Nine Months Ended September 30,
	2000		1999
Net Sales	$ 194,806		$ 148,944
Cost of Sales	126,584		98,894
Gross Profit on Sales	68,222		50,050
Operating Expenses:
Selling, General and Administrative	30,406		19,308
Research and Development	3,803		2,474
Total Operating Expenses	34,209		21,782
Operating Income	34,013		28,268
Other Expense (Income):
Refinancing Costs	281		281
Interest Expense	4,948		7,152
Interest Income	(2,127)		(2,533)
Other, Net	1,156		1,232
Income from Continuing Operations
before Income Tax	29,755		22,136
Income Tax	10,809		8,227
Income from Continuing Operations	18,946		13,909
Discontinued Operations, Net of Tax:
Income from Operations	-		1,761
Gain on Disposal	-		32,625
	-		34,386
Income before Extraordinary Item	18,946		48,295
Extraordinary Item- (Loss) on Extinguishment of Debt, Net of Tax	-		(156)
Net Income	$ 18,946		$ 48,139
Weighted Average Shares - Basic	17,067		18,150
Weighted Average Shares - Diluted	17,339		18,408
Per Share Data - Basic EPS:
Income from Continuing Operations	$ 1.11		$    0.77
Income from Discontinued Operations	-		1.89
Income Before Extraordinary Item	1.11		2.66
Extraordinary Item (Loss)	-		(0.01)
Net Income	$ 1.11		$   2.65
Per Share Data - Assuming Dilution:
Income from Continuing Operations	$ 1.09		$   0.76
Income from Discontinued Operations	-		1.87
Income Before Extraordinary Item	1.09		2.63
Extraordinary Item (Loss)	-		(0.01)
Net Income	$ 1.09		$   2.62

See Notes to Consolidated Financial Statements.

			September 30,		December 31,
			2000		1999
			(Unaudited)
CURRENT ASSETS
Cash and Cash Equivalents			$ 47,376		$ 67,924
Trade Accounts Receivable, less Allowance for Uncollectible Accounts
of $551 in 2000 and $334 in 1999			31,965		18,938
Inventories			37,344		33,193
Prepaid Expenses			1,340		2,311
Current Deferred Tax Asset			15,000		14,060
Total Current Assets			133,025		136,426
PROPERTY, PLANT AND EQUIPMENT
Land and Land Improvements			23,893		29,783
Buildings and Leasehold Improvements			12,821		12,718
Machinery and Equipment			31,366		26,492
			68,080		68,993
Accumulated Depreciation			(20,572)		(18,828)
Net Property, Plant and Equipment			47,508		50,165
OTHER ASSETS
Deferred Divestiture Proceeds and Other, Net			5,559		7,463
Prepaid Pension Costs			18,948		18,948
Intangible Assets			51,798		40,268
Cash Surrender Value of Insurance Policies			5,827		6,204
Prepaid Finance Costs			1,594		1,875
Deferred Tax Asset			3,976		13,215
Other			5,006		4,525
Total Other Assets			92,708		92,498
Total Assets			$ 273,241		$ 279,089

			September 30,		December 31,
			2000		1999
			(Unaudited)
CURRENT LIABILITIES
Accounts Payable			$ 16,497		$ 12,910
Accrued Insurance Reserves			8,794		9,380
Accrued Compensation			5,373		4,315
Accrued Interest			533		1,133
Accrued Liabilities and Expenses			26,966		30,590
Current Portion of Long-Term Debt			8,745		5,010
Total Current Liabilities			66,908		63,338
Long-Term Debt			62,498		69,990
Non-Current Insurance Reserves			15,991		17,300
Other Non-Current Liabilities			26,843		31,390
Total Liabilities			172,240		182,018
STOCKHOLDERS’ EQUITY
Series A Junior Participating Preferred
Shares, $1.00 Par Value; Authorized, 500
Shares; Issued and Outstanding, None			-		-
Preferred Stock, $1.00 Par Value; Authorized,
3,217 Shares; Issued and Outstanding, None			-		-
Common Stock, $0.10 Par Value; Authorized,
36,000 Shares; Issued and Outstanding
2000 – 19,075, 1999 – 19,046			1,907		1,905
Capital Surplus			114,898		114,502
Retained Earnings			22,653		3,708
Accumulated Other Comprehensive (Loss)			(1,864)		(1,563)
Treasury Stock, Common Shares at Cost
2000 – 2,128 shares; 1999 – 1,320 shares			(36,593)		(21,481)
Total Stockholders’ Equity			101,001		97,071
Total Liabilities and Stockholders’ Equity			$ 273,241		$ 279,089

	Nine Months Ended September 30,
	2000		1999
Operating Activities:
Income from Continuing Operations	$ 18,946		$ 13,909
Income from Discontinued Operations	-		34,386
(Loss) from Extraordinary Item	-		(156)
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities-
Depreciation and Amortization	5,484		4,050
Other, Net	6		63
Changes in Operating Assets and Liabilities
Accounts Receivable	(10,073)		(1,022)
Inventories	(2,138)		(7,520)
Prepaid Items	971		(346)
Other Assets	2,129		6,320
Accounts Payable	2,993		1,475
Accrued Liabilities and Expenses	(6,551)		(4,344)
Accrued Income Taxes	7,843		25,991
Other Liabilities	(6,993)		(9,349)
Net Cash Provided by Operating Activities	12,617		63,457
Investing Activities:
Capital Expenditures for Continuing Operations	(4,232)		(4,694)
Capital Expenditures for Discontinued Operations	-		(1,950)
Proceeds from Sale of Property, Plant and Equipment	6,371		1,083
Investment in Joint Venture	-		(14,382)
Purchase of Kemira Safety Oy, Inc.	(16,833)		-
Proceeds from Business Divestitures	-		20,360
Receivable from Snorkel Earn-Out	-		(1,041)
Net Cash (Used) by Investing Activities	(14,694)		(624)
Financing Activities:
Proceed from Borrowings on Debt	-		30,000
Principal Payments on Debt	(3,757)		(100,031)
Proceeds from Issuing Common Stock	398		2,112
Payments to Reacquire Common Stock	(15,112)		(9,404)
Net Cash Used by Financing Activities	(18,471)		(77,323)
Net (Decrease) in Cash and Cash Equivalents	(20,548)		(14,490)
Cash and Cash Equivalents at Beginning of Year	67,924		39,446
Cash and Cash Equivalents at End of Period	$ 47,376		$ 24,956

Cash and Cash Equivalents include cash from Discontinued Operations

See Notes to Consolidated Financial Statements.

The financial statements have been prepared in accordance with the accounting policies described in Note 1 of the Notes to Consolidated Financial Statements appearing in Scott’s 1999 Form 10-K.

	September 30,		December 31,
	2000		1999
U.S. Government	$ 1,313		$ 1,066
Commercial	31,203		18,206
Allowance for Uncollectible Accounts	(551)		(334)
	$ 31,965		$ 18,938

We perform services under contracts with the U.S. Government as either a prime contractor or a subcontractor. Costs charged by us under these contracts are subject to audit.

Income from discontinued operations in 1999, net of tax, represents the operating results of our former Interstate Electronics Corporation subsidiary ("IEC".) The sale of IEC was completed on June 30, 1999.

Income on disposal of discontinued operations in 1999 included:

1) a second quarter pretax gain of $27.2 million on the sale of Interstate Electronics;
2) a second quarter pretax charge of $4.0 million to adjust the carrying value of real estate related to
    discontinued operations; and
3) a $28.0 million pretax gain resulting from the receipt of additional consideration from the 1997 sale
    of our previously owned Snorkel division.

a) cash due to Scott from future tax benefits under a tax sharing agreement with an unaffiliated public company, Rawlings
     Sporting Goods Company, Inc.;
b) a note receivable from the purchaser of the Taylor Instruments business; and
c) other miscellaneous items.

At our option, borrowings under the Revolver bear interest at alternate base rates based on:

1) the higher of:
     (a) the U.S. prime rate plus a margin ranging from 25 to 150 basis points ("Index Margin"); or
     (b) the Federal Funds rate plus 50 basis points, plus the Index Margin; or
2) LIBOR plus a margin ranging from 175 to 300 basis points ("LIBOR Margin".)

a) $14.5 million of letters of credit were outstanding under the Revolver.
b) No other borrowings other than letters of credit were outstanding under the Revolver ($60.5 million was available).
c) $71.2 million was outstanding under the Term Loan.
d) All financial covenants under both the Revolver and the Term Loan have been satisfied.

		September 30, 2000		December 31, 1999
Term Loan		$ 71,243		$ 75,000
Less - Current Maturities		$ (8,745)		$ (5,010)
Long-Term Debt		$ 62,498		$ 69,990

Earnings per share ("EPS") for the nine-month and three-month periods ended September 30, 2000 and 1999 were calculated using the following share data. Reconciliation of the numerators and denominators of the basic and diluted EPS calculation are as follows (all tables in thousands, except per share data and option price):

The following options to purchase shares of common stock were outstanding as of September 30, 2000 but were not included in the computation of diluted EPS for the nine-months ended September 30, 2000 because their exercise prices were greater than the average market price of the common shares:

There were no options to purchase shares of common stock outstanding as of September 30, 1999 which had an exercise price greater than the average market price of the common shares.

The following options to purchase shares of common stock were outstanding as of September 30, 2000 but were not included in the computation of diluted EPS because their exercise prices were greater than the average market price of the common shares:

There were no options to purchase shares of common stock outstanding as of September 30, 1999 which had an exercise price greater than the average market price of the common shares.

(10) Purchase of Kemira Safety Oy, Inc.:

On May 3, 2000, Scott purchased 100% of the outstanding shares of Kemira Safety Oy (now Scott Health & Safety Oy) for approximately $17.0 million in cash. Scott Health & Safety Oy, based in Vassa, Finland, is a leading European manufacturer of respiratory safety equipment, including powered air purifying respirators (PAPRs), full- and half-mask respirators and cartridge filters. We used the purchase method to account for this transaction, and accordingly, goodwill has been recorded.

Forward-Looking Information
Information contained in this document includes forward-looking statements and involves a number of risks and uncertainties. These forward-looking statements can be identified by the use of terminology such as "believes," "may," "will," "expects," "intends," "plans," "anticipates," "estimates" or "continues" or the negative or other variations of these terms or comparable terminology, or by discussions of strategy. We undertake no obligation to revise these forward-looking statements for any future events or circumstances. Our actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Some factors that could cause actual results to differ materially include, but are not limited to, a slowdown in customer orders which would result in lower sales; production problems or inefficiencies which could result in lower operating margins; any potential fourth quarter charges; changes to supplier arrangements or products; the impact of competitive products and pricing; unexpected delays in product development; changes in business conditions and product mix; successfully consummating and integrating acquisitions; and other risks detailed under the caption "Factors Affecting the Company’s Prospects."

1) the operating results of our former Interstate Electronics Corporation subsidiary which was sold on September 30, 1999;
2) a second quarter pretax gain of $27.2 million on the sale of Interstate Electronics;
3) a second quarter pretax charge of $4.0 million to adjust the carrying value of real estate related to discontinued operations; and
4) a $28.0 million pretax gain resulting from the receipt of additional consideration from the 1997 sale of Snorkel.

Scott currently has one operating segment, Scott Aviation. Financial, legal, real estate and certain administrative functions are performed at the corporate offices. Scott’s real estate development activities, conducted through its subsidiary, STI Properties, Inc., are reported as a corporate department. The results of operations of Scott Aviation are as follows:

Scott’s Health & Safety unit designs, manufactures and sells the Scott Air-Pak® SCBA, air-purifying products, gas detection instruments, thermal imaging cameras and other life support products for firefighting and personal protection against environmental and safety hazards. Scott’s Aviation & Government unit designs, manufactures and sells protective breathing equipment, pilots and crew oxygen masks, and emergency oxygen systems for passengers and crew members on commercial, government and private aircraft and ships.

Changes during the third quarter and first nine months of 2000 compared to the same periods in 1999 include the following:

SALES

• Net sales increased by 33.8% for the three months and 30.8% for the nine months.
• Sales grew organically (approximately 15.4% for the third quarter and 13.1% for the first nine months of 2000) through increased shipments of Health & Safety products, primarily Air-Paks® SCBA.
• The net sales of products from acquisitions accounted for approximately $11 million in the third quarter and approximately $28 million for the nine months.

• Selling, general and administrative expenses increased as a percentage of sales. Third quarter –13.4% in 2000 vs. 10.2% in 1999. YTD –13.0% in 2000 vs. 9.3% in 1999. The increase resulted from:
  • Amortization of goodwill associated with the acquisitions.
  • Synergies from acquired companies not yet fully realized.
  • Higher selling expense at Scott/Bacharach joint venture and at Scott Health & Safety OY.
• Research and development expenses increased slightly as a percentage of sales for the third quarter and the nine months.

• Selling, general and administrative expenses were lower due to ongoing cost containment by management.
• Interest expense decreased for 2000 due to lower outstanding debt and lower interest rates.
• Interest income decreased for the nine months due primarily to decreased cash balances as a result of common stock repurchased and the acquisition of Scott Health & Safety Oy (formerly Kemira Safety Oy).

Our cash balance at September 30, 2000 is available for general corporate purposes. Those purposes may include investment in our current operations, payment of liabilities associated with previously divested businesses, use of all or a portion of the purchase price for possible acquisitions and stock repurchases. Our Board of Directors has authorized us to repurchase up to 3 million shares of Scott’s common stock. We repurchased 808,200 shares of our common stock at a cost of $15.1 million, at market prices, during the first quarter of 2000. We have repurchased approximately 2.1 million of the 3 million authorized shares to date.

STRATEGIC PLAN - The Company’s strategic plan has been to grow through strategic acquisitions, systematic market expansion, including international markets, and new and "next generation" product development. In addition, from time to time and in part because of the uncertainties that may affect the success of the strategic plan, Scott considers alternative strategies to further enhance stockholder value including, among others, strategic alliances and joint ventures, purchase, sales and merger transactions and other similar transactions.

Part of Scott’s strategy is to grow through acquisitions. There can be no assurance, however, that we will identify further attractive acquisitions, that such acquisitions will be consummated, or that, if consummated, any anticipated benefits will be realized from such acquisitions. In addition, the availability of additional acquisition financing cannot be assured because of the terms of the Amended Credit Agreement. Moreover, the process of integrating acquired operations into our existing operations may result in unforeseen operating difficulties and may require significant financial resources that would otherwise be available for the ongoing development or expansion of Scott’s existing operations. Future acquisitions by Scott would likely result in amortization expense of goodwill, which could have a material adverse effect on our financial condition, cash flow and operating results.

Expansion into international markets will depend on numerous factors that are beyond our control, including the ability to develop or acquire additional manufacturing and distribution capabilities outside the United States. In addition, international expansion may increase Scott’s exposure to certain risks inherent in doing business outside the United States, such as currency exchange rate fluctuations, compliance with foreign codes and standards and political risks. If we pursue this strategy through acquisitions, strategic alliances or joint ventures, any integration of the acquired businesses into Scott’s business would entail expense and management attention. If we pursue this strategy through the establishment of new operations, we will be subject to the difficulties inherent in starting a new business in foreign jurisdictions. There can be no assurance that the business and competitive environment in international markets will be as favorable to Scott as currently exists in the U.S. market.

We expect to continue to make investments in new product development. There can be no assurance that we will be able to develop and introduce, in a timely manner, new products or enhancements to our existing products which satisfy customer needs or achieve market acceptance. To the extent that we make substantial marketing and research and development investments and such investments do not lead to commercially successful products, Scott’s results of operations, financial condition or cash flows could be adversely affected.

We announced on July 24, 2000 that a distributor agreement with Intertechnique will terminate on December 31, 2000. Intertechnique, which was purchased during the fourth quarter of 1999 by Zodiac Groupe, is the designer and manufacturer of masks for pilots and crew that we sell through our Aviation & Government unit. We will continue to deliver these masks through June 2001 in order to provide a smooth transition for our customers. Zodiac Groupe changed their marketing strategy to adopt a "direct-to-consumer" approach. Our agreement with Intertechnique relates to products that accounted for approximately 15% of Scott’s overall net sales during the first nine months of 2000. The margins on this product line were better than consolidated margins. We expect that the cessation of this agreement will not affect our revenues and operating margins until the last six months of 2001. We plan to offset the impact of the transition at least partially, if not fully, through our strategic plan, which includes rapid growth in the Health & Safety unit along with other factors mentioned above, however, no assurances can be given that we will be able to fully or partially offset the impact on revenues or earnings. Additionally, we do not expect other product lines to be affected by the loss of cessation of this agreement.

COMPETITION -Our Health & Safety unit designs and manufactures the Scott Air-Pak® SCBA, air-purifying products, gas detection instruments, thermal imaging cameras and other life support products for firefighting and personal protection against environmental and safety hazards. Our Aviation & Government unit designs, manufactures and sells protective breathing equipment and emergency oxygen systems for passengers and crew members on commercial, government and private aircraft and ships. Both of these manufacturing units participate in markets that are technology-based, industry-regulated and highly competitive. Failure by Scott to develop new products and/or remain competitive with changing business conditions could adversely affect market share.

1. impair our ability to obtain future financing for acquisitions, a refinancing or other purposes;
2. make Scott more vulnerable than some of its competitors in a prolonged economic downturn; and
3. restrict our ability to exploit new business opportunities and limit our flexibility to respond to changing business conditions.

DISCONTINUED OPERATIONS – Between 1994 and last year, we divested a number of our businesses. Under the contracts, we have generally retained liability for events that occurred before the sale. We believe that appropriate accruals are recorded for losses that may arise, such as workers’ compensation, product liability, general liability, environmental risks and federal and state tax matters.However, as these contractual matters are subject to significant uncertainty, no assurances can be given that the ultimate resolution of these matters will not have a material adverse effect upon our financial position, operating results or cash flow. In addition, effective December 31, 1998, Scott purchased a $20.0 million umbrella insurance policy that covers certain liabilities incurred by us in excess of a certain threshold amount.

Scott has variable rate debt obligations (as described in the "Notes to Consolidated Financial Statements – Note 6 –Credit Facility", included elsewhere herein) subject to market risk from changes in interest rates. Sensitivity analysis is one technique used to measure the impact of changes in interest rates on the value of market–risk sensitive financial instruments. A hypothetical increase of one percentage point in interest rates would have the following impact on Scott’s future interest expense based upon Scott’s interest-rate obligations as of September 30, 2000:

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, SCOTT TECHNOLOGIES, INC. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.