U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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

                                    FORM 10-Q

                [X] Quarterly Report Under Section 13 or 15(d) of
                      the Securities Exchange Act of 1934.

                  For the quarterly period ended: June 30, 2003

                           Commission File No. 1-16119



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

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


                    DELAWARE                               59-2407464
                    --------                               ----------
        (State or other jurisdiction of                 (I.R.S. Employer
        incorporation or organization)                Identification Number)

                              11190 BISCAYNE BLVD.
                                 MIAMI, FL 33181
                                 (305) 895-0304
                                 --------------
                          (Address and telephone number
                         of principal executive offices)

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.
   {X} Yes   { } No

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes ...x... No .....

The registrant has 7,765,540 shares of common stock outstanding as of August 5,
2003

<PAGE>

                                      INDEX


                         PART I - FINANCIAL INFORMATION
<TABLE>
<CAPTION>

                                                                                    Page
<S>                                                                                   <C>
ITEM 1.    Financial Statements

           Condensed Consolidated Balance Sheets
             as of June 30, 2003 (unaudited) and December 31, 2002                    1

           Condensed Consolidated Statements of Earnings
             for the three and six months ended June 30, 2003 and 2002 (unaudited)    2

           Condensed Consolidated Statements of Cash Flows
             for the six months ended June 30, 2003 and 2002 (unaudited)            3 - 4

           Notes to Unaudited Condensed Consolidated Interim Financial Statements   5 - 12

ITEM 2.    Management's Discussion and Analysis of Interim Financial
             Condition and Results of Operations                                   12 - 25

ITEM 3.    Quantitative and Qualitative Disclosures About Market Risk              25 - 26

ITEM 4.    Controls and Procedures                                                   26

                           PART II - OTHER INFORMATION

ITEM 1.    Legal Proceedings                                                         27

ITEM 2.    Change in Securities                                                      27

ITEM 3.    Defaults upon Senior Securities                                           27

ITEM 4.    Submission of Matters to a Vote of Security Holders                       27

ITEM 5.    Other Information                                                         27

ITEM 6.    Exhibits and Reports on Form 8-K                                          28
</TABLE>

<PAGE>
SFBC INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, 2003 AND DECEMBER 31, 2002
<TABLE>
<CAPTION>
========================================================================================================================
ASSETS                                                                                     (Unaudited)
                                                                                             June 30,       December 31,
                                                                                              2003              2002
<S>                                                                                          <C>              <C>
Current Assets
      Cash and cash equivalents                                                              3,975,133        6,361,496
      Investment in marketable securities                                                    1,330,735        2,413,522
      Accounts receivable, net                                                              26,780,989       21,753,778
      Income tax receivable                                                                    150,489          290,221
      Loans receivable from officers/stockholders                                              236,152          343,400
      Prepaids and other current assets                                                      4,956,399        4,256,584
                                                                                           -----------      -----------
          Total current assets                                                              37,429,897       35,419,001
Loans receivable from officers                                                                 600,000          600,000
Property and equipment, net                                                                 18,671,171       16,612,579
Goodwill, net                                                                               30,151,148       30,151,148
Other intangibles, net                                                                       2,090,692        2,662,603
Deferred income taxes                                                                        1,198,199          283,665
Other assets, net                                                                              212,777          230,444
                                                                                           -----------      -----------
          Total assets                                                                      90,353,884       85,959,440
                                                                                           ===========      ===========
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
      Accounts payable                                                                       5,649,262        6,323,414
      Accrued liabilities                                                                    1,768,415        3,041,087
      Advance billings                                                                       3,027,984        3,802,754
      Income taxes payable                                                                          --               --
      Deferred income taxes                                                                     85,308           85,308
      Line of credit                                                                         1,800,000               --
      Notes payable, current portion                                                         1,619,825        1,361,231
                                                                                           -----------      -----------
          Total current liabilities                                                         13,950,794       14,613,794
Notes payable                                                                                2,713,191        2,786,956
Stockholders' equity
      Preferred stock. $0.10 par value, 5,000,000 shares authorized, none issued                    --               --
      Common stock, $0.001 par value, 20,000,000 shares authorized, 7,240,044 and
         7,408,682 shares issued and outstanding as of June 30, 2003 and December 31,            7,240            7,409
         2002
      Additional paid-in capital                                                            56,070,187       58,068,002
      Retained earnings                                                                     16,608,781       12,641,431
      Accumulated other comprehensive earnings                                               1,003,691           18,332
      Common stock held in treasury, at cost - 0 shares at June 30, 2003
        and 204,300 shares at December 31, 2002                                                     --       (2,176,484)
                                                                                           -----------      -----------
          Total stockholders' equity                                                        73,689,899       68,558,690
                                                                                           -----------      -----------
          Total liabilities and stockholders' equity                                        90,353,884       85,959,440
                                                                                           ===========      ===========
</TABLE>

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

                                       1

<PAGE>

SFBC INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002
<TABLE>
<CAPTION>
========================================================================================================================

                                                               Three Months Ended                    Six Months Ended
                                                                    June 30,                              June 30,
                                                            2003               2002               2003               2002
                                                            ----               ----               ----               ----
<S>                                                     <C>                <C>                <C>                <C>
Net revenue                                             $ 22,483,553       $ 14,720,863       $ 41,153,589       $ 24,303,419
Costs and expenses
      Direct costs                                        12,688,984          8,454,030         23,257,575         13,315,774
      Selling, general and administrative expenses         7,232,418          4,766,890         13,047,278          7,597,955
                                                        ------------       ------------       ------------       ------------
         Total costs and expenses                         19,921,402         13,220,920         36,304,853         20,913,729
         Earnings from operations                          2,562,151          1,499,943          4,848,736          3,389,690
Other income (expense)
      Interest income                                         37,670            112,036             89,686            297,296
      Interest expense                                      (102,581)           (87,022)          (177,021)          (115,554)
                                                        ------------       ------------       ------------       ------------
         Total other income (expense)                        (64,911)            25,014            (87,335)           181,742
                                                        ------------       ------------       ------------       ------------
         Earnings before taxes                             2,497,240          1,524,957          4,761,401          3,571,432
Income tax expense                                           473,174            169,919            794,051            886,589
                                                        ------------       ------------       ------------       ------------
         Net earnings                                   $  2,024,066       $  1,355,038       $  3,967,350       $  2,684,843
                                                        ============       ============       ============       ============
Earnings per share:
      Basic                                             $       0.28       $       0.19       $       0.55       $       0.39
                                                        ============       ============       ============       ============
      Diluted                                           $       0.27       $       0.18       $       0.52       $       0.36
                                                        ============       ============       ============       ============
Shares used in computing earnings per share:
      Basic                                                7,228,034          7,079,480          7,223,819          6,890,302
                                                        ============       ============       ============       ============
      Diluted                                              7,567,525          7,459,428          7,575,035          7,404,560
                                                        ============       ============       ============       ============
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       2

<PAGE>

SFBC INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
<TABLE>
<CAPTION>
=========================================================================================================================

                                                                                      2003               2002
                                                                                      ----               ----
<S>                                                                                 <C>                <C>
Cash flows from operating activities
    Net earnings                                                                    3,967,350          2,684,845
    Adjustments to reconcile net earnings to net cash provided by
    (used in) operating activities:
      Depreciation and amortization                                                 2,159,800          1,024,607
      Provision for bad debt                                                         (140,000)                --
      Common stock options issued as compensation                                          --             35,417
      Changes in assets and liabilities
        Accounts receivable                                                        (3,870,559)        (1,069,896)
        Income tax receivable                                                         139,732           (746,125)
        Prepaid expenses and other current assets                                    (207,933)          (695,343)
        Other assets                                                                   99,670           (163,241)
        Accounts payable                                                           (1,269,979)           (46,223)
        Accrued liabilities                                                           929,658            (55,826)
        Advance billings                                                             (945,395)          (718,114)
        Income taxes payable                                                               --         (1,046,420)
        Deferred income taxes                                                        (617,252)          (906,571)
                                                                                 ------------       ------------
Total adjustments                                                                  (3,722,258)        (4,387,735)
                                                                                 ------------       ------------
          Net cash provided by (used in) operating activities                         245,092         (1,702,890)
                                                                                 ------------       ------------
Cash flows from investing activities
    Cash consideration - acquisitions, net of cash acquired                        (2,772,703)       (22,047,577)
    Purchase of property and equipment                                             (2,155,449)        (1,229,971)
    Purchase of / change in long term investment - marketable securities              465,321                 --
    Loans to officers/stockholders                                                    107,248            131,321
                                                                                 ------------       ------------
          Net cash used in investing activities                                    (4,355,583)       (23,146,227)
                                                                                 ------------       ------------
Cash flows from financing activities
    Borrowings against bank line of credit                                          1,800,000                 --
    Principal payments on notes payable                                              (464,551)           (62,093)
    Proceeds from the issuance/exercise of warrants and common stock                  178,500          1,504,004
                                                                                 ------------       ------------
          Net cash provided by financing activities                                 1,513,949          1,441,911
                                                                                 ------------       ------------
Net effect of exchange rate changes on cash                                           210,179                 --
                                                                                 ------------       ------------
Net decrease in cash and cash equivalents                                          (2,386,363)       (23,407,206)
Cash and cash equivalents at beginning of period                                    6,361,496         39,103,139
                                                                                 ------------       ------------
Cash and cash equivalents at end of period                                       $  3,975,133       $ 15,695,933
                                                                                 ============       ============
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       3

<PAGE>

SFBC INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
<TABLE>
<CAPTION>
========================================================================================================================


                                                                                                     2003             2002
                                                                                                     ----             ----
<S>                                                                                               <C>              <C>
Supplemental disclosures:
   Interest paid                                                                                  $   177,021      $   115,554
   Income taxes paid                                                                              $   883,855      $ 2,844,897
Supplemental disclosures of non-cash investing and finance activities:
   Fair value of net assets (liabilities) assumed in connection with acquisition of business      $ 1,573,430      $12,104,260
   Common stock issued in connection with acquisition of business                                 $        --      $ 3,255,443
   Professional fees accrued in connection with acquisition of business                           $        --      $   658,362
   Common stock options issued as compensation                                                    $        --      $    35,417
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       4

<PAGE>

SFBC INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
--------------------------------------------------------------------------------
NOTE 1.   ORGANIZATION AND BASIS OF PRESENTATION
--------------------------------------------------------------------------------


          PRINCIPLES OF CONSOLIDATION AND ORGANIZATION

          The consolidated financial statements include the accounts of SFBC
          International, Inc. (the "Company") and its wholly owned United States
          subsidiaries, South Florida Kinetics, Inc. ("SFBC Miami"), SFBC New
          Drug Services, Inc., (which includes the operations of SFBC Charlotte,
          Inc. effective April 1, 2003) SFBC Ft. Myers, Inc., SFBC Analytical
          Laboratories, Inc.; and Canadian subsidiaries SFBC Canada, Inc.,
          Anapharm Inc. and SynFine Research, Inc. All financial information
          presented in this report relating to Canadian subsidiaries has been
          converted to United States dollars.

          During the three and six month periods ended June 30, 2003, Anapharm
          owned a 49% interest in Danapharm Clinical Research (Danapharm)
          located in London, Ontario Canada. For these periods Danapharm's
          results, which were not material, were reported on the equity method
          of accounting. On July 7, 2003, Anapharm purchased the remaining 51%
          interest of Danapharm (see Note 3 to the Condensed Consolidated
          Financial Statements).

          On August 1, 2003, the Company acquired Clinical Pharmacology
          Associates ("CPA") and merged it into its South Florida Kinetics
          subsidiary (see Note 3 to the Condensed Consolidated Financial
          Statements).

          BASIS OF PRESENTATION

          The accompanying unaudited condensed consolidated financial statements
          have been prepared in accordance with accounting principles generally
          accepted in the United States of America for interim financial
          information and with the instructions to Form 10-Q for quarterly
          reports under section 13 of the Securities Exchange Act of 1934.
          Accordingly, they do not include all of the information and footnotes
          required by accounting principles generally accepted in the United
          States of America for complete financial statements. In the opinion of
          management, all adjustments necessary for a fair presentation have
          been made. Operating results for the three and six month periods ended
          June 30, 2003 are not necessarily indicative of the results that may
          be expected for the remaining quarters and for the year ending
          December 31, 2003.

--------------------------------------------------------------------------------
NOTE 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
--------------------------------------------------------------------------------

          The accompanying condensed consolidated financial statements have been
          prepared in accordance with the accounting policies described in the
          Company's Annual Report Form 10-KSB for the year ended December 31,
          2002, and should be read in conjunction with the consolidated
          financial statements and notes which appear in that Report. These
          statements


                                       5
<PAGE>

          do not include all of the information and footnotes required by
          accounting principles generally accepted in the United States of
          America for complete financial statements.

          The preparation of the Company's financial statements in conformity
          with accounting principles generally accepted in the United States of
          America requires management to make estimates and assumptions that
          affect the reported amounts of assets and liabilities at the date of
          the financial statements and revenues and expenses during the period.
          Future events and their effects cannot be determined with absolute
          certainty; therefore, the determination of estimates requires the
          exercise of judgment. Actual results inevitably will differ from those
          estimates, and such differences may be material to our financial
          statements. Management continually evaluates its estimates and
          assumptions, which are based on historical experience and other
          factors that are believed to be reasonable under the circumstances.
          These estimates and the Company's actual results are subject to the
          risk factors listed in "Forward Looking Statements."

          NET EARNINGS PER SHARE

          The Company applies Statement of Financial Accounting Standards No.
          128, "Earnings Per Share" (FAS 128) which requires dual presentation
          of net earnings per share: Basic and Diluted. Basic earnings per share
          is computed using the weighted average number of common shares
          outstanding during the period. Diluted earnings per share is computed
          using the weighted average number of common shares outstanding during
          the period adjusted for incremental shares attributed to outstanding
          options and warrants to purchase approximately 800,200 and 777,051
          shares of common stock for the three and six month periods ended June
          30, 2003, and 824,013 and 950,485 shares for the three and six month
          period ended June 30, 2002, respectively; less the assumed repurchase
          of shares in accordance with the treasury stock method of
          approximately 460,709 and 425,835 shares for the three and six month
          periods ended June 30, 2003, and 444,065 ad 436,227 shares for the
          three and six month period ended June 30, 2002, respectively.

          On July 17, 2002, we announced a common stock buyback plan of up to
          750,000 shares. As of December 31, 2002, we had purchased 204,300
          shares in various open market purchases at an average price of
          approximately $10.65 per share, or a total expenditure of
          approximately $2,176,484. These shares are presented as common stock
          held in treasury at December 31, 2002 and were retired in February
          2003. We have not made any additional treasury share purchases since
          December 31, 2002. We may continue to purchase our shares, or may
          discontinue the buyback at any time depending on the selling price of
          our common stock, the viability of potential acquisition targets, and
          our cash flows from operations and on hand cash balances.

          STOCK BASED COMPENSATION

          At June 30, 2003, the Company had one stock based compensation plan
          and had entered into a limited number of stock option agreements,
          which have been disclosed in the Company's annual report on Form
          10-KSB for the year ended December 31, 2002 and its proxy statement
          for the 2003 annual meeting filed with the Securities and Exchange
          Commission. The Company accounts for stock-based compensation using
          the intrinsic value method. Accordingly, compensation cost for stock
          options issued is measured as the excess, if any, of the fair value of
          the Company's common stock at the date of grant

                                       6
<PAGE>

          over the exercise price of the options. The Company's net earnings and
          earnings per share would have been changed to the pro forma amounts
          indicated below had compensation cost for the stock option plans and
          non-qualified options issued to employees been determined based on the
          fair value of the options at the grant dates consistent with the
          method of SFAS 123.

<TABLE>
<CAPTION>
                                            Three Months Ended          Six Months Ended
                                                 June 30,                    June 30,
                                            2003          2002          2003          2002

<S>                                     <C>           <C>           <C>           <C>
          Net earnings:

          As reported ...............   $ 2,024,067   $ 1,355,038   $ 3,967,350   $ 2,684,843
          Pro forma .................   $ 1,486,758   $   817,729   $ 2,892,731   $ 1,610,224

          Basic earnings per share:
          As reported ...............   $       .28   $       .19   $       .55   $       .39
          Pro forma .................   $       .21   $       .12   $       .40   $       .23

          Diluted earnings per share:
          As reported ...............   $       .27   $       .18   $       .52   $       .36
          Pro forma .................   $       .20   $       .11   $       .38   $       .22
</TABLE>

          The above pro forma disclosures may not be representative of the
          effects on reported net earnings for future years as options vest over
          several years and the Company may continue to grant options to
          employees. In accordance with the requirements of SFAS 123, the fair
          value of each option grant was estimated on the date of grant using a
          binomial option-pricing model with the following weighted-average
          assumptions used for grants in 2003 and 2002, respectively: no
          dividend yield for all years; expected volatility of 75% for 2003 and
          2002; risk-free interest rates of 3% in 2003 and 2002; and expected
          holding periods of 5 years in 2003 and 2002.

          NEW ACCOUNTING PRONOUNCEMENTS

          In June 2002, the FASB issued Statement No. 146, "Accounting for Costs
          Associated with Exit or Disposal Activities" ("SFAS 146"). SFAS 146
          applies to costs associated with an exit activity (including
          restructuring) or with a disposal of long-lived assets. Those
          activities can include eliminating or reducing product lines,
          terminating employees and contracts and relocating plant facilities or
          personnel. SFAS 146 is effective prospectively for exit or disposal
          activities initiated after December 31, 2002, with earlier adoption
          encouraged. The Company does not believe the adoption of this standard
          will have a material impact on the financial statements.

          In December 2002, the FASB issued Statement No. 148, "Accounting for
          Stock-Based Compensation-Transition and Disclosure" ("SFAS 148"). SFAS
          148 amends FASB Statement No. 123, "Accounting for Stock-Based
          Compensation", to provide alternative methods of transition for an
          entity that voluntarily changes to the fair value based method


                                       7
<PAGE>


          of accounting for stock-based employee compensation and to require
          prominent disclosures about the effects on reported net income of an
          entity's accounting policy decisions with respect to stock-based
          employee compensation. SFAS 148 also amends APB Opinion No. 28,
          "Interim Financial Reporting," to require disclosures about those
          effects in interim financial information. The Company currently
          accounts for its stock-based compensation awards to employees and
          directors under the accounting prescribed by Accounting Principles
          Board Opinion No. 25 and provides the disclosures required by SFAS No.
          123. The Company currently intends to continue to account for its
          stock-based compensation awards to employees and directors under the
          accounting prescribed by Accounting Principles Board Opinion No. 25
          and adopted the additional disclosure provisions of SFAS 148 in
          December 2002.

          In November 2002, the FASB issued Interpretation 45 (FIN 45),
          Guarantor's Accounting and Disclosure Requirements for Guarantees,
          Including Indirect Guarantees of Indebtedness of Others. For a
          guarantee subject to FASB Interpretation 45, a guarantor is required
          to:

               o    measure and recognize the fair value of the guarantee at
                    inception (for many guarantees, fair value will be
                    determined using a present value method); and

               o    provide new disclosures regarding the nature of any
                    guarantees, the maximum potential amount of future guarantee
                    payments, the current carrying amount of the guarantee
                    liability, and the nature of any recourse provisions or
                    assets held as collateral that could be liquidated and allow
                    the guarantor to recover all or a portion of its payments in
                    the event guarantee payments are required.

          The disclosure requirements of this Interpretation are effective for
          financial statements for fiscal years ending after December 15, 2002
          and did not have a material effect on the Company's financial
          statements. The initial recognition and measurement provisions are
          effective prospectively for guarantees issued or modified on or after
          January 1, 2003, which should not have a material effect on the
          Company's financial statements.

--------------------------------------------------------------------------------
NOTE 3.   ACQUISITIONS
--------------------------------------------------------------------------------


          During 2002 we acquired the common stock of Anapharm, Inc. and the
          assets of New Drug Services, Inc. ("NDS"). The terms of these
          acquisitions are described in our Form 10-KSB for the year ended
          December 31, 2002.


          On March 26, 2003, SFBC, through its wholly-owned subsidiary,
          Anapharm, acquired the common stock of SynFine, an Ontario
          corporation. Earlier in 2003, SynFine acquired the assets of
          PDI-Research Laboratories, ("PDI"), located in suburban Toronto,
          Canada. The business of PDI (now SynFine) provides synthesized
          research compounds used by bioanalytical laboratories. Prior to the
          acquisition, both Anapharm and SFBC Analytical were customers of PDI.



                                       8
<PAGE>

          We paid approximately $1.6 million for SynFine's net assets comprised
          primarily of scientific equipment, customer lists and real estate.
          Additionally, SynFine assumed certain operating liabilities and bank
          debt. No goodwill was recorded on this transaction since the fair
          value of the net assets was in excess of the $1.6 million paid by the
          Company. Anapharm used its own cash without borrowing any funds to
          consummate the transaction. All of the 12 employees of SynFine have
          remained as employees. This new business unit within Anapharm is
          pursuing the same research activities and same business as PDI under
          the new name of SynFine Research. This acquisition did not have a
          material impact on Anapharm's revenues or earnings during the three
          month period ended June 30, 2003 and is not expected to have a
          material impact for the remainder of 2003.

          The Company originally had anticipated entering into the synthesis
          business during late 2004. However, we accelerated our entry into this
          market due to the availability of PDI's scientific expertise and
          personnel, and the availability of PDI's equipment, customer list and
          real estate at a favorable price.


          ACQUISITION OF DANAPHARM

          On July 7, 2003, SFBC, through its wholly owned subsidiary, Anapharm,
          acquired the 51 percent of the common stock that it did not already
          own of Danapharm of London, Ontario, Canada for a total purchase
          consideration of approximately $1.6 million. This was comprised of
          approximately $336,000 in cash and 8,142 shares of SFBC common stock
          valued at approximately $144,000 paid at closing; and the remaining
          purchase consideration of approximately $1,120,000 is comprised of
          approximately $785,000 in cash and $335,000 in stock (18,984 shares)
          payable in four equal payments during the next four years. Anapharm
          used its own cash to make the cash payment at closing, and issued a
          note payable to the 51% shareholders for the remaining cash
          consideration. The 18,984 shares issued were placed in escrow due over
          the next four years. In return, Anapharm received approximately
          $300,000 in net assets.

          The other 49 percent of Danapharm was acquired through the acquisition
          of Anapharm in March 2002. Founded in 1994, Danapharm provides drug
          development research services for Phase II-IV clinical trials to the
          biotech and pharmaceutical industry.

          The Company's purchase price of $1,600,000 results in excess purchase
          price over the acquired net assets of $300,000. SFBC is currently in
          the process of obtaining preliminary independent appraisals of the
          fair values of the acquired property plant and equipment, and
          identified intangible assets, and their remaining useful lives.
          Accordingly, the allocation of the purchase price, including the
          related goodwill has not yet been determined and will be based on the
          final determination of appraised and other fair values, and related
          tax effects.

          ACQUISITION OF CLINICAL PHARMACOLOGY ASSOCIATES

          On August 4, 2003 we acquired 100% of the common stock of CPA, a
          private company, focused primarily on Phase I clinical research
          development services, based in Miami, FL.


                                       9
<PAGE>


          CPA provides specialized, outsourced drug development research
          services to the pharmaceutical and biotechnology industries.

          Under the terms of the agreement we acquired CPA for $7.5 million in
          cash and 443,072 shares of SFBC common stock. Of the sums paid, $1
          million in cash and approximately 94,000 shares in common stock have
          been placed in escrow and will be released over the next three years,
          in six month increments to the shareholders of the seller. In return
          we received CPA's clinic operations building valued at $750,000 and an
          additional $750,000 in net assets comprised of cash and accounts
          receivables, less accounts payable payable and accrued liabilities.

          Also, the shareholders of CPA will have an opportunity over a three
          year period to earn up to a total $9,000,000 in additional
          consideration, one-half in cash and one-half in common stock, based
          upon attaining certain revenue milestones.

          For the year ended December 31, 2002, CPA's net revenue was
          approximately $8.1 million and pre-tax income was approximately $3.9
          million.

          SFBC has retained all of CPA's employees and entered into three-year
          employment agreements with key CPA senior management.

          SFBC is currently in the process of obtaining preliminary independent
          appraisals of the fair values of the acquired property plant and
          equipment, and identified intangible assets, and their remaining
          useful lives. Accordingly, the allocation of the purchase price,
          including the related goodwill has not yet been determined and will be
          based on the final determination of appraised and other fair values,
          and related tax effects.

          Due to the recent nature of this acquisition, it was not practicable
          to provide further disclosures under SFAS No. 141.


          UNAUDITED PRO FORMA RESULTS

          Unaudited pro forma results of operations after giving effect to
          certain adjustments resulting from the 2002 acquisitions were as
          follows for the three and six month period ended June 30, 2003 and
          June 30, 2002 as if the business combinations had occurred at the
          beginning of each period presented. The pro forma results do not
          include the operations of SynFine as this acquisition did not have a
          material impact on the Company's consolidated operations.


                                       10
<PAGE>

<TABLE>
<CAPTION>
                                THREE MONTHS ENDED JUNE 30    SIX  MONTHS ENDED JUNE 30
                                --------------------------    -------------------------
                                    2003           2002           2003           2002
                                    ----           ----           ----           ----

<S>                            <C>            <C>            <C>            <C>
          Net revenue          $ 22,483,553   $ 16,881,019   $ 41,153,589   $ 32,567,444
          Net earnings         $  2,024,067   $  1,488,495   $  3,967,350   $  3,399,047
          Earnings per share   $        .28   $        .20   $        .55   $        .47
          - basic
          Earnings per share   $        .27   $        .19   $        .52   $        .44
          - diluted
</TABLE>

          The pro forma data is provided for information purposes only and does
          not purport to be indicative of results which actually would have been
          obtained if the combinations had been effected at the beginning of
          each period presented, or of those results which may be obtained in
          the future.

--------------------------------------------------------------------------------
NOTE 4.   GOODWILL AND INTANGIBLE ASSETS
--------------------------------------------------------------------------------

          In connection with adopting SFAS 142, the Company also reassessed the
          useful lives and the classifications of its identifiable intangible
          assets and determined that they continue to be appropriate. The
          components of the Company's intangible assets subject to amortization
          are approximately as follows:

<TABLE>
<CAPTION>
                                            June 30, 2003                   December 31, 2002
                                     --------------------------------    --------------------------
                                   Weighted
                                   Average      Gross                       Gross
                                    Life      Carrying    Accumulated     Carrying      Accumulated
                                   Years       Amount     Amortization     Amount       Amortization
                                   -----    -----------   ------------   -----------    ------------
<S>                                  <C>    <C>           <C>            <C>            <C>
          Methodologies              3.5    $ 1,721,000   $  (615,000)   $ 1,721,000    $  (377,000)
          Employment
          Agreement                    5        590,000      (224,000)       590,000       (162,000)
          Subject Database             4        900,000      (281,000)       900,000       (169,000)
          Customer backlog           .75        290,000      (290,000)       290,000       (130,000)
                                            -----------   -----------    -----------     ----------

                                            $ 3,501,000   $(1,410,000)   $ 3,501,000    $  (838,000)
                                            ===========   ===========    ===========    ===========
</TABLE>


          Amortization expense for intangible assets during the three and six
          month period ended June 30, 2003 was approximately $293,000 and
          $596,000, respectively, and $210,000 and $278,000 for the three and
          six month period ending June 30, 2002, respectively. The following
          table provides information regarding estimated amortization expense
          for each of the following years ended December 31:

                               2003                $  987,000
                               2004                   826,000
                               2005                   725,000
                               2006                   125,000
                                                    ---------
                                                   $2,663,000
                                                   ==========


                                       11
<PAGE>

          As of June 30, 2003, all intangible assets except goodwill were
          subject to amortization expense.

          The Company assesses its goodwill for impairment annually as of the
          1st of January of each year. No impairment was recorded in 2003 or
          2002.

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

          As used in the quarterly report on Form 10-Q, "we", "our", "us", the
          "Company" and "SFBC" refer to SFBC International, Inc. and its
          subsidiaries unless the context otherwise requires.

          The following discussion of our financial condition and results of
          operations should be read together with the financial statements and
          related notes included in this Report. This discussion contains
          forward-looking statements that involve risks and uncertainties. Our
          actual results may differ materially from those anticipated in those
          forward-looking statements as a result of certain factors, including,
          but not limited to, those contained in the discussion on
          forward-looking statements that follows this section.

          OVERVIEW

          We are a provider of specialized drug development services to the
          pharmaceutical and biotechnology industries. We specialize in
          recruiting for and conducting Phase I and Phase II clinical trials
          including participants from special populations. We also provide our
          clients with bioanalytical service for Phase I and II clinical trials.
          Our clients include pharmaceutical manufacturers including the largest
          in the world, generic drug companies, biotechnology companies and
          other drug development companies such as ourselves. Our principal
          clinical operations are located in Miami, Florida and Anapharm's
          facilities in Quebec and Montreal, Canada. Our Miami Phase I and II
          clinic is, we believe, the largest Phase I and Phase II clinic in the
          United States. We very recently opened our new expanded Phase I
          through IV clinical trial facility in Ft. Myers, Florida. In addition
          we provide data management, regulatory submissions, and Phase III and
          IV clinical trials management services in targeted therapeutic areas.
          Our services help reduce the amount of time and expense associated
          with drug development and enable our clients to bring new drugs to
          market faster.

          Our revenues consist primarily of fees earned under contracts with
          pharmaceutical and biotechnology company clients. Typically, a portion
          of our contract fee is due upon signing of the contract, and the
          majority of the contract fee is generally paid in installments upon
          the achievement of certain agreed upon performance milestones over the
          duration of the clinical trial.

          All financial information presented in this report relating to
          Anapharm has been converted to United States dollars.


                                       12
<PAGE>

          CRITICAL ACCOUNTING POLICIES
          ----------------------------

          Revenue and Cost Recognition
          ----------------------------

          Revenues from contracts are generally recognized as services are
          performed on the percentage-of-completion method of accounting with
          performance generally assessed using output measures, such as
          units-of-work performed to date as compared to the total units-of-work
          contracted. Contracts may contain provisions for renegotiation in the
          event of cost overruns due to changes in the level of work scope.
          Renegotiated amounts are included in revenue when the work is
          performed and realization is assured. Provisions for losses to be
          incurred on contracts are recognized in full in the period in which it
          is determined that a loss will result from performance of the
          contractual arrangement.

          Direct costs include all direct costs related to contract performance.
          Costs are not deferred in anticipation of contracts being awarded, but
          instead are expensed as incurred. Changes in job performance and
          estimated profitability may result in revisions to costs and income
          and are recognized in the period in which the revisions are
          determined. Due to the inherent uncertainties in estimating costs, it
          is at least reasonably possible that the estimates used will change in
          the near term and the change could be material.

          Included in accounts receivable are unbilled amounts, which represent
          revenue recognized in excess of amounts billed. Advance billings
          represent amounts billed in excess of revenue recognized.

          Collectibility of Accounts Receivable
          -------------------------------------

          The Company's allowance for doubtful accounts and allowance for
          changes in contracts are based on management's estimates of the
          creditworthiness of its clients, analysis of subsequent changes in
          contracts, analysis of delinquent accounts, the payment histories of
          the accounts and management's judgment with respect to current
          economic conditions and, in the opinion of management, is believed to
          be an amount sufficient to respond to normal business conditions.
          Management sets reserves for customers based upon historical
          collection experience, and sets specific reserves for customers whose
          accounts have aged significantly beyond this historical collection
          experience. Should business conditions deteriorate or any major client
          default on its obligations to the Company, this allowance may need to
          be significantly increased, which would have a negative impact upon
          the Company's operations.

          The allowance for changes in contracts is an estimate established
          through reductions to net revenue while the allowance for doubtful
          accounts is an estimate established through charges to selling,
          general and administrative expenses.

          Income Taxes
          ------------

          Significant management judgment is required in developing the
          Company's provision for income taxes, including the determination of
          foreign tax liabilities, deferred tax assets and liabilities and any
          valuation allowances that might be required against the deferred tax
          assets. The Company evaluates quarterly its ability to realize its
          deferred tax assets and adjusts the amount of its valuation allowance,
          if necessary. The Company operates within multiple taxing
          jurisdictions and is subject to audit in those jurisdictions. Because
          of the complex issues involved, any claims can require an extended
          period to resolve. In management's opinion, adequate provisions for
          income taxes have been made.


                                       13
<PAGE>

          Impairment of Assets
          --------------------

          The Company reviews long-lived assets and certain identifiable
          intangibles held and used for possible impairment whenever events or
          changes in circumstances indicate that the carrying amount of an asset
          may not be recoverable. In evaluating the fair value and future
          benefits of its intangible assets, management performs an analysis of
          the anticipated undiscounted future net cash flows of the individual
          assets over the remaining amortization period. The Company will
          recognize an impairment loss if the carrying value of the asset
          exceeds the expected future cash flows.

          In 2002, the Company began to perform an annual test for impairment of
          goodwill. This test is performed on the 1st of January of each year by
          comparing, at the reporting unit level, the carrying value of goodwill
          to its fair value. The Company assesses fair value based upon its best
          estimate of the present value of future cash flows that it expects to
          generate by the reporting unit. The tests performed for 2003 and 2002
          did not identify any instances of impairment. However, changes in
          expectations as to the present value of a reporting unit's future cash
          flows might impact a subsequent year's assessments of impairment.

          Other Estimates
          ---------------

          The Company makes a number of other estimates in the ordinary course
          of business. Historically, past changes to these estimates have not
          had a material impact on our financial condition. However,
          circumstances could change which may alter future expectations.

          RESULTS OF OPERATIONS

          During the three months ended June 30, 2002 we had operations in
          Miami, Charlotte, Ft. Myers, Philadelphia (SFBC Analytical) and Canada
          (Anapharm). In contrast this year we had operations in all of the
          mentioned locations for the full quarter including the results of
          operations from NDS.

          During the six months ended June 30, 2002 we had operations in Miami,
          Charlotte, Ft. Myers, Philadelphia (SFBC Analytical) and Canada
          (Anapharm) for three and one-half months. For the same period ended
          June 30, 2003, we had operations in all of the mentioned locations for
          the full six months including NDS.

          ACQUSITIONS

          On March 26, 2003, SFBC, through its wholly-owned subsidiary,
          Anapharm, acquired the common stock of SynFine, an Ontario
          corporation. Earlier in 2003, SynFine acquired the assets of
          PDI-Research Laboratories, ("PDI"), located in suburban Toronto,
          Canada. The business of PDI (now SynFine) provides synthesized
          research compounds used by bioanalytical laboratories. Prior to the
          acquisition, both Anapharm and SFBC Analytical were customers of PDI.

          We paid approximately $1.6 million for SynFine's net assets comprised
          primarily of scientific equipment, customer lists and real estate.
          Additionally, SynFine assumed


                                       14
<PAGE>

          certain operating liabilities and bank debt. No goodwill was recorded
          on this transaction since the fair value of the net assets was in
          excess of the $1.6 million paid by the Company. Anapharm used its own
          cash without borrowing any funds to consummate the transaction. All of
          the 12 employees of SynFine have remained as employees. This new
          business unit within Anapharm is pursuing the same research activities
          and same business as PDI under the new name of SynFine Research. This
          acquisition did not have a material impact on Anapharm's revenues or
          earnings during the three month period ended June 30, 2003 and is not
          expected to have a material impact for the remainder of 2003.

          The Company originally had anticipated entering into the synthesis
          business during late 2004. However, we accelerated our entry into this
          market due to the availability of PDI's scientific expertise and
          personnel, and the availability of PDI's equipment, customer list and
          real estate at a favorable price.


          ACQUISITION OF DANAPHARM

          On July 7, 2003, SFBC, through its wholly owned subsidiary, Anapharm,
          acquired the 51 percent of the common stock that it did not already
          own of Danapharm of London, Ontario, Canada for a total purchase
          consideration of approximately $1.6 million. This was comprised of
          approximately $336,000 in cash and 8,142 shares of SFBC common stock
          valued at approximately $144,000 paid at closing; and the remaining
          purchase consideration of approximately $1,120,000 is comprised of
          approximately $785,000 in cash and $335,000 in stock (18,984 shares)
          payable in four equal payments during the next four years. Anapharm
          used its own cash to make the cash payment at closing, and issued a
          note payable to the 51% shareholders for the remaining cash
          consideration The 18,984 shares issued were placed in escrow due over
          the next four years. In return, Anapharm received approximately
          $300,000 in net assets.

          The other 49 percent of Danapharm was acquired through the acquisition
          of Anapharm in March 2002. Founded in 1994, Danapharm provides drug
          development research services for Phase II-IV clinical trials to the
          biotech and pharmaceutical industry.

          The Company's purchase price of $1,600,000 results in excess purchase
          price over the acquired net assets of $300,000. SFBC is currently in
          the process of obtaining preliminary independent appraisals of the
          fair values of the acquired property plant and equipment, and
          identified intangible assets, and their remaining useful lives.
          Accordingly, the allocation of the purchase price, including the
          related goodwill has not yet been determined and will be based on the
          final determination of appraised and other fair values, and related
          tax effects.

          ACQUISITION OF CLINICAL PHARMACOLOGY ASSOCIATES

          On August 4, 2003 we acquired 100% of the common stock of CPA, a
          private company, focused primarily on Phase I clinical research
          development services, based in Miami, FL. CPA provides specialized,
          outsourced drug development research services to the pharmaceutical
          and biotechnology industries.


                                       15
<PAGE>

          Under the terms of the agreement we acquired CPA for $7.5 million in
          cash and 443,072 shares of SFBC common stock. Of the sums paid, $1
          million in cash and approximately 94,000 shares in common stock have
          been placed in escrow and will be released over the next three years,
          in six month increments to the shareholders of the seller. In return
          we received CPA's clinic operations building valued at $750,000 and an
          additional $750,000 in net assets comprised of cash and accounts
          receivables, less accounts payable payable and accrued liabilities.

          Also, the shareholders of CPA will have an opportunity over a three
          year period to earn up to a total $9,000,000 in additional
          consideration, one-half in cash and one-half in common stock, based
          upon attaining certain revenue milestones.

          For the year ended December 31, 2002, CPA's net revenue was
          approximately $8.1 million and pre-tax income was approximately $3.9
          million.

          SFBC has retained all of CPA's employees and entered into three-year
          employment agreements with key CPA senior management.

          SFBC is currently in the process of obtaining preliminary independent
          appraisals of the fair values of the acquired property plant and
          equipment, and identified intangible assets, and their remaining
          useful lives. Accordingly, the allocation of the purchase price,
          including the related goodwill has not yet been determined and will be
          based on the final determination of appraised and other fair values,
          and related tax effects.

          Due to the recent nature of this acquisition, it was not practicable
          to provide further disclosures under SFAS No. 141.

          PRO FORMA DISCLOSURE

          The following table reflects our actual results of operations for the
          three and six months ended June 30, 2003 and our pro forma results of
          operations for the same periods. The pro forma adjustments reflect the
          application of $684,682 and $1,435,011, respectively for the three and
          six month periods ended June 30, 2003 in Canadian tax credits, to the
          costs which generated the credit. Under United States generally
          accepted accounting principles ("GAAP"), the tax credits are applied
          as a credit to "Income Tax Expense" on the income statement.

          Under the U.S. GAAP approach, net income before taxes is reduced by
          the amount of all of the direct costs and selling, general and
          administrative expenses. Under the pro forma approach credits are
          added back increasing the income tax expense. The end result is that
          the net income is identical under both the actual and pro forma
          approaches.

          We believe that the above pro forma presentation, which is a non-GAAP
          financial measure as defined by Regulation G of the Securities and
          Exchange Commission, is more indicative of income from operations and
          operating margins; it also assists management in calculating earnings
          before income taxes, depreciation and amortization ("EBITDA") and
          comparing EBITDA to other companies in our sector. For these reasons,
          we believe the pro forma table is useful to investors.


                                       16
<PAGE>

SFBC INTERNATIONAL, INC. AND SUBSIDIARIES
SELECTED PROFORMA QUARTERLY  DISCLOSURES
FOR THE THREE AND SIX-MONTH PERIOD ENDED JUNE 30, 2003 (all in $USD)

Recast proforma income statement to reflect the impact
of Canadian tax credits

<TABLE>
<CAPTION>
                                                                                                  ADJUSTED
                                                                                                  PROFORMA
                                                                                                   INCOME
                                                                                CANADIAN         REFLECTING
                                                      REPORTED                     TAX            CANADIAN
                                                       ACTUAL                    CREDIT          TAX CREDITS
                                                   RESULTS FOR                 RECLASS FOR         FOR THE
                                                      THE THREE                 THE THREE           THREE
                                                     MONTH PERIOD              MONTH PERIOD     MONTH PERIOD
                                                        ENDED                    PERIOD             ENDED
                                                       6/30/03                   6/30/03          6/30/03
                                                                                   (A)              (B)

<S>                                                    <C>           <C>           <C>          <C>              <C>
Net revenue                                            $22,483,553   100.0%                     $ 22,483,553     100.0%

Costs and expenses
      Direct costs                                      12,688,983    56.4%        $ (549,936)      12,139,047    54.0%
      Selling, general and administrative expenses       7,232,417    32.2%          (134,926)       7,097,491    31.6%
                                                       -----------                 ---------------------------
         Total costs and expenses                       19,921,400    88.6%          (684,862)      19,236,538    85.6%
         Earnings from operations                        2,562,153    11.4%           684,862        3,247,015    14.4%
Other income (expense)
      Interest income                                       37,670                                      37,670
      Interest expense                                    (102,581)                                   (102,581)
                                                       -----------                                 -----------
         Total other income (expense)                      (64,911)                        --          (64,911)
                                                       -----------                 ---------------------------
         Earnings before taxes                           2,497,242                    684,862        3,182,104
Income tax expense                                         473,174    18.9%           684,862        1,158,036    36.4%
                                                       -----------                 ---------------------------
         Net earnings                                  $ 2,024,068     9.0%        $       --      $ 2,024,068     9.0%
                                                       ===========                 ===========================
Earnings per share:
      Basic                                                 $ 0.28                                 $      0.28
                                                       ===========                                 ===========
      Diluted                                               $ 0.27                                 $      0.27
                                                       ===========                                 ===========
Shares used in computing earnings per share:
      Basic                                              7,228,034                                   7,228,034
                                                       ===========                                 ===========
      Diluted                                            7,567,525                                   7,567,525
                                                       ===========                                 ===========
</TABLE>


                                       17
<PAGE>

<TABLE>
<CAPTION>
                                                                                                  ADJUSTED
                                                                                                  PROFORMA
                                                                                                   INCOME
                                                                                CANADIAN         REFLECTING
                                                      REPORTED                     TAX            CANADIAN
                                                       ACTUAL                    CREDIT          TAX CREDITS
                                                   RESULTS FOR                   RECLASS           FOR THE
                                                       THE SIX                   THE SIX             SIX
                                                     MONTH PERIOD              MONTH PERIOD     MONTH PERIOD
                                                        ENDED                    PERIOD             ENDED
                                                       6/30/03                   6/30/03          6/30/03
                                                                                   (A)              (B)

<S>                                                    <C>           <C>       <C>              <C>            <C>
Net revenue                                            $41,153,589   100.0%                     $ 41,153,589   100.0%

Costs and expenses
      Direct costs                                      23,257,574    56.5%    $ (1,185,498)      22,072,076    53.6%
      Selling, general and administrative expenses      13,047,277    31.7%    $   (249,513)      12,797,764    31.1%
                                                       ------------            -----------------------------
         Total costs and expenses                       36,304,851    88.2%      (1,435,011)      34,869,840    84.7%
         Earnings from operations                        4,848,738    11.8%       1,435,011        6,283,749    15.3%
Other income (expense)
      Interest income                                       89,686                                    89,686
      Interest expense                                    (177,021)                                 (177,021)
                                                       ------------                              -----------
         Total other income (expense)                      (87,335)                      --          (87,335)
                                                       ------------            -----------------------------
         Earnings before taxes                           4,761,403                1,435,011        6,196,414
Income tax expense                                         794,051    16.7%    $  1,435,011        2,229,062    36.0%
                                                       ------------            -----------------------------
         Net earnings                                  $ 3,967,352     9.6%    $         --      $ 3,967,352     9.6%
                                                       ============            =============================
Earnings per share:
      Basic                                                 $ 0.55                                    $ 0.55
                                                       ============                               ==========
      Diluted                                               $ 0.52                                    $ 0.52
                                                       ============                               ==========
Shares used in computing earnings per share:
      Basic                                              7,223,819                                 7,223,819
                                                       ============                               ==========
      Diluted                                            7,575,035                                 7,575,035
                                                       ============                               ==========
</TABLE>


(A) The Canadian government encourages R&D activities by subsidizing them
through tax credits. Under US generally accepted accounting principles ("GAAP")
these credits are applied against "Income tax expense" on the income statement
rather than against the underlying "Direct costs" or "Selling, general and
administrative expenses" that generated the credit. The Company's current
statutory rate on profits for US operations is approximately 40%. The statutory
tax rate in the Quebec Province in Canada where the Company operates is
approximately 33% (before the application of the tax credits).


                                       18
<PAGE>


(B) During the three and six-month periods ended June 30, 2003, Anapharm
generated $684,862 and $1,435,011, respectively, in tax credits . This column
shows the pro-forma impact on the Company's operating results and ratios as if
these credits were applied against the underlying expense line items that
generated the credit rather than applying the credits against Income tax
expense. The Company believes that this presentation is more indicative of
earnings from operations, operating margins and for calculating EBITDA when
compared to other companies within its sector.

Net revenue by geographic region
                                         THE THREE             THE SIX
                                        MONTH PERIOD         MONTH PERIOD
                                           ENDED               PERIOD
                                          6/30/03              6/30/03

Net revenue from foreign operations     $10,324,940          $ 19,167,810
Net revenue from US operations           12,158,613            21,985,779

Total                                   $22,483,553          $ 41,153,589
                                        ============        ==============


                                       19
<PAGE>

          Net Revenues
          ------------

          Net revenue increased from $14,720,863 for the three months ended June
          30, 2002 to $22,483,553 for the three months ended June 30, 2003, and
          from $24,303,419 for the six months ended June 30, 2002 to $41,153,589
          for the six months ended June 30, 2003, an increase of 52.7% and
          69.3%, respectively. The increase for both the three and six month
          periods is primarily attributable to the significant growth of SBFC's
          business at Anapharm, and SFBC Miami, and due the inclusion of six
          months of revenue at Anapharm for the six month period ended June 30,
          2003, compared to three and one-half's months of revenues at Anapharm
          for the same six month period ended June 30, 2002.

          On a pro forma basis, if the Company had owned all of its subsidiaries
          as of January 1, 2002, net revenue for the three and six months month
          period ended June 30, 2003 increased approximately 24.9% and 20.9%,
          respectively, over the same three and six months period ended June 30,
          2002. We believe that this pro forma comparison permits us to more
          accurately track our growth rate. We believe it is also more
          meaningful to investors since the inclusion of the results of
          operations from our two acquisitions since the date of the
          acquisitions does not provide a fair comparison.

          For the three and six month periods ended June 30, 2003 net revenues
          from foreign operations (substantially all from Anapharm) included in
          total revenues, were $10,324,940, and $19,167,810, respectively.

          Gross Profit Margins
          --------------------

          Gross profit increased from $6,266,833 to $9,794,570 for the three
          months ended June 30, 2003 and from $10,987,645 to $17,896,014 for the
          six months ended June 30, 2003, an increase of 56.3% and 62.9%
          respectively from the corresponding periods in the prior year. As a
          percentage of net revenue, gross profit increased from 42.6% to 43.6%
          for the three months ended June 30, 2003 and decreased from 45.2% to
          43.5% for the six months ended June 30, 2003 as compared to the
          corresponding periods in the prior year.

          The increase for the three month period ended June 30, 2003 compared
          to the same period in 2002 is primarily attributable to the increase
          in higher gross margin Phase I, Miami contracts as a ratio of overall
          business compared to lower margin Phase III business at SFBC NDS.

          This decrease in our gross profit margins for the six month period
          ended June 30, 2003 compared to the same six month period in 2002 is
          primarily attributable to the inclusion of six months of Anapharm's
          operations in 2003 compared to approximately three and one-half months
          during the same three month period in 2002. Anapharm's gross profit
          margins are lower due to the nature of Anapharm's business in the
          generic market where it employs a high number of research and
          development employees and incurs higher direct costs as a percentage
          of revenues than our United States operations. The Canadian government
          subsidizes a portion of these additional expenses through tax credits.
          Under United States GAAP, these credits are applied against income tax
          expense rather than against the underlying direct cost that generated
          the credit. The overall impact on our

                                       20
<PAGE>

          operations is that the direct cost and S,G&A expenses as a percentage
          of revenues will be permanently higher and our effective tax rate will
          be permanently lower than in the past. Our net income is not affected
          by this method. See Pro Forma Disclosure.

          Additionally, to a lesser extent, the decrease in our gross margins is
          attributable to the mix of our contracts which changes from quarter to
          quarter. In August 2003 we purchased CPA and merged it into our Miami
          operation. Historically, CPA's unaudited gross margins have been
          higher than SFBC's. As a result, for the remainder of the year we
          expect our gross margins to be between 43-45%.

          Selling, General and Administrative Expenses
          --------------------------------------------

          Selling, general and administrative expenses ("S,G&A") increased from
          $4,766,890 to $7,232,418 for the three months ended June 30, 2003 and
          from $7,597,955 to $13,047,278 for the six months ended June 30, 2003,
          an increase of 51.7% and 71.7%, respectively, over the same periods in
          the prior year. As a percentage of net revenue, our S,G&A expenses
          increased from 32.4% to 32.2% for the three months ended June 30, 2003
          and from 31.3% to 31.7% for the six months ended June 30, 2003 as
          compared to the corresponding periods in the prior year. The increase
          in total S,G&A expenses for the three and six month period ended June
          30, 2003 compared to the same periods of 2002 is primarily due to (I)
          our continuing increased sales and marketing efforts, (ii) the hiring
          of new personnel, increased depreciation and amortization expense and
          other expenses consistent with the growth of the Company, and (iii)
          the inclusion of Anapharm's and NDS' S,G&A expenses for six months
          compared to three and one-half's months of S,G&A expenses at Anapharm
          and zero expenses at NDS during the same period in 2002. Additionally,
          during the three months ended June 30, 2003, due to the rapid
          strengthening of the Canadian dollar against the US dollar, Anapharm
          incurred a foreign exchange loss of approximately $550,000 compared to
          a foreign exchange loss of $152,000 during the same three month period
          ended June 30, 2002. We believe that the large foreign exchange loss
          incurred during the three months ended June 30, 2003 is non-recurring
          in nature and for the remaining six months of 2003 any foreign
          currency gain or loss will not be material, although there can be no
          assurances that we will be correct.

          The increase in S,G&A expenses as a percentage of revenues for the six
          month period is primarily due to the inclusion of Anapharm's expenses,
          in S,G&A for six months during 2003 compared to three and one-half
          months during the same period in 2002. As noted above in the "Gross
          Profit Margins" section and shown in the "Pro Forma Disclosure" above,
          Anapharm also receives tax credits for certain S,G&A expenses. These
          credits are accounted in the same manner as direct costs.

          Net Earnings
          ------------

          Net income increased from $1,355,038 to $2,024,067 for the three
          months ended June 30, 2003 and from $2,684,845 to $3,967,350 for the
          six months ended June 30, 2003, an increase of 49.4% and 47.8%
          respectively over the same periods in the prior year. On a fully
          diluted basis, our earnings per share increased from $.18 to $.27 for
          the three-month period ended June 30, 2003 and from $.36 to $.52 for
          the six-month period ended June 30, 2003 as compared to the
          corresponding periods in the prior year. The weighted average number
          of shares outstanding used in computing earnings per share on a fully
          diluted basis increased from 7,459,428 to 7,567,525 for the
          three-month period

                                       21
<PAGE>

          ended June 30, 2003 and from 7,404,560 to 7,575,035 for the six month
          period ended June 30, 2003 as compared to the corresponding period in
          the prior year. The increase in the number of shares in both three and
          six month periods resulted primarily from the issuance of 167,375
          shares to Anapharm on March 18, 2002, and 234,060 shares to NDS on
          September 6, 2003 as acquisition consideration, the exercise of
          options and warrants, and the change in our stock price (which causes
          additional unexercised options to be included in the calculation for
          diluted shares outstanding), offset by the share repurchases described
          below.

          On July 17, 2002, we announced a common stock buyback plan of up to
          750,000 shares. As of December 31, 2002, we had purchased 204,300
          shares in various open market purchases at an average price of
          approximately $10.65 per share, or a total expenditure of
          approximately $2,176,484. These shares are presented as common stock
          held in treasury at December 31, 2002 and were retired in February
          2003. We have not made any additional treasury share purchases since
          December 31, 2002. We may continue to purchase our shares, or may
          discontinue the buyback at any time depending on the selling price of
          our common stock, the viability of potential acquisition targets, and
          our cash flows from operations and on hand cash balances.

          The Company's effective tax rate for the three month period ended June
          30, 2003 was 18.9% compared to 11.1% for the same three-month period
          ended June 30, 2002, respectively. The increase in the effective tax
          rate for the three months ended June 30, 2003 compared to the prior
          year, is due to the increase in profitability of U.S. subsidiaries
          (primarily SFBC Miami) as a ratio of overall consolidated net income.

          For the six months ended June 30, 2003, the Company's effective tax
          rate was 16.7% compared to 24.8% for the same period in 2002. This
          decrease is primarily attributable to Anapharm's strong operating
          results as a ratio of overall consolidated net income and Anapharm's
          significantly lower tax rate, compared to the non-inclusion of
          Anapharm's tax rate during the first two and one-half months of 2002.
          As described throughout this report, Anapharm receives significant
          certain non-cash tax credits from the government of Canada for
          incurring research and development expenses. These credits lower the
          Company's effective tax rate. The Company expects the nature of
          Anapharm's business and the generation of significant tax credits to
          continue, however, there can be no assurance on the amount of these
          credits on a quarterly or annual basis.

          The future effective tax rate will be dependent on the amount of the
          credits Anapharm receives and Anapharm's relative contribution to our
          consolidated pre-tax income. For the remainder of 2003 we expect our
          effective tax rate to be between 20 and 23%, and an annual rate of
          between 19-21% compared to the 2002 tax rate of 24% which included
          Anapharm's lower tax rate for nine and one-half months. The higher tax
          rate we anticipate for the balance of the year gives effect to the
          fact that our Phase I and II business in the United States
          historically is substantially stronger in the second half of the year,
          particularly in the fourth quarter. We expect this cyclical trend to
          continue.

          Whenever commercially practical, we refer Phase I and Phase II studies
          and bioanalytical contracts to our Canadian operations benefit from
          the lower operating costs and lower tax rates in Canada, and the
          availability of tax credits. Excluding the impact of tax credits,
          SFBC's effective tax rate in Canada is approximately 33% compared to
          approximately 40% in the United States. There will be some practical
          limitations which prevent us from referring some studies to Anapharm
          including differing areas of expertise, the availability of a special
          population groups or client preferences on where the work should be
          performed.

                                       22
<PAGE>

          LIQUIDITY AND CAPITAL RESOURCES

          For the six months ended June 30, 2003, net cash provided by operating
          activities was $245,092 in contrast to $1,702,890 of net cash used in
          operations for the corresponding period in 2002. The change is
          primarily attributable to the increase in net earnings and
          depreciation and amortization resulting from the growth of our
          business, offset by a substantial increase in our accounts receivable
          and decrease in accounts payable.

          For the six months ended June 30, 2003, net cash used in investing
          activities was $4,355,583 compared to $23,146,227 used in investing
          activities for the corresponding period in 2002. The decrease is
          primarily attributable to the use of approximately $22,000,000 of net
          cash to acquire Anapharm, Inc. in March of 2002 as compared to
          approximately $1,600,000 of net cash used to acquire SynFine Research,
          Inc. in March 2003 and approximately $1,200,000 used to pay the
          Charlotte Earn-out. In addition, capital expenditures increased to
          approximately $2,150,000 during the first six months of 2003 as
          compared to $1,200,000 during the same period in 2002.

          During the six months ended June 30, 2003, net cash provided by
          financing activities was $1,513,949 compared to net cash provided by
          financing activities of $1,441,911 in the corresponding period of
          2002. The increase is primarily attributable to drawing down
          $1,800,000 from our Credit Facility offset by a reduction in proceeds
          of $1,500,000 in stock options and warrants exercised in 2002 to
          $178,500 during the same period in 2003.

          On September 16, 2002, we entered into a $10 million Revolving Credit
          and Security Agreement with Wachovia Bank National Association. The
          interest rate on this Credit Facility is LIBOR based and variable.
          Currently, our average interest rate on the entire Credit Facility is
          approximately 3.5%. This Credit Facility enables SFBC to borrow for
          general working capital purposes and for the purpose of financing
          acquisitions of companies in related industries. This Credit Facility
          is secured by substantially all of our assets. On July 30, 2003
          Wachovia Bank increased the Credit Facility to $15,000,000 on
          substantially the same terms.

          During the three-month period ended June 30, 2003 we utilized the
          Credit Facility to pay the Charlotte Earn-out of approximately
          $1,200,000 as well as other operating activities. As of June 30, 2003,
          the loan balance was $1,800,000. In order to fund the August 1, 2003
          CPA purchase price and transaction costs, the Company borrowed an
          additional $8,000,000. Under the terms of the Credit Facility, the
          $8,000,000 is payable in equal installments along with accrued
          interest over a 36 month period. These amounts can be prepaid without
          penalty. As of August 13, 2003, the total loan balance outstanding was
          approximately $9,900,000.

          The Company has been at all times and currently is in compliance with
          all required covenants. Based on borrowing formulas contained within
          the Credit Facility, as of August 13, 2003, the Company could have
          borrowed all of the remaining loan availability of $5,100,000. We
          intend to use our cash flow from operations to reduce the loan
          balances and related interest expense under the Credit Facility.

                                       23
<PAGE>

          As of August 13, 2003 we had approximately $4,500,000 in cash on hand.
          Based upon our cash balances and our estimated future positive cash
          flows from operations, we believe we have enough working capital to
          meet our operational needs within the next 12 months. If we consummate
          any additional acquisitions, we expect to further use our Credit
          Facility and, if necessary, obtain additional debt or equity
          financing. Except for the possibility of issuing stock related to
          potential Earnouts described in this "Commitments" section of
          "Liquidity and Capital Resources" or a potential accretive
          acquisition, should one arise we do not anticipate issuing any of our
          common stock during 2003.

          COMMITMENTS

          NDS EARN-OUT
          ------------

          We may pay NDS up to $8 million as an earn-out based upon SFBC NDS'
          future operating results over a three year period with the initial
          year ending September 30, 2003. Of this $8 million potential earn-out,
          $6 million is to be paid in cash and the remaining $2 million will be
          paid through the issuance of common stock.

          CPA EARN-OUT
          ------------

          Based upon the future revenues of SFBC Miami, we may pay up to $9
          million, one-half in cash and one-half in common stock, to the CPA
          shareholders over the next three years.

          RELATED PARTY TRANSACTIONS

          In March 2003, Lisa Krinsky, M.D., our chairman of the board of
          directors and president, voluntarily prepaid a note due on July 31,
          2003 in the amount of $94,918 including accrued interest. The loan
          represented personal expenses we paid for Dr. Krinsky in 1998 prior to
          our initial public offering. We will not make any future loans to our
          executive officers and directors.

          FORWARD-LOOKING STATEMENTS

          The statements in this Report relating to our expectations about our
          future gross margins, our not incurring future foreign currency
          losses, future Canadian tax credits and tax rates, and the nature of
          Anapharm's business and its continued generation of tax credits, the
          Company's effective future tax rates, the possibility of future
          dilution, the adequacy of our working capital, future acquisitions,
          and the repurchase of our common stock, are forward-looking statements
          within the meaning of the Private Securities Litigation Reform Act of
          1995 (the "Act"). Additionally, words such as "expects",
          "anticipates", "intends", "believes", "will" and similar words are
          used to identify forward-looking statements within the meaning of the
          Act.

          The results anticipated by any or all of these forward-looking
          statements might not occur. Important factors, uncertainties and risks
          that may cause actual results to differ materially from these
          forward-looking statements include (1) an unanticipated decision to
          make an acquisition of a substantially larger competitor, which would
          require us to re-allocate our intended uses of our cash resources; (2)
          our ability to successfully implement our plans for operational and
          geographical expansion; (3) our ability to successfully achieve and
          manage the technical requirements of specialized clinical trial
          services, while maintaining compliance with applicable rules and
          regulations; (4) our ability to compete nationally in attracting
          pharmaceutical companies in order to develop additional business; (5)
          our continued ability to recruit

                                       24
<PAGE>

          participants for clinical studies; (6) the economic climate nationally
          and internationally as it affects drug development operations, (7) our
          ability to integrate and absorb our most recent acquisition and any
          future acquisitions into our current operational structure, (8) the
          changing mix of, and the amount contracts and laboratory services
          offered, (9) future legislation in Canada which may affect our ability
          to continue to generate tax credits at Anapharm to lower the effective
          tax rate, (10) our future stock price, and (11) a variety of economic
          factors that may affect the relative values of the United States and
          Canadian currencies as well as the results of any hedging strategies
          should we employ such strategies..

          We undertake no obligation to publicly update or revise any
          forward-looking statements, whether as the result of new information,
          future events or otherwise. For more information regarding some of the
          ongoing risks and uncertainties of our business, see the Form 10-KSB
          for the year ended December 31, 2002 and the prospectus in the most
          recent Form S-3 we filed with the Securities and Exchange Commission.

          ITEM 3.

          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

          SFBC is subject to market risks in some of its financial instruments.
          These instruments are carried at fair value on its financial
          statements. SFBC is subject to currency risk at Anapharm. SFBC is also
          subject to interest rate risk on its Credit Facility if it borrows
          under it as described below. SFBC has not entered into market risk
          sensitive instruments for trading purposes.

          In 2002, SFBC purchased certain debt securities. SFBC classifies its
          investments in debt securities as available-for-sale in accordance
          with SFAS 115, "Accounting for Certain Investments in Debt and Equity
          Securities." Investments classified as available-for-sale are carried
          at fair value based on quoted market prices. The estimated fair value
          of securities for which there are no quoted market prices is based on
          similar types of securities that are traded in the market. The
          unrealized holding gain (loss) on available-for-sale securities is
          reported as a component of accumulated other comprehensive earnings,
          net of applicable deferred income taxes. As of June 30, 2003 the
          unrealized gain on investments in marketable securities was
          insignificant. Cost is determined on the actual purchase price of the
          marketable security for determining realized gains and losses. In the
          first six months of 2003, there were no realized gains or losses.

          Financial instruments that potentially subject SFBC to credit risk
          consist principally of trade receivables. SFBC performs services and
          extends credit based on an evaluation of the client's financial
          condition without requiring collateral. Exposure to losses on
          receivables is expected to vary by client due to the financial
          condition of each client. SFBC monitors exposure to credit losses and
          maintains allowances for anticipated losses considered necessary under
          the circumstances. Additionally, SFBC, from time to time, maintains
          cash balances with financial institutions in amounts that exceed
          federally insured limits.

          SFBC's financial instruments consist primarily of cash and cash
          equivalents, marketable securities, accounts receivable, notes
          receivable, accounts payable, and notes payable. At June 30, 2003, the
          fair value of these instruments approximates the carrying amount of
          these items due to the short-term maturities of these instruments.

          At Anapharm where the local currency is the functional currency,
          assets and liabilities are translated into United States dollars at
          the exchange rate in effect at the end of the year or

                                       25
<PAGE>

          quarter. Revenues and expenses of Anapharm is translated at the
          average exchange rate during the year. The aggregate effect of
          translating the financial statements of Anapharm is included in a
          separate component of stockholders' equity entitled "Accumulated Other
          Comprehensive Earnings." For the quarter ended June 30, 2003, SFBC had
          losses from foreign currency transactions of $550,000. Currency
          translation risks arise primarily from Anapharm. SFBC does not hedge
          its foreign currency risks.

          On September 16, 2002, SFBC entered into a $10 million Revolving
          Credit and Security Agreement with Wachovia Bank National Association,
          which we expanded to $15 million on July 30, 2003. The interest rate
          on this Credit Facility is LIBOR based and variable. As of June 30,
          2003, our average interest rate on the entire Credit Facility was
          3.5%. This Credit Facility enables SFBC to borrow for general working
          capital purposes and for the purpose of financing acquisitions of
          companies in related industries. This Credit Facility is secured by
          substantially all of SFBC's assets. As of the date of this Report,
          SFBC had borrowed approximately $9.9 million on this Credit Facility.
          Changes in interest rates, and LIBOR in particular, will affect the
          cost of funds should SFBC draw on such facility.

          ITEM 4.

          CONTROLS AND PROCEDURES

          In accordance with Section 302 of the Sarbanes-Oxley Act of 2002 and
          the rules thereunder, our chief executive officer and chief financial
          officer reviewed our disclosure controls and procedures. This review
          was completed within the time required by law, and these executive
          officers reported the results to our audit committee. Based upon this
          review, our chief executive officer and chief financial officer
          concluded that our disclosure controls and procedures are effective
          and are sufficient to meet the requirements for this report.

          In addition, we reviewed our internal controls, and there have been no
          significant changes in our internal controls or in other factors that
          could significantly affect those controls subsequent to the date we
          carried out this evaluation.

                                       26
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

          Not applicable.


ITEM 2. CHANGES IN SECURITIES

          During the quarter ended June 30, 2003, we issued shares of our common
          stock to the following individuals and corporation upon exercise of
          options or warrants which were not covered by an effective
          registration statement but were exempt under Section 4(2) of the
          Securities Act of 1933:

          DATE             NAME           NUMBER OF SHARES  CONSIDERATION
          ----             ----           ----------------  -------------
          June 26 , 2003   Andrew Dorman  1,690             Cashless exercise of
                                                            5,000 options

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

          Not applicable.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

          Not applicable.


ITEM 5.  OTHER INFORMATION

          Not applicable.


                                       27
<PAGE>

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

         (a)      EXHIBIT INDEX

Exhibit
Number   Description

------   ---------------------------------------------------------------------
3.1      Certificate of Incorporation(1)
3.2      First Amendment to Certificate of Incorporation(1)
3.3      Certificate of Correction to Certificate of Incorporation(2)
3.4      Bylaws(1)
3.5      First Amendment to the Bylaws(2)
3.6      Second Amendment to the Bylaws (3)
31.1     Certification of Chief Executive Officer
31.2     Certification of Chief Financial Officer
32.1     Section 1350 Certification of Chief Executive Officer.
32.2     Section 1350 Certification of Chief Financial Officer.

(1) Contained in Form SB-2 filed on August 17, 1999.
(2) Contained in Form SB-2 filed on October 5, 2000.
(3) Contained in Form 10-KSB for the fiscal year ended December 31, 2002 filed
    on March 31, 2003.

         (b)      REPORTS ON FORM 8-K.

On May 6, 2003, we filed a Form 8-K containing a press release dated May 5, 2003
disclosing our first quarter 2003 results of operations.

                                   SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf on August 14, 2003 by
the undersigned, thereunto duly authorized.

                                   SFBC INTERNATIONAL, INC.

                                   /s/ Arnold Hantman
                                   ---------------------------------------
                                   Arnold Hantman, Chief Executive Officer

                                   /s/ David Natan
                                   ------------------------------------
                                   David Natan, Chief Financial Officer


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