SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 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, 2001 or

[ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934

For the transition period from _____________________ to ___________________

                              0-16594
Commission file number  ___________________________________________________

                        MEDICAL TECHNOLOGY SYSTEMS, INC.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)


           DELAWARE                                        59-2740462
-------------------------------                  -------------------------------
(State or other jurisdiction of                         (I.R.S.) Employer
 Incorporation or Organization)                         Identification No.)


              12920 Automobile Boulevard, Clearwater, Florida 33762
--------------------------------------------------------------------------------
                    (Address of Principal Executive Offices)

                                  727-576-6311
--------------------------------------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)

--------------------------------------------------------------------------------
              (Former Name, Former Address and Former Fiscal Year,
                          if changed since last report)


     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 ______


                     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 ______


                                      10Q-1


<PAGE>
                                        i


                MEDICAL TECHNOLOGY SYSTEMS, INC. AND SUBSIDIARIES


                                      Index

                                                                            Page
Part I - Financial Information


Item 1.     Financial Statements

          Condensed Consolidated Balance Sheets -
              June 30, 2001 and March 31, 2001...........................      1


          Condensed Consolidated Statements of Operations -
              Three Months Ended June 30, 2001 and 2000..................      2


          Condensed Consolidated Statements of Changes in Stockholders' Equity
              (Deficit) - Three Months Ended June 30, 2001...............      3


          Condensed Consolidated Statements of Cash Flow -
              Three Months Ended June 30, 2001 and 2000..................      4


          Notes to Condensed Consolidated Financial Statements........... 5 - 8


Item 2.     Management's Discussion and Analysis of Financial
              Condition and Results of Operations........................ 9 - 10



Part II - Other Information


Item 6.   Exhibits and Reports on Form 8-K...............................     11


          Signature......................................................     11



<PAGE>
                                       1


Item 1.  Financial Statements


                         PART 1 - FINANCIAL INFORMATION

                MEDICAL TECHNOLOGY SYSTEMS, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In Thousands)

                                     ASSETS

<TABLE>
<CAPTION>
                                                                           June 30,                  March 31,
                                                                             2001                       2001
                                                                       -----------------          -----------------
                                                                          (Unaudited)
<S>                                                                     <C>                       <C>
Current Assets:
     Cash                                                               $            42            $            92
     Accounts Receivable, Net                                                     2,690                      2,567
     Inventories                                                                  2,204                      2,311
     Prepaids and Other                                                             346                        129
     Deferred Tax Benefits                                                        1,085                      1,085
                                                                       -----------------          -----------------
     Total Current Assets                                                         6,367                      6,184

Property and Equipment, Net                                                       2,435                      2,350
Other Assets, Net                                                                 1,877                      1,772
Deferred Tax Benefits                                                             4,270                      4,485
                                                                       -----------------          -----------------
Total Assets                                                            $        14,949            $        14,791
                                                                       =================          =================


            LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)


Current Liabilities:
     Current Maturities of Long-Term Debt                               $           932            $           963
     Accounts Payable and Accrued Liabilities                                     2,951                      2,898
                                                                       -----------------          -----------------
     Total Current Liabilities                                                    3,883                      3,861

Net Liabilities of Discontinued Operations                                          582                        641
Long-Term Debt, Less Current Maturities                                          11,680                     11,887
                                                                       -----------------          -----------------
Total Liabilities                                                                16,145                     16,389
                                                                       -----------------          -----------------
Stockholders' Equity (Deficit):
     Common Stock                                                                    42                         42
     Capital In Excess of Par Value                                               8,734                      8,715
     Accumulated Deficit                                                         (9,644)                   (10,027)
     Less:  Treasury Stock                                                         (328)                      (328)
                                                                       -----------------          -----------------
     Total Stockholders' Equity (Deficit)                                        (1,196)                    (1,598)
                                                                       -----------------          -----------------
     Total Liabilities and Stockholders' Equity (Deficit)               $        14,949            $        14,791
                                                                       =================          =================
</TABLE>


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


<PAGE>
                                       2


                MEDICAL TECHNOLOGY SYSTEMS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (In Thousands; Except Earnings Per Share Amounts)

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                            Three Months Ended
                                                                                                 June 30,
                                                                                ------------------------------------------
                                                                                      2001                       2000
                                                                                ---------------           ----------------
<S>                                                                             <C>                       <C>
Revenue:
Net Sales                                                                       $        5,531            $         4,679

Costs and Expenses:
      Cost of Sales                                                                      3,135                      2,693
      Selling, General and Administrative                                                1,257                      1,124
      Research and Development                                                              13                         27
      Depreciation and Amortization                                                        224                        193
      Interest, Net                                                                        240                        268
                                                                                ---------------           ----------------

Total Costs and Expenses                                                                 4,869                      4,305
                                                                                ---------------           ----------------

Income from Continuing Operations Before  Income Taxes
   and Discontinued Operations                                                             662                        374

Income Tax Expense                                                                         239                          0
                                                                                ---------------           ----------------

Income from Continuing Operations Before Discontinued Operations                           423                        374

Income (Loss) from Operations of Discontinued Operations, Net of Tax                       (40)                        29
                                                                                ---------------           ----------------

Net Income                                                                      $          383            $           403
                                                                                ===============           ================

Net Income per Basic and Diluted Common Share:
      Income from Continuing Operations                                         $         0.10            $          0.14
      Income from Discontinued Operations                                                (0.01)                      0.01
                                                                                ---------------           ----------------

Net Income per Basic and Diluted Common Share                                   $         0.09            $          0.15
                                                                                ===============           ================
</TABLE>

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


<PAGE>
                                       3


                MEDICAL TECHNOLOGY SYSTEMS, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
                        THREE MONTHS ENDED JUNE 30, 2001
                                 (In Thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                            COMMON STOCK
                                      --------------------------------------------------------------------------------------
                                        Number          .01         Capital in     Retained        Treasury
                                          of            Par         Excess of      Earnings          Stock          Total
                                        Shares         Value        Par Value      (Deficit)
                                      -----------   -----------    -----------   ------------    ------------    -----------
<S>                                    <C>           <C>            <C>           <C>             <C>             <C>
Balance, March 31, 2001                4,217,028     $      42      $   8,715     $  (10,027)     $     (328)     $  (1,598)

Stock Issued                              50,000                           19                                            19

Net Income for Three Months
   Ended June 30, 200                                                                    383                            383
                                     ----------------------------------------------------------------------------------------

Balance, June 30, 2001                 4,267,028     $      42      $   8,734     $    9,644)     $     (328)     $  (1,196)
                                     ============   ===========    ===========   ============    ============    ============
</TABLE>

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



<PAGE>
                                       4


                MEDICAL TECHNOLOGY SYSTEMS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In Thousands)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                          Three Months Ended
                                                                                               June 30,
                                                                                ---------------------------------------
                                                                                     2001                     2000
                                                                                --------------           --------------
<S>                                                                             <C>                      <C>
Operating Activities
    Net Income from Continuing Operations                                       $         423            $         374
                                                                                --------------           --------------
    Adjustments to Reconcile Net Income to Net Cash
       Provided by Operating Activities:
        Deferred Compensation                                                               4                        0
        Depreciation and Amortization                                                     224                      193
        Income Tax Expense                                                                239                        0
        (Increase) Decrease in:
           Accounts Receivable                                                           (123)                    (294)
           Inventories                                                                    107                      311
           Prepaids and Other                                                            (216)                     (17)
        Increase (Decrease) in:
           Accounts Payable and Other Accrued Liabilities                                  48                     (146)
                                                                                --------------           --------------
    Total Adjustments                                                                     283                       47
                                                                                --------------           --------------
    Net Cash Provided by Continuing Operations                                            706                      421
                                                                                --------------           --------------

Investing Activities
    Expended for Property and Equipment                                                  (255)                     (78)
    Expended for Product Development                                                     (134)                    (173)
    Expended for Patents and Other Assets                                                  (6)                      (2)
                                                                                --------------           --------------
    Net Cash (Used) by Investing Activities of Continuing Operations                     (395)                    (253)
                                                                                --------------           --------------

Financing Activities
    Payments on Notes Payable and Long-Term Debt                                         (238)                    (231)
    Advances (To) From Affiliates - Discontinued Operations                              (123)                      54
                                                                                --------------           --------------
    Net Cash (Used) by Financing Activities of Continuing Operations                     (361)                    (177)
                                                                                --------------           --------------

Net (Decrease) in Cash - Continuing Operations                                            (50)                      (9)
Cash at Beginning of Period - Continuing Operations                                        92                      172
                                                                                --------------           --------------
Cash at End of Period - Continuing Operations                                   $          42            $         163
                                                                                ==============           ==============

</TABLE>


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


<PAGE>
                                       5

                MEDICAL TECHNOLOGY SYSTEMS, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2001


NOTE A - BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally  accepted  accounting  principles for
interim financial information and with the instructions to Form 10-Q and Article
10 of Regulation  S-X.  Accordingly,  they do not include all of 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.  Operating results for the three-month period ended June 30, 2001
are not necessarily  indicative of the results that may be expected for the year
ended March 31, 2002. The unaudited condensed  consolidated financial statements
should be read in conjunction  with the  consolidated  financial  statements and
notes thereto  included in the Company's annual report on Form 10-K for the year
ended March 31, 2001.

     The consolidated  financial  statements include the accounts of the Company
and its subsidiaries,  MTS Packaging Systems,  Inc. ("MTS  Packaging"),  Medical
Technology   Laboratories,   Inc.  ("MTL")  and  LifeServ   Technologies,   Inc.
("LifeServ").   MTL  and  LifeServ  represent   discontinued   operations,   and
accordingly,  the discontinued segments' net liabilities are shown as one amount
under the caption "Net Liabilities of Discontinued  Operations" at June 30, 2001
and 2000.  The results of operations of the  discontinued  segment for the three
months ended June 30, 2001 and 2000 has been  excluded  from the  components  of
"Income  (Loss) from  Continuing  Operations"  and shown under the caption "Loss
from Operations of Discontinued Operations" in the Statements of Operations.


NOTE B - INVENTORIES

     The components of inventory consist of the following:

<TABLE>
<CAPTION>
                                                                      June 30,             March 31,
                                                                        2001                  2001
                                                                  -----------------     -----------------
                                                                              (In Thousands)
               <S>                                                <C>                   <C>

               Raw Materials                                      $          951        $        1,053
               Finished Goods and Work in Progress                         1,293                 1,298
               Less:  Inventory Valuation Allowance                          (40)                 (40)
                                                                  -----------------     -----------------
                                                                  $        2,204        $        2,311
                                                                  =================     =================

</TABLE>


     Inventories  are  stated  at the  lower of cost  (first-in,  first-out)  or
market.



NOTE C - EARNINGS PER SHARE

     Income from continuing  operations per common share is computed by dividing
income from  continuing  operations  by the basic and diluted  weighted  average
number of shares of common  stock  outstanding.  For  diluted  weighted  average
shares outstanding,  the Company used the treasury stock method to calculate the
Common Stock  equivalents that the stock options would represent.  The number of
shares  outstanding  have been  retroactively  adjusted  for the 1 share for 2.5
shares reverse stock split that occurred in December 2000.




<PAGE>
                                       6


     The following  table sets forth the  computation of income from  continuing
operations per basic and diluted common share:


<TABLE>
<CAPTION>
                                                                          Quarter Ended         Quarter Ended
                                                                          June 30, 2001         June 30, 2000
                                                                         ----------------     ----------------
<S>                                                                       <C>                  <C>
Numerator:
    Income from Continuing Operations                                     $      423,000       $      374,000
                                                                         ================     ================

Denominator:
    Weighted average shares outstanding - Basic                                4,234,000            2,617,000
    Add: Effect of dilutive warrants and options                                 186,000                    0
                                                                         -----------------    ----------------
    Weighted average shares outstanding - Diluted                              4,420,000            2,617,000
                                                                         ================     ================

Income from Continuing Operations Per Common Share - Basic                $          .10        $         .14
                                                                         ================     ================

Income from Continuing Operations per Common Share - Diluted              $          .10        $         .14
                                                                         ================     ================
</TABLE>


     The effect of all options  and  warrants,  except for  901,000  options and
warrants were not included in the  calculation  of net income per diluted common
share  for  quarter   ended  June  30,  2001  as  the  effect  would  have  been
anti-dilutive. The effect of all options and warrants for the quarter ended June
30,  2000  were not  included  in the  calculation  of  income  from  continuing
operations per diluted common share as the effect would have been anti-dilutive.


NOTE D - DISCONTINUED OPERATIONS

     During fiscal year 2000, the Company implemented a strategy of focusing its
resources on its core  business,  MTS  Packaging,  and  divesting  the other two
business  segments it  historically  operated.  The Company  sold the  principal
assets of its Health Care Information  Systems business,  LifeServ,  in May 1999
and its Clinical Laboratory Services business, MTL, in January 2000.

     As part of the  sale  of MTL,  the  Company  retained  certain  assets  and
liabilities of MTL. The assets were primarily  comprised of accounts  receivable
that the Company attempted to collect.  The operations of MTL during fiscal year
2001 were  primarily  confined to the collection of accounts  receivable.  There
were no operations  conducted  during the first  quarter of fiscal 2002.  Losses
from  discontinued  operations were comprised  primarily of settlements  paid to
certain creditors of MTL.

     The liabilities of MTL at June 30, 2001 and March 31, 2001 are comprised of
trade accounts payable and accrued state taxes. In addition, certain liabilities
of  approximately  $110,000  and  $140,000  at June 30,  2001 and March 31, 2001
respectively have been guaranteed by the Company.



<PAGE>
                                       7


     The carrying value of the net assets of discontinued operations at June 30,
2001 and March 31, 2001 is comprised of the following.

<TABLE>
<CAPTION>
                                                                                   Total
                                                                               Discontinued
                                                                                Operations
                                                                    ----------------------------------
                                                                       June 30,            March 31,
                                                                         2001                 2001
                                                                    -------------        -------------
               <S>                                                   <C>                 <C>
               Current Assets                                        $        1          $         1
               Other Assets                                                   0                    0
                                                                    -------------        -------------
               Total Assets                                          $        1          $         1
                                                                    -------------        -------------

               Current Liabilities                                   $      583          $       642
               Long-Term Liabilities                                          0                    0
                                                                    -------------        -------------
               Total Liabilities                                     $      583          $       642
                                                                    -------------        -------------

               Net Assets (Liabilities) of
                   Discontinued Operations                           $     (582)         $      (641)
                                                                    =============        =============
</TABLE>


NOTE E - LONG-TERM DEBT

         Long-term debt related to continuing operations consists of the
following:

<TABLE>
<CAPTION>
                                                                                       June 30,         March 31,
                                                                                         2001             2001
                                                                                    -------------    --------------
                                                                                             (In Thousands)
  <S>                                                                               <C>              <C>
  Bank Term Loan; payable in installments of interest at 7.5% and principal
    monthly for ten years ending September 1, 2006, with a lump sum payment of
    approximately $7.2 million on that date secured by all tangible and
    intangible assets of the Company.                                                $  12,217       $    12,406

  Unsecured Notes Payable due September 2001 plus interest at 13%.                          21                45

  Unsecured Note Payable plus interest at 3%, payable in monthly  installments
    of $2,394 through September 2006.                                                      140               146

  Unsecured Note Payable under settlement agreement with State of Florida
    Department of Revenue, payable in monthly installments of $2,500-$3,500
    over a period of four to eight years.                                                  207               219

  Other                                                                                     27                34
                                                                                    -------------    --------------
  Total Long -Term Debt                                                                 12,612            12,850
  Less Current Portion                                                                    (932)             (963)
                                                                                    -------------    --------------
  LONG-TERM DEBT DUE AFTER 1 YEAR                                                    $  11,680        $   11,887
                                                                                    =============    ==============

</TABLE>


     The  bank  notes  payable  are  collateralized  by the  Company's  accounts
receivables, inventory, equipment and intangibles.


<PAGE>
                                       8



NOTE F - CONTINGENCIES

     The Company  sold the assets of its  subsidiaries  LifeServ  and MTL during
fiscal  2000.  The buyers  assumed  certain  liabilities  of these  subsidiaries
including a certain long-term obligation of approximately  $520,000 payable to a
financial institution and secured by equipment at a customer site and a contract
receivable.  The  Company  was a  guarantor  of the  obligation  at the time the
obligation originated and continues as a guarantor.

     In November 1998, MTL, a discontinued operation,  received a refund request
in the amount of $1.8 million from  Medicare  Program  Safeguards  ("MPS").  MTL
disputed the refund  request in its response to MPS in December  1998.  To date,
MTL has not received any further correspondence from MPS regarding this matter.

     Certain creditors of LifeServ have commenced legal actions against LifeServ
seeking  payment of liabilities  assumed by the buyers of LifeServ.  The Company
intends to vigorously  defend these actions and seek  appropriate  remedies from
the buyers.

     The Company is involved in certain claims and legal actions  arising in the
ordinary course of business  including the matters referred to above.  There can
be no assurances that these matters will be resolved on terms  acceptable to the
Company.  In the  opinion  of  management,  based  upon  advice of  counsel  and
consideration  of all facts available at this time, the ultimate  disposition of
these  matters  are  not  expected  to have a  material  adverse  effect  on the
financial position, results of operations or liquidity of the Company.


NOTE G - TAXES

     During the previous fiscal years, the Company had provided a 100% valuation
allowance on its deferred tax asset. During the quarter ended December 31, 2000,
the  Company  removed  its  valuation  allowance  and  recognized  an income tax
benefit.


NOTE H - OTHER

     In April 2001,  the Company  issued  approximately  813,000  options to its
employees.  The options have an exercise price of $1.50 (which approximates fair
value at date of  grant)  and a term of ten (10)  years.  Approximately  213,000
options vested immediately, and 600,000 of these options will vest over a period
of three (3) years.

     In May 2001, the Company issued 50,000 shares of common stock to an officer
and director in lieu of $18,750 of cash compensation that is payable pursuant to
an employment contract.


NOTE I - NEW ACCOUNTING PRONOUNCEMENTS

     On July 20, 2001, the Financial  Accounting  Standards  Board (FASB) issued
Statement of Financial Accounting  Standards (SFAS) 141, Business  Combinations,
and SFAS 142,  Goodwill and  Intangible  Assets.  SFAS 141 is effective  for all
business  combinations  completed after June 30, 2001. SFAS 142 is effective for
the fiscal year beginning  April 1, 2002;  however,  certain  provisions of that
Statement apply to goodwill and other intangible assets acquired between July 1,
2001 and the  effective  date of SFAS 142.  The Company has not yet analyzed the
effect,  if any, of these new standards;  accordingly,  the Company is unable at
present to state what effect,  if any, the adoption of these standards will have
on the Company's financial statements.


<PAGE>
                                       9



ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

     This Form 10-Q contains  forward-looking  statements  within the meaning of
that term in Section  27A of the  Securities  Act of 1933 and Section 21E of the
Securities  Exchange  Act of 1934.  Additional  written or oral  forward-looking
statements  may be made by the Company  from time to time,  in filings  with the
Securities and Exchange  Commission or otherwise.  Statements  contained  herein
that are not historical  facts are  forward-looking  statements made pursuant to
the safe harbor  provisions  described  above.  Forward-looking  statements  may
include,  but are not limited to,  projections  of  revenues,  income or losses,
capital  expenditures,  plans for future  operations,  the elimination of losses
under certain  programs,  financing  needs or plans,  compliance  with financial
covenants  in loan  agreements,  plans for sale of assets or  businesses,  plans
relating to products or services of the  Company,  assessments  of  materiality,
predictions of future events and the effects of pending and possible litigation,
as well as assumptions relating to the foregoing. In addition, when used in this
discussion, the words "anticipates",  "estimates", "expects", "intends", "plans"
and  variations  thereof  and  similar  expressions  are  intended  to  identify
forward-looking statements.

     Forward-looking   statements   are   inherently   subject   to  risks   and
uncertainties,  some of which can be  predicted or  quantified  based on current
expectations.  Consequently,  future  events and  actual  results  could  differ
materially  from  those  set  forth  in,  contemplated  by,  or  underlying  the
forward-looking  statements  contained  herein.  Statements in Quarterly Report,
particularly  in "Item 2.  Management's  Discussion  and  Analysis of  Financial
Condition  and  Results  of  Operations"  and  Notes to  Condensed  Consolidated
Financial Statements,  describe factors,  among others, that could contribute to
or cause such differences.  Other factors that could contribute to or cause such
differences  include,  but  are  not  limited  to,  unanticipated  increases  in
operating costs, labor disputes,  capital  requirements,  increases in borrowing
costs, product demand, pricing, market acceptance,  intellectual property rights
and  litigation,  risks in product  and  technology  development  and other risk
factors detailed in the Company's Securities and Exchange Commission filings.

     Readers are  cautioned not to place undue  reliance on any  forward-looking
statements contained herein, which speak only as of the date hereof. The Company
undertakes  no  obligation  to publicly  release the result of any  revisions of
these  forward-looking  statements  that  may  be  made  to  reflect  events  or
circumstances  after the date hereof or to reflect the  occurrence of unexpected
events.


RESULTS OF OPERATIONS

Three Months Ended June 30, 2001 and 2000

     Net sales for the three months ended June 30, 2001 increased 18.2% to $5.53
million  from $4.68  million  during the same period the prior  year.  Net Sales
increased primarily as a result of an increase in the amount of disposable punch
cards sold to new and  existing  customers.  In  addition,  the  development  of
international   markets,   including  the  United  Kingdom,  for  the  Company's
disposable  products has  contributed  to the increase in net sales.  Prices for
disposable  products  increased slightly during the first quarter of fiscal 2002
compared to the prior year. The Company  anticipates that pricing on disposables
will be stable.  The volume of disposable  cards is  anticipated  to continue to
grow as a result of the addition of new customers in existing and new markets.

     Cost of sales for the three months ended June 30, 2001  increased  16.7% to
$3.14 million from $2.69 million during the same period the prior year.  Cost of
sales as a  percentage  of sales  decreased  to 56.8% from 57.5% during the same
period  the  prior  year.  The  decrease  is  primarily  due  to   manufacturing
efficiencies  realized  as a result  of the  installation  of new  manufacturing
equipment in January of 2001.

     Selling,  general and  administration  expenses  for the three months ended
June 30, 2001 increased  11.8% to $1,257,000  from $1,124,000 in the same period
during the prior year  primarily due to increases in selling and  administrative
costs associated with increased revenue.


<PAGE>
                                       10



     Research  and  development  expenses  for three  months ended June 30, 2001
decreased  51.9% to $13,000 from $27,000  during the same period the prior year.
The decrease resulted  primarily from the fact that the Company directed more of
its  development  resources to the  completion  of new  products,  primarily the
OnDemand(TM)  machine,  during the first  quarter of fiscal 2002 compared to the
first quarter of the prior year.

     Depreciation and amortization  expenses for the three months ended June 30,
2001 increased  16.1% to $224,000 from $193,000 during the same period the prior
year.  This  increase is a result of new assets  placed into service  during the
second half of the previous fiscal year.

     Interest  expense for the three months ended June 30, 2001 decreased  10.4%
to $240,000  from $268,000  during the same period the prior year.  The decrease
results  from a  decrease  in  existing  debt  resulting  from  regular  monthly
principal payments made according to the terms of the Company's loan agreement.

     Income tax expense was $239,000 during the three months ended June 30, 2001
compared to $0 the prior year.  The prior fiscal year,  the Company  recorded $0
income tax expense  resulting from the  recognition of tax benefits that had not
previously been recognized.

     On July 20, 2001, the Financial  Accounting  Standards  Board (FASB) issued
Statement of Financial Accounting  Standards (SFAS) 141, Business  Combinations,
and SFAS 142,  Goodwill and  Intangible  Assets.  SFAS 141 is effective  for all
business  combinations  completed after June 30, 2001. SFAS 142 is effective for
the fiscal year beginning  April 1, 2002;  however,  certain  provisions of that
Statement apply to goodwill and other intangible assets acquired between July 1,
2001 and the  effective  date of SFAS 142.  The Company has not yet analyzed the
effect,  if any, of these new standards;  accordingly,  the Company is unable at
present to state what effect,  if any, the adoption of these standards will have
on the Company's financial statements.

LIQUIDITY AND CAPITAL RESOURCES

     During the first  quarter  ended June 30, 2001,  the Company had net income
from  continuing  operations of $423,000  compared to net income from continuing
operations of $374,000 the prior year. Cash provided by operating  activities of
continuing  operations was $706,000  during the three months ended June 30, 2001
compared to $421,000 provided in the prior year. The Company had working capital
of $2,484,000 at June 30, 2001.

     The  increase  in cash  provided  by  operating  activities  of  continuing
operations  during the three  months  ended June 30,  2001  compared to the same
period the prior year was primarily due to increases in operating income.

     Investing  activities used $395,000 during three months ended June 30, 2001
compared to $253,000  the prior year.  The  increase  resulted  from  additional
manufacturing  equipment  purchased  and  improvements  made  to  the  Company's
facilities.

     Financing  activities  used $361,000 during the three months ended June 30,
2001 compared to $177,000 the prior year. The increase  resulted  primarily from
advances  made to MTL to repay  obligations  of MTL that are  guaranteed  by the
Company.

     The Company's  short-term and long-term liquidity is primarily dependent on
its  ability to generate  cash flow from  operations.  Inventory  levels are not
expected  to change  significantly  based upon the  Company's  current  level of
operation.  Increases  in  revenue  have  generally  resulted  in  corresponding
increases in accounts  receivable.  Cash flow from  operations is anticipated to
support an increase in accounts receivable.

     The Company has several new product development  projects underway that are
expected to be funded by cash flow from operations. These projects are monitored
on a regular basis to attempt to ensure that the  anticipated  costs  associated
with them do not exceed the  Company's  ability to fund them from cash flow from
operations.

     The Company believes that cash generated from operations will be sufficient
to meet its capital expenditures,  product development and working capital needs
for at least the next twelve months.

<PAGE>
                                       11


PART II - OTHER INFORMATION



        A.       Exhibits

                 None

        B.       Reports on Form 8K

                 None



Signature


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


                                     MEDICAL TECHNOLOGY SYSTEMS, INC.



Date:  August 14, 2001               By:   /s/ Michael P. Conroy
----------------------               ----------------------------------------
                                     Michael P. Conroy
                                     Vice President & Chief Financial Officer


                                     By:   /s/ Mark J. Connolly
                                     ----------------------------------------
                                     Mark J. Connolly
                                     Principal Accounting Officer and Controller