SEC FORM 3

SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person^*

SAUSA ROBERT J

(Last)

(First)

(Middle)

500 KIRTS BOULEVARD

(Street)

TROY

48084

(City)

(State)

(Zip)

2. Date of Event Requiring Statement (Month/Day/Year)
09/10/2003

3. Issuer Name and Ticker or Trading Symbol
HANDLEMAN CO /MI/ [ HDL ]

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	Sr. V.P. and CIO

5. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common stock one cent par value	2,159	D
Common stock one cent par value	1,227	I	By 401(k) Plan

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivative Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
Employee stock option (right to buy)	⁽¹⁾	12/05/2009	Common stock one cent par value	5,000	$12.9375	D
Employee stock option (right to buy)	⁽²⁾	06/13/2010	Common stock one cent par value	11,000	$10.3125	D
Employee stock option (right to buy)	⁽³⁾	06/12/2011	Common stock one cent par value	6,200	$15.75	D
Employee stock option (right to buy)	⁽⁴⁾	06/03/2012	Common stock one cent par value	7,500	$11.825	D
Employee stock option (right to buy)	⁽⁵⁾	06/09/2013	Common stock one cent par value	4,000	$16.925	D
Phantom stock units	⁽⁶⁾	⁽⁶⁾	Common stock one cent par value	311	$15.87	D

Explanation of Responses:

1. The option vests in three equal annual installments beginning on December 6, 2000.

2. The option vests in three equal annual installments beginning on June 14, 2001.

3. The option vests in three equal annual installments beginning on June 13, 2002.

4. The option vests in three equal annual installments beginning on June 04, 2003.

5. The option vests in three equal annual installments beginning on June 10, 2004.

6. The phantom stock units were accrued under the Handleman Company deferred compensation plan and are payable in cash on January 1, 2015.

Remarks:

	Robert J. Sausa by Kenneth P. Kartje Attorney-In-Fact	09/12/2003
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.