Common stock outstanding as of July 31, 2002 was 9,681,810 shares.

PART I. Financial Information	Page No.
Item 1. Financial Statements (unaudited):
Consolidated Balance Sheets as of            June 30, 2002 and December 31, 2001	**
Consolidated Statements of Operations for the            Three and Six Months ended June 30, 2002 and 2001	**
Consolidated Statements of Cash Flows for the            Six Months ended June 30, 2002 and 2001	**
Notes to Consolidated Financial Statements	**
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	**
Item 3. Quantitative and Qualitative Disclosures About Market Risk	**
PART II. Other Information
Item 4. Submission of Matters to a Vote of Security Holders	**
Item 6. Exhibits and Reports on Form 8-K	**
Signatures	**

PART I -- FINANCIAL INFORMATION

Item 1. Financial Statements

SCIENTIFIC TECHNOLOGIES INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited, in thousands excepet for share data)

Shareholders' equity:

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

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in thousands, except per share data)

	For the three months ended
	Jun. 30, 2002	Jun. 30, 2001
Sales	$12,653	$11,581
Cost of goods sold	7,047	7,492
Gross profit	5,606	4,089
Operating expenses:
Selling, general and administrative	3,952	4,249
Research and development	1,241	1,281
Amortization of intangible assets	190	175
Total operating expenses	5,383	5,705
Income (loss) from operations	223	(1,616)
Interest and other income, net	7	70
Income (loss) before income taxes	230	(1,546)
Provision for (benefit from) income taxes	87	(587)
Net income (loss)	$ 143	$ (959)
Net income (loss) per common share:
Basic and diluted	$ 0.02	$ (0.10)
Shares used to compute net income (loss) per common share: Basic and diluted	9,679	9,655

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

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in thousands, except per share data)

	For the six months ended
	Jun. 30, 2002	Jun. 30, 2001
Sales	$23,701	$25,904
Cost of goods sold	13,390	15,344
Gross profit	10,311	10,560
Operating expenses:
Selling, general and administrative	7,581	8,190
Research and development	2,490	2,780
Amortization of intangible assets	353	350
Total operating expenses	10,424	11,320
Loss from operations	(113)	(760)
Interest and other income, net	9	150
Loss before income taxes	(104)	(610)
Benefit from income taxes	(40)	(232)
Net loss	$ (64)	$ (378)
Net loss per common share:
Basic and diluted	$ (0.01)	$ (0.04)
Shares used to compute net loss per common share: Basic and diluted	9,672	9,653

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

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in thousands)

	For the six months ended
	Jun. 30, 2002	Jun. 30, 2001
Cash flows from operating activities
Net loss	$ (64)	$ (378)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization	1,317	951
Changes in assets and liabilities
Decrease (increase) in accounts receivable	(803)	1,908
Decrease (increase) in inventories	509	(259)
Increase in other assets	(486)	(181)
Increase (decrease) in accounts payable	150	(1,030)
Increase in payable to Parent	--	1,365
Increase (decrease) in accrued liabilities	400	(355)
Cash flows provided by operating activities	1,023	2,021
Cash flows from investing activities
Purchase of property, plant and equipment	(794)	(503)
Net cash used in connection with the acquisition of Dunn Sales, Inc.	--	(4,113)
Sale (purchase) of short-term investments	--	(369)
Cash flows used in investing activities	(794)	(4,985)
Cash flows from financing activities
Dividends	--	(77)
Issuance of common stock	20	--
Cash flows provided by (used in) financing activities	20	(77)
Change in cash and cash equivalents	249	(3,041)
Cash and cash equivalents at beginning of period	1,033	4,048
Cash and cash equivalents at end of period	$ 1,282	$ 1,007

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

(Unaudited)

The accompanying condensed consolidated financial statements for the three and six months ended June 30, 2002 and 2001 are unaudited. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, considered necessary to present fairly the financial position, results of operations and cash flows of Scientific Technologies, Inc. (the "Company") and its subsidiaries for all periods presented.

To prepare these condensed consolidated financial statements in conformity with generally accepted accounting principles, management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

The results of operations are not necessarily indicative of the results to be expected in the future or for the full fiscal year. It is recommended that these condensed consolidated financial statements be read in conjunction with the Company's consolidated financial statements and the notes thereto included in its 2001 Annual Report on Form 10-K.

1. INVENTORIES

Inventories consist of the following: (In thousands)

2. NET INCOME (LOSS) PER SHARE

A reconciliation of the numerators and denominators used to compute basic and diluted income (loss) per common share is provided below.

	(In thousands)
	Income (loss)	Shares	(Per share) Amount
Three months ended June 30, 2002
Basic earnings per share calculation	$ 143	9,675	$ 0.02
Effect of dilutive securities    Stock options		4
Diluted earnings per share calculation	$ 143	9,679	$ 0.02
Three months ended June 30, 2001
Basic and diluted loss per share calculation	$ (959)	9,655	$ (0.10)
Total potential common stock excluded from the computation of loss per share as their effect was antidilutive		50

	(In thousands)
	Income (loss)	Shares	(Per share) Amount
Six months ended June 30, 2002
Basic and diluted loss per share calculation	$ (64)	9,672	$ (0.01)
Total potential common stock excluded from the computation of loss per share as their effect was antidilutive		8
Six months ended June 30, 2001
Basic and diluted loss per share calculation	$ (378)	9,653	$ (0.04)
Total potential common stock excluded from the computation of loss per share as their effect was antidilutive		14

3. COMPREHENSIVE INCOME (LOSS)

For the three and six months ended June 30, 2002 and 2001, there is no significant difference between net income (loss) and comprehensive income (loss).

4. SEGMENT REPORTING AND OTHER INFORMATION

Financial information for each product is as follows: (in thousands)

The Company operates principally in the United States. The Company's operations in Germany are insignificant to the Company as a whole. Sales to foreign customers represented less than 10% of total sales in the three and six month periods ended June 30, 2002.

This interim report on Form 10-Q contains trend analysis and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Such statements include expectations, beliefs, intentions or strategies regarding future operating results, future expenditures, future cash requirements, and future industry conditions that involve risks and uncertainties. The Company's actual results could differ materially from those projected in such forward- looking statements as a result of many factors, including, without limitation, those set forth under this section, the section entitled "Business Factors" below and elsewhere in this report on Form 10-Q.

(Amounts in thousands, except percentages)

Scientific Technologies Incorporated designs, manufactures and distributes automation safeguarding and specialty sensor products for the industrial control market. The Company's products include safety light guards, profiling scanners, factory automation sensors, controls, components, microcomputers, fiber optics, power monitoring devices, safety mats, pressure, displacement and velocity transducers, digital pressure gauges and comparators and other electronic equipment supplied to industrial automation, commercial and defense customers.

Sales for the three months ended June 30, 2002 increased 9% to $12,653 from $11,581 in the comparable period in 2001. This was primarily the result of increased sales by the Safety Products Group specifically light curtains, vehicle scanners and sales associated with Dunn Sales, which was acquired in June of 2001. These increases offset lower sales by the PSI-Tronix operation, which continues to be negatively impacted by slow semiconductor manufacturing markets. Sales for the six months ended June 30, 2002 declined 9% to $23,701 from $25,904 in the same period in 2001. This was the result of the softness of our markets in the first quarter of 2002.

Gross margin as a percentage of sales for the three and six months ended June 30, 2002 was 44% compared to 35% and 41% for the comparable periods in 2001. The improved margins were generally the result of cost reductions begun in the second quarter of 2001.

Selling, general and administrative expenses for the three and six months ended June 30, 2002 were reduced 7% to $3,952 and $7,581 from $4,249 and $8,190 in the same periods of 2001. The first half of 2002 was positively impacted by the continuing cost reduction measures initiated in April 2001, which offset increased selling, general and administrative expenses associated with the DSI operations. In addition, selling, general and administrative expenses were negatively impacted in 2001 by a non-recurring adjustment to the reserve for doubtful accounts. As a percent of sales for the three and six month periods ended June 30, 2002, selling, general and administrative expenses were 31% and 32% respectively compared to 37% and 32% for the comparable 2001 periods.

Research and development expenses for the second quarter and first six months of 2002 were reduced 3% and 10% to $1,241 and $2,490 from $1,281 and $2,780 in 2001 comparable periods. This was also the result of the above mentioned cost reductions. As a percent of sales for the three and six months ended June 30, 2002, research and development expenses were 10% and 11% respectively compared to 11% for the same periods of 2001.

At June 30, 2002, our working capital increased 3% to $15,169 compared to $14,690 reported at December 31, 2001. This was primarily due to the improved operating results in the second quarter of 2002.

Available bank borrowings were $6,100, all of which were unused at June 30, 2002. The Company believes that cash from operations, together with its cash resources and available bank borrowings, will be sufficient to fund its working capital requirements for the next twelve months.

A discussion of our critical accounting policies is set forth in our 2001 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on April 1, 2002, as amended. There were no material changes in any of our critical accounting estimates or judgments during the three and six months ended June 30, 2002.

Because of the variety of factors and uncertainties affecting our operating results, past financial performance and historic trends may not be a reliable indicator of future performance. These factors, as well as other factors affecting our operating performance, may result in significant volatility in our common stock price. Among the factors which could affect our future business, financial condition or operating results are the following:

We have experienced fluctuations in annual and quarterly operating results and anticipate that these fluctuations will continue. These fluctuations are caused by a number of factors, including the level and timing of customer orders, fluctuations in purchases of complementary third party products with which our products are sold, the mix of products sold and the timing of operating expenditures. Our operating results have been, and could continue to be negatively impacted by generally adverse economic conditions throughout the high technology sector. In particular, our PSI-Tronix subsidiary has experienced decreases in sales due to the current market conditions in the semiconductor industry.

The industrial manufacturing equipment industry in which we compete has historically been subject to seasonality. This is also true with respect to European markets in which we compete where business activity declines due to vacations taken in the summer months. This seasonality, combined with other factors such as the variability in our operating results described above, renders quarter-to-quarter comparisons of our results of operations unreliable as indicators of our overall performance.

The market for industrial sensors is highly competitive. Many competitors have substantially greater name recognition and technical, marketing and financial resources than we have. Competitive pressures could reduce market acceptance of our products and result in price reductions, decreased revenues and increases in expenses.

The market for our products is characterized by changing technology, evolving industry standards, changes in customer needs and new product introductions. Our future success will depend on our ability to enhance current products, develop new products and respond to emerging industry standards, all on a timely and cost-effective basis. The introduction of new products also requires that we manage the transition from older products in order to minimize disruption of customer orders, avoid excessive levels of older product inventories and ensure that adequate supplies of new products can be delivered to meet customer demands.

A majority of our sales are through third party distributors, system integrators and original equipment manufacturers. These resellers are not required to offer our products exclusively. We cannot assure you that a reseller will continue to offer our products. In addition many of our resellers are privately owned firms which may not be well capitalized. If our ability to sell products through these third parties is impaired, our results of operations would likely suffer.

Our international sales may be disrupted by currency fluctuations or other events beyond our control, including political or regulatory changes. If our international sales were disrupted for any reason, our revenue levels would decline.

We rely on a combination of patent, trademark and trade secret laws and contractual restrictions to establish and protect proprietary rights in our products and services. There can be no assurance that our patents, trademarks, or contractual arrangements or other steps taken by us to protect our intellectual property will prove sufficient to prevent misappropriation of our technology or defer independent third party development of similar technologies. Moreover, there can be no assurance that the technology licenses granted to us from our parent company will continue to be available. The loss of any of our proprietary technology could require us to obtain technology of lower quality or performance standards or at greater cost, which could materially adversely affect our business, results of operations and financial condition. Furthermore, the laws of certain foreign countries may

not protect our products, services or intellectual property rights to the same extent as do the laws of the United States.

The market risk inherent in our investments represents the potential loss arising from adverse changes in interest rates. We are exposed to market risk in the area of interest rate changes impacting the fair value of our investment securities. Our policy is to invest primarily in money market accounts and short-term investments held at financial institutions. We do not have any derivative instruments in our investment portfolio. Due to their highly liquid nature, our investments are subject to minimal credit and market risk.

Items 1 - 3 and 5 are not applicable for this reporting period.

At the Annual Meeting of shareholders held on May 23, 2002, the shareholders reelected the following to the Board of Directors, Anthony R. Lazzara: 9,526,585 shares for, Joseph J. Lazzara: 9,529,978 shares for, James A. Lazzara: 9,529,778 shares for, James A. Ashford: 9,529,808 shares for, Carl H. Frei: 9,529,521 shares for, Bernard L. Ploshay: 9,529,346 shares for and Richard S. Baldwinson: 9,527,996 shares for. The shareholders also approved the selection of PricewaterhouseCoopers LLP as the Company's independent accountants by a vote of 9,533,880 shares for, 2,740 shares against and 5,440 shares abstaining.

(a) The following documents are filed as a part of this Report:

2. No Reports on Form 8-K were filed during the first six months of 2002.

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

SCIENTIFIC TECHNOLOGIES INCORPORATED
Registrant