FORM 10-Q

                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
     OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 1999

OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
     OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from     N/A to N/A

Commission file number 0-12984

                ADVANCED TOBACCO PRODUCTS, INC.
     (Exact name of registrant as specified in its charter)

     TEXAS                                        74-2285214
(State or other jurisdiction                 (I.R.S. Employer
of incorporation or organization)             Identification No.)

    16607 Blanco Road, Suite 1504, San Antonio, Texas 78232
(Address of principal executive offices)     (Zip Code)

                         (210) 408-7077
      (Registrant's telephone number, including area code)

                              N/A
(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

       APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
          PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

     Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.

Yes  No   N/A
             APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date:
                  8,092,136 as of March 31, 1999

<PAGE>
ADVANCED TOBACCO PRODUCTS, INC.         PART I - FINANCIAL INFORMATION
dba ADVANCED THERAPEUTIC PRODUCTS, INC.     ITEM 1:  Financial Statements
BALANCE SHEETS
                                         (Unaudited)     (Unaudited)
                                          March 31      September 30
                                            1999           1998
ASSETS:          
          
CURRENT ASSETS:          
    Cash & cash equivalents             $  238,479       $  449,481  
    Investments                            489,665          471,456  
    Royalties Receivable                    22,178             -0-   
    Accrued Royalty                        234,330          352,000  
          
          Total current assets:            984,652        1,272,937  
          
LICENSE AGREEMENTS, Net:                   164,078          161,804  
          
INVESTMENTS:                             1,216,154          977,015  
          
          TOTAL ASSETS:                 $2,364,884       $2,411,756  
          
LIABILITIES AND SHAREHOLDERS' EQUITY:          
          
LIABILITIES:          
    Accounts payable                    $   14,940       $   19,149  
          
          TOTAL LIABILITIES:                14,940           19,149  
          
SHAREHOLDER'S EQUITY:          
    Common stock, $.01 par value;            
     30,000,000 shares authorized;           
     8,092,136 shares issued and           
     outstanding as of March 31, 1999,           
     and September 30, 1998                 80,922           80,922  
    Additional paid-in-capital          12,544,878       12,544,878  
    Accumulated deficit                 (9,709,406)     (10,233,193)
    Dividends Paid                        (566,450)          -0-     
          
    TOTAL STOCKHOLDERS' EQUITY:          2,349,944        2,392,607  
          
    TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY:                           $2,364,884       $2,411,756  


<PAGE>
ADVANCED TOBACCO PRODUCTS, INC.
dba ADVANCED THERAPEUTIC PRODUCTS, INC.
STATEMENT OF INCOME (LOSS)




                                               (Unaudited)
                                       Three Months Ended March 31
                                           1999            1998  
REVENUES:            
  Royalty Income, Net                    $ 236,281      $ 162,385  
             Total operating revenues:     236,281        162,385
          
EXPENSES:          
  General and administrative                31,447         32,926
             Total operating expenses:      31,447         32,926
          
INCOME FROM OPERATIONS:                    204,834        129,459
          
OTHER INCOME:          
  Interest Income                           19,873         19,085
             Total other income:            19,873         19,085
          
NET INCOME:                              $ 224,707      $ 148,544
          
WEIGHTED AVERAGED NUMBER OF SHARES          
   OF COMMON STOCK OUTSTANDING:          8,092,136      8,092,136
          
WEIGHTED AVERAGED NUMBER OF SHARES          
  OF COMMON STOCK OUTSTANDING -          
  ASSUMING DILUTION:                     8,208,730      8,192,440

INCOME PER COMMON SHARE - BASIC AND           
  ASSUMING DILUTION                         $ .03        $ .02    











ADVANCED TOBACCO PRODUCTS, INC.
dba ADVANCED THERAPEUTIC PRODUCTS, INC.
STATEMENT OF INCOME (LOSS)




                                                  (Unaudited)
                                          Six Months Ended March 31
                                               1999           1998
REVENUES:            
  Royalty Income, Net                        $554,181       $264,885
       Total operating revenues:              554,181        264,885
          
EXPENSES:          
  General and administrative                   77,607         59,082
       Total operating expenses:               77,607         59,082
          
INCOME (LOSS) FROM OPERATIONS:                476,574        205,803
          
OTHER INCOME:          
  Interest Income                              47,213         37,772
       Total other income:                     47,213         37,772
          
NET INCOME:                                  $523,787       $243,575
          
WEIGHTED AVERAGED NUMBER OF SHARES          
  OF COMMON STOCK OUTSTANDING:              8,092,136      8,092,136
          
WEIGHTED AVERAGED NUMBER OF SHARES          
  OF COMMON STOCK OUTSTANDING -          
  ASSUMING DILUTION:                        8,206,066      8,192,216
          
INCOME PER COMMON SHARE - BASIC AND           
  ASSUMING DILUTION                            $ .06          $ .03



<PAGE>
ADVANCED TOBACCO PRODUCTS, INC.
dba ADVANCED THERAPEUTIC PRODUCTS, INC.
STATEMENTS OF CASH FLOWS


                                                     (Unaudited)
                                              Six Months Ended March 31
                                                  1999           1998
CASH FLOWS FROM OPERATING ACTIVITIES:          
  Net income:                                     $523,787    $243,575
  Adjustments to reconcile net income to
   net cash provided by operating activities:          
    Amortization of license agreements               3,340       3,340 
    Amortization of discount on investments        (35,989)    (36,222)
  Increase in cash flows from changes           
   in operating assets and liabilities          
    Accrued royalties                              117,670    (130,500)
    Royalties receivable                           (22,178)       (538)
    Accounts payable                                (4,209)     (5,169)
    Net cash provided by operating activities:    (582,421)     74,486  
          
CASH FLOWS FROM INVESTING ACTIVITIES:           
 Purchase of license agreements and patent
      expenses                                      (5,614)     (5,045)
 Purchase of investments                          (499,359)   (262,597)
 Sale of investments                               278,000     258,000  
    Net cash used in investing activities:        (226,973)     (9,642)
          
CASH FLOWS FROM FINANCING ACTIVITIES:          
  Dividends Paid                                  (566,450)     -0-    
    Net cash used in financing activities:        (566,450)     -0-    
           
NET INCREASE (DECREASE) IN CASH AND CASH
 EQUIVALENTS:                                     (211,002)     64,844
          
CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD:    449,481      79,180  
          
CASH & CASH EQUIVALENTS AT END OF PERIOD:         $238,479    $144,024  
          



NOTES TO FINANCIAL STATEMENTS

     The condensed financial statements included herein have been
prepared by Advanced Tobacco Products, Inc., dba Advanced
Therapeutic Products, Inc. (the Company)  without audit, pursuant
to the rules and regulations of the Securities and Exchange
Commission.  However, all adjustments have been made to the
accompanying financial statements which are, in the opinion of the
Company's management, necessary for the fair presentation of the
Company's results of operations for the period covered.  Certain
information and footnote disclosures normally included in the
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to
such rules and regulations, although the Company believes that the
disclosures are adequate to make the information presented herein
not misleading.  These condensed financial statements should be
read in conjunction with the financial statements and notes thereto
included in the Company's Annual Report on Form 10-K as of June 30,
1998.


Item 2:   Management's Discussion and Analysis of Financial
Condition and Results of Operation


RESULTS OF OPERATIONS

     In 1987, the Company sold patented nicotine technology, which
forms the basis of the Nicotrol/Nicorette Inhaler, to what is now
known as Pharmacia & Upjohn, Inc. ("P&U") in exchange for product
payments.

     Product payments from the non U.S. sales of the Nicorette
Inhaler are 3% of P&U's net sales to pharmacy distributors. 
Product payments from the sales of the Nicotrol Inhaler in the
U.S. are 9.9% of P&U's net sales to McNeil Consumer Products
Company ("McNeil"), a Johnson & Johnson Company, which markets the
Inhaler to pharmacies as a prescription product.

     Product payments of three percent (3%) of Net Sales
(generally, sales by P&U to wholesale distributors) are payable on
a country by country basis for the greater of 10 years following
the date of the first commercial sales or the expiration of all
issued patents enforceable in such countries.  If the Net Sales to
wholesale distributors cannot be obtained or is not disclosed, as
is the case with regard to McNeil, Net Sales are determined by
multiplying the net sales of P&U to McNeil by 3.3 (in effect, 9.9%
of P&U's sales to McNeil).  There are product payment limitations in the
event of the sale of a nicotine vapor product competitive with the
Inhaler.  Product payments in excess of $1,000,000 per year ($333,000 in
respect to Europe and $667,000 in respect to the rest of the world) are to
be reduced by fifty percent (50%) until the aggregate of such
reductions equal the sum of $4,400,000.

     McNeil launched the Nicotrol Inhaler nationwide in the U.S.
as a prescription product in September 1998 (the U.S. is
approximately 50% of the worldwide nicotine replacement therapy
("NRT")) market.  P&U has also introduced the Inhaler, primarily as
an over-the-counter product, in the United Kingdom, New Zealand,
Ireland, Norway, Sweden, Denmark, Italy, Austria, The Netherlands,
Belgium, Finland, Iceland, Gibralter and Hong Kong.  The Company
understands that additional country launches are planned by P&U to
occur as regulatory approvals are granted.

     The Nicotrol/Nicorette Inhaler is the first and only form of
NRT designed to help control a smoker's cravings for cigarettes
while providing a key behavioral component of smoking--the hand-to-
mouth ritual.  The Inhaler consists of a mouthpiece and a cartridge
containing nicotine.  The user puffs on the mouthpiece to inhale
the nicotine which is then absorbed through the lining of the
mouth. The Inhaler provides 30% of the nicotine a smoker gets from
cigarettes.  It does not contain any of the harmful substances like
tar and carbon monoxide found in tobacco smoke which cause smoking
related diseases like lung cancer.

     In September 1992, the Company obtained an exclusive worldwide
license to certain dry powder nicotine inhaler technology from Duke
University. The Company has obtained patents covering this
technology.  The Company believes that a dry powder nicotine
inhaler has the potential to be a future generation NRT. The
Company is continuing to seek a strategic partner to develop this
technology.

     Effective as of October 1993, the Company has an agreement
with P&U under which, among other matters, the Company has the
right to receive a royalty equal to .1% of net revenues received by
P&U from the sale of any product using a nicotine
impermeable copolymer technology covered by, and subsequent to, the
issuance of a patent in March 1996.  Under the terms of the
agreement, the Company now receives royalties from the sales of the
Nicorette/Nicotrol patch by P&U.

     The Company's operations include no material dependence on any
computer operations or on the preparation for year 2000 of any
computer operations.


LIQUIDITY AND CAPITAL RESOURCES

     Cash resources, including investments, available on March 31,
1999, were approximately $1,944,000, as compared to approximately
$1,527,000 as of March 31, 1998.


COMPARISON OF SELECTED FINANCIAL DATA

     Operating revenues for the six month period ending March 31, 
1999, increased to $554,181, as compared to $264,885 for the six
month period ending March 31, 1998.  This increase is due to an
increase in product payments from P&U as the Nicorette/Nicotrol
Inhaler continues to be launched worldwide. 

     Interest income for the six month period ending March 31,
1999, increased to $47,213, as compared to $37,772 for the six month
period ending March 31, 1998.  This increase is primarily due to an
increase in cash resources available to the Company.

     Net income for the six month period ending March 31, 1999,
increased to $523,787, as compared to $243,575 for the six month
period ending March 31, 1998.  This increase is due to an increase
in product payments from P&U as the Nicotrol/Nicorette Inhaler
continues to be launched worldwide.

     General and administrative expenses for the six month period
ending March 31, 1999, increased to $77,607, as compared to $59,082
for the six month period ending March 31, 1998.  This increase is
primarily due to costs associated with issuing a dividend of $.07
per share of common stock on January 6, 1999.


PART II - OTHER INFORMATION

Item 1:   Legal Proceedings.

          None

Item 2:   Changes in Securities and Use of Proceeds.

          None

Item 3:   Defaults Upon Senior Securities.

          None

Item 4:   Submission of Matters to a Vote of Security Holders.

          None

Item 5:   Other Information.

          None

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

          None


     On September 14, 1998, the Company filed an 8-K disclosing
that the Company had determined to change its fiscal year from a
June 30 year end to a September 30 year end beginning with the
fiscal year ended September 30, 1999.


     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.


                         ADVANCED TOBACCO PRODUCTS, INC.
                              (Registrant)

Dated: May 14, 1999

                         By:  /s/J.W. Linehan                           
                              J. W. Linehan, Chief
                              Executive Officer and
                              Chief Accounting Officer