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:                   September 30, 1996

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
2,611,384
(Title                    of                   each                    class)
(Outstanding at September 30, 1996)

<PAGE>
                         CREATIVE TECHNOLOGIES CORP.
                                      
                                    INDEX


PART I  -  FINANCIAL INFORMATION                                  PAGE

Item 1.                     Condensed Financial Statements
       (Unaudited)

  Balance Sheet as at September 30, 1996                             3

  Statements of Operations
       for the Three & Nine Months ended
       September 30, 1996 and September 30, 1995                     4

  Statement of Stockholders' Equity
       for the Nine Months ended September 30, 1996                  5

  Statements of Cash Flows
       for the Nine Months ended
       September 30, 1996 and September 30, 1995                     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
<PAGE>
<TABLE>
                         CREATIVE TECHNOLOGIES CORP.
                           CONDENSED BALANCE SHEET
                          AS AT SEPTEMBER 30, 1996
                                 (Unaudited)
<CAPTION>
                         Assets
<S>
<C>
Current assets:
  Cash and equivalents                                    $     37,000
                            Accounts                           receivable-net
1,690,000
  Inventories                                                3,009,000
           Prepaid         expenses         and         other          assets
418,000

                          Total                 Current                Assets
5,154,000
Fixed assets - at cost (less accumulated depreciation
             and            amortization            of            $1,819,000)
1,892,000
Intangible                  and                 other                  assets
144,000
Deferred tax benefit                                            45,000

          Total                                           $  7,235,000

                         Liabilities
Current liabilities:
  Notes payable                                           $  3,868,000
  Accounts payable and accrued expenses                      1,470,000

          Total Current Liabilities                          5,338,000

Note Payable - Fleet Capital Corporation                       200,000

                                   Total                          Liabilities
5,538,000

                         Stockholders' Equity
Preferred stock- 1996- (12% cumulative) $.01 par value;
          authorized 10,000 shares;  issued and outstanding 600 shares at
          redemption value of $1,000 per share                 600,000
Preferred stock- 1996-A- (12% cumulative) $.01 par value,
  authorized 10,000 shares, 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
8,869,000
Deficit                                                    (9,177,000)

          Total Stockholders' Equity                         1,697,000

          Total                                             $7,235,000

See notes to condensed financial statements
</TABLE>

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

                                    Three Months Ended   Nine Months Ended
                                      September 30, September 30,

1996                                1995         1996     1995
<S>                                                                       <C>
<C>                 <C>            <C>
Net Sales                      $1,227,000  $3,831,000$3,998,000$12,408,000

Cost of Sales                    784,000    2,321,000 2,235,0006,099,000

Gross Profit                      443,000   1,510,000 1,763,0006,309,000

Operating Expenses:
  Selling, general and administrative expenses968,000 1,414,0002,651,000
3,909,000
  Warehousing expense             302,000           0   937,000        0
  Advertising expense               4,000   1,465,000   229,0004,027,000
Interest expense     133,000                  273,000   563,000  787,000

                                1,407,000   3,152,000 4,380,0008,723,000

Loss before provision for income taxes and
   extraordinary item           (964,000) (1,642,000)(2,617,000)(2,414,000)

Provision for income taxes                                      36,000
0                             36,000                0

Loss before extraordinary item (1,000,000)(1,642,000)(2,653,000)(2,414,000)

Extraordinary item
  Gain-debt settlement net of tax               0             0      1,1
50,000                                  0

Net Loss
$(1,000,000)                 $(1,642,000)$(1,503,000)$(2,414,000)

Loss  attributable to
  common shareholders                                $(1,025,000)$(1,642,000)
$(1,534,000)                 $(2,414,000)

Loss before extraordinary item per
   common share                                            $       (.39)
$      (.97)        $     (1.04)     $      (1.43)

Extraordinary item per common share             $                      $
$         .45       $            _

Fully diluted extraordinary item per
      common share                                             $
$                     $         .45       $            _

Primary  loss per common share                       $        (.39)      $
(.97)       $      (.59)       $     (1.43)

See notes to condensed financial statements.
</TABLE>


<PAGE>
<TABLE>
                         CREATIVE TECHNOLOGIES CORP.
                 CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY
                 FOR THE NINE MONTHS ENDED SEPTEMBER 30,1996
                                 (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, 1995                     7,501,000  $225,000$8,577,000
$(7,674,000)

Stock issued for assumption
     of debt in connection with
     loan settlement March 1996                333,000     10,000  324,000


One-for-three reverse stock split
          September 1996                   (5,223,000)

Sale of preferred stock:
           1996        600  $600,000
           1996-A      450   450,000

Conversion of debt into 1996-A
           preferred stock       720   720,000

Preferred stock dividend accrued                                  (32,000)

Net loss
(1,503,000)

Balance September 30, 1996      1,770         $1,770,000       2,611,000
$235,000        $8,869,000    $(9,177,000)






See notes to condensed financial statements.
</TABLE>
                                      
                                      
<TABLE>
                         CREATIVE TECHNOLOGIES CORP.
                     CONDENSED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
<CAPTION>

                                                     Nine Months Ended
                                                       September 30,
                                                     1996        1995
<S>
<C>           <C>
Net cash provided by (used in) operating activities  $117,000$(5,822,000)

Cash flows from investing activities:
  Acquisition of fixed assets                       (97,000) (596,000)
    Acquisition   of  intangibles                                           0
(55,000)

  Net cash used in investing activities             (97,000)  (651,000)

Cash flows from financing activities:
  Net (repayment)borrowing of revolving credit facility(2,658,000)4,500,000
  Proceeds from notes payable                      2,858,000  2,730,000
  Repayment of notes payable                     (2,054,000) (1,333,000)
  Exercise of options                                      0    10,000
  Proceeds from sale of common stock                        50,000
830,000                                              Proceeds from sale of
preferred stock                                        1,050,,000
0

Net cash (used in) provided by financing activities  (754,000)    6,737,000

Net (decrease) increase in cash                    (734,000)   264,000

Cash at beginning of period                          771,000        417,000

Cash at end of period                           $     37,000$      681,000


Supplemental disclosures of cash flow information

  Interest paid                                     $603,000     $ 704,000
    Taxes   paid                                                            0
$364,000


  The Company issued 720 shares of the 1996-A preferred stock for $720,000 of
debt.




See notes to condensed financial statements.
</TABLE>
                                      
<PAGE>
                         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 nine month period
ended  September 30, 1996 are not necessarily indicative of the results  that
may  be  expected  for  the  year  ending December  31,  1996.   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,
1995.   For  the three and nine month periods ending September 30,  1996  and
1995, all earnings per share amounts give effect to the one-for-three reverse
stock split as explained in Note D.

Note B -  Inventories

Inventories,  which are stated at the lower of cost (first-in, first-out)  or
market are summarized as follows:

                               September 30, 1996

          Finished Goods               $1,621,000
          Work in Process and Parts     1,388,000

          Total                        $3,009,000

Note C-   Note Payable - Fleet Capital Corp.

In  April of 1995 the Company obtained a line of credit and a term loan  from
Fleet   Capital   Corporation  ("Fleet")  for  $14,000,000  and   $1,000,000,
respectively.  Interest was being charged on both of these loans at a rate of
1% above prime and was collateralized by substantially all of the assets  of
the Company and the term loan was personally guaranteed by a stockholder.  At
September 30, 1995 and thereafter the Company was in default of certain terms
of the agreement.

Effective November 1, 1995 the Company and Fleet entered into a Post  Default
Agreement  which  among  other things allowed Fleet  to  continue  to  extend
financing  to the Company under the credit facility at reduced advance  rates
against collateral up to $5,500,000.










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




In  March of 1996, the Company entered into an agreement with the 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 March  8,  1996,  is
summarized as follows:

          Paid by the Company                $1,500,000
          Note payable - non-interest bearing issued by
               the company due not later than March 8, 1998 200,000
          Assumed by a stockholder of the Company
                           during March 1996 in exchange for 333,000
                           shares of common stock333,000
          Reduction of indebtedness due to settlement1,550,000
          Loan balance subject to settlement $3,583,000

The gain to the Company due to this settlement amounted to $1,150,000 net  of
income tax effect.

Note D-

On September 4, 1996 shareholders approved an amendment to the Certificate of
Incorporation of the Company to effect a one-for-three reverse stock split of
all of the authorized and outstanding Common Stock.  On that date the Company
had  authorized 20,000,000 shares of Common Stock, $.03 par value  and  there
were issued and outstanding 7,834,000 shares of Common Stock.  After the one-
for-three  reverse stock split the authorized shares of Common Stock  of  the
Company remains at 20,000,000 shares.  Except for the receipt of cash in lieu
of   fractional  interest,  the  reverse  stock  split  did  not  affect  any
shareholders proportionate equity interest in the Company.

The  reverse  stock split reduced the number of then outstanding  Shares,  as
indicated in the table below and provided for a corresponding increase in the
par  value  from  $.03 per Share to $.09 per Share.  In connection  with  the
reverse  stock  split, shareholders received one share of, or  cash  for  any
resulting  fractional share, or both, in exchange for three then  outstanding
Shares.
Class   of   Stock                               Outstanding   Before   Split
Outstanding After Split
Common               Stock                                          7,834,000
2,611,000

The   number  of  outstanding  shares  after  the  reverse  stock  split   is
approximate.  Except for changes resulting from the reverse stock  split  and
the  increase  in the par value from $.03 to $.09 par value, the  rights  and
privileges  of  holders of Shares of Common Stock  remained  the  same,  both
before and after the reverse stock split.



                                      
                                      
                                      
                                      
<PAGE>
                         CREATIVE TECHNOLOGIES CORP.
                   NOTES TO CONDENSED FINANCIAL STATEMENTS
                                 (Unaudited)
                                      
                                      
Note E-   Preferred Stock - 1996 - (12% Cumulative)

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  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 1142 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 September 30, 1996, $32,000 of 1996 preferred
stock dividends were accrued.

Note F -  Income Taxes

The  Company's  net  operating loss carry forwards for income  tax  reporting
purposes aggregated approximately $7,672,000 as of December 31, 1995.

Note G -  Product Liability and Litigation

The  Company  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  has  disputed this preliminary determination and  is  currently
involved  in  negotiations with the CPSC to try to resolve this matter.   The
Company believes that the ultimate resolution of this matter will not have  a
material effect on its financial condition.

In  November  1995,  the Company filed a lawsuit against   a  vendor  seeking
damages  of  $1,700,000 for breach of contract and breach  of  warranty  with
respect to the vendor's manufacturing of certain products.  In January  1996,
the  vendor  denied  the allegations in the complaint and counterclaimed  for
$1,400,000  predicated primarily upon allegations that the Company wrongfully
canceled pending purchase orders.  This matter has been settled and  did  not
have a material effect on the Company's financial condition.
                                      
                                      
                                      
                                      
<PAGE>
           Item 2. Management's Discussion and Analysis of Financial
               Condition and Results of Operations

Liquidity and Capital Resources

The Company is engaged in the design, manufacture, marketing and distribution
of  niche  consumer  products.  The Company currently sells  electric  motor-
driven  pasta machines and a food griller.  Since January 1, 1996 the Company
is  also  the  exclusive distributor of Brabantia International ("Brabantia")
products  in  the United States.  These products include high  quality  bread
boxes,  step-on  pails, waste paper baskets, ironing boards,  2  and  3  step
stools,  and  a  complete  line of kitchen tools and other  household  items.
Brabantia, headquartered in the Netherlands, is a leading manufacturer of top
of  the  line  houseware products in Europe.  Its products  are  sold  in  68
countries  throughout  the  world.   The Company  also  signed  an  exclusive
agreement  October  1,  1996  with Soehnle,  a  leading  German  company,  to
distribute  their bathroom scales.  Marketing activities have  begun  but  no
sales are expected until 1997.

For  the  nine month period ending September 30, 1996, net cash  provided  by
operating  activities was $117,000, $97,000 was used in investing  activities
and  net cash of $754,000 was used in financing activities.  As a result, for
the nine month period ending September 30, 1996 cash decreased by $734,000 to
$37,000.   The  accounts receivable decreased to $1,690,000 at September  30,
1996  from  $2,907,000 at December 31, 1995, reflecting high collections  and
relatively low sales volume during the first nine month period.  The accounts
payable  and other liabilities decreased to $1,470,000 at September 30,  1996
from $1,664,000 at December 31,1995.

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 and during June, 1996 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 on June 1, 1998 and  October  1,  1998,
respectively  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 1142 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 September 30, 1996, $32,000 of 1996 preferred
stock dividends were accrued.







                                      
                                      
                                      
                                      
<PAGE>
Until April 1995, the Company sold substantially all of its trade receivables
at  various  levels  of recourse to Rosenthal & Rosenthal (the"factor").   On
April 19, 1995, the Company ceased the factoring arrangement with Rosenthal &
Rosenthal and instead obtained a one year credit facility from Fleet  Capital
Corporation ("Fleet") in the total amount of $15,000,000, consisting of a one
year  term  loan  of  $1,000,000  and a revolving  credit  facility  for  the
remainder.   The term loan was payable in twelve equal installments  and  was
personally guaranteed by David Guttmann, the Chief Executive Officer.   Loans
on  the  revolving credit facility were available in amounts equal to 70%  of
the Eligible Accounts Receivables plus the lesser of $7,500,000 or the sum of
the  Eligible Inventory.  The Company paid a closing fee of $100,000 to Fleet
and $120,000 to a finder.  In February 1996, the Company and Fleet agreed  to
discontinue  the banking relationship.  During March 1996 the Company  repaid
Fleet $1,500,000 and executed a non-interest bearing unsecured two year  note
to  Fleet in the amount of $200,000.  In addition, David Guttmann assumed the
payment  of  the remainder of the term loan in the total amount of  $333,000.
In  order to repay Fleet the workout amount, the Company obtained short  term
loans  of  $1,000,000  from  several individuals.   The  loans  provided  for
interest at 2% per month plus expenses.  The Company derived a pre-tax profit
on the workout of $1,550,000.  The Company is seeking to obtain a new line of
credit  in order to repay the short term loans and for working capital.   The
Company  issued  333,000 shares during March 1996 to the designees  to  David
Guttmann in consideration for their assumption of the term note in the amount
of $333,000.

During  the  second  quarter of 1996 the Company  borrowed  $650,000  net  of
repayments  from David Guttmann and related entities repayable  within  three
months.   These funds, together with funds received from various  individuals
this  quarter,  were  used to repay $650,000 to certain individuals  who  had
loaned  the Company this amount for the Fleet workout and for working capital
purposes.   Effective June 1996 $600,000 of debt owed to David  Guttmann  and
related entities was exchanged for 600 shares of 1996 preferred stock .

During  the  Third quarter the company received $433,000 from various  common
stockholder's of the Company including David Guttmann and Barry Septimus.  Of
this  amount $270,000 together with $180,000 previously loaned to the Company
was  used  to  purchase 450 shares of 1996-A preferred stock- 12% cumulative.
$143,000  of  loans, net of repayments, received this quarter were  used  for
working  capital  purposes.   At September 30, 1996  the  Company  had  notes
payable  in  the  amount of $1,000,000 payable on demand to an  entity  whose
principal  is a director of the Company.  At September 30, 1996, the  Company
also  had  $2,868,000  of  notes  outstanding  to  various  individuals   and
shareholders of the Company.  Interest on loans of $3,868,000 vary  from  18%
to  12%  per  annum.  Loans amounting to $3,859,000 are guaranteed  by  David
Guttmann and Barry Septimus.

The  Company  expects to fund future operations by obtaining  bank  lines  of
credit,  if  available,  borrowing  money  privately  and  cash  flows   from
operations.

At  September 30, 1996, the Company had outstanding approximately $175,000 in
commercial letters of credit covering production and importation of the Grill
Express.

The Company has reduced expenses by cutting its administrative staff, closing
its  assembly plant in Brooklyn, New York and moving the manufacture  of  the
Pasta  Machine and Grill Express to a more reliable factory in China, cutting
back  or  eliminating  the use of outside consulting services  and  otherwise
reducing  overhead.  In addition, certain key employees have taken  voluntary
pay cuts.


                                      
                                      

<PAGE>
Results of Operations

The  Company had net sales of $1,227,000 and $3,998,000 respectively for  the
three  and  nine month periods ending September 30, 1996 as compared  to  net
sales  of  approximately $3,831,000 and $12,408,000 for the  three  and  nine
month  periods  ending September 30, 1995.  The decrease  in  sales  for  the
comparative  three  and  nine  month periods  is  attributable  to  continued
softness  in demand for the Grill Express and Pasta Machine offset  by  sales
applicable to the introduction of the Brabantia product line.  For the  three
and  nine  month periods ending September 30, 1996 sales of electric products
were  approximately  46% and 70% respectively with non  -  electric  products
representing  the  remainder in each period.  For the three  and  nine  month
periods  ending  September  30, 1995 electric products  represented  100%  of
sales.

Gross  profit  margins for the third quarters ending September 30,  1996  and
September  30,1995 were 36.1% and 39.4% respectively.  Gross  profit  margins
for  the nine month periods ending September 30, 1996 and September 30,  1995
were  44.1% and 50.8% 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.  These lower gross profit  margins
were  offset by certain expenses previously considered part of cost of  sales
when  the  Company was assembling and manufacturing products in its  Brooklyn
facility and are now being classified as Warehousing Expense.  The benefit of
high  gross profit margins in 1995 was offset by media purchases (advertising
expense)  associated  with  infomercial sales which  are  part  of  operating
expenses.   Profit margins on sales after cost of sales and  media  purchases
for  the third quarters ending September 30, 1996 and September 30, 1995 were
35.8%  and  1.2% respectively and for the nine month periods ending September
30,   1996   and  September  30,  1995  were  38.4%  and  18.4%  respectively
representing management's decision to reduce expenditures for the airings  of
the infomercial during the first three quarters of 1996.

Selling, general and administrative expenses were $968,000 and $1,414,000  or
78.9%  and 36.9% respectively of net sales in the three month periods  ending
September  30,  1996  and  September 30,  1995.   The  selling,  general  and
administrative  expenses were $2,651,000 or 66.3% in the  nine  month  period
ending  September 30, 1996 as compared to $3,909,000 or 31.5%  for  the  nine
month  period ending September 30, 1995.  The reduction in expenses  reflects
the   effect  of  management's  cost  cutting  program  although  the  higher
percentage of these expenses to net sales reflect the reduction in net  sales
from 1995 to 1996.

The  Company  is no longer assembling and manufacturing its products  in  its
Brooklyn facility.  As a result, certain expenses previously shown as cost of
sales  are now classified as Warehousing Expense.  During the three and  nine
month  periods ending September 30, 1996 these expenses amounted to  $302,000
and  $937,000  respectively compared to $460,000 and  $1,555,000  which  were
included in cost of sales in the comparable periods of the prior year.






                                      
                                      
                                      
                                      
                                      
<PAGE>
Advertising  expenses for the three and nine month periods  ending  September
30,  1996  were  $4,000 and $229,000 respectively compared to $1,465,000  and
$4,027,000  for  the comparable periods of the prior year.  The  decrease  in
advertising expenses were due to management's decision to reduce expenditures
for the airings of the infomercial during the first three quarters of 1996.

Interest  expense in the three month periods ending September  30,  1996  and
September 30, 1995 was $133,000 and $273,000 respectively.  This decrease  of
$140,000  is  primarily due to lower borrowings.  For the nine month  periods
ending  September  30,  1996  and September 30,  1995  interest  expense  was
$563,000  and $787,000 respectively.  The decrease of $224,000 was  primarily
due to lower borrowings in the second and third quarters of 1996 verses 1995,
the  Fleet  debt  settlement in the first quarter of 1996 and lower  interest
rates  on  debt owed Fleet during the first quarter verses interest rates  on
debt owed a factor in the comparative quarter of the prior year.

The  settlement of the Fleet debt during the three month period ending  March
31,  1996  resulted  in  a  gain  to the Company  of  $1,550,000  reduced  by
applicable  income  taxes of $400,000 or a net gain  after  income  taxes  of
$1,150,000 as follows:
                                      
Loan balance subject to settlement           $3,583,000
Paid by the Company                         (1,500,000)
Note payable issued by the Company
     non-interest bearing, due not later than March 8, 1996 (200,000)
Debt assumed by a stockholder of the Company during March 1996
     in exchange for 333,000 shares of common stock.      (333,000)
Gain on debt settlement before income tax     1,550,000
Income Tax                                      400,000
Net gain on debt settlement                  $1,150,000

Due  to  the  foregoing, the Company reported for the three  and  nine  month
periods  ending  September  30,  1996, a loss before  extraordinary  gain  of
$1,000,000   and   $2,653,000  respectively  compared  to   a   loss   before
extraordinary  gain  of  $1,642,000  and  $2,414,000  respectively   in   the
comparable  periods of the prior year.  For the three and nine month  periods
ending  September 30, 1996 the Company reported a net loss of $1,000,000  and
$1,503,000  respectively compared to a net loss of $1,642,000 and  $2,414,000
respectively in the comparable periods of the prior year.
                                      
                                      
                                      
                                      
                                      
                                      
                                      
                                      
                                      
                                      
                                      
                                      
                                      
                                      
                                      
                                      
<PAGE>
                                      
                          PART II OTHER INFORMATION


Item 2.                               Change In Securities

On September 4, 1996 the shareholders approved an amendment to the
Certificate of Incorporation of the Company to effect a one-for-three reverse
stock split.  The reverse stock split reduced the amount of outstanding
shares of Common Stock from 7,834,000 shares to 2,611,000 shares.  The par
value was increased from  $.03 to $.09 per share.

In June and September 1996 the Company issued 600 shares and 1170 shares of
preferred stock, respectively  for  $1,000 per share.  The shares of
Preferred Stock are preferred as to assets over the shares of Common Stock so
that, in the event of the voluntary or involuntary liquidation, dissolution
or winding up of the Company, the holders of the Preferred Stock shall be
entitled to receive out of the assets of the Company, before any
distribution, is made to the holders of the Common Stock an amount equal to
$1,000 per share of Preferred Stock plus all accrued but unpaid dividends.




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

The annual meeting of the shareholders of the Company was held on September
4, 1996.  David Guttmann, David Refson, Benjamin Sporn and Richard Helfman
were each elected directors of the Company.  The shareholders also approved a
three-for-one reverse stock split.  5,402,971 votes were cast for the split,
83,432 votes were cast against the split and 18,106 votes abstained.




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 nine months ended September 30, 1996.






                                      


<PAGE>
                         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 :  November 12, 1996         By:  S/David Guttmann
                                        David Guttmann, CEO