<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        December 31, 2000
                               ------------------------------------------
                                       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 000-17259


                             GC INTERNATIONAL, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

       CALIFORNIA                                         94-2278595
-------------------------------------------------------------------------------
(State or other jurisdiction of             (I.R.S. employer Identification no.)
 incorporation or organization)

156 BURNS AVENUE, ATHERTON CALIFORNIA                           94027
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                      (Zip Code)


Registrant's Telephone Number, including Area Code (650) 322-8449
                                                   -----------------------------

                                      N/A
--------------------------------------------------------------------------------
             Former name, former address and former fiscal year, if
                           changed since last report.


   Indicate  by check mark  whether  the  registrant  (1) has filled 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 No ___X__


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:


Indicate  by check mark  whether  the  registrant  has filed all  documents  and
reports  required  to be  filed by  Section  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court. Yes X   No
                         ----    ----

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

    Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date 5,350,798.


<PAGE>
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<CAPTION>

                             GC INTERNATIONAL, INC.
                                      INDEX
                                      -----
<S>                                                                          <C>

PART I.   FINANCIAL INFORMATION:
-------   ----------------------

  Item 1.   Financial Statements

          Unaudited Condensed Balance Sheets
           December 31, 2000 and June 30, 2000................................1


          Unaudited Condensed Statements of Operations
           Three and six months ended December 31, 2000
             and December 31, 1999............................................2

          Unaudited Statements of Cash Flows for the six months
           Ended December 31, 2000 and December 31, 1999......................3

          Notes to Unaudited Condensed Financial Statements
           Ended December 31, 2000 and December 31, 1999......................4


  Item 2.      Management's Discussion and Analysis of
               Financial Condition & Results of Operation.....................4



PART II.   OTHER INFORMATION:
--------   ------------------

  Item 1.      Legal Proceedings..............................................6


  Item 2.      Changes in Securities..........................................6

  Item 3.      Defaults Upon Senior Securities................................6


  Item 4.      Submission of Matters to a Vote
                of Security Holders...........................................6

  Item 5.      Other Information..............................................6


  Item 6.      Exhibits & Reports on Form 8-K.................................6


       Signatures ........................................................... 6


</TABLE>


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<TABLE>
<CAPTION>

                             GC INTERNATIONAL, INC.
                                 BALANCE SHEETS

                                        Unaudited
                                     December 31, 2000         June 30, 2000
                                     -----------------         -------------

<S>                                        <C>                   <C>
ASSETS
Current Assets
   Cash                                   $  98,412            $   173,019
   Accounts receivable, net of
      Allowance for doubtful accounts       769,391                548,399
      Of $5,538 at December 3 and
      $5,538 at June 30, 2000
   Inventories                              474,372                555,963
Prepaid expenses                             37,206                  8,261
Prepaid income tax                                -                 26,561
Deferred tax benefit                         19,338                 19,338
                                             ------                 ------

          Total current assets            1,398,719              1,304,979

    Property and equipment, net             470,228                448,363
    Deposits & deferred expenses             47,646                 43,760
    Deferred tax benefit                    368,118                368,118
                                            -------                -------


               Total assets              $2,284,710             $2,165,220
                                         ==========             ==========



LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current liabilities
       Accounts payable                  $  320,397            $   123,604
       Accrued expenses                     524,368                592,539
       Income taxes payable
       Notes payable                        239,600                248,876
                                            -------                -------


      Total current liabilities           1,084,365                965,020

Other Liabilities:
       Notes payable, net of current
       portion                              149,391                113,063
       Other long term debt                 320,000                320,000

Stockholders' equity:
       Common stock, without par value.   1,759,149              1,759,149
       Accumulated deficit               (1,028,195)              (992,011)
                                         ----------               --------


         Net stockholders' equity           730,954                767,138
         Total Liabilities and
            Stock Holders Equity         $2,284,710             $2,165,220
                                         ==========             ==========

</TABLE>


   The accompanying notes are an integral part of these financial statements.
                                        1


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<TABLE>
<CAPTION>


                             GC INTERNATIONAL, INC.
                            STATEMENTS OF OPERATIONS

                              3 Months Ended                6 Months Ended
                          12/31/00       12/31/99      12/31/00      12/31/99
                               (Unaudited)                   (Unaudited)

<S>                       <C>             <C>            <C>            <C>
Net sales                $1,370,163      $1,190,937    $2,635,964    $2,228,836
Cost of sales               922,742         836,859     1,871,387     1,571,684
                            -------         -------     ---------     ---------


Gross profit                447,421         354,078       764,577       657,152

Operating expenses:
  Selling                    50,971          46,083       106,980        87,994
  General & Admin.          319,117         327,375       649,209       641,316
                            -------         -------       -------       -------


Income (loss)from operations(77,333)        (19,380)        8,388       (72,158)


Other income (expense)
  Interest net                2,356             719         4,428         4,206
  Other                      33,924          42,042        39,344        47,889
                             ------          ------        ------        ------


Income (loss) before
  income taxes               41,053         (62,140)      (35,384)     (124,252)


Provision for income taxes      800             800           800             -
                                ---             ---           ---           ---

Net income (loss)           $40,253        $(62,140)     $(36,184)    $(124,252)
                            =======        ========      ========     =========


Earnings per common share
  Primary and Fully diluted  $(0.01)         $(0.01)       $(0.01)        $0.02

Weighted average shares outstanding
  Primary                 5,423,191       5,423,191     5,423,191     5,423,191
  Fully diluted           5,423,191       5,423,191     5,423,191     5,423,191


</TABLE>


   The accompanying notes are an integral part of these financial statements.
                                        2


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<TABLE>
<CAPTION>


                             GC INTERNATIONAL, INC.
                            STATEMENTS OF CASH FLOWS
                                                            6 Months Ended
                                               ---------------------------------
                                             December 31, 2000  December 31,1999
                                               (Unaudited)          (Unaudited)
                                               -----------          -----------


<S>                                              <C>                   <C>
Cash flows from operating activities:
Net income                                       $(36,184)             $124,251
Adjustments to reconcile net income to net
  cash provided by operating activities:
    Depreciation and amortization                  68,360                53,106
    Gain on sale of property, plant & equipment                               -
Adjustments to cash from operations:
    Accounts Receivable        (incr)decr        (220,992)              (42,476)
    Inventory                  (incr)decr          81,592                   816
    Accrued payable             incr(decr)        196,793                73,778
    Accrued liabilities         incr(decr)        (68,171)              (70,074)
    Income taxes payable        incr(decr)                               (7,491)
    Prepaid income taxes                                                 26,561
    Reserve liability           incr(decr)              -                     -
    Prepaid expenses           (incr)decr         (28,946)              (19,967)
    Other assets & deposits    (incr)decr          (3,886)              (14,700)
                                                   ------               -------

      Net cash provided by operating activities   (11,434)             (124,699)

Cash flows from investing activities:
      Purchase of property, plant & equipment     (90,225)              (10,030)
      Proceeds from sale of property, plant
        & equipment                                     -                     -
                                                 ---------             ---------

                   Net cash provided (used) by
                       investing activities       (90,225)              (10,030)

Cash flows from financing activities:
      Payments on short term borrowings            (9,276)                6,100
      Payments on long term debt                  (11,712)               35,161
      Re-purchase of common stock                  48,040                     -
      New long term borrowings                          -               (10,859)
                                                ----------            ----------

       Net cash provided by financing activities   27,052               (52,120)
                                                 --------             ----------

Increase (decrease) in cash and cash equivalents  (74,606)             (186,849)
    Cash at beginning of period                   173,019               371,085
                                                --------               ---------
Cash at end of period                           $  98,412             $ 184,236
                                                =========             =========

</TABLE>


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

                                        3


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<TABLE>
<CAPTION>


                             GC INTERNATIONAL, INC.
                     Notes to Condensed Financial Statements
Note 1
------
The financial statements included herein have been prepared by GC International,
Inc.,  ("GCI")  without  audit,  and include all  adjustments  which are, in the
opinion  of  management,  necessary  for a fair  presentation  of the  Company's
financial  position as of December  31, 2000,  and  December  31, 1999,  and the
results of it's  operation for the three and six months ended  December 31, 2000
and  1999.  Certain  information  and  note  disclosures  normally  included  in
financial  statements have been condensed or omitted  pursuant to such rules and
regulations  of the  Securities  and Exchange  commission,  although the Company
believes that it's  disclosure in such financial  statements is adequate to make
the information presented not misleading.

These  financial  statements  should be read in  conjunction  with the Company's
financial  statements  and notes  thereto  included in the  Company's  Form 10-K
Annual Report filed with the Securities and Exchange Commission.  The results of
operations  for the  three  and six  months  ended  December  31,  1999  are not
necessarily indicative of the results of the full year.

Note 2
------
Inventories  are  stated at the lower of cost  (first-in,  first-out  method) or
market and consist of the following:
                                                December 31 December 31
                                                    2000       1999
                                                    ----       ----
<S>                                                <C>       <C>
                           Raw materials          $77,495   $ 66,101
                           Work in process        396,877    406,014
                                                  -------    -------

                                  Total          $474,372   $472,115
                                                  =======    =======

Inventories  increased  slightly  at the  end of  December  2000  due to work in
process that could not be shipped or was not  scheduled to be shipped at the end
of December.

Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations

Liquidity and Capital Resources
As of December 31, 2000,  the Company's  cash position  decreased to $98,412 and
working  capital was $314,354,  compared to cash of $184,236 and working capital
of $288,704 in the prior period.  The cash position  decreased during the period
as a result  of  continuing  losses  resulting  from poor  shipments  at the ALJ
division and a substantial increase in accounts receivable.  Management believes
that these funds and cash flow from  operations  are  marginal  to fund  ongoing
operations,  and the  division  must  increase  sales and cash flow during 2001.
However,  there is no  assurance  that these  funds will prove  adequate  if the
Company is unable to obtain positive cash flow operations in the future.  At the
present  time,  the  Company  is very  short  of cash  and has  been  stretching
payables.

</TABLE>

                                        4
<PAGE>

Energy Costs
------------

The Energy crisis in California is acute. During the past 6 months the Company's
energy costs have risen  substantially  and are  projected to rise  further.  If
these costs cannot be recovered  through price  increases,  fiscal health of the
Company could be in jeopardy.


Capital Equipment Requirements and Equipment Leases
---------------------------------------------------

The Company,  from time to time, has satisfied  certain of its capital equipment
requirements  by entering into  equipment  leases with third parties or purchase
arrangements with the equipment manufacturers. During 2001, the Company has been
able to arrange satisfactory purchase contracts.

The Company  anticipates that additional  capital  equipment may be required for
the Company's  operating  divisions  during 2001.  The Company will use its best
efforts to satisfy  its  capital  needs by using  internally  generated  cash in
excess  of  debt   repayments,   cash  resources  and  by  entering  into  other
arrangements  as available.  There can be no assurances that cash resources will
be adequate.

Factors Affecting Future Results
--------------------------------

The Company makes payments to certain creditors in accordance with the Company's
1991 Plan of  Reorganization.  The total of the  non-interest  bearing notes, at
December 31, 2000 was $158,365 compared to $170,365 at December 31, 1999.

The  Company  settled  and paid  interim  claim with the EPA for  $100,000  plus
interest for a Superfund Site cleanup in connection  with waste generated in the
1970's by a former division.  In April,  2000 EPA requested that the Company pay
in excess of $500,000 for the final remediation.  However,  the EPA also offered
to settle for a lesser  amount  based on a financial  analysis of the  Company's
ability  to pay.  As of  February  20,  2001,  the  Company  received  a  letter
suggesting  that the EPA would settle for  approximately  $320,000.  The Company
will resubmit our financial requesting a further reduction. The Company has only
reserved $120,000 to cover this settlement. In any event, the Company cannot pay
the amount requested because there are insufficient funds. However,  there is no
guarantee  that the  company  will be able to settle the claim on terms that are
satisfactory.



Results of Operations
---------------------
Comparison  of three and six months ended  December  31, 2000,  and December 31,
1999.

The  Company's  sales for the six months  ending  December 31,  2000,  increased
$407,128 or 18.3% and for the 3 month  period ended  December  31,  2000,  sales
increased by $179,266 or 15.1% over the comparable period of the prior year.


                                   5

<PAGE>

However,  there has been a noticeable  decrease in the Company's  markets as the
recession   continues  to  impact  ALJ.  The  backlog  which  was  approximately
$1,197,674  at June  30,  2000  decreased  at  December  31,  2000 to  $944,879.
Significantly,  a  substantial  part of the backlog is stretched  out. If orders
continue  to be booked as a result of  continued  sales and  marketing  efforts,
shipments  could  increase  during  the  third  quarter  to  enable a return  to
profitability. However, there are no assurances that the Company will be able to
do so. The Company has been increasing the marketing  efforts by adding mailings
to the  schedule  and  is  changing  sales  representatives  in  underperforming
territories.  In addition,  the Company has terminated Sales  Representatives in
California  and switched to direct  sales.  This seems to be producing  positive
results with our customers.



The Apollo  Division has good production  yields and division  profits have held
up.  Apollo  shipments  are expected to remain stable during the next six months
and are therefore  expected to provide  profits and cash flow.  However,  Apollo
increases  are not expected to offset ALJ  decreases.  Therefore,  the Company's
profits, cash position and earnings per share may decrease as compared to 2000.

The Company's cost of sales  increased  19.1% in the 6 months ended December 31,
2000  over the  comparable  period.  Operating  expenses  increased  3.7% due to
increased selling costs as compared to the prior six-month  period.  The Company
expects  to  continue  heavy  selling  activities  during the next six months to
obtain new  tooling  and  orders.  Administrative  expense  increased  due to an
increase in management and direct  personnel.  As a result of the sales increase
at ALJ,  the  Company  was able to  become  profitable  for the  Quarter  ending
December 31,  2000.  Profit for the quarter was $40,253 or 3% compared to a loss
of $62,140 or 5.2% for December  31, 1999 for the six months the loss  decreased
to $36,184 compared to the prior period loss of $124,252.

However,  the current  recession is making new orders for tooling and production
difficult  to obtain and a loss is  projected  for the quarter  ending March 30,
2001 and for the fiscal year.


                                        6

<PAGE>


PART II



Item 1   Legal Proceedings:  None

Item 2   Changes in Securities:  Not Applicable

Item 3   Defaults upon Senior Securities:  Not Applicable

Item 4   Submission of Matters to a Vote of Securities Holders:  Not Applicable.

Item 5   Other Information:  None

Item 6   Exhibits and Reports on Form 8K:  None




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






                             GC INTERNATIONAL, INC.
                                   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.


                             GC International, Inc.
                                  (Registrant)


  February 12, 2001                  F. Willard Griffith II
-------------------                  -------------------------------------------
       Date                          F. Willard Griffith II
                                     Chairman, Chief Executive Officer and
                                     Chief Financial Officer


                                        7