content: UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549
  
  
  
                                 FORM 8-K
  
                              CURRENT REPORT
      pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  
  Date of report (Date of earliest event reported):  July 3, 2003
                                                     ------------
  
  
                TOUCHSTONE APPLIED SCIENCE ASSOCIATES, INC.
  ------------------------------------------------------------------------------
     (Exact name of small business issuer as specified in its charter)
  
  
              Delaware                                 13-2846796
  -----------------------------------     --------------------------------------
    (State or other jurisdiction of                 (I.R.S. Employer
    incorporation or organization)                 Identification No.)
  
        P.O. Box 382, 4 Hardscrabble Heights, Brewster, New York  10509
  ------------------------------------------------------------------------------
                 (Address of principal executive offices)
  
                                (845) 277-8100
  ------------------------------------------------------------------------------
                        (Issuer's telephone number)
  
  
  ------------------------------------------------------------------------------
            (Former name, former address and former fiscal year,
                        if changed since last report)
  
  <PAGE>
  
              INFORMATION TO BE INCLUDED IN THE REPORT
  
  ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
  
          In July 2003, the Company sold substantially all the
  assets of Modern Learning Press, Inc., its wholly-owned
  subsidiary and sole component of the Company's instructional
  segment, to Delta Education, LLC ("Delta") for $4,020,000 and
  Delta assumed certain related liabilities.  In addition, the
  Company is responsible for the payment of up to $200,000 of
  certain royalties for a one-year period from June 1, 2003
  through May 31, 2004.  The Company has estimated these royalties
  based on historical amounts paid, to amount to approximately
  $175,000, which has reduced the gain from the sale of the
  segment.  The Company retained the business and assets related
  to its test preparation materials, Kingsbridge Press, which it
  considers consistent with the activities of its sole remaining
  segment.  The Company recorded a gain on the disposal of
  Instructional Segment totaling $1,815,092  less taxes of
  $726,036.  Revenues from the Instructional Segment totaled
  $1,321,278 and $2,129,415 for the period November 1, 2003
  through the date of sale and for the nine months ended July 31,
  2002, respectively. Revenues from the Instructional Segment
  totaled $723,491 and $1,497,492 for the period May 1, 2003
  through the date of sale and for the three months ended July 31,
  2002, respectively.
  
          In addition, the Company entered into a transitional
  services agreement with Delta, whereby the Company would
  continue to pay the rent and employee costs of MLP through
  October 31, 2003 for consideration of $130,000.  On October 31,
  2003, the facilities utilized by MLP will be closed and the
  employees terminated.  The Company estimates these termination
  costs, to be approximately $130,000, which it has recorded as a
  cost of the sale of the segment.
  
  ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
          AND EXHIBITS.
  
          (b)  Pro Forma Financial Information
  
          The pro forma financial statements of TASA after giving
  effect to the disposition of the assets of Modern Learning Press
  are included with this Report, starting at page F-1.
  
          (c)  Exhibits
  
               99  Press Release, issued July 7, 2003, by TASA
  
  <PAGE>
  
  <TABLE>
  <CAPTION>
  
  
                                         TASA
                       Income statement for the year ended
                                  October 31, 2002
  
                                      Historical      Proforma Adjustments         Proforma
                                                                              after divestiture
  
  <S>                             <C>            <C>          <C>             <C>
  Assessment Revenues                  7,562,468                                   7,562,468
  Instructional revenues               2,862,927                  2,862,927                -
  
  Total net revenues                  10,425,395          -       2,862,927        7,562,468
  
  Cost of goods sold                   4,671,262                  1,074,582        3,596,680
  
  Gross profit                         5,754,133          -       1,788,345        3,965,788
  
  Operating expenses
  Selling expenses                     2,108,402                  1,134,226          974,176
  General and Administrative
    expenses                           2,797,414                    583,559        2,213,855
  
  Total operating expenses             4,905,816          -       1,717,785        3,188,031
  
  Loss from operations                   848,317          -          70,560          777,757
  
  Other income (expense)
  Other income                           (13,358)                       887          (14,245)
  Interest expense                      (554,391)       4,500                       (549,891)
  
  Loss before taxes                      280,568        4,500        71,447          213,621
  
  Income tax                             113,660                     26,779           86,881
  
  Loss from continuing operations        166,908        4,500        44,668          126,740
  
  Discontinued operations
  Loss from operations                    17,189                     17,189                -
  Loss on disposal                    (2,532,102)   2,532,102                              -
  
  loss from discontinued
    operations                        (2,514,913)   2,532,102        17,189                -
  
  net loss                            (2,348,005)   2,536,602        61,857          126,740
  
  Weighted shares outstanding
    Basic                              2,587,241                                   2,587,241
    Diluted                            2,587,241                                   2,617,203
  Basic earnings per share               ($0.91)                                       $0.05
  Diluted earnings per share             ($0.91)                                       $0.05
  
  
  
  Adjustments                         Dr             Cr
                                    1
  Current liabilities held for sale    1,214,412
  Other liabilities held for sale        241,547
  Retained earnings                    4,053,891
  Current assets held for sale                      2,631,481
  Fixed assets held for sale                          170,345
  Other assets held for sale                          175,922
  Loss on disposal                                  2,532,102
    to record disposal of MESI
                                    2
  Retained earnings                                    17,189
  Loss from discontinued operations       17,189
    To eliminate MESI operations
                                    3
  Current liabilities held for sale      265,122
  Retained earnings                                   265,122
    To write off liabilities forgiven
     at time of sale
                                    4
  Cash                                                 66,879
  Accounts receivable                                 214,620
  Inventory                                           171,502
  Prepaid Expenses                                     70,962
  Fixed assets                                         14,385
  Goodwill                                            311,897
  Other assets                                        429,780
  Deferred Taxes                                      512,225
  Accounts payable                       117,629
  Accrued Expenses                       186,341
  Retained earnings                    1,488,280
   to record assets and liabilities
    disposed for MLP
                                    5
  Retained earnings                                    40,168
  Revenue                              2,862,927
  Cost of sales                                     1,074,582
  Selling                                           1,134,226
  G&A                                                 583,559
  Other income                               887
  Interest expense                                      4,500
  Income tax                                           26,779
  
                                      10,448,225   10,448,225
  
  </TABLE>
  
                                    F - 1
  <PAGE>
  
  
                                SIGNATURE
  
          In accordance with 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.
  
                                     TOUCHSTONE APPLIED SCIENCE
                                     ASSOCIATES, INC.
  
  
  
                                     By: /s/ ANDREW L. SIMON
                                         -------------------
                                         Andrew L. Simon, President,
                                         Chief Executive Officer
                                         and Chief Financial Officer
  
  Date:  September 15, 2003
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "body8k.txt", "description": "BODY OF 8K", "secsgml_size_bytes": 9237}]
metadata_filer: {"company-data": {"conformed-name": "TOUCHSTONE APPLIED SCIENCE ASSOCIATES INC /NY/", "cik": "0000726603", "assigned-sic": "8200", "irs-number": "132846796", "state-of-incorporation": "DE", "fiscal-year-end": "1031"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-16689", "film-number": "03895538"}, "business-address": {"street1": "4 HARDSCRABBLE HEIGHTS", "street2": "P O BOX 382", "city": "BREWSTER", "state": "NY", "zip": "10509", "phone": "9142778100"}, "former-company": {"former-conformed-name": "TOUCHSTONE APPLIED SCIENCE ASSOCIATES INC", "date-changed": "19920914"}}
text: UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549
  
                                 FORM 8-K
  
                              CURRENT REPORT
      pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  
  Date of report (Date of earliest event reported):  July 3, 2003
                                                     ------------
  
                TOUCHSTONE APPLIED SCIENCE ASSOCIATES, INC.
  ------------------------------------------------------------------------------
     (Exact name of small business issuer as specified in its charter)
  
              Delaware                                 13-2846796
  -----------------------------------     --------------------------------------
    (State or other jurisdiction of                 (I.R.S. Employer
    incorporation or organization)                 Identification No.)
  
        P.O. Box 382, 4 Hardscrabble Heights, Brewster, New York  10509
  ------------------------------------------------------------------------------
                 (Address of principal executive offices)
  
                                (845) 277-8100
  ------------------------------------------------------------------------------
                        (Issuer's telephone number)
  
  ------------------------------------------------------------------------------
            (Former name, former address and former fiscal year,
                        if changed since last report)
  INFORMATION TO BE INCLUDED IN THE REPORT
  
  ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
  
          In July 2003, the Company sold substantially all the
  assets of Modern Learning Press, Inc., its wholly-owned
  subsidiary and sole component of the Company's instructional
  segment, to Delta Education, LLC ("Delta") for $4,020,000 and
  Delta assumed certain related liabilities.  In addition, the
  Company is responsible for the payment of up to $200,000 of
  certain royalties for a one-year period from June 1, 2003
  through May 31, 2004.  The Company has estimated these royalties
  based on historical amounts paid, to amount to approximately
  $175,000, which has reduced the gain from the sale of the
  segment.  The Company retained the business and assets related
  to its test preparation materials, Kingsbridge Press, which it
  considers consistent with the activities of its sole remaining
  segment.  The Company recorded a gain on the disposal of
  Instructional Segment totaling $1,815,092  less taxes of
  $726,036.  Revenues from the Instructional Segment totaled
  $1,321,278 and $2,129,415 for the period November 1, 2003
  through the date of sale and for the nine months ended July 31,
  2002, respectively. Revenues from the Instructional Segment
  totaled $723,491 and $1,497,492 for the period May 1, 2003
  through the date of sale and for the three months ended July 31,
  2002, respectively.
  
          In addition, the Company entered into a transitional
  services agreement with Delta, whereby the Company would
  continue to pay the rent and employee costs of MLP through
  October 31, 2003 for consideration of $130,000.  On October 31,
  2003, the facilities utilized by MLP will be closed and the
  employees terminated.  The Company estimates these termination
  costs, to be approximately $130,000, which it has recorded as a
  cost of the sale of the segment.
  
  ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
          AND EXHIBITS.
  
          (b)  Pro Forma Financial Information
  
          The pro forma financial statements of TASA after giving
  effect to the disposition of the assets of Modern Learning Press
  are included with this Report, starting at page F-1.
  
          (c)  Exhibits
  
               99  Press Release, issued July 7, 2003, by TASA
  TASA
                       Income statement for the year ended
                                  October 31, 2002
  
                                      Historical      Proforma Adjustments         Proforma
                                                                              after divestiture
  Assessment Revenues                  7,562,468                                   7,562,468
  Instructional revenues               2,862,927                  2,862,927                -
  
  Total net revenues                  10,425,395          -       2,862,927        7,562,468
  
  Cost of goods sold                   4,671,262                  1,074,582        3,596,680
  
  Gross profit                         5,754,133          -       1,788,345        3,965,788
  
  Operating expenses
  Selling expenses                     2,108,402                  1,134,226          974,176
  General and Administrative
    expenses                           2,797,414                    583,559        2,213,855
  
  Total operating expenses             4,905,816          -       1,717,785        3,188,031
  
  Loss from operations                   848,317          -          70,560          777,757
  
  Other income (expense)
  Other income                           (13,358)                       887          (14,245)
  Interest expense                      (554,391)       4,500                       (549,891)
  
  Loss before taxes                      280,568        4,500        71,447          213,621
  
  Income tax                             113,660                     26,779           86,881
  
  Loss from continuing operations        166,908        4,500        44,668          126,740
  
  Discontinued operations
  Loss from operations                    17,189                     17,189                -
  Loss on disposal                    (2,532,102)   2,532,102                              -
  
  loss from discontinued
    operations                        (2,514,913)   2,532,102        17,189                -
  
  net loss                            (2,348,005)   2,536,602        61,857          126,740
  
  Weighted shares outstanding
    Basic                              2,587,241                                   2,587,241
    Diluted                            2,587,241                                   2,617,203
  Basic earnings per share               ($0.91)                                       $0.05
  Diluted earnings per share             ($0.91)                                       $0.05
  
  Adjustments                         Dr             Cr
                                    1
  Current liabilities held for sale    1,214,412
  Other liabilities held for sale        241,547
  Retained earnings                    4,053,891
  Current assets held for sale                      2,631,481
  Fixed assets held for sale                          170,345
  Other assets held for sale                          175,922
  Loss on disposal                                  2,532,102
    to record disposal of MESI
                                    2
  Retained earnings                                    17,189
  Loss from discontinued operations       17,189
    To eliminate MESI operations
                                    3
  Current liabilities held for sale      265,122
  Retained earnings                                   265,122
    To write off liabilities forgiven
     at time of sale
                                    4
  Cash                                                 66,879
  Accounts receivable                                 214,620
  Inventory                                           171,502
  Prepaid Expenses                                     70,962
  Fixed assets                                         14,385
  Goodwill                                            311,897
  Other assets                                        429,780
  Deferred Taxes                                      512,225
  Accounts payable                       117,629
  Accrued Expenses                       186,341
  Retained earnings                    1,488,280
   to record assets and liabilities
    disposed for MLP
                                    5
  Retained earnings                                    40,168
  Revenue                              2,862,927
  Cost of sales                                     1,074,582
  Selling                                           1,134,226
  G&A                                                 583,559
  Other income                               887
  Interest expense                                      4,500
  Income tax                                           26,779
  
                                      10,448,225   10,448,225
  F - 1
  SIGNATURE
  
          In accordance with 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.
  
                                     TOUCHSTONE APPLIED SCIENCE
                                     ASSOCIATES, INC.
  
                                     By: /s/ ANDREW L. SIMON
                                         -------------------
                                         Andrew L. Simon, President,
                                         Chief Executive Officer
                                         and Chief Financial Officer
  
  Date:  September 15, 2003