FORM 10-QSB


SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934



For Quarter Ended: 	    March 31, 1997

Commission File Number:  0-15754


	CREATIVE TECHNOLOGIES CORP.	
	(Exact name of registrant as specified in its charter)

	NEW YORK	11-2721083    	
(State or other jurisdiction of	(IRS Employer Identification Number)
incorporation of organization)

	170 53rd Street, Brooklyn, New York          11232	
	(Address of principal executive offices)    (Zip Code)

	(718) 492-8400		
	(Registrant's telephone number, including area code)
	
(Former name, former address and former fiscal year, if changed since last 
report)


Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
 1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports) and (2) has been subject to 
such filing requirements for the past 90 days.

	YES	X		NO	

Indicate the number of shares outstanding of each of the issuer's classes of 
Common Stock, as of the latest practicable date.

Common Stock, Par Value $.09		                                      2,611,394 
(Title of each class)                                         (Outstanding at)




CREATIVE TECHNOLOGIES CORP.

INDEX


PART I  -  FINANCIAL INFORMATION	PAGE

Item 1.	Condensed Financial Statements
		(Unaudited)

	Balance Sheet as at March 31, 1997	3

	Statements of Operations
		for the Three Months ended
		March 31, 1997 and March 31, 1996	4

	Statement of Stockholders' (Deficit)
		for the Three Months ended March 31, 1997	5

	Statements of Cash Flows
		for the Three Months ended
		March 31, 1997 and March 31, 1996	6

	Notes to Condensed Financial Statements	7-9

Item 2.	Management's Discussion and Analysis of
		Financial Condition and Results of Operations	10-13


PART II - OTHER INFORMATION

Item 2.	Change In Securities			        14

Item 4.	Submission of Matters to a Vote of Securities Holders			        14

Item 6.	Exhibits and Reports on Form 8-K	14

	Signatures	15

	Exhibit 27
		
		Financial Data Schedule	16


<TABLE>
CREATIVE TECHNOLOGIES CORP.
CONDENSED BALANCE SHEET
AS AT MARCH 31, 1997
(Unaudited)
<CAPTION>

			Assets
<S>									    <C>
Current assets:
	Cash			$      7,000
	Accounts receivable-net		1,190,000
	Inventories		1,549,000
	Prepaid expenses and other assets		       110,000
	
		Total Current Assets		2,856,000
Fixed assets - at cost (less accumulated depreciation 
	and amortization of $735,000)		732,000
Intangible and other assets		46,000
	
		
		Total		$  3,634,000

			Liabilities
Current liabilities:
	Note payable - Century Business Credit Corp.	$       62,000
	Notes payable		 3,927,000
	Accounts payable and accrued expenses	       3,105,000
	Customer claims payable		435,000
	Advances from customers		339,000
	Note payable - Fleet Capital Corporation	200,000

		Total Current Liabilities	   8,068,000

			Stockholders' (Deficit)
Preferred stock - $.01 par value;  5,000,000 shares authorized
	Preferred stock- 1996- (12% cumulative) 
    	10,000 shares designated;  issued and outstanding 600 shares 	
    	at redemption value of $1,000 per share	600,000
	Preferred stock- 1996-A- (12% cumulative) 	
	10,000 shares designated;  issued and outstanding 1,170 shares
	at redemption value of $1,000 per share	1,170,000
Common stock - $.09 par value; authorized
     20,000,000 shares; issued and outstanding
     2,611,000 shares		235,000
Additional paid - in capital		8,900,000
Deficit	 		    (15,339,000)

		Total Stockholders' (Deficit)	    (4,434,000)
		
		Total		$3,634,000
See notes to condensed financial statements
</TABLE>


<TABLE>

CREATIVE TECHNOLOGIES CORP.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
				

	Three Months Ended	
	March 31,  	
                                                                                     	  	 1997	1996	
<S>                                                                                                     <C>                  <C>	
Net Sales		$2,792,000	       $1,620,000		
		
Cost of Sales		  1,921,000 	 941,000	

Gross Profit		 871,000	 679,000		

Operating Expenses:
	Selling, general and administrative expenses		688,000	1,098,000		
	Warehousing expense		267,000	343,000	
	Interest expense		140,000           	240,000	

	 	1,095,000	1,681,000	
						
Loss before provision for income taxes and 
	extraordinary item		(224,000)	(1,002,000)		

Provision for income taxes                  
Deferred	                    	0           	400,000
		                                                                                             
Loss before extraordinary item	 	(224,000)	(1,402,000)
		
Extraordinary item
	Gain-debt settlement net of tax 	  	              0	     1,550,000

Net (loss) income attributable to
	common shareholders                                      		$(224,000)   	$148,000	
 
Loss before extraordinary item per
	 common share                                            	     	       $         (.15)     $        (.54)

Extraordinary item per common share                  	            		$            .59 

Fully diluted extraordinary item per                     	
      common share                                                  			$            .59

Primary (loss) earnings per common share	           	 $         (.15)    $            .05     

Fully diluted earnings per common share			$            .05

See notes to condensed financial statements.
</TABLE>



<TABLE>
 CREATIVE TECHNOLOGIES CORP.
CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31,1997
(Unaudited)
<CAPTION>



	Preferred Stock	Common Stock
		                                              Additional
	Number of 		Number of	        Par           Paid-in
	Shares	Value	Shares	Value	Capital 	Deficit


<S>				                  <C>	     <C>           <C>          <C>         <C>          <C>
Balance December 31, 1996 1,770	   $1,770,000    2,611,000	  $235,000	    $8,900,000	  $(15,115,000)       


Net loss						                                                                           (224,000)


Balance March 31, 1997    1,770    $1,770,000    2,611,000    $235,000     $8,900,000  $(15,339,000)
					























See notes to condensed financial statements.
</TABLE>


<TABLE>
CREATIVE TECHNOLOGIES CORP.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>

		Three Months Ended
		March 31,
		  	1997   	1996
<S>		           <C>                <C> 
Net cash (used in)  provided by operating activities	  $(238,000)	$742,000

Cash flows from investing activities:
	Acquisition of fixed assets	(2,000)        (74,000)
	
Cash flows from financing activities:
	Net proceeds from credit facility	20,000		 0
	Net repayment of credit facility	0          	(2,658,000)
	Proceeds from notes payable	195,000		 1,625,000
	Repayment of notes payable	(68,000)		(83,000)
	Proceeds from sale of common stock	          0     		50,000	
	                                                      
Net cash provided by (used in) financing activities	  147,000	    (1,066,000)

Net (decrease) in cash	(93,000)	(398,000)

Cash at beginning end of period	       100,000	        771,000

Cash at end of period	$     7,000	$      373,000


Supplemental disclosures of cash flow information
	
	Interest paid	     $133,000	     $ 274,000

	Taxes paid			  	                0	       	0
					    		

	




See notes to condensed financial statements.
</TABLE>



CREATIVE TECHNOLOGIES CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)

Note A -	Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in
accordance with generally accepted accounting principles for interim 
financial information and with the instructions to Form 10-QSB and Rule 10-01
of Regulation S-X.  Accordingly they do not include all of the information 
and footnotes required by generally accepted accounting principles for 
complete financial statements.  In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair 
presentation have been included.  Operating results for the three month 
period ended March 31, 1997 are not necessarily indicative of the results 
that may be expected for the year ending December 31, 1997.  For further 
information, refer to the financial statements and footnotes thereto included
in the Company's annual report on Form 10-KSB for the year ended December 
31, 1996. 

Note B - 	Inventories

Inventories consist of finished goods stated at the lower of cost or market 
using the first - in, first out method. 

Note C - Notes Payable and Related Party Transaction 
	1.	At March 31, 1997 the Company had outstanding notes payable totaling 
    $3,927,000.  Of this amount, $2,992,000 bears interest at 12% $185,000 
bears interest at 15% and $750,000 bears interest at 18%. These notes are all
 due on demand and include $1,000,000 due to an entity whose principal is a 
director of the Company.  The remaining $2,927,000 is payable to various 
individuals who are stockholders or entities whose principals are 
stockholders of the Company.  These notes payable are personally guaranteed 
by certain stockholders of the Company.

	2.	In December 1996 the Company and Companies owned by the Company's 
principal stockholders entered into a two-year loan and security agreement 
with a lender whereby the Company and the related party are required to 
maintain an outstanding combined loan balance of not less than $1,500,000, 
but no more than $3,000,000.  The loan is collateralized by substantially all
 of the assets of the Company and is guaranteed by the Company, the related 
party and an officer of the Company.  Under the agreement, the Company and 
the related party receive revolving credit advances based on accounts 
receivable and inventory available and are required to pay interest at a rate
 of prime plus 2.75% plus all of the lenders out-of-pocket costs and 
expenses.  The agreement, among other matters, restricts the Company with 
respect to (i)  incurring any lien or encumbrance on its property or assets, 
 (ii)  entering into new indebtedness (iii)  incurring capital expenditures 
in any fiscal year in an amount in excess of $100,000 and requires an officer
of the Company to maintain certain ownership percentages.  

At March 31, 1997, the Company had $62,000 outstanding under this facility.  
        
	



CREATIVE TECHNOLOGIES CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)



Note D - Note Payable - Fleet Capital Corporation 

In March of 1996, the Company entered into an agreement with its former bank 
to pay off its indebtedness and release both the Company and the bank from 
any future obligations.  The Company borrowed additional funds to pay off the
indebtedness.  The resulting settlement, which occurred in March 1996, is 
summarized as follows:

		Loan balance subject to settlement	$3,583,000	
	Paid by the Company	(1,500,000)
	Note payable - non-interest bearing issued by 
	     the company due not later than March 11, 1998	(200,000)
	Debt assumed by a stockholder of the Company 
                           during March 1996 in exchange for 111,000 
                           shares of common stock	(333,000)

	Gain on debt settlement	$1,550,000

NOTE E - Preferred Stock:

	[1]	1996 Preferred Stock:

In June 1996 the Board of Directors designated 10,000 shares of preferred 
stock as "1996 Preferred Stock" valued at $1,000 per share.  The holders of 
1996 Preferred Stock are entitled to:

(i)	    receive cumulative dividends at the rate of $120 per annum payable 
quarterly in cash or common stock at the option of the Company,

(ii)	convert each share of preferred stock into approximately 333 shares of 
common stock subject to adjustment, as defined,

(iii)	redemption of their preferred shares on June 1, 1998 at $1,000 per 
share payable in cash or shares of common stock at the option of the Company,

 (iv)	liquidation preferences of $1,000 per preferred share and

  (v)	no voting rights.

The Company, at its option, has the right to redeem all or any portion of the
 1996 Preferred Stock at $1,100 per share plus accrued and unpaid dividends 
prior to June 1, 1998.

Cumulative unpaid 1996 preferred stock dividends aggregated $60,000 at March 
31, 1997.


CREATIVE TECHNOLOGIES CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)

	[2]	1996 - A Preferred Stock:

		On September 30, 1996 the Board of Directors designated  10,000 shares of 
preferred stock as "1996 - A Preferred Stock" valued at $1,000 per share.  
The holders of 1996 - A Preferred Stock are entitled to:

  (i)	receive cumulative dividends at the rate of $120 per annum payable 
quarterly in cash or common stock at the option of the Company,

 (ii)	convert each share of preferred stock into approximately 1,600 shares 
of common stock subject to adjustment, as defined, 

		(iii)	redemption of their preferred shares on October 1, 1998 at $1,000 per
 share payable in cash or shares of common stock at the option of the Company, 

 (iv)	liquidation preferences of $1,000 per preferred share and

  (v)	no voting rights.

The Company, at its option, has the right to redeem all or any portion of the
 1996 - A Preferred Stock at $1,100 per share plus accrued and unpaid 
dividends prior to October 1, 1998.

Cumulative unpaid 1996-A preferred stock dividends aggregated $98,000 at 
March 31, 1997.

Note F - Common Stock

On September 4, 1996 the Board of Directors approved a three for one reverse 
stock split effective September 5, 1996.  All references in these financial 
statements to numbers of common shares, and earnings per share amounts 
have been restated to give retroactive effect to the reverse stock split. 

Note G -	Income Taxes

The Company's net operating loss carryforwards for income tax reporting 
purposes aggregated approximately $14,604,000 as of  December 31, 1996.  
$178,000 in year 2007, $7,017,000 in year 2010 and the remaining balance 
of $7,409,000 expires in year 2011.




CREATIVE TECHNOLOGIES CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)

Note H -	Product Liability and Litigation

The Company has received notice that several consumers claim to have suffered
 finger injuries while using one of the Company's appliance products.  The 
claims are covered by the Company's product liability insurance carrier.  
The Company redesigned the appliance in August 1992, and believes that the 
modification made should minimize the possibility of such injury.  The 
Consumer Product Safety Commission (the "CPSC") has made a preliminary 
determination that the Company's appliance product represents a "substantial 
product hazard" as that term is defined in the Consumer Product Safety Act.

The Company proposed and the CPSC accepted a voluntary corrective action plan
 to be implemented during 1997, whereby the Company would replace certain 
parts of the appliances manufactured prior to August 1992.  
Management has estimated that the costs of implementing this plan will be 
approximately $50,000 and the Company accordingly established a reserve for 
this amount as of March 31, 1997.

The Company believes that the ultimate resolution of these matters will not 
have a material effect on its financial condition.







 	Item 2. 	Management's Discussion and Analysis of Financial
		Condition and Results of Operations

Liquidity and Capital Resources

Creative Technologies Corp. (the "Company") is the distributor of certain 
non-electric houseware products for two European manufacturers and has been 
selling electric motor-driven pasta machines under the name "Pasta Express" 
and "Takka Pasta and Dough Machine" and a food griller under the name "Grill 
Express".  The Company has announced its intention to stop selling pasta 
machines and grills domestically.  The Company is  the exclusive distributor 
of Brabantia International (Brabantia) products in North America.  Brabantia,
 headquartered in the Netherlands, is a leading manufacturer of top of the 
line non-electric  houseware products in Europe.  Its products are sold in 68
 countries throughout the world.   In addition, since October 1, 1996, the 
Company has been the exclusive distributor in the United States and Canada of
 bathroom scales, manufactured by Soehnle-Waagen GmbH & Co., headquartered in
 Murrhardt, Germany.  The Company would consider becoming a distributor of 
other products that it believes would complement  the products that they are 
currently selling.  The Company has not identified any other products at this
time.
 
For the three month period ended March 31, 1997, cash used in operating 
activities was $238,000, $2,000 was used in investing activities and cash of 
$147,000 was provided by financing activities.  As a result, at March 31, 1997 
cash decreased by $93,000 to $7,000 compared to $100,000 at December 31, 
1996.  The Company had a negative working capital of $5,212,000 at March 31, 
1997.

Accounts payable and other liabilities increased to $3,105,000 at March 31, 
1997 from 2,810,000 at December 31, 1996 primarily due to the first quarters 
loss and a slow up in collections.  Advances from customers increased to 
$339,00 at March 31, 1997 from $300,000 at December 31, 1996.

At March 31, 1997 the Company had outstanding notes payable totaling 
$3,927,000.  Of this amount, $2,992,000 bears interest at 12%, $185,000 bears
interest at 15% and $750,000 bears interest at 18%.  These notes are all due 
on demand and include $1,000,000 due to an entity whose principal is a 
director of the Company.  The remaining $2,927,000 is payable to various 
individuals who are stockholders or entities whose principals are 
stockholders of the Company.  These notes payable are personally guaranteed 
by certain stockholders of the Company.

During the first quarter of 1997 the Company borrowed $195,000 from a 
relative and an entity controlled by the principal shareholders of the 
Company and repaid $68,000 to various individuals and entities described 
above.  In addition the Company increased its borrowings under its credit 
facility by $20,000.  










The Company amended its Certificate of Incorporation to designate a new class
 of 10,000 shares of 1996 preferred stock $.01 par value and a new class of 
10,000 shares of 1996-A preferred stock $.01 par value, from 5,000,000 
shares of preferred stock previously authorized.  During June 1996, the 
Company issued 600 shares of the 1996 preferred stock for $600,000 of debt 
owed to David Guttmann and related entities.  During September  1996,  the 
Company issued 720 shares of the 1996-A preferred stock for $720,000 of debt 
owed to a company owned by David Guttmann and Barry Septimus, the husband of 
a principal stockholder of the Company and sold 450 shares of the 1996-A 
preferred stock for $450,000 to various Common stockholders of the Company 
including David Guttmann and Barry Septimus.  Each share of 1996 and 1996-A 
preferred stock is subject to mandatory redemption two years from the date of
 issuance at $1,000 per share plus unpaid dividends payable in cash, common 
stock or any combination thereof at the option of the Company.  At any time 
prior to redemption,  the preferred stockholders can at their option convert 
their 1996 preferred stock into 333 shares of common stock and their 1996-A 
preferred stock into approximately 1,600 shares of common stock for each 
share of preferred stock held.  The 1996 and 1996-A preferred stock are each 
entitled to a cumulative dividend of $120 per share per annum and shall be 
payable in quarterly installments on the first day of January, April, July 
and October commencing January 1, 1997.  At March 31, 1997 $158,000 of  
preferred stock dividends were in arrears.

On December 20, 1996, the Company obtained a two year credit facility from 
Century Business Credit Corporation (Century) in the total amount of up to 
$300,000.  Loans on the revolving credit facility are available up to (i) the 
lesser of $200,000 or 40% of the Company's eligible inventory (as defined in 
the Agreement), plus (ii) the lesser of $200,000 or 40% of the eligible 
accounts receivables (as defined in the Agreement).

The Company pays interest at the greater of 9% or the prime rate plus 2.75%. 
The Company also pays a minimum loan fee in the event that the closing daily 
unpaid balance is less than a certain amount.  The Company paid a facility 
fee to obtain the line of credit and pays certain administrative fees.  
Century obtained a security interest in all the assets of the Company.

David Guttmann and Ace Surgical Supply Co., Inc., Consolidated Disposables, 
Inc. and Universal Medical Products, Inc., entities that David Guttmann is a 
principal of, guaranteed the obligations of the Company to Century and in 
return, the Company guaranteed the obligations of Ace and Consolidated under 
a loan from Century to these entities.

The Board of Directors of the Company is considering having a newly created 
subsidiary of the Company merge with and into Ace Surgical Supply Co., Inc., 
pursuant to which Ace would become a wholly owned subsidiary of the Company. 
 The merger must be approved by a majority of the non-interested directors  
of the Company and the Shareholders of Ace.  The terms of the merger have not
 been finalized to date and has not been approved by either the Shareholders 
of Ace or the Board of Directors of the Company.    







Results of Operations

     The Company had net sales of $2,792,000 and $1,620,000 respectively for 
the three month periods ended March 31, 1997 and March 31, 1996.  The 
increase in sales for the comparative three month periods is attributable to 
increased sales of Brabantia, initial sales of Soehnle, export grill express 
business, and lower returns as a percentage of sales.
	
Gross profit margins for the first quarter ended March 31, 1997 and March 31,
 1996 were 31.2%  and 41.9% respectively.  The decrease in gross profit 
margins is attributable to margins being lower on the imported Brabantia 
product line where the Company acts as a distributor as opposed to higher 
gross profit margins on its own manufactured products.   The gross profit on 
electric export sales is also much lower than domestic retail sales.

Selling, general and administrative expenses were $688,000 and $1,098,000 or 
24.6% and 67.8% respectively in the three month periods ended March 31, 1997 
and March 31, 1996, and reflects the effect of management's cost cutting 
program.  Advertising expenses included above were $7,000 and $180,000 in the
 respective first quarters if 1997 and 1996.

Interest expense decreased to $140,000 for the three month period ended March
 31, 1997 as compared to $240,000 for the three month period ended March 31, 
1996.  The decrease of $100,000 was primarily due to the Fleet debt 
settlement, lower interest rates negotiated on the notes payable and the sale
 of preferred stock used to finance operations.

The settlement of the Fleet debt during the three month period ended March 
31, 1996 resulted in an extraordinary gain to the Company of $1,550,000.

Due to the foregoing, the Company reported losses before extraordinary item 
of $224,000 and $1,402,000 respectively for the three month periods ended 
March 31, 1997 and March 31, 1996, and net loss of $224,000 for the three 
months ended March 31, 1997 compared to net income of $148,000 in the 
comparable period of the prior year.  



PART II OTHER INFORMATION


Item 6.	a.  	Exhibits

		Exhibit 27.  Financial Data Schedule
	
	b.	Reports on Form 8-K

		The Registrant did not file reports on Form
		8-K during the three months ended March 31, 1997.











CREATIVE TECHNOLOGIES CORP.

Signatures



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.



		CREATIVE TECHNOLOGIES CORP.
		Registrant





Dated :  May 13, 1997	By:	S/Richard Helfman         	          
	        		Richard Helfman, President