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 September 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 -
              September 30, 2001 and March 31, 2001....................       1


          Condensed Consolidated Statements of Operations -
              Three Months and Six Months Ended September 30, 2001 and 2000   2


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


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


          Notes to Condensed Consolidated Financial Statements.........   5 - 9


Item 2.     Management's Discussion and Analysis of Financial
              Condition and Results of Operations......................   10- 12



Part II - Other Information


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


          Signatures...................................................      13



<PAGE>
                                       1


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


Item 1.  Financial Statements

                    PART 1 - FINANCIAL INFORMATION

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

<TABLE>
<CAPTION>
   ASSETS

                                                                         September 30,               March 31,
                                                                             2001                      2001
                                                                       ----------------          -----------------
                                                                                       (Unaudited)
<S>                                                                     <C>                        <C>
Current Assets:
     Cash                                                               $            90            $            92
     Accounts Receivable, Net                                                     2,883                      2,567
     Inventories                                                                  2,145                      2,311
     Prepaids and Other                                                             189                        129
     Deferred Tax Benefits                                                        1,085                      1,085
                                                                       -----------------          -----------------

     Total Current Assets                                                         6,392                      6,184

Property and Equipment, Net                                                       2,656                      2,350
Other Assets, Net                                                                 2,000                      1,772
Deferred Tax Benefits                                                             4,008                      4,485
                                                                       -----------------          -----------------

Total Assets                                                            $        15,056            $        14,791
                                                                       =================          =================


            LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities:
     Current Maturities of Long-Term Debt                               $           910            $           963
     Accounts Payable and Accrued Liabilities                                     3,023                      2,898
                                                                       -----------------          -----------------
     Total Current Liabilities                                                    3,933                      3,861

Net Liabilities of Discontinued Operations                                          498                        641
Long-Term Debt, Less Current Maturities                                          11,366                     11,887
                                                                       -----------------          -----------------
Total Liabilities                                                                15,797                     16,389
                                                                       -----------------          -----------------

Stockholders' Equity (Deficit):
     Common Stock                                                                    43                         42
     Capital In Excess of Par Value                                               8,749                      8,715
     Accumulated Deficit                                                         (9,205)                   (10,027)
     Less:  Treasury Stock                                                         (328)                      (328)
                                                                       -----------------          -----------------
     Total Stockholders' Equity (Deficit)                                          (741)                    (1,598)
                                                                       -----------------          -----------------
     Total Liabilities and Stockholders' Equity (Deficit)               $        15,056            $        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                   Six Months Ended
                                                                   September 30,                       September 30,
                                                          -------------------------------     -------------------------------
                                                               2001             2000               2001              2000
                                                          -------------    --------------     --------------    -------------
<S>                                                       <C>              <C>                <C>               <C>
Revenue:
Net Sales                                                 $      5,673     $       4,850      $      11,204     $      9,529

Costs and Expenses:
      Cost of Sales                                              3,177             2,719              6,312            5,412
      Selling, General and Administrative                        1,302             1,199              2,559            2,323
      Research and Development                                      44                25                 57               52
      Depreciation and Amortization                                233               187                457              380
      Interest, Net                                                241               253                481              521
                                                          -------------    --------------     --------------    -------------

Total Costs and Expenses                                         4,997             4,383              9,866            8,688
                                                          -------------    --------------     --------------    -------------

Income from Continuing Operations Before
   Income Taxes and Discontinued Operations                        676               467              1,338              841

Income Tax Expense                                                 237                 0                476                0
                                                          -------------    --------------     --------------    -------------

Income from Continuing Operations                                  439               467                862              841
    Before Discontinued Operations

Income (Loss) from Operations of
   Discontinued Operations, Net of Tax                               0                (7)               (40)              22
                                                          -------------    --------------     --------------    -------------

Net Income                                                $        439     $         460      $         822     $        863
                                                          =============    ==============     ==============    =============

Net Income Per Basic and Diluted Common Share:
      Income from Continuing Operations                   $       0.10     $        0.18      $        0.20     $       0.32
      Income from Discontinued Operations                         0.00              0.00              (0.01)            0.01
                                                          -------------    --------------     --------------    -------------

Net Income Per Basic and Diluted Common Share             $       0.10     $        0.18      $        0.19     $       0.33
                                                          =============    ==============     ==============    =============

</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)
                       SIX MONTHS ENDED SEPTEMBER 30, 2001
                       (In Thousands Except Share Amounts)
                                   (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             0             19                                           19


Warrants and Options Exercised            58,133             1             15                                           16


Net Income for Six Months
   Ended September 30, 2001                                                              822                           822
                                      --------------------------------------------------------------------------------------

Balance, September 30, 2001            4,325,161     $      43       $  8,749     $   (9,205)     $    (328)      $   (741)
                                      ============  ===========    ===========   ============    ============    ===========

</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>
                                                                                            Six Months Ended
                                                                                              September 30,
                                                                                ---------------------------------------
                                                                                     2001                     2000
                                                                                --------------           --------------
<S>                                                                             <C>                      <C>
 Operating Activities
    Net Income from Continuing Operations                                       $         862            $         841
                                                                                --------------           --------------
    Adjustments to Reconcile Net Income to Net Cash
       Provided by Operating Activities:
        Deferred Compensation                                                               4                       15
        Depreciation and Amortization                                                     457                      380
        Income Tax Expense                                                                476                        0
        (Increase) Decrease in:
           Accounts Receivable                                                           (316)                    (139)
           Inventories                                                                    166                      151
           Prepaids and Other                                                             (60)                     (30)
        Increase in:
           Accounts Payable and Other Accrued Liabilities                                 125                      194
                                                                                --------------           --------------
    Total Adjustments                                                                     852                      571
                                                                                --------------           --------------
    Net Cash Provided by Operating Activities of Continuing Operations                  1,714                    1,412
                                                                                --------------           --------------

Investing Activities
    Expended for Property and Equipment                                                  (662)                    (389)
    Expended for Product Development                                                     (296)                    (325)
    Expended for Patents and Other Assets                                                 (15)                     (70)
                                                                                --------------           --------------
    Net Cash Used by Investing Activities of Continuing Operations                       (973)                    (784)
                                                                                --------------           --------------

Financing Activities
    Payments on Notes Payable and Long-Term Debt                                         (574)                    (732)
    Advances To Affiliates - Discontinued Operations                                     (169)                     (25)
                                                                                --------------           --------------
    Net Cash Used by Financing Activities of Continuing Operations                       (743)                    (757)
                                                                                --------------           --------------

Net Decrease in Cash - Continuing Operations                                               (2)                    (129)
Cash at Beginning of Period - Continuing Operations                                        92                      172
                                                                                --------------           --------------
Cash at End of Period - Continuing Operations                                   $          90            $          43
                                                                                ==============           ==============
</TABLE>

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


<PAGE>
                                       5


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 six-month  period ended September 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  unaudited  condensed  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 September  30, 2001 and 2000.  The results of  operations of the
discontinued  segment for the six months ended  September  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>
                                                                   September 30,           March 31,
                                                                        2001                  2001
                                                                  -----------------     -----------------
                                                                              (In Thousands)
               <S>                                                <C>                   <C>

               Raw Materials                                      $        1,001        $        1,053
               Finished Goods and Work in Progress                         1,184                 1,298
               Less:  Inventory Valuation Allowance                          (40)                 (40)
                                                                  ----------------      ----------------
                                                                  $        2,145        $        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>
                                                     Three Months Ended                    Six Months Ended
                                             ----------------------------------   ----------------------------------
                                               September 30,     September 30,     September 30,      September 30,
                                                   2001             2000              2001               2000
                                             ----------------  ----------------   ---------------   ----------------
<S>                                          <C>               <C>                <C>               <C>
Numerator:
   Income from Continuing Operations         $      439,000    $      467,000     $     862,000     $      841,000
                                             ================  ================   ===============   ================

Denominator:
  Weighted average shares outstanding -
  Basic                                           4,308,000         2,617,000         4,271,000          2,617,000
  Add: Effect of dilutive warrants and
  options                                            92,000            17,000           138,000              9,000
                                             ----------------  ----------------   ---------------   ----------------
  Weighted average shares outstanding -           4,400,000         2,634,000         4,409,000          2,626,000
  Diluted
                                             ================  ================   ===============   ================

Income from Continuing Operations Per
Common Share - Basic                         $         0.10    $         0.18     $        0.20     $         0.32
                                             ================  ================   ===============   ================

Income from Continuing Operations per
Common Share - Diluted                       $         0.10    $         0.18     $        0.20     $         0.32
                                             ================  ================   ===============   ================

</TABLE>


     The effect of all  options  and  warrants  except for  910,500  options and
warrants were not included in the  calculation  of net income per diluted common
share for the  quarter  ended and six months  ended  September  30,  2001 as the
effect  would have been  anti-dilutive.  The effect of all options and  warrants
except for 88,000  options and  warrants  for the  quarter  ended and six months
ended  September  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 six months of fiscal 2002. Losses
from  discontinued  operations were comprised  primarily of settlements  paid to
certain creditors of MTL.

     The  liabilities  of MTL at  September  30,  2001 and  March  31,  2001 are
comprised  of trade  accounts  payable and accrued  state  taxes.  In  addition,
certain liabilities of approximately  $34,000 and $140,000 at September 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
September 30, 2001 and March 31, 2001 is comprised of the following.

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

               Current Liabilities                                   $      498           $      642
               Long-Term Liabilities                                          0                    0
                                                                    --------------       --------------
               Total Liabilities                                     $      498           $      642
                                                                    --------------       --------------

               Net Assets (Liabilities) of
                   Discontinued Operations                           $     (498)          $     (641)
                                                                    ==============       ==============
</TABLE>


NOTE E - LONG-TERM DEBT

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

<TABLE>
<CAPTION>
                                                                                    September 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.                                                $  11,926        $    12,406

  Unsecured Notes Payable due September 2001 plus interest at 13%.                           0                 45

  Unsecured Note Payable plus interest at 3%, payable in monthly  installments
    of $2,394 through September 2006.                                                      134                146

  Unsecured Note Payable under settlement agreement with State of Florida
    Department of Revenue, payable in monthly installments of $2,500-$4,000
    for a period of four to eight years.                                                   194                219

  Other                                                                                     22                 34
                                                                                    -------------    --------------
  Total Long -Term Debt                                                                 12,276             12,850
  Less Current Portion                                                                    (910)              (963)
                                                                                    -------------    --------------
  LONG-TERM DEBT DUE AFTER 1 YEAR                                                    $  11,366        $    11,887
                                                                                    =============    ==============
</TABLE>


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


<PAGE>
                                       8


     The Company made principal  payments of  approximately  $100,000 during the
six months ended  September 30, 2001 pursuant to the excess cash flow provisions
of its loan agreement.

     The  Company has  exceeded  the amount of capital  expenditures  allowed in
certain covenants of its loan agreement and requested the lender's consent to an
increase in the annual limit on these  expenditures.  The Company  believes that
discussions with its lender will result in a modification to the limit.


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 as of March
31,  2001  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.

     During  the  second  quarter,  the  Company  issued  20,500  options to its
employees.  The options have  exercise  prices  raging from $1.85 to 2.50 (which
approximates  fair  value at date of grant) and 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.



<PAGE>
                                       9


     During the second quarter,  certain holders of options and warrants elected
to exercise their rights to acquire 13,000 shares of the Company's common stock.
The options and warrants were exercisable at prices ranging from $1.13 to $1.50.
Also, during the second quarter,  a holder of warrants to purchase 70,000 shares
of the Company's  common stock elected to exercise their right to acquire 45,133
shares of common stock  pursuant to the  cash-less  exercise  rights  provisions
contained in the warrant  agreement.  The warrants  were  exercisable  at prices
ranging from $.85 to $1.50.


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 September 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.

     In August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment
or Disposal of Long-Lived Assets. This statement addresses financial  accounting
and reporting for the impairment or disposal of long-lived assets and supersedes
FASB Statement No. 121,  Accounting for the Impairment of Long-Lived  Assets and
for  Long-Lived  Assets to be Disposed Of. The  provisions  of the statement are
effective  for  financial  statements  issued for fiscal years  beginning  after
December 15, 2001.  The Company is evaluating the impact of the adoption of this
standard  and has not yet  determined  the effect of adoption  on its  financial
position and results of operations.



<PAGE>
                                       10


     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 September 30, 2001 and 2000

     Net sales for the three months ended  September  30, 2001  increased 17% to
$5.7 million from $4.9 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  were  stable  during  the second  quarter  of fiscal  2002
compared to the prior year. The Company  anticipates that pricing on disposables
will continue to 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  September 30, 2001  increased 17%
to $3.2 million from $2.7 million during the same period the prior year. Cost of
sales as a  percentage  of sales  decreased  to 56.0% from 56.1% during the same
period the prior year.  The  increase in cost of sales  results  from  increased
revenue.  The  decrease  in the cost of sales  percentage  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
September  30, 2001  increased  9% to $1.3 million from $1.2 million in the same
period  during  the  prior  year  primarily  due to  increases  in  selling  and
administrative costs associated with increased revenue.


<PAGE>
                                       11


     Research and development expenses for three months ended September 30, 2001
increased 76% to $44,000 from $25,000 during the same period the prior year. The
increase resulted  primarily from the fact that the Company directed more of its
development resources to the research of new products.

     Depreciation and amortization expenses for the three months ended September
30, 2001  increased  25% to $233,000  from  $187,000  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 September 30, 2001 decreased 5%
to $241,000  from $253,000  during the same period the prior year.  The decrease
results  from a reduction  in  existing  debt  resulting  from  regular  monthly
principal payments made according to the terms of the Company's loan agreement.

     Income tax expense was $237,000 during the three months ended September 30,
2001  compared  to $0 the prior  year.  In the prior  fiscal  year,  the Company
recorded $0 income tax expense  resulting  from the  recognition of tax benefits
that had not previously been recognized.

Six Months Ended September 30, 2001 and 2000

     Net sales for the six months  ended  September  30, 2001  increased  18% to
$11.2 million from $9.5 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.  Prices  for  disposable  products
increased  slightly  during the first six months 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 six months ended  September 30, 2001 increased 17% to
$6.3 million from $5.4  million  during the same period the prior year.  Cost of
sales as a percentage of sales decreased slightly to 56.3% from 56.8% 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 six months  ended
September  30, 2001  increased 10% to $2.6 million from $2.3 million in the same
period  during  the  prior  year  primarily  due to  increases  in  selling  and
administrative costs associated with increased revenue.

     Research and  development  expenses for six months ended September 30, 2001
increased 10% to $57,000 from $52,000 during the same period the prior year. The
increase resulted  primarily from the fact that the Company directed more of its
development  resources  to the  research  of new  products  during the first six
months of fiscal 2002 compared to the first six months of the prior year.

     Depreciation and  amortization  expenses for the six months ended September
30, 2001  increased  20% to $457,000  from  $380,000  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 six months ended  September 30, 2001 decreased 8%
to $481,000  from $521,000  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 $476,000  during the six months ended  September 30,
2001  compared  to $0 the prior  year.  In the prior  fiscal  year,  the Company
recorded $0 income tax expense  resulting  from the  recognition of tax benefits
that had not previously been recognized.


<PAGE>
                                       12


     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 September 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.

     In August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment
or Disposal of Long-Lived Assets. This statement addresses financial  accounting
and reporting for the impairment or disposal of long-lived assets and supersedes
FASB Statement No. 121,  Accounting for the Impairment of Long-Lived  Assets and
for  Long-Lived  Assets to be Disposed Of. The  provisions  of the statement are
effective  for  financial  statements  issued for fiscal years  beginning  after
December 15, 2001.  The Company is evaluating the impact of the adoption of this
standard  and has not yet  determined  the effect of adoption  on its  financial
position and results of operations.

LIQUIDITY AND CAPITAL RESOURCES

     During the first six months ended  September 30, 2001,  the Company had net
income  from  continuing  operations  of  $862,000  compared  to net income from
continuing  operations  of $841,000 the prior year.  Cash  provided by operating
activities of continuing  operations was $1,714,000  during the six months ended
September  30, 2001  compared  to  $1,412,000  provided  in the prior year.  The
Company had working capital of $2,459,000 at September 30, 2001.

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

     Investing  activities  used $973,000  during six months ended September 30,
2001 compared to $784,000 the prior year. The increase  resulted from additional
manufacturing  equipment  purchased  and  improvements  made  to  the  Company's
facilities.

     Financing  activities  used $743,000  during the six months ended September
30, 2001 compared to $757,000 the prior year.  The decrease  resulted  primarily
from a one-time payment to the Company's lender made in the prior fiscal year.

     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.

     The  Company has  exceeded  the amount of capital  expenditures  allowed in
certain covenants of its loan agreement and requested the lender's consent to an
increase in the annual limit on these  expenditures.  The Company  believes that
discussions with its lender will result in a modification to the limit.


<PAGE>
                                       13





PART II - OTHER INFORMATION

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

     The Annual Meeting of the Shareholders of the Company was held on September
25, 2001.  Messrs.  Todd E. Siegel,  David Kazarian,  Michael  Conroy,  and John
Stanton were elected  directors of the Company for one-year terms.  There were a
total of 3,793,024 shares of Common Stock voted.  Each nominee received at least
3,784,004 votes.

     Grant  Thornton LLP was  ratified as the  Company's  independent  certified
public  accountants  for fiscal year 2002 with 3,793,314  shares of Common Stock
voted in favor,  420 shares of Common  Stock  voted  against,  and -0- shares of
Common Stock abstained.


Item 6.  Exhibits and Reports on Form 8-K

A.   Amendment to Employment Agreement between Medical Technology Systems,  Inc.
     and Todd E. Siegel date September 1, 1999, executed on October 28, 2000.


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:  November 8, 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