SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549
                                        
                                    FORM 10-K
(MARK ONE)

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

For the fiscal year ended December 31, 1995                        
                                     
                                       or

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

For the transition period from                   to           
                   
                             Commission file number 0-14870

                                    Quipp, Inc.                              
             (Exact name of registrant as specified in its charter)

          Florida                                     59-2306191             
(State or other jurisdiction of 
incorporation  or organization)           (I.R.S. employer identification no.)
                                    
 
                   4800 N.W. 157th Street, Miami, Florida         33014        
                  (Address of principal executive offices)      (Zip code)

      Registrant's telephone number, including area code  (305) 623-8700      
                                                      
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 by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of the Form 10-K or any amendment to this
Form 10-K (  ). 

The aggregate market value of voting stock held by non-affiliates of the
Registrant on March 8, 1996 was approximately $17,450,020.*

The number of shares of the Registrant's common stock, $.01 par value,
outstanding at March 8, 1996 was 1,634,465.


                       DOCUMENTS INCORPORATED BY REFERENCE

Document Incorporated
                                                      
Portions of Quipp, Inc. Proxy Statement relating to 1996 Annual Meeting of
Shareholders (to be filed not later than 120 days after the close of the fiscal
year covered by this report on Form 10-K).

Where Incorporated
         Part III       
                                
*Calculated by excluding all shares held by executive officers, directors, and
five percent shareholders of Registrant without conceding that  all such person
are "affiliates" of Registrant for purposes of the federal securities laws.




                                     PART I

ITEM I - BUSINESS

Quipp, Inc. (the  Company ), through its wholly-owned subsidiary, Quipp Systems,
Inc., designs and manufactures material handling equipment for the newspaper
industry.  The Company's products are generally designed to accomplish much of
the mailroom operations of a newspaper publisher.  The mailroom is an area to
which newspapers flow from the pressroom in a continuous stream and in which
newspapers are stacked, bundled and moved to the shipping docks.  Conveyor
systems are utilized to transport newspapers from the press to stacking machines
that transform a continuous stream of newspapers into stacks.  The stacks may be
bundled and conveyed directly to the shipping docks, loaded into carts or stored
on pallets for further processing at a later time.

The Company's products are basically modular in construction with electronic
control circuitry and include the following:

Newspaper Stacker - The Company's principal product is its Series 350 Stacker. 
In addition, the Company has, through the Hall Processing Systems acquisition
described below, added the Hall Dual Carrier Stacker to its product line.  The
Company's stackers perform the function of forming counted bundles of newspapers
for delivery at speeds of up to 80,000 copies per hour.

Bottomwrapper - The Company's bottomwrapper applies wrapping paper to the bottom
and top of each newspaper stack to reduce product damage.

Three-quarter wrapper - The Company s three-quarter wrapper is a variation of
its bottomwrapper.  This machine offers protection for three sides  of the
newspaper bundle and provides a surface for receiving inkjet printed messages.

Twin-Belt Newspaper Conveyor - The Company's twin-belt newspaper conveyor
transports newspapers in an overlapping stream from a newspaper press to various
locations throughout the mailroom.  The Company's conveyor systems include
horizontal and vertical conveyor modules, integrated with direction switching
and other special purpose components arranged to accommodate the building layout
of the newspaper printing facility in which the conveyors are used.  The maximum
surface speed that the Company's twin-belt conveyor can accommodate is
approximately 80,000 newspapers per hour.

Fold Compressor - The Company's fold compressor conditions newspapers prior to
stacking or delivery to inserting machines by removing  air from each newspaper
and setting a uniform leading edge-fold on each newspaper.  The compressing
operation also allows a smaller stack  to be produced out of the same number of
papers and improves the accuracy of newspaper counting devices.

Stream Aligner - The Company's stream aligner straightens misaligned newspapers
and centers the newspaper stream for more reliable stacking.  The stream aligner
is installed at an end of a conveyor, just prior to stacking.

Newspaper Sensor - The Company's mechanical and laser newspaper sensors
accurately count newspapers at rates of up to 80,000 copies  per hour.

Rollerslat Conveyor - The Company's rollerslat conveyor employs an array of
independently rotating rollers and is utilized in the processing  of newspaper
stacks prior to bundling.

Centering Pacer - The Company's centering pacer automatically centers, aligns,
and paces newspaper stacks prior to wrapping, strapping and/or distribution
control.

Stacker Programmer - This microprocessor-based product controls a newspaper
stacker so that the proper number of newspapers required  for each carrier route
or newsstand distributor are stacked into bundles.

Press Production Monitor - This microprocessor-based product utilizes a variety
of sensors to simultaneously count newspapers as they are printed by multiple
presses, thereby reducing waste by assuring timely press shutdown.  This system
also provides a computer printout of production data.

Bundle Control System - This product incorporates a  sensor-equipped
microprocessor to monitor  the delivery of bundled newspapers to the shipping
dock, controlling conveyors and diverters so that proper numbers of newspapers
are supplied for delivery.



Single Gripper Conveyor - The Company's single gripper conveyor transports
newspapers or other printed material by holding individual copies by the spine,
one gripper for each copy.  The single gripper conveyor offers several
advantages over conventional conveyors, the most significant of which is the
flexibility of distribution, including the ability to release copies at any
number of processing points in the mailroom.

Cart Loading System - This system accumulates and loads tied bundles of printed
material into carts for transport to remote areas of the plant or to
distribution centers.

Sort Tray Distribution System - This computer controlled system consists of
wheeled carts fastened together, forming a continuous, chain-like loop, for
transportation of bundles of newspapers from a given packaging line or storage
position to an available truck loading position or temporary storage area.

The Company's manufacturing activities consist primarily of the assembly of
components comprising its products, the fabrication of some mechanical parts and
testing of the completed products. The Company uses approximately 330 vendors to
supply parts, materials and components for its various products.  The Company
believes that alternative sources of supply are available for all required
components.  If necessary, certain machine parts could be manufactured in the
Company's in-house machine shop, which is used primarily for custom engineering
and the development of prototype parts.

The Company customarily receives a deposit upon the execution of a sales
contract and payment of a substantial portion of the balance of the purchase
price prior to shipment.  Any remaining amount due is typically received upon
the completion of installation.

In connection with the installation of equipment, the Company will, at the
request of a customer, resell to the customer related equipment that  is not
manufactured by the Company.  The Company realizes a small mark-up (typically no
more than 10 percent) with respect to the resale  of such equipment.  Such sales
accounted for approximately 9.0%, 4.0% and 5.0% of the Company's total sales in
1995, 1994 and 1993, respectively.

All of the Company's products, excluding those not manufactured by the Company,
have at least a one-year warranty, and the Company provides personnel for both
installation and repair from its Miami-based service department.  Customers are
encouraged to stock spare modules and components, and many newspaper publishers
have purchased standby equipment from the Company.

For the year ended December 31, 1995, no customer accounted for 10% or more of
the Company's net sales. The San Diego Union and Dow Jones & Company accounted
for approximately  22% and 10%, respectively, of the Company's net sales in
1994. The Sacramento Bee and the San Bernardino Sun each accounted for
approximately 10% of the Company's net sales in 1993.   Since the equipment is
designed to have an extended life, the Company's largest customers in any one
year are usually different from the largest customers in a subsequent period.

Although the Company sells  a significant portion of its products to newspaper
publishers in the United States, it also has significant foreign sales which
accounted for 18%, 11%, and 21% of total sales in 1995, 1994, and 1993
respectively.  The following table indicates the amount of sales by geographic
area during the past three years:

                                1995                 1994              1993

      United States           $19,012,140       $15,088,678       $11,728,815 
      Japan                     1,335,192           149,472           441,167 
      
      Canada                      430,855           175,031           370,598 
      
      Latin America               166,605         1,165,028         1,313,872
      New Zealand               1,799,382             7,160             5,488 
      
      Other                       452,597           449,479           929,357 
                              ------------       ----------         --------- 
                        
                              $23,196,771       $17,034,848       $14,789,297
                              ===========       ===========       ===========

As of  February 1, 1996, the Company's backlog represented approximately
$6,796,469 in firm sales orders, as compared to $8,372,985 on February 1, 1995. 
The Company believes that it will satisfy all orders included in the  backlog by
end of 1996.  See "Management's Discussion and Analysis of Financial Condition
and Results of Operations - General" in Item 7.

ACQUISITION OF ASSETS OF HALL PROCESSING SYSTEMS 

Pursuant to an agreement dated December 21, 1994, the Company purchased, in
December 1994 and January 1995, substantially all of the assets utilized by 
Hall Processing Systems ("Hall") in the manufacture and design of stackers,
conveyor systems, wrappers and other related equipment.  The purchase price for
the assets was $1,557,500 and 40,000 shares of Company Common Stock.  The
$1,557,500 purchase price was comprised of $657,000 in cash and $900,000 via
delivery of a promissory note.  The note is payable over three years and bears
interest  at five percent per annum.  The Company also agreed to assume certain
of Hall's warranty obligations, with respect to which the Company recorded a
warranty reserve of $100,000 at December 31, 1994.   During 1995 the Company
issued the 40,000 shares of Common Stock and also paid the first $300,000
installment of the promissory note, leaving a balance due of $600,000 at the end
of the year. 

COMPETITION

The newspaper industry has experienced a decrease in size in recent years, as
the number of newspapers in the country has declined.  There has also been 
consolidation among manufacturers of material handling equipment for the
newspaper industry.  The Company believes it has been able to compete
successfully by stressing its engineering expertise and the quality and
reliability of its products.  

The Company believes that its two principal competitors for the newspaper
mailroom equipment business in the United States are the Sheridan division of AM
Graphics,  and Machine Design Services, a privately owned company that
manufactures certain types of conveyors. In addition, there are several
companies that compete in other  segments of the business.  The Company has
experienced strong competition on the basis of price with respect to most of its
products, and anticipates that price competition will continue.

MARKETING

The Company's marketing effort is conducted by its six-person sales staff, which
calls upon the support of the engineering staff as needed.  The Company has
marketed its products domestically primarily through direct solicitation by its
sales staff, participation in trade shows and  program of trade journal
advertising.  It markets its products in the export markets through foreign
dealers. Some of the foreign dealers are commissioned, while others purchase the
Company's products for resale.

The Company's marketing effort emphasizes the reliability, reasonable
installation cost, ease of maintenance and careful handling of newspaper
products incorporated in the design of the Company's products.  For prospective
customers, the Company is able to use computer-aided systems to design custom
newspaper handling systems and prepare proposals that describe the equipment,
schedules and prices for each project.
                                        
PATENTS

The Company holds 18 U.S. patents, including 14 U.S. patents acquired in
connection with the Company's purchase of the Hall assets, which expire during
the period from 1996 to 2011. The Company also purchased from Hall 7 foreign
patents that expire from 1996 to 2007. The Company will continue to apply for
patent protection when deemed advisable; however, the Company believes that the
success of its products ultimately is dependent upon performance, reliability
and engineering, ingenuity and that its patents are not material to its
business.

RESEARCH AND DEVELOPMENT

Research and development expenditures totaled $219,170, $361,790 and $510,072 in
1995, 1994 and 1993, respectively.  In 1995, the Company's research and
development efforts focused on additional design changes to its existing
newspaper stacker in order to reduce manufacturing costs.    Additionally, the
Company's engineering resources were substantially devoted to customization of
products for clients as a result of the significant increase in net sales during
1995.

EMPLOYEES

As of February 1, 1996, the Company had 123 full-time employees.  None of the
Company's employees are represented by a union, and the Company considers its
employee relations to be good.

ITEM 2 - PROPERTIES

The Company  operates its business from one site located in Miami, Florida.  The
building, which is owned by the Company, contains approximately 63,170 square
feet, of which 48,300 feet are utilized for  the Company s manufacturing
operations, with the remaining 14,870 square feet used for its administrative
functions.  The Company owns all of the equipment utilized in its manufacturing
operations.  In the opinion of management, the Company's properties are adequate
and suitable for its operations.


ITEM 3 - LEGAL PROCEEDINGS

As previously disclosed, on March 16, 1990, Ferag AG, a Swiss Corporation
("Ferag"), filed a complaint against the Company in the United States District
Court for  the Southern District of Florida.  The complaint alleged that the
Company committed acts of infringement of one or more claims of two patents held
by the plaintiff, either directly, contributorily or by inducing others to
infringe.  The plaintiff sought a preliminary and final injunction against
further infringement by the Company and certain related persons, an order
directing the Company to account for and pay damages adequate to compensate for
the infringement of the patents, interest and costs, and such other relief as
the Court would  deem just and proper.  The Company answered that plaintiff's
patent is invalid due to violation of U.S. patent rules, and separately that the
Company's design does not infringe the provisions of the patent.  On September
15, 1993, the District Court found that the Company  infringed one of the
patents held by the plaintiff, but that the plaintiff failed to establish
willful infringement by the Company. The Company  filed an appeal in the United
States Court of Appeals for the Federal Circuit. On January 24, 1995, the United
States Court of Appeals  reversed the judgment against the Company.  Thereafter,
Ferag filed a writ of certiorari with the United States Supreme Court.  In
October 1995, the United States Supreme Court denied certiorari.  As a result,
the Court of Appeals ruling in favor of the Company is final.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable



EXECUTIVE OFFICERS OF THE REGISTRANT

The names, business experience and ages of all executive officers of the Company
are listed below:

                              Business Experience During
          Name                    the Past Five Years                   Age
      
Ralph M. Branca               Mr. Branca has been President and         60
                              Chief Executive Officer since May 
                              1995 and a director of the 
                              Company since April 1991. From 
                              1966 to 1989, Mr. Branca  was 
                              employed by  Emhart Corporation,
                              and served  in various
                              executive capacities from 1980 to 1989.
                              From 1989 to the present, he has been
                              President and owner of RMB Associates,
                              engaged in business consulting.

Louis D. Kipp                 Mr. Kipp has been President of            63
                              Quipp Systems, Inc., since July 1987            
                              and a director of the Company 
                              from August 1987 to January  
                              1995.   He became a director again 
                              in May 1995.  Also Mr. Kipp was President
                              of the Company from August 1983 to
                              July 1987.  He was Treasurer of the
                              Company from August 1983 to 
                              April 1988.  He was reelected to 
                              this position in October 1990
                              and has served as Treasurer since that date.






                                     PART II


ITEM 5 - MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED SECURITY HOLDING
MATTERS

The Company's Common Stock, $.01 par value, is traded on the Nasdaq National
Market under the symbol,  QUIP .   The following table sets forth high and low
sales prices of the Common Stock of the Company as reported on the Nasdaq
National Market since January 1, 1994:

                          First     Second       Third       Fourth
      1995               Quarter     Quarter    Quarter     Quarter     
                  
                   High   12.75       16.25       14.75       12.50
                   Low     6.50       10.50        9.50        8.50
            
                         First       Second      Third       Fourth
      1994              Quarter      Quarter     Quarter     Quarter
            
                    High  3.75        4.00        3.88        8.50
                    Low   2.50        3.25        3.00        3.00

As of  March 8, 1996, the Company had approximately 86 record holders of the
Common Stock, including brokers and other nominees.  The Company has not paid
dividends on its Common Stock since its inception.

ITEM 6 - SELECTED FINANCIAL DATA

The selected financial data should be read in conjunction with the financial
statements and notes thereto which are included elsewhere in this Annual Report
on Form 10-K and also with Management s Discussion and Analysis of Financial
Condition and Results of Operations.  The following selected financial data for
each of the years in the five year period ended December 31, 1995 has been
derived from the audited balance sheets and related statements of operations the
Company.


<TABLE>
                                          
                           1995        1994          1993           1992     1991
                              (In thousands, except per share data)

Income Statement Data: 
<CAPTION>

<S>                      <C>         <C>            <C>             <C>     <C>

Net sales                $23,197     $17,035        $14,789         19,794  $12,976                        
Gross profit               7,631       4,893          4,661          5,558    3,316  
Research and development     219         362            510            366      590        
Sale of patent and 
  license rights               0       1,090              0              0        0                       
Selling, general                            
  and administrative 
  expenses                 4,294       3,653          4,036          4,245    2,721        
Operating profit           3,117       1,968            115            947        5
Other income
  (expense) net              265         221            152            156      155
Net income                 2,096       1,376            321            702      160        
Net income per common and                   
  common equivalent share   1.30        0.88           0.21           0.45     0.11        
Weighted average number of
  shares outstanding   1,625,657   1,556,792      1,510,762      1,546,600 1,500,581

</TABLE>

<TABLE>




                                     1995       1994          1993         1992     1991
                                            (In thousands, except per share data)
<CAPTION>
Balance Sheet Data:
<S>                                <C>          <C>          <C>         <C>         <C>

Current assets                     $18,383      $14,482      $ 11,959    $ 13,105    $ 11,802 
Total assets                        21,267      19,342        14,241      15,194      14,930  
Current liabilities                  6,855       7,444         3,669        4,548      4,886  
Long-term liabilities                1,550       1,350         1,700        1,800     1 ,900  
Shareholders' equity                12,863      10,548         8,871        8,846      8,144  
Book value per share                  7.87        7.18          6.04         6.02       5.54  
</TABLE>
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS

Results of Operations

1995 vs. 1994                                                           
                       Increase                 Percent                       
                      (Decrease)             of  Net Sales  
                  1995        1994          $       %       1995  1994
Net Sales       $23,197      17,035       $6,162    36      100    100

The Company's increased net sales for 1995 were mainly a result of higher
stacker shipments as compared to those in 1994.  The increased shipments
reflected the addition of the Hall Dual Carrier Stacker to the Company s product
line as a result of the Hall acquisition.   See Note 2 to the Consolidated
Financial Statements for further discussion of the Hall acquisition.  In
addition, the Company generated greater spare parts sales in 1995, due in part
to the Hall acquisition, as well as increased sales of bottomwrappers.

                                    `                                         
                               Increase               Percent                 
                             (Decrease)           of  Net Sales   
                    1995        1994           $     %     1995    1994
      
Gross profit       7,631       4,893       2,738     56      33     29

Increased gross profit reflects decreased costs of sales, as a result of price
negotiation with vendors and, in certain instances, use of lower cost vendors
for stacker parts.  The higher 1995 gross profit also resulted from cost savings
in connection with the redesign of the Company s stacker, as well as an improved
mix of the products sold.

                                                                              
                                Increase                   Percent            
                               (Decrease)              of  Net Sales    
                                1995   1994    $     %      1995  1994
      
Selling, general and
 administrative expenses       4,295  3,653   642    18      19     21

Selling, general and administrative expenses increased principally due to
increased amortization resulting from the Hall acquisition.  Selling, general
and administrative expenses also  reflected other expenses relating to the Hall
acquisition and increased costs incurred to support  higher net sales.  The
Company also incurred expenses in 1995 related to an upgrade in its computer
system. 









                               Increase               Percent                 
                             (Decrease)           of  Net Sales                
                             1995   1994    $     %   1995  1994
            
Research and development      219    362  (143) (40)    1     2

Research and development expenses decreased from 1994 to 1995 due to increased
utilization of the Company s engineering staff to support the Company s
increased net sales, as many orders received by  the Company  require  some
degree of custom engineering.  The Company plans to add new engineering
personnel so that it may better support engineering demands relating both to
sales as well as research and development projects.

                               Increase               Percent                 
                             (Decrease)            of  Net Sales  
                        1995   1994     $       %      1995  1994
      
Operating profit       3,117  1,968   1,149    58       13    12

The significant increase in stacker shipments and improved margins were the
principal factors contributing to the increases in operating profit from 1994 to
1995. 

                           Increase                  Percent                  
                          (Decrease)              of  Net Sales               
                        1995    1994     $     %      1995     1994
      
Other income and
   expense                    
   Interest income      355     274      81    30      2         2
   Interest expense     (90)    (53)     37    70      0*        0*
                        ----    ----     --     --     --        --
                        
                        265     221      44    20      2         2


Interest income rose as a result of slightly higher interest rates.  Interest
expense for 1995 increased principally  due to additional debt incurred for the
Hall acquisition.  See Note 8 to the Consolidated Financial Statements for
further discussion of the debt incurred as a result of the Hall acquisition.



1994 vs. 1993     
                               Increase                     Percent           
                             (Decrease)                  of  Net sales
                    1994        1993           $     %     1994      1993
      
Net Sales         $17,035     $14,789      $2,246    15      100    100

The sales increase reflects increased demand and the Company's ability to gain a
greater share of the market.

                                    
                          Increase              Percent                       
                        (Decrease)          of  Net Sales 
                      1994     1993       $      %      1995       1994
      
Gross profit         4,893    4,661      232     5       29         32

Although the Company realized increased margins due to lower manufacturing costs
on its newspaper stacker, which comprised  approximately 43 percent of net
sales, gross profit was adversely affected by the establishment of additional
reserves.  The reserves were established to provide for anticipated follow  up
costs on certain installations.
______________
*less than 1%

                         Increase                    Percent                
                       (Decrease)                 of Net sales
                        1994    1993      $     %       1995      1994
      
Selling, general and
 administrative 
 expenses              3,653   4,036    (383)  (9)        21      27
      
The decrease in selling, general and administrative expenses was primarily due
to a decrease in legal expenses and the reversal of a royalty reserve in the
amount of $550,598 established by the Company for the possible payment of
damages in connection with the litigation described in Note 13 to the Company's
Consolidated Financial Statements.  This decrease was partially offset by an
increase in bad debts of $274,000.

                        Increase                Percent                       
                       (Decrease)           of  Net Sales                      
                    1994        1993      $    %  1995     1994
      
Research and 
 development        362         510     (148) (29)  2        3

Research and development expenses decreased primarily due to the completion of a
program designed to decrease manufacturing costs of the Company's newspaper
stacker. The Company is now marketing the improved newspaper stacker.

                                                                              
                              Increase               Percent                  
                             (Decrease)          of  Net Sales          
                  1994    1993      $     %       1995      1994
      
Operating profit  1,968   115    1,853  1,611%      12      1

The increase in operating profit was partially due to an increase in the volume
of sales and a decrease in selling, general and administrative expenses, offset
by additional reserves established by the Company for follow up costs and bad
debts.  Additionally, in 1995, the Company sold rights to manufacture and sell
worldwide, except in the United States, its single gripper conveyor system for
$50,000 and the assumption by the purchaser of certain warranty expenses (for
which the Company had established a reserve of $140,000, which has been
reversed). In addition, operating income reflects the Company's sale, in
November 1994, of the right, title and interest in its tilt tray system patent
which is utilized in its sort tray distribution system for $900,000.  The
Company has retained a license to make, use and sell the tilt tray system for
use in delivery of signatures and newspapers  in the publishing and newspaper
industries.
                  
                              Increase                Percent                 
                             (Decrease)           of  Net Sales               
                    1994        1993           $     %     1995    1994
      
Other income and
   expenses             
   Interest income   274         207          67    32       2      1   
   Interest expense (53)        (55)          (2)  (4)       0*     0*
                    ----       -----          ---  ---      ---   ---

                     221         152          69    45       2     1  

Interest income increased in 1994 due to the increase in the Company's interest
bearing accounts and the increase in interest rate  on these accounts.  Interest
expense declined in 1994 due to the decrease in the principal balance of the
Company's long-term debt.

General

The Company's larger orders are typically received some months in advance of
delivery.  Therefore, backlog can be an important, though by no means a
conclusive, indication of the Company's revenue stream over the short term.  The
timing of revenues can be affected by the size of pending orders and the amount
of custom engineering required with respect to  an order, the timetable for
delivery and the receipt and nature of new orders. The Company's backlog as of
February 1, 1996 was $6,796,469 compared to $8,732,985 at the same date in 1995.
The Company believes it will satisfy all orders in the February 1, 1996 backlog
by the end of 1996.



Liquidity and Capital Resources

On December 31, 1995, the Company's cash and cash equivalents and the current
portion of securities available for sale totaled $6,737,458 and the Company's
working capital was $11,508,430.  The Company believes its resources are
sufficient to fund operations at its current levels. 

Inflation

The rate of inflation has not had a material impact on the operations of the
Company.


ITEM 8 - FINANCIAL STATEMENTS 

Index to Financial Statements

Independent Auditors' Report

Financial Statements:

   Consolidated Balance Sheets as of December 31, 1995 and 1994

   Consolidated Statements of Operations For Each of the Years in the Three-Year
Period Ended December 31, 1995
      
   Consolidated Statements of Shareholders' Equity for Each of the Years in the
Three-Year Period Ended December 31, 1995

   Consolidated Statements of Cash Flows for Each of the Years in the Three-Year
Period Ended December 31, 1995

Notes to Consolidated Financial Statements

                          INDEPENDENT AUDITORS' REPORT


The Board of Directors
Quipp, Inc.:

We have audited the accompanying consolidated balance sheets of Quipp, Inc. and
subsidiary as of December 31, 1995 and 1994 (the "Company") and the related
consolidated statements of operations, shareholders' equity and cash flows for
each of the years in the three-year period ended December 31, 1995. These
consolidated financial statements are the responsibility of the Company's
management.  Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. 
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Quipp  Inc. and
subsidiary as of December 31, 1995 and 1994 and the results of their operations
and their cash flows for each of the years in the three-year period ended
December 31, 1995 in conformity with generally accepted accounting principles.  



KPMG Peat Marwick LLP
March 8, 1996



                           QUIPP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                           DECEMBER 31, 1995 AND 1994

                                                 
                                                  1995           1994       
ASSETS                                             

Cash and cash equivalents                     $1,251,020      $  744,770
Securities available for 
  sale-current (Note 4)                        5,486,438       5,614,089
Restricted cash  (Note 1)                              0       1,023,765      
      
Accounts receivable, net (Note 1)              6,907,402       2,621,229      
Inventories (Note 5)                           3,474,885       3,203,261      
Deferred tax asset-current (Note 6)            1,177,920       1,104,432      
      
Prepaid expenses and other receivables            85,281         170,696      
                                              -----------     -----------
                              
Total current assets                          18,382,946      14,482,242

Property, plant and equipment, net (Note 7)    1,991,665       2,026,846      
      

Securities available for sale (Note 4 )                0       1,400,000      
      
Goodwill (Note 2)                                499,522         530,742      
      
Other assets                                     354,315         874,192      
      
Deferred tax asset (Note 6)                       38,680          27,810      
                                      
                                             $21,267,128      $19,341,832
                                             ===========      ===========
                                                 
LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
  Current portion of long-term debt (Note 8)    $400,000         $100,000
  Accounts payable                               821,957        1,253,719
  Accrued salaries and wages                     499,041          778,829
  Customer deposits and deferred 
    income (Note 1)                            3,159,502        2,473,363
  Current tax liability                          213,997          622,720
  Other accrued liabilities (Note 9)           1,760,019        2,215,567
                                                  -------           -----
                                                        
Total current liabilities                      6,854,516        7,444,198       
      
                                                 
Long-term debt (Note 8)                        1,550,000        1,350,000
                                             -----------     ------------
                                                        
Contingencies (Note 13)
Total liabilities                              8,404,516        8,794,198
                                                 
Shareholders' Equity
  Common stock - par value $.01 per
   share, authorized
   3,000,000  shares, 1,634,465 and 1,469,465                      
    shares issued and outstanding                 16,345           14,695
  Additional paid-in capital                   5,113,190        4,596,090
  Retained earnings                            8,028,477        5,932,249
  Common stock subscribed                              0          300,000
  Less treasury stock 68,700 shares at cost     (295,400)        (295,400)      
                                               ---------       ----------
      
Total shareholders' equity                    12,862,612       10,547,634
                                             -----------     ------------
                                             $21,267,128      $19,341,832
                                             ===========     ============
                                                        
See accompanying notes to the consolidated financial statements.         

                           QUIPP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF OPERATIONS
                  YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993

                                   1995           1994             1993    
                                       
Net sales                      $23,196,771     $17,034,848      $14,789,297
      
Cost of sales                   15,565,945      12,142,121       10,128,009
                                ----------      ----------       ----------
                                          
Gross profit                     7,630,826       4,892,727        4,661,288
                                 ---------       ---------        ---------
                                                          
Other operating income and (expense) items:
Sale of patent and license 
  rights  (Note 3)                       0       1,090,000                0
      
Selling, general and 
  administrative expenses      (4,294,970)     (3,653,007)       (4,036,432)
         
Research and development         (219,170)       (361,790)         (510,072)
                                 ---------       ---------          -------
                               (4,514,140)     (2,924,797)       (4,546,504)
                                ----------     -----------          -------

Operating profit                 3,116,686       1,967,930          114,784 
                                          
Other income (expense):
   Interest income                 355,148        274,895           207,200 
      
   Interest expense              ( 90,314)        (53,436)          (54,862)
                                 ---------        --------         --------
                                          
                                   264,834        221,459           152,338 
                                   -------        --------          -------
                                          
Income before income taxes
  and cumulative effect of  change in 
  accounting for income taxes    3,381,520      2,189,389           267,122
  
Income tax provision           (1,285,292)      (813,183)          (102,552)
                               -----------      ----------        ---------
                                          
Income before cumulative 
  effect of change
  in accounting for income 
  taxes                          2,096,228      1,376,206           164,570

Cumulative effect of change  
  in accounting                           
  for income taxes                       0               0          156,566
                                ----------      ----------          -------
                              
Net income                      $2,096,228      $1,376,206         $321,136
                                ==========      ==========          =======
                                          
Per share amounts:
Income before cumulative effect of change
   in accounting for income taxes      1.30            0.88            0.11
                              
Cumulative effect of change
   in accounting for income taxes     0.00             0.00            0.10
                                     -----             ----            ----
                              
Net income per common and
   common equivalent share           $1.30            $0.88           $0.21
                                     =====            =====           
      
Weighted average number of  common                                  
  equivalent shares outstanding  1,625,657       1,556,762        1,510,762  
                                 =========       =========          =======
 
See accompanying notes to the consolidated financial statements            
      

<TABLE>

                                     QUIPP, INC. AND SUBSIDIARY
                           CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
                             YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993

<CAPTION>
                                                                        Additional
                                         Common           Stock            Paid-in          Retained
                                         Shares          Amount            Capital          Earnings
<S>    <C>    <C>     <C>             <C>               <C>             <C>               <C>
Balance,      January 1, 1993         1,469,465         $14,695         $4,596,090        $4,234,907
Net income                                                                                   321,136
Purchase of  treasury  stock                                                                        
                                      -------------------------         ----------        ----------
                                               
Balance,      December 31, 1993       1,469,465          14,695          4,596,090         4,556,043
Net income                                                                                 1,376,206
Common stock  subscribed                                                                            
                                      ---------         -------         ----------        ----------
                                               
Balance, December 31, 1994            1,469,465          14,695          4,596,090         5,932,249
Net income                                                                                 2,096,228
Conversion of employee stock options    125,000           1,250            217,500
Issuance of shares for acquisition       40,000             400            299,600
  (Note 10)
Common stock subscribed                                                                             
                                      ---------         -------         ----------        ----------

Balance, December 31, 1995            1,634,465         $16,345         $5,113,190        $8,028,477
                                      =========         =======         ==========        ==========



                                              Common Stock             Treasury Stock at Cost  
                                     Subscribed          Shares             Amount             Total
                                               
Balance, January 1, 1993                      0               0                  0         8,845,692
Net income                                                                                   321,136
Purchase of   treasury stock                             68,700          (295,400)         (295,400)
                                        -------          ------          ---------         ---------
Balance, December 31, 1993                    0          68,700          (295,400)         8,871,428
Net income                                                                                 1,376,206
Common stock  subscribed                300,000               0                  0           300,000
                                        -------         -------          ---------       -----------
                                                                                                    
Balance,  December 31, 1994             300,000          68,700         ($295,400)       $10,547,634
                                               

Net income                                                                                 2,096,228
Conversion of employee stock options                                                         218,750
Issuance of shares for acquisition                                                           300,000
(Note 10)
Common stock subscribed               (300,000)                                            (300,000)
                                      ---------          ------         ----------       -----------

Balance, December 31, 1995                   $0          68,700         ($295,400)       $12,862,612
                                      =========          ======         ==========      ===========
</TABLE>
                                               
See accompanying notes to the consolidated financial statements.       
<TABLE>
                                                    QUIPP, INC. AND SUBSIDIARY
                                               CONSOLIDATED STATEMENT OF CASH FLOWS
                                           YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<CAPTION>
                                                                      1995             1994             1993  
<S>                                                             <C>                <C>                <C>
Cash provided by operations:                                                                                           
Net Income                                                      $2,096,228         $1,376,206         $321,136         
                                                                ---------          ---------        ---------
                                                                                             
Reconciliation of net income to net
   cash provided by (used in) operations:      
Deferred income taxes                                             (84,358)           (87,768)         (123,943)
Cumulative effect of change in                                            
   accounting for income taxes                                           0                  0         (156,566)        
Depreciation and amortization                                      325,569            171,424           174,325        
Gain-on sale of automobile                                               0                  0           (4,281)        
Changes in operational assets and liabilities:
  Decrease (increase) in restricted cash                         1,023,765        (1,023,765)                 0
  (Increase) decrease in accounts receivables                                    (4,286,173)            17,922         445,307
  Decrease (increase) in inventories                               908,376             36,948         (309,866)
  Decrease (increase) in prepaid income taxes                            0            154,209         (154,209)
  Decrease (increase) in other assets and prepaid
     expenses and other receivables                                490,318          (356,156)          (41,458)
 Decrease(increase) in accounts payable and other liabilities (1,167,096)            451,550           312,518
  Increase (decrease) in customer deposits and deferred income    686,139          2,120,769         (582,583)
  Increase (decrease) in income taxes payable                    (408,723)            622,720         (609,152)
                                                                ---------            -------         ---------
                                               
Net cash provided by (used in) operations                        (415,955)          3,484,059        (728,772) 
                                                                ---------          ---------        ---------

Cash flows from investing activities:
   (Increase) decrease in securities available for sale         1,527,651        (6,414,089)         (600,000)
   Capital expenditures                                          (144,196)          (187,923)         (216,324)
   Acquisition of business                                       (280,000)          (377,500)                 0        
                                                               ----------          ---------         ---------
Net cash (used in) provided by investing activities             1,103,455        (6,979,512)         (816,324)                  
                                                                ---------        -----------         ---------
Cash flows from financing activities:
   Repayment of debt                                             (400,000)          (350,000)         (100,000)        
   Repurchase of stock                                                   0                  0         (295,400)
   Conversion of stock options                                     218,750                  0                 0                 
                                                                  -------         ----------         ---------                  
         
Net cash used in financing activities                            (181,250)          (350,000)         (395,400)
                                                                ---------          ---------         ---------
                                                                          
Increase (decrease) in cash and cash  equivalents                 506,250        (3,845,453)       (1,940,496)
         
Cash and cash equivalents at beginning of year                    744,770          4,590,223         6,530,719
                                                               ----------          ---------         --------- 
                                                                          
Cash and cash equivalents at end of year                        $1,251,020           $744,770        $4,590,223
                                                               ==========           ========        ==========
                                                                          
Supplemental disclosure of cash payments made for:
    Interest                                                       $90,314           $53,436            $54,862        
                                                                  =======           ========           =======
    Income taxes                                                $1,778,373           $124,022          $985,000
                                                               ==========           ========          ========
</TABLE>
                                                                  
Supplemental disclosure of non-cash investing activities:
On December 21, 1994 as discussed in Note 2, the Company acquired the inventory 
($1,259,000) and other assets ($267,758) of Hall Processing Systems. The
purchase price in 1994 included the issuance of common shares of the Company
valued at $300,000 and $677,500 in cash.

See accompanying notes to the consolidated financial statements.

                           QUIPP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        DECEMBER 31, 1995, 1994 AND 1993

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation - The consolidated financial statements include the
accounts of Quipp, Inc. and Quipp Systems, Inc., a wholly-owned subsidiary (the
"Company").  All material intercompany transactions have been eliminated.

Operations - The Company is in the business of designing and manufacturing
material handling equipment for the newspaper industry.

Restricted cash - Restricted cash represents monies held in escrow for possible
payment of damages with respect to the former litigation described in Note 13.
The monies, plus interest, less escrow agent fees, were released to the Company
on April 6, 1995.

Inventories - Inventories are stated at a lower of cost or market. Cost is
determined using the first-in, first-out (FIFO) method.

Accounts receivable - Trade receivables are reflected net of an allowance for
uncollectible accounts of $846,171 and $627,002 in 1995 and 1994, respectively.

Customer deposits and deferred income - The majority of the Company's sales are
on a contract basis which provide for progress payments.  These customer
deposits, as received, are recorded to the customer's accounts and the revenue
related to the contract is deferred. Revenue is recognized upon shipment of the
equipment.

Goodwill - Goodwill represents the excess of cost over the estimated fair value
of net assets acquired and is being amortized on a straight-line basis over 17
years.

Research and development costs - Internal research and development costs are
charged to operations as incurred.

Property, plant and equipment, net - The Company provides for depreciation of
property, plant and equipment, all of which are recorded at cost,  by annual
charges to income.   Depreciation is computed using the straight line method.
When assets are retired or otherwise disposed of, the costs and related
accumulated depreciation are removed from the accounts, and any resulting gain
or loss is recognized in income for the period. The cost of maintenance and
repairs is charged to operations as incurred; significant renewals and
betterments are capitalized.

Income taxes - The Company accounts for income taxes using the asset and
liability approach.    Under Statement of Financial Accounting Standards No. 109
( SFAS 109"), this approach gives consideration to the future tax consequences
with differences between financial accounting and tax bases of assets and
liabilities recorded as deferred tax assets and liabilities. (  SFAS ) 109 was
effective January 1, 1993,  and adopted by  Company  in the year ended December
31, 1993 with a cumulative effect of $156,566, thereby increasing income on the
consolidated statement of operations for that year. 

Reclassifications - Certain reclassifications have been made to prior years
financial statements to conform to the current year's presentation.

Cash equivalents - The Company considers all highly liquid investment
instruments  purchased with maturity of three months or less to be cash
equivalents.

Securities available for sale - The Company adopted the provisions of Statement
of Financial Accounting Standards No. 115, "Accounting for Certain Investments
in Debt and Equity Securities" ("SFAS 115"), effective January 1, 1994. Under
SFAS 115, the Company is required to classify any debt and marketable equity
securities in one of three categories: trading, available for sale, or held for
maturity. Securities available for sale are recorded at fair value. Realized
gains and losses from the sales of securities are computed using the specific
identification method and reported in the determination of net income.
Unrealized gains and losses, net of the related tax effects, on non-current
securities are recorded as a separate component of stockholders' equity until
realized.

Net income per share - Net income per share has been computed using the weighted
average number of common and common equivalent shares outstanding.  Common
equivalent shares, which results from the assumed issuance of shares under stock
option  plans, are determined using the treasury stock method.

Deferred bond financing cost - Deferred bond financing costs incurred upon
issuance of  the industrial revenue bonds (See Note  8) included in other assets
are being amortized using a method which approximates the effective yield over
the term of issue. 


Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosuresManagement of the Company has made a number of estimates and
assumptions relating to the reporting of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and
the repoted amounts of revenues and expenses during the reporting period. Actual
results could differ  from those estimates.

2.  ACQUISITION

In December 1994 and January 1995, the Company purchased the inventory  of Hall
Processing Systems ("Hall"), in a series of transactions, as well as used
equipment and intellectual property (i.e. patents, drawings, etc.) for $1.9
million. This purchase price included $677,500 in cash, a 3-year promissory note
in the principal amount of $900,000 and the issuance of 40,000 shares of the
Company's common stock valued at $300,000, or $7.50 per share. The purchase of
approximately $900,000 of  the inventory, consisting primarily of raw materials,
was concluded in January 1995 and recorded to the books at such time. In 1995,
the Company repaid $300,000 of the promissory note, leaving a $600,000 balance
as of December 31, 1995.

The purchase was accounted for by the purchase method in 1994 and the net assets
relating to the part of the transaction which closed in December 1994 are
included in the Company's December 31, 1994 consolidated balance sheet based
upon their estimated fair values at the date of acquisition. The excess of the
purchase price over the estimated fair value of the net assets acquired as of
that date was recorded as goodwill in the amount of $530,742 and is being
amortized over 17 years.  As of December 31, 1995, the amount of goodwill was
$499,522, with amortization of $31,220 charged to operations for the year then
ended.

3.  SALE OF PATENT AND LICENSE RIGHTS

In August 1994, the Company sold the rights to manufacture and sell worldwide,
except in the United States, its single gripper conveyor system for $50,000.  In
addition, the assignee of the right agreed to assume all of the warranty
expenses incurred at an installation site. The Company had previously accrued a
warranty reserve of $140,000 with respect to the installation. This reserve was
reversed as part of the recording of the transaction. The Company retains the
patent and the right to manufacture and sell the single gripper conveyor system
worldwide.

In December 1994, the Company sold the rights, title and interest in its tray
system patent for $900,000. The Company, however, was granted a license to make,
use and sell the tilt-tray system for use in the delivery of signatures and
newspapers in the publishing and newspaper industries.

4.  SECURITIES AVAILABLE FOR SALE

Securities available for sale are recorded at fair value and consist primarily
of United States government obligations and other short-term investments with
original maturity dates in excess of 90 days.

5.  INVENTORIES

Components of inventory as of December 31 were as follows:
                                                                              
      
                             1995             1994
                                 
Raw Material           $2,945,575       $1,842,225
      
Work in process           247,572        1,140,590
      
Finished goods            281,738          220,446
                          ------------------------
      
                                 
                       $3,474,885       $3,203,261
                       ==========       ==========
      

Inventories as of December 31, 1995 reflect the addition of inventory assets
acquired from Hall (See Note 2 above).
                                 

6.  INCOME TAXES

Income tax expense (benefit) for the years ended December 31, 1995, 1994, and
1993 is as follows:
                          Current           Deferred         Total
      1995                       
      Federal          $1,169,605          $(72,171)    $1,097,434
      State and local     200,045           (12,187)       187,858
                       ----------           --------     ---------
                       $1,369,650          $(84,358)    $1,285,292
                        =========           ========     =========
                                                                               
      1994
      Federal            $802,594         ( $78,187)      $724,407
      State and local      98,357            (9,581)        88,776
                       ----------       ------------    ----------
                         $900,951          ($87,768)      $813,183
                         ========         ==========      ========

      1993                       
      Federal            $201,769         ($110,412)       $91,357
      State and local      24,726           (13,531)        11,195             
                       ----------        -----------      --------
                         $226,495        ( $123,943)      $102,552
                         ========        ===========     =========

The Company adopted SFAS No. 109 as of January 1, 1993. The cumulative effect of
$156,566 for this change in accounting for income taxes was included in the
consolidated statement of operations for the year ended December 31, 1993. The
tax effects of the temporary differences that give rise to significant portions
of the deferred tax assets and liabilities as of December 31, 1995 and 1994 are
as follows:

                                               1995         1994
Deferred tax assets:             
    Warranty reserve                        $110,744      $116,712
      
    Inventory obsolescence                   165,900        79,529
      
    Allowance for bad debts                  313,083       231,990
      
    Contract reserves                        163,367       374,708
      
    Depreciation                              38,680        27,810
      
    Vacation accrual                          72,160        58,685
      
    Unicap                                    98,995        61,995
      
    Workman's compensation                    10,693        11,560
      
    Other taxes                             172,308        86,907             
    Other                                    70,670        82,346        
                                            --------   -----------            
Total gross deferred tax assets           1,216,600     1,132,242
Less valuation allowance                          0             0
                                           --------- -------------
Net deferred tax assets                   1,216,600     1,132,242
Deferred tax liability:                           0             0             
Less noncurrent portion
   Depreciation                              38,680        27,810
                                         -----------   -----------

                                          1,177,920     1,104,432
                                           =========     =========

Reconciliation of the statutory Federal income tax rate and the Company's
effective rate for the years ended December 31, 1995, 1994 and 1993 are as
follows:
<TABLE>
<CAPTION>
                                     1995          1994             1993     % of Pretax      % of  Pretax  % of  Pretax
                                  Amount          Earnings          Amount     Earnings          Amount     Earnings
<S>                              <C>             <C>               <C>            <C>           <C>          <C>   
 Federal tax rate                $1,149,716       34.0%            $744,392       34.0%          $90,821       34.0%    
 State and local taxes, net of
   federal income tax benefit       123,986        3.7%              58,592        2.7%            7,389        2.8%
Other                                11,590         .3%              10,199        0.4%            4,342        1.6%
                                  ----------    -------               -----       ----           ------         ----

                                 $1,285,292       38.0%            $813,183       37.1%         $102,552       38.4%
                                  =========       =====             =====        ======           ======        =======
</TABLE>
         

7.  PROPERTY, PLANT AND EQUIPMENT, NET

The property, plant and equipment, net balances at December 31, 1995 and 1994 
consist of the following:
<TABLE>
                                         1995                       1994        Estimated useful lives      
<S>                                  <C>                       <C>                    <C>    
Land                                  $500,500                 $ 500,500                          
Building                             1,431,772                 1,431,772               31.0 Years
Building Improvements                  245,692                   224,168               10.0 Years
Machinery                              717,827                   715,053                5.0 Years
Furniture and Fixtures                 145,270                   143,438                5.0 Years
Computer Equipment                     473,882                   379,995                5.0 Years
Automobiles                             58,740                    34,561                5.0 Years
                                   -----------               ----------
                                                                        
                                     3,573,683                 3,429,487                                               

Less: Accumulated depreciation
  and amortization                  1,582,018                  1,402,641
                                 ------------               -----------

                                   $1,991,665                $2,026,846
                                   ==========                ==========
</TABLE>

8.  LONG-TERM DEBT

On October 4, 1988, the Company borrowed $2,340,000 by issuing, through Dade
County Industrial Development Authority, Variable Rate Industrial Revenue Bonds
with a balance of $1,350,000 at December 31, 1995,  of which $100,000 was
classified as current.  The proceeds from this borrowing were used to refinance
the $1,925,000 purchase price of the Company's administrative and manufacturing
facility on May 16, 1988 and to replenish funds used for building improvements
and new equipment. The Bonds are secured by a letter of credit from a bank, and
bore interest at an average rate of 4.2% and 3.2% during 1995 and 1994,
respectively. The bonds are payable in installments of $100,000 in years 1996
through 2007 and $150,000 in 2008. The letter of credit securing the Company's
obligation expires September 16, 1998.

As a part of the Hall acquisition described in Note 2, the Company entered into
a $900,000 promissory note.  The note is payable over three years and bears
interest at 5 percent per year.  In 1995, the Company paid the first installment
of the note in the amount of $300,000, leaving a $300,000 current balance and a
$300,000 noncurrent balance as of December 31, 1995.

9.  OTHER ACCRUED LIABILITIES

     The components of other accrued liabilities at December 31:

                                  1995         1994
                                 
Professional fees              130,277      323,250                  
Warranty reserve               299,307      422,558                  
Provision for taxes 
  other than income            462,560      234,885                  
Contract provision             566,444    1,012,723                  
Other                          301,431      222,151 
                              --------    ---------
                                      
                            $1,760,019   $2,215,567                  
                            ==========   ==========
                                      
The amount accrued for professional fees at December 31, 1995 is lower than 1994
as the litigation in which the Company was involved in 1994 has been completed. 
See further discussion of litigation in Note 13.  The Company's warranty
reserves are determined based on the Company's experience with customers' claims
arising from the sale of merchandise.  The Company's exposure is based upon
previous experience which is estimated at 1 1/2% of contract sales revenue. 
Amounts added to these reserves were charged to selling expense.  The Company
does not reserve for products manufactured by others, because they are not
covered by a Comapny Warranty.



10.  SHAREHOLDERS' EQUITY

Stock Options - The Company has an incentive stock option plan under which
options may be granted to employees of the Company and the Company's wholly
owned subsidiary, Quipp Systems, Inc. ("Quipp Systems"). The exercise price for
options granted under the plan is at least 100% of the fair market value of the
shares on the date the option is granted. Options may be granted under the plan
to purchase a maximum of 225,000 shares of Common Stock. In 1990, options to
purchase 125,000 shares were granted to two of the Company's executives at an
exercise price of $1.75 per share.  These options were all exercised in 1995. 
No other options have been granted under the plan.

Stock Appreciation Rights Plan -The Company  has  a Stock Appreciation Rights
Plan for  managerial employees. The Plan provides, among other things, incentive
compensation based upon appreciation in the market value of the Common Stock of
the Company. Vesting of share units occurs in equal increments over a five-year
period. Payments can be made annually or deferred until not later than the end
of the five year period, or such longer period as may be approved by the Board
of Directors. No more than 100,000 share units may be issued pursuant to the
Plan. No share units were awarded in 1995, 1994 or 1993.  The compensation
expense relating to the plan was $30,606, $132,997, and $24,442  in 1995, 1994,
and 1993, respectively.

As a result of the part of the acquisition of Hall assets, discussed in Note 2,
that closed in December 1994, shareholders' equity as of December 31, 1994
reflects common stock subscribed in the amount of $300,000 for the shares issued
by the Company in 1995 to Hall.  During the first quarter of 1995, the Company
reclassified this amount upon the issuance of the stock and recorded the $400 to
common stock at par value and $299,600 to additional paid-in capital.

In May 1993, the Board of Directors of the Company authorized a stock repurchase
program, pursuant to which a maximum of $500,000 could be utilized through May
1994 to repurchase shares of the Company's Common Stock. During 1993, the
Company purchased 68,700 shares
for an aggregate purchase price of $295,400. No additional repurchases were made
through the end of the repurchase period.

11.   MAJOR CUSTOMERS

For the year ended December 31, 1995, there were no customers that accounted for
10% or more of the company's net sales.  The San Diego Union and Dow Jones &
Company accounted for approximately 22% and 10%, respectively, of the Company's
net sales in 1994. The Sacramento Bee and the San Bernardino Sun each accounted
for approximately 10% of the Company's net sales  in 1993.  The Company sells a
substantial portion of its products to newspaper publishers in the United
States; however, foreign sales accounted for 18%, 11% and 21% of total revenue
in 1995, 1994 and 1993, respectively. 

12.  EMPLOYEE BENEFIT PLAN

The Quipp  Systems Employee Savings and Investment Plan (the Plan) is a defined
contribution plan which covers substantially all full-time employees. The plan
permits eligible employees to contribute to the Plan up to 10% of annual
compensation subject to the maximum allowable contribution limits of Sections
415, 401(K) and 404 of the Internal Revenue Code. The Company makes a matching
contribution to the Plan equal to 25% of the first 4% of compensation
contributed by each participant. The amount contributed by the Company in 1995
and 1994 was $37,935 and $36,357, respectively.  The administrative expenses of
the Plan are paid by the Company as sponsor.

13.  CONTINGENCIES

On March 16, 1990, Ferag AG, a Swiss Corporation ("Ferag"), filed a complaint
against the Company in the United States District Court for  the Southern
District of Florida.  The complaint alleged that the Company committed acts of
infringement of one or more claims of two patents held by the plaintiff, either
directly, contributorily or by inducing others to infringe.  The plaintiff
sought a preliminary and final injunction against further infringement by the
Company and certain related persons, an order directing the Company to account
for and pay damages adequate to compensate for the infringement of the patents,
interest and costs, and such other relief as the Court may deem just and proper.
The Company answered the plaintiff's patent is invalid due to violation of U.S.
patent rules, and separately that the Company's design does not infringe the
provisions  of the patent.  On September 15, 1993, the District Court found that
the Company  infringed one of the patents held by the plaintiff, but that the
plaintiff failed to establish willful infringement by the Company. The Company 
filed an appeal in the United States Court of Appeals for the Federal Circuit.
On January 24, 1995, the United States Court of Appeals for the Federal Circuit
reversed the judgement against the Company.  Thereafter, Ferag  filed a writ of
certiorari with the United States Supreme Court.  In October 1995, the United
States Supreme Court denied certiorari.  As a result, the Court of Appeals
ruling in favor of the Company is final.
      


In April 1994, the Company entered into an agreement with the plaintiff to
stipulate the entry of an order by the District Court providing that  if the
Company's appeal was unsuccessful, the Company would have paid  pay a maximum of
$1,000,000 in damages plus interest accrued in an escrow account in which the
Company would deposit the $1,000,000.  The order was entered by the District
Court on May 10, 1994 and the Company deposited $1,000,000 into the escrow
account. The court order provided, among other things, that if the appeal were
successful, amounts in the escrow account would be returned to the Company.  
The $1,000,000, held in escrow,  plus interest, less escrow agent fees, was
returned to the Company on  April 6, 1995.

ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL                  DISCLOSURE 

None

                                    PART III


ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

This information (other than the information relating to executive officers
included in Part I) will be included in the Company' s Proxy Statement relating
to its Annual Meeting of Shareholders, which will be filed within 120 days after
the close of the Company's fiscal year covered by this report, and is hereby
incorporated by reference to such Proxy Statement.

ITEM 11 - EXECUTIVE COMPENSATION

This information will be included in the Company's Proxy Statement relating to
its Annual Meeting of Shareholders, which will be filed within 120 days after
the close of the Company's fiscal year covered by this report, and is hereby
incorporated by reference to such Proxy Statement.

ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

This information will be included in the Company's Proxy Statement relating to
its Annual Meeting of Shareholders, which will be filed within 120 days after
the close of the Company' s fiscal year covered by this report, and is hereby
incorporated by reference to such Proxy Statement.

ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

This information will be included in the Company's Proxy Statement relating to
its Annual Meeting of Shareholders, which will be filed within 120 days after
the close of the Company 's fiscal year covered by this report, and is hereby
incorporated by reference to such Proxy Statement.



                                     PART IV

ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a)   1     Financial Statements - See "Index to Financial Statements"          
      
      2     All schedules are omitted because they are inapplicable

      3     Exhibits  (Note:  The file number of all referenced Annual and
Quarterly  Reports on Forms 10-K and forms 10-Q, respectively, is 0-14870.)

      2     Asset Purchase Agreement, dated December 21, 1994, among the
Registrant, Quipp systems, Inc., Hall Systems, Inc.,  Goss Processing  Systems,
Inc. and Hall Processing Systems (Incorporated by reference to Exhibit 2 to the
Registrants Annual Report on Form 10-K for the year ended December 31, 1994).

      3.1   Articles of Incorporation, as amended and restated (Incorporated by 
reference to Exhibit 3.1 to the Registrant s Registration Statement  on Form S-
18, filed with the Commission on June 30, 1986).      

      3.2   By-Laws, as amended (Incorporated by reference to Exhibit 3 to the
Registrant's Quarterly Report on form 10-Q for its quarter ended June 30, 1995.

      10.2.1 Loan Agreement between Dade County Industrial Development Authority
and  Quipp, Inc. dated as of October 1, 1988. (Incorporated by reference to
Exhibit 10.4.2 to Registrant's Annual Report on Form 10-K for the fiscal year
ended December 31, 1988).

      10.2.2 Indenture of Trust between the Dade County Industrial Development 
Authority and Mellon Bank, N.A. dated as of October 31, 1988 (Incorporated by
reference to Exhibit 10.4.3 to Registrant's Annual  Report on Form 10-K for the
fiscal year ended December 31, 1988).

      10.2.3 Specimen Bond - Dade County Industrial Development Authority.  
(Incorporated by reference to Exhibit 10.4.4 to Registrant's Annual Report on
Form 10-K for the fiscal year ended December 31, 1988).
            
      10.2.4 Copy of Promissory Note, dated as of October 4, 1988, from Quipp,
Inc. to Dade County Industrial Development Authority. (Incorporated by 
reference to Exhibit 10.4.5 to Registrant's Annual Report on Form 10-K for the
fiscal year ended December 31, 1988).

      10.2.5 Reimbursement Agreement among NCNB National Bank of North Carolina,
Quipp Systems, Inc. and Quipp, Inc. dated as of October 4, 1988  (Incorporated
by reference to Exhibit 10.4.6 to Registrant's Annual Report on Form 10-K for
the fiscal year ended December 31, 1988).

      10.2.6 Mortgage and Security Agreement from Quipp, Inc. to NCNB National
Bank  of North Carolina and Dade County Industrial Development Authority  dated
as of October 1, 1988. (Incorporated by reference to Exhibit 10.4.7 to
Registrant's Annual Report on Form 10-K for the fiscal year  ended December 31,
1988).

      10.2.7 Guaranty Agreement among Quipp Systems, Inc., Quipp Inc., and Dade
County Industrial Development Authority dated as of October 1, 1988. 
(Incorporated by reference to Exhibit 10.4.8 to Registrant's Annual Report on
Form 10-K for the fiscal year ended December 31, 1988).

      10.2.8 Guaranty Agreement among Quipp Systems, Inc., Quipp Inc., and NCNB 
NationsBank of North Carolina dated as of October 1, 1988.  (Incorporated by
reference to Exhibit 10.4.9 to Registrant's Annual Report on Form 10-K for the
fiscal year ended December 31, 1988).

      10.2.9  Letter Agreement dated March 26, 1992 between NCNB National Bank
of  North Carolina and the Registrant dated March 27, 1991. (Incorporated  by
reference to Exhibit 10.3.9 to Registrant's Annual Report on Form 10-K for the
fiscal year ended December 31, 1990).

      10.2.10 Amendment to Reimbursement Agreement between NationsBank of North
Carolina N.A., Quipp Systems, Inc. and Quipp, Inc. dated as of  March 31, 1994.

      *10.3 Quipp, Inc. 1990 Incentive Stock Option Plan. (Incorporated by 
reference to Exhibit 4.1 to Registrant's  Registration Statement on Form  S-8,
filed with the Commission on May 7, 1990).

      *10.4 Quipp, Inc. Stock Appreciation Rights Plan. (Incorporated by
reference to Exhibit 10.6 to the Registrant's Annual Report on Form 10-K for the
fiscal year ended December 31, 1987).

      *10.5 Quipp, Inc. 1996 Equity Compensation Plan.

      *10.6 Restated Employment Agreement, dated May 1, 1995, between Quipp
Systems, Inc. and Louis D. Kipp 

      *10.7 Quipp Systems, Inc. Employee Savings and Investment Plan
(Incorporated by reference to Exhibit 10.7 to the Registrant's Annual Report on
Form 10-K for the fiscal year ended December 31, 1993).

      11 Schedule of Computation of Net Income Per Share.

      22 Subsidiary of the Registrant. (Incorporated  by  reference to Exhibit
22 to the Registrant's  Annual Report on Form 10-K for the fiscal year ended
December 31, 1987).

      23 Consent of KPMG Peat Marwick LLP

      27 Financial Data Schedule

      *     Constitutes management contract or compensatory plan or arrangement
required to be filed as an exhibit to this form.

(b)The Registrant filed no reports on Form 8-K during the last quarter of the
period covered by this report.

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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:
                                                                  Quipp, Inc.


Date: March 27, 1996    By: s\Ralph M. Branca             
                        Ralph M. Branca, Principal  
                        Executive Officer and Director

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons in behalf of the registrant and
in the capacities and on the dates indicated:
      
Signature                             Title                         Date       


s\ Ralph M. Branca        Principal Executive               March 27, 1996
RALPH M. BRANCA         Officer and President     
            

      
                     
JAMES E. PRUITT                    Director       



s\ Jack D. Finley                  Director                  March 27, 1996
JACK D. FINLEY



                                   Director       
CRISTINA H. KEPNER
      


s\ William L. Rose                 Director                  March 27, 1996
WILLIAM L. ROSE



s\ Louis D. Kipp        Principal Financial                  March 27, 1996
 LOUIS D. KIPP                      Officer



s\Mary Johnson         Principal Accounting                   March 27, 1996
MARY JOHNSON                       Officer


                                   
                                                                            
  QUIPP, INC.
  ANNUAL REPORT ON FORM 10-K
  EXHIBIT  INDEX



(a)   1     Financial Statements - See "Index to Financial Statements"          
      
      2     All schedules are omitted because they are inapplicable

      3     Exhibits  (Note:  The file number of all referenced Annual and
Quarterly  Reports on Forms 10-K and forms 10-Q, respectively, is 0-14870.)

      2     Asset Purchase Agreement, dated December 21, 1994, among the
Registrant, Quipp systems, Inc., Hall Systems, Inc.,  Goss Processing  Systems,
Inc. and Hall Processing Systems (Incorporated by reference to Exhibit 2 to the
Registrants Annual Report on Form 10-K for the year ended December 31, 1994).

      3.1   Articles of Incorporation, as amended and restated (Incorporated by 
reference to Exhibit 3.1 to the Registrant s Registration Statement  on Form S-
18, filed with the Commission on June 30, 1986).      

      3.2   By-Laws, as amended (Incorporated by reference to Exhibit 3 to the
Registrant's Quarterly Report on form 10-Q for its quarter ended June 30, 1995.

      10.2.1      Loan Agreement between Dade County Industrial Development
Authority and  Quipp, Inc. dated as of October 1, 1988. (Incorporated by
reference to Exhibit 10.4.2 to Registrant's Annual Report on Form 10-K for the
fiscal year ended December 31, 1988).

      10.2.2      Indenture of Trust between the Dade County Industrial
Development  Authority and Mellon Bank, N.A. dated as of October 31, 1988
(Incorporated by reference to Exhibit 10.4.3 to Registrant's Annual  Report on
Form 10-K for the fiscal year ended December 31, 1988).

      10.2.3      Specimen Bond - Dade County Industrial Development Authority.
(Incorporated by reference to Exhibit 10.4.4 to Registrant's Annual Report on
Form 10-K for the fiscal year ended December 31, 1988).
            
      10.2.4      Copy of Promissory Note, dated as of October 4, 1988, from
Quipp, Inc. to Dade County Industrial Development Authority. (Incorporated by 
reference to Exhibit 10.4.5 to Registrant's Annual Report on Form 10-K  for the
fiscal year ended December 31, 1988).

      10.2.5      Reimbursement Agreement among NCNB National Bank of North
Carolina,  Quipp Systems, Inc. and Quipp, Inc. dated as of October 4, 1988 
(Incorporated by reference to Exhibit 10.4.6 to Registrant's Annual Report on
Form 10-K for the fiscal year ended December 31, 1988).

      10.2.6      Mortgage and Security Agreement from Quipp, Inc. to NCNB
National Bank  of North Carolina and Dade County Industrial Development
Authority  dated as of October 1, 1988. (Incorporated by reference to Exhibit 
10.4.7 to Registrant's Annual Report on Form 10-K for the fiscal year  ended
December 31, 1988).

      10.2.7      Guaranty Agreement among Quipp Systems, Inc., Quipp Inc., and
Dade County Industrial Development  Authority dated as of October 1, 1988. 
(Incorporated by reference to Exhibit 10.4.8 to Registrant's Annual Report on
Form 10-K for the fiscal year ended December 31, 1988).

      10.2.8      Guaranty Agreement among Quipp Systems, Inc., Quipp Inc., and
NCNB  Nations Bank of North Carolina dated as of October 1, 1988.  (Incorporated
by reference to Exhibit 10.4.9 to Registrant's Annual Report on Form 10-K for
the fiscal year ended December 31, 1988).

      10.2.9      Letter Agreement dated March 26, 1992 between NCNB National
Bank of  North Carolina and the Registrant dated March 27, 1991. (Incorporated 
by reference to Exhibit 10.3.9 to Registrant's Annual Report on Form 10-K for
the fiscal year ended December 31, 1990).

      10.2.10     Amendment to Reimbursement Agreement between NationsBank of
North Carolina N.A., Quipp Systems, Inc. and Quipp, Inc. dated as of  March 31,
1994.

      *10.3       Quipp, Inc. 1990 Incentive Stock Option Plan. (Incorporated by
reference to Exhibit 4.1 to Registrant's Registration Statement on Form  S-8,
filed with the Commission on May 7, 1990).

      *10.4       Quipp, Inc. Stock Appreciation Rights Plan. (Incorporated by
reference to Exhibit 10.6 to the Registrant's Annual Report on Form 10-K for the
fiscal year ended December 31, 1987).

      *10.5       Quipp, Inc. 1996 Equity Compensation Plan.

      *10.6       Restated Employment Agreement, dated May 1, 1995, between
Quipp Systems, Inc. and Louis D. Kipp 

      *10.7       Quipp Systems, Inc. Employee Savings and Investment Plan
(Incorporated by reference to Exhibit 10.7 to the Registrant's Annual Report on
Form 10-K for the fiscal year ended December 31, 1993).

      11    Schedule of Computation of Net Income Per Share.

      22    Subsidiary of the Registrant. (Incorporated  by  reference to
Exhibit 22 to the Registrant's  Annual Report on Form 10-K for the fiscal year
ended December 31, 1987).

      23    Consent of KPMG Peat Marwick LLP

      27    Financial Data Schedule

      *     Constitutes management contract or compensatory plan or arrangement
required to be filed as an exhibit to this form.

(b) The Registrant filed no reports on Form 8-K during the last quarter of the
period covered by this report. The Board of <PAGE>