     4,147,917 shares issued to him, from prices ranging from $0.50 to $1.00, to
     $0.10 per share.



                                       12
<PAGE>


Item 2.

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


CAUTIONARY  STATEMENT PURSUANT TO "SAFE HARBOR" PROVISIONS OF SECTION 21E OF THE
SECURITIES EXCHANGE ACT OF 1934

     Except for historical information,  the Company's reports to the Securities
     and Exchange  Commission on Form 10-KSB and Form 10-QSB and periodic  press
     releases,  as  well as  other  public  documents  and  statements,  contain
     "forward-looking  statements"  within the  meaning  of  Section  21E of the
     Securities Exchange Act of 1934.  Forward-looking statements are subject to
     risks  and  uncertainties   that  could  cause  actual  results  to  differ
     materially from those  expressed or implied by the statements.  These risks
     and  uncertainties   include  general  economic  and  business  conditions,
     development  and market  acceptance  of the Company's  products,  and other
     risks  and  uncertainties  identified  in  the  Company's  reports  to  the
     Securities  and Exchange  Commission,  periodic  press  releases,  or other
     public documents or statements.

     Readers  are  cautioned  not to place  undue  reliance  on  forward-looking
     statements.  The Company  undertakes  no  obligation to republish or revise
     forward-looking  statements to reflect  events or  circumstances  after the
     date hereof or to reflect the occurrences of unanticipated events.


Results of Operations:

     The second  quarter did not yield major new  contracts for the licensing of
     our software as they could not be completed  during the  reporting  period.
     The majority of potential license  agreements that we have been negotiating
     continue to be active  ongoing  projects  expected to close within the next
     two quarters. The reasons for these delays range from  longer-than-expected
     trials and  evaluations  to  budgetary  constraints,  the current  economic
     climate and committee-based decision making processes that are not atypical
     for new software products such as ours, which directly affect several areas
     of an  enterprise.  During  the  second  quarter  through  the time of this
     report, management has been actively negotiating a group of extremely large
     significant  contracts in the areas of  distribution  and  reselling  which
     management internally targets to be worth more than $10 million in revenues
     over the next twelve months.  Significant capital infusions,  which improve
     the  Company's  balance  sheet  optics,  will  have a  material  effect  on
     shortening  the  sales  cycle  in all the  Company's  business  development
     endeavors.

     The quarter's  revenues totaled  $33,107,  compared to $92,492 for the same
     period in 2002.  During  the  current  period,  selling-  and  general  and
     administrative  expenses amounted to $607,875,  significantly less than the
     $821,938  recorded  during the same period in 2002.  Lesser expenses in the
     marketing area where we currently  operate with a reduced staff level,  and
     savings in third party  professional  services,  primarily  in the areas of
     investor relations,  and outlays relating to capital raising activities and
     related regulatory filings, account for most of these cost reductions.  For
     the first  quarter as a total,  the Company  realized an operating  loss of
     $613,748,  compared  to an  operating  loss  of  $768,383  in  2002.  After
     accounting  for  non-operating  income  and  expenses  - mainly  in form of
     interest expenses - and dividend  accruals on outstanding  preferred stock,
     the net loss applicable to common  shareholders for the period was $667,177
     or $0.01 per share,  compared  to a loss of $804,808 or $0.02 per share for
     the same quarter in the previous year.


Liquidity and Capital Resources:

     The Company has experienced cash shortages during the quarter and continues
     to remain dependent upon the infusion of new equity capital to fund ongoing
     operations.  New private  placements with accredited  investors  during the
     quarter,  and the exercise of certain stock purchase warrants,  resulted in
     the receipt by the Company of approximately  $250,000 in new equity capital
     in the form of cash.  These equity  placements were consummated by issuance
     of common stock to private  investors in the U.S. and overseas.  Details of
     those transactions can be found in the "Changes and Issuance of Securities"
     section of this report.


                                       13
<PAGE>

     The  equity   placements  were  augmented  by  approximately   $160,000  in
     short-term  loans, a portion of which  amounting to $60,000 was supplied by
     certain  officers  and  directors of the  Company.  At June 30,  2003,  the
     deficit in working  capital  amounted to  $1,368,443,  up from a deficit of
     $978,502  at March  31,  2003.  The  deficit  continues  to  challenge  the
     Company's ability to aggressively  proceed with certain marketing programs.
     The lack of adequate  financing hinders long-term planning and continues to
     occupy  management  time and  resources.  The Company is  pursuing  several
     avenues   that   involve   both  equity  and  debt   financing  -  possibly
     collateralized  by  restricted  common  stock,  and,  to a  lesser  degree,
     additional equity placements with accredited private investors.  Until such
     financings  can be  completed,  the  probability  and  timing  of  which is
     uncertain  at this time,  the Company will  continue to face a  significant
     shortage of operating cash.

     At the time of this  submission,  the Company had no bank debt. At June 30,
     2003, its short-term  liabilities outside of other debt consisted primarily
     of $499,522 trade payables, approximately $260,000 in various accruals (see
     "Accounts   Payable  and  Accrued  Expenses"  in  the  Notes  to  Financial
     Statements  section)  and  $306,966  in accrued  dividends  on  outstanding
     preferred stock.  Recognizing the absence of surplus funds, management does
     not plan to liquidate  the latter  position in the immediate  future.  Debt
     included  approximately  $486,476  in  current  loans  and  notes  of which
     approximately $225,390 is owed to the Company's chief executive officer and
     one outside director, and $200,000 in long-term liabilities,  likewise owed
     to the Company's chief executive officer and evidenced by a promissory note
     maturing in July 2004.

     Current cash reserves are inadequate when measured  against needs projected
     for the upcoming  quarter,  and the  Company's  liquidity  overall  remains
     strained.  While  management  firmly expects to be able to obtain necessary
     working capital,  there can be no assurance that the desired funding can be
     secured in a  satisfactory  manner with  respect to terms,  timeliness  and
     volume.


Item 3.    CONTROLS AND PROCEDURES

     (a)  Evaluation of Disclosure Controls and Procedures.

          Within the 90 days prior to the filing date of this  Annual  Report on
Form 10-K, our Chief Executive Officer and our Chief Financial Officer evaluated
the  effectiveness of our disclosure  controls and procedures as defined in Rule
13a-14(c)  under the Securities  Exchange Act of 1934, as amended (the "Exchange
Act").  Based upon that  evaluation,  the Chief Executive  Officer and the Chief
Financial  Officer,  have  concluded  that our current  disclosure  controls and
procedures are adequate and effective to ensure that information  required to be
disclosed in the reports we file under the Exchange Act is recorded,  processed,
summarized and reported on a timely basis.

     (b)  Changes in Internal Controls.

          There have been no significant  changes in our internal controls or in
other factors that could  significantly  affect internal controls  subsequent to
the date of their  evaluation  by the  Chief  Executive  Officer  and the  Chief
Financial Officer.





                                       14
<PAGE>




PART  II  -  OTHER INFORMATION

Item 1   LEGAL PROCEEDINGS

     The Company is not a party in any legal proceedings.

Item 2   CHANGES IN SECURITIES

     -  None

c)   Issuance of unregistered securities

     During the quarter  ended June 30, 2003,  the Company  issued the following
     unregistered securities:

     (i)  1,900,000 shares of common stock to 7 accredited investors pursuant to
          private  placement  subscriptions,  issued in reliance upon exemptions
          provided under Section 4(2), Rule 506 of Regulation D and Regulation S
          of the Securities  Act, and 1,115,500  shares of common stock pursuant
          to  the  exercise  of  stock  purchase  warrants   previously  issued,
          altogether  resulting  in the receipt by the Company of  approximately
          $250,000 in cash;

     (ii) 500,000  shares of common stock for marketing  consulting and investor
          relations services performed;

     (iii)163,500  shares  of  common  stock  pursuant  to a stock  grant  to an
          outside director of the Company.



Item 3   DEFAULTS ON SENIOR SECURITIES

     The Company, as of the date of this filing, is in arrears on the payment of
     certain  dividends on its Series A, C, and D Senior  Convertible  Preferred
     Stock. Such arrears total approximately $290,000. These dividends have been
     accrued,  however,  the  Company's  management  has  refrained  from making
     payments  at this time  because of the absence of  positive  equity  and/or
     surplus funds.

Item 4   SUBMISSION OF MATTERS TO A VOTE OF
         SECURITIES' HOLDERS

     -  None

Item 5   OTHER INFORMATION

       -  None




Item 6   EXHIBITS AND REPORTS ON FORM 8-K

          (a)  Exhibit  (3)(i)  -  Articles  of  Incorporation   and  Amendments
               thereto, incorporated herein by reference to Exhibits of previous
               filings with the Commission.

               Exhibit (3)(ii) - By-laws of the Company,  incorporated herein by
               reference to Exhibits of previous filings with the Commission.


                                       15
<PAGE>

          (b)  Reports on Form 8-K:

               On  April 8,  2003,  the  Company  filed a  report  on Form  8-K,
               informing about a joint marketing  agreement for  distribution of
               the  Company's  ergonomic  software,  with  Insurance  Office  of
               America of Orlando, Florida.

               On May 2, 2003, the Company filed a report on Form 8-K, informing
               about  a  joint  marketing  agreement  for  distribution  of  the
               Company's ergonomic software,  with Arcavista  Corporation of New
               York, New York.

               On May 16,  2003,  the  Company  filed  a  report  on  Form  8-K,
               informing about a joint marketing  agreement for  distribution of
               the Company's ergonomic  software,  with Digital Door Productions
               of Winter Park, Florida.

               On June  23,  2003,  the  Company  filed a  report  on Form  8-K,
               informing about Southern  California  Edison's decision to expand
               their enterprise  deployment of the Company's  patented ergonomic
               software.


                                   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.



                                         MAGNITUDE INFORMATION SYSTEMS, INC.




Date:   August 12, 2003                  By:  /s/  Steven D. Rudnik
                                            ------------------------------------
                                            Steven D. Rudnik
                                            Chairman and Chief Executive Officer





                                       16
<PAGE>





                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of Magnitude  Information Systems,  Inc.
(the  "Company")  on Form 10-QSB for the quarter  ended June 30, 2003 (the "Form
10-QSB"), each of the undersigned officers of the Company certifies, to the best
of their  knowledge,  that the  Company's  Form 10-QSB fully  complies  with the
requirements  of Section 13(a) or 15(d) of the  Securities  Exchange Act of 1934
and that the information  contained in the Form 10-QSB,  fairly presents, in all
material  respects,  the  financial  condition  and results of operations of the
Company.


Dated:  August 12, 2003                 MAGNITUDE INFORMATION SYSTEMS, INC.

                                        By:  /s/ Steven D. Rudnik
                                           -------------------------------------
                                           Steven D. Rudnik
                                           President and Chief Executive Officer


                                        By: /s/ Joerg H. Klaube
                                           -------------------------------------
                                           Joerg H. Klaube
                                           Chief Financial Officer




                                       17
<PAGE>




                            CERTIFICATION PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I,  Steven D.  Rudnik,  the Chief  Executive  Officer of  Magnitude  Information
Systems, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Magnitude Information
Systems, Inc. (the "Company") for the period ended June 30, 2003;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
Company as of, and for, the periods presented in this quarterly report;

4. The Company's other certifying officer and I are responsible for establishing
and maintaining  disclosure  controls and procedures (as defined in Exchange Act
Rules 13a-14 and 15d-14) for the Company and we have:

     (a)  designed  such  disclosure  controls  and  procedures  to ensure  that
material  information  relating  to  the  Company,  including  its  consolidated
subsidiaries, is made known to us by others within those entities,  particularly
during the period in which this quarterly report is being prepared;

     (b) evaluated the  effectiveness of the Company's  disclosure  controls and
procedures  as of a date  within  90  days  prior  to the  filing  date  of this
quarterly report (the "Evaluation Date"); and

     (c)  presented  in  this  quarterly   report  our  conclusions   about  the
effectiveness of the disclosure  controls and procedures based on our evaluation
as of the Evaluation Date;

5. The Company's other  certifying  officer and I have  disclosed,  based on our
most recent evaluation,  to the Company's auditors and to the audit committee of
Company's board of directors:

     (a) all  significant  deficiencies  in the design or  operation of internal
controls which could adversely affect the Company's ability to record,  process,
summarize  and  report  financial  data and have  identified  for the  Company's
auditors any material weaknesses in internal controls; and

     (b) any fraud,  whether or not material,  that involves management or other
employees who have a significant role in the Company's internal controls; and

6. The Company's other certifying officer and I have indicated in this quarterly
report whether or not there were significant  changes in internal controls or in
other factors that could  significantly  affect internal controls  subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.

Dated: August 12, 2003                      By:  /s/ Steven D. Rudnik
                                                --------------------------------
                                                Steven D. Rudnik
                                                Chief Executive Officer



                                       18
<PAGE>




                            CERTIFICATION PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I,  Joerg H.  Klaube,  the Chief  Financial  Officer  of  Magnitude  Information
Systems, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Magnitude Information
Systems, Inc. (the "Company") for the period ended June 30, 2003;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
Company as of, and for, the periods presented in this quarterly report;

4. The Company's other certifying officer and I are responsible for establishing
and maintaining  disclosure  controls and procedures (as defined in Exchange Act
Rules 13a-14 and 15d-14) for the Company and we have:

     (a)  designed  such  disclosure  controls  and  procedures  to ensure  that
material  information  relating  to  the  Company,  including  its  consolidated
subsidiaries, is made known to us by others within those entities,  particularly
during the period in which this quarterly report is being prepared;

     (b) evaluated the  effectiveness of the Company's  disclosure  controls and
procedures  as of a date  within  90  days  prior  to the  filing  date  of this
quarterly report (the "Evaluation Date"); and

     (c)  presented  in  this  quarterly   report  our  conclusions   about  the
effectiveness of the disclosure  controls and procedures based on our evaluation
as of the Evaluation Date;

5. The Company's other  certifying  officer and I have  disclosed,  based on our
most recent evaluation,  to the Company's auditors and to the audit committee of
Company's board of directors:

     (a) all  significant  deficiencies  in the design or  operation of internal
controls which could adversely affect the Company's ability to record,  process,
summarize  and  report  financial  data and have  identified  for the  Company's
auditors any material weaknesses in internal controls; and

     (b) any fraud,  whether or not material,  that involves management or other
employees who have a significant role in the Company's internal controls; and

6. The Company's other certifying officer and I have indicated in this quarterly
report whether or not there were significant  changes in internal controls or in
other factors that could  significantly  affect internal controls  subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.

Dated: August 12, 2003                      By:  /s/ Joerg H. Klaube
                                               ---------------------------------
                                               Joerg H. Klaube
                                               Chief Financial Officer



                                       19
<PAGE>