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 December 31, 1995.

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:
		7,792,136 as of December 31, 1995

			PART I - FINANCIAL INFORMATION

			Item 1:  Financial Statements



ADVANCED TOBACCO PRODUCTS, INC.
dba ADVANCED THERAPEUTIC PRODUCTS, INC.
BALANCE SHEETS

					(Unaudited)		(Audited)
					December 31		June 30
					   1995			  1995

ASSETS

CURRENT ASSETS:
	Cash				$  50,194		$  86,390
	Investments			  329,074		  316,765

		Total current assets	  379,268		  403,155

LICENSE AGREEMENTS, Net			  156,485		  132,210

INVESTMENTS				  945,464		  959,903

		Total assets		$1,481,217	       $1,495,268


LIABILITIES AND SHAREHOLDERS'
EQUITY:

LIABILITIES:
	Accounts payable		$   3,579		$   3,841
	Accrued liabilities		   20,000		   15,000

		Total liabilities	$  23,579		$  18,841


SHAREHOLDERS' EQUITY:
	Common stock - authorized, 
	30,000,000 shares of $.01
	par value; 7,792,136 shares
	outstanding as of December
	1995, and June 1995, 
	respectively			      77,922		   77,922
	Additional paid-in-capital 	  12,510,378	       12,510,378
	Accumulated deficit		 (11,130,662)	      (11,111,873)

		Total stockholders'
		equity			   1,457,638		1,476,427

		Total liabilities and
		stockholders' equity	  $1,481,217	       $1,495,268



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

						(Unaudited)
					Three Months Ended December 31
					1995		1994

REVENUES:				$  -0-		$   -0-
	Total operating revenues:	   -0-		    -0-

EXPENSES:
	General and administrative	  16,741	   17,760
	Total operating expenses	  16,741	   17,760

INCOME (LOSS) FROM OPERATIONS		 (16,741)	  (17,760)

OTHER INCOME:
	Interest Income			  19,266	   47,414
		Total other income	  19,266	   47,414

NET INCOME (LOSS):			$  2,525	$  29,654

WEIGHTED AVERAGED NUMBER OF SHARES
OF COMMON STOCK OUTSTANDING	       7,792,136	7,792,136

EARNINGS (LOSS) PER COMMON SHARE	NIL		$   .003




						(Unaudited)
					Six Months Ended December 31
					1995		1994

REVENUES:				$  -0-		$   -0-
	Total operating revenues:	   -0-		    -0-

EXPENSES:
	General and administrative	  57,921	   44,511
	Total operating expenses	  57,921	   44,511

INCOME (LOSS) FROM OPERATIONS		 (57,921)	  (44,511)


OTHER INCOME:
	Interest Income			  39,132	   59,396
		Total other income	  39,132	   59,396

NET INCOME (LOSS):			$(18,789)	$  14,885

WEIGHTED AVERAGED NUMBER OF SHARES
OF COMMON STOCK OUTSTANDING	       7,792,136	7,792,136

EARNINGS (LOSS) PER COMMON SHARE	  $(.002)	  $ .002


ADVANCED TOBACCO PRODUCTS, INC.
dba ADVANCED THERAPEUTIC PRODUCTS, INC.
STATEMENT OF CASH FLOWS



						(Unaudited)
					Six Months Ended December 31
					1995		1994

CASH FLOWS FROM OPERATING ACTIVITIES:
	Net income (loss):		$(18,789)	$  14,885
	Adjustments to reconcile net
	income (loss) to net cash:
	  Amortization			   3,340	    3,340
	  Interest receivable		    -0-		    3,605
	  Accounts payable and accrued
	  liabilities			   4,738	    1,193

		Net cash provided by
		operations:		 (10,711)	   23,023

CASH FLOWS FROM INVESTING ACTIVITIES:
	Maturity of certificates of deposit -0-		  150,000
	Capital expenses of license
	agreements			 (27,614)	     -0-

		Net cash provided by
		investments		 (27,614)	  150,000

NET INCREASE (DECREASE) IN CASH:	 (38,326)	  173,023

CASH & INVESTMENTS AT BEGINNING
OF PERIOD:			       1,363,058	1,193,388

CASH & INVESTMENTS AT END
OF PERIOD:			      $1,324,732	$1,366,411






NOTES TO FINANCIAL STATEMENTS 

	1.	The condensed financial statements included herein were 
prepared by the Company without audit.  Certain information and footnote 
disclosures normally included in financial statements have been omitted.  
The condensed financial statements should be read in conjunction with 
the financial statements and the notes thereto included in the Company's 
Annual Report on Form 10-K as of June 30, 1995.  

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


RESULTS OF OPERATIONS 

	In 1987, the Company sold all of its nicotine technology to 
entities owned or controlled by Pharmacia AB ("Pharmacia"), a worldwide 
pharmaceutical company headquartered in Sweden that manufactured the 
Nicorette chewing gum and the nicotine transdermal patch. 

	Since 1987, the Company has worked jointly with Pharmacia to 
develop a nicotine vaporizer product for smoking cessation which commenced 
clinical and pivotal trials in late 1990.  During the fiscal year 1994, 
Pharmacia filed new drug applications (NDA's) with the respective 
regulatory agencies in several major European countries.  After including 
additional data in the filing which Pharmacia believes will facilitate the 
United States Food and Drug Administration (FDA) review process, Pharmacia 
has indicated to the Company that it now intends to file an NDA with the 
FDA during the first quarter of calendar year 1996. 

	During the six-month period ended December 31, 1995, the Company's 
only source of revenues has been from interest income.


LIQUIDITY AND CAPITAL RESOURCES 

	Cash resources, including investments, available on December 31, 
1995, were approximately $1,324,732, as compared to approximately 
$1,366,411, for December 31, 1994.  The reduction in cash resources 
reflects the use of cash for capital expenses for license agreements.


COMPARISON OF SELECTED FINANCIAL DATA 

	Interest income for the six-month period ended December 31, 1995 
decreased to $39,132 as compared to $59,396 for the six-month period 
ended December 31, 1994.  This decrease is due to a fluctuation in 
interest rates. 

	The Company experienced a net loss for the six-month period ended 
December 31, 1995 of ($18,789) compared to a net profit of $14,885 for the 
six-month period ended December 31, 1994.  The loss was due to increased 
general and administrative expenses and a decrease in interest income.
  
	General and administrative expenses were $57,921 for the six-month 
period ended December 31, 1995, compared to $44,511 for the six-month 
period ended December 31, 1994.  This increase in general administrative 
expenses was due primarily to consulting fees.  


PART II - OTHER INFORMATION 

Item 1:	Legal Proceedings 

		None 

Item 2:	Changes in Securities 

		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 







	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: February 14, 1996 


					By:	J. W. Linehan
						J.W. Linehan, President 
						and Chief Financial Officer