Filed Pursuant to Rule 424(b)(3)
                           Registration No. 333-101299



                     ALTERNATIVE TECHNOLOGY RESOURCES, INC.

                           Prospectus Supplement No. 1
                     (To Prospectus Dated February 11, 2003)


     You should read this prospectus Supplement No. 1 and the related prospectus
dated February 11, 2003  carefully  before you invest.  Both  documents  contain
information you should consider when making your investment decision.

     On July 1, 2003,  we  appointed  Mr. Alan Baron as chairman of the board of
directors  and Mr. Mark Rieger as a director and chief  executive  officer.  Mr.
Baron  replaces Mr. James W. Cameron,  Jr. who resigned as a member of the board
of directors and chief  financial  officer on June 30, 2003. Mr. Rieger replaces
Mr. Jeff McCormick who resigned as chief executive  officer on July 1, 2003. Mr.
McCormick, however, continues to serve as a member of the board of directors. We
are actively searching for a new chief financial officer.

     Prior to the  appointment  as chairman of the board of directors,  Mr. Alan
Baron, 53, has served as a general partner of Decameron  Partners LLP since 1991
and received his Masters from the University of Texas - Dallas in Humanities.

     Mark W. Rieger, 45, prior to his appointment as our chief executive officer
and  member  of the board of  directors,  has  served  as our VP Plan  Purchaser
Services  from July 2000 to July 2003.  Mr. Rieger has worked more than 17 years
in health care  administration.  From 1990 - 2000,  Mr.  Rieger was the Regional
Service Line Administrator at Sutter Health Central,  Sacramento. In addition to
hospital  operations,  Mr. Reiger has specialty services network development and
managed care contracting experience. Mr. Rieger received his Masters degree from
Northeastern University, Boston.

     We are currently experiencing substantial cash shortages as a result of our
lower than expected  revenues.  We have taken steps to reduce our expenses in an
effort to improve  our  financial  condition.  Such steps  include  closing  our
headquarters  located in Portsmouth,  New Hampshire and relocating to our office
in  Sacramento,  California.  In addition,  we downsized from 98 employees as of
December 31, 2002 to 29 employees.  We intend to seek additional capital for our
operations  and  in  order  to  improve  our  financial  condition  and  provide
short-term working capital.

            The date of this prospectus supplement is July 10, 2003