<TABLE>
                       SANDATA, INC.   
  
                     AND SUBSIDIARIES  
  
          CONSOLIDATED CONDENSED BALANCE SHEETS  
<CAPTION>
                                       UNAUDITED          AUDITED  
                                       August 31,         May 31,   
                                         1996              1996  
<S>                                    <C>             <C>         
ASSETS:   
CURRENT ASSETS  
Cash and cash equivalents              $  7,595        $  368,400  
Accounts receivable - net of   
  allowance for doubtful accounts of  
  $350,000 at August 31, 1996 and May  
  31, 1996, respectively              1,261,296         1,180,905  
Receivables from affiliates             199,589           190,635  
Receivable from former affiliate         26,002            26,258  
Note receivable from former affiliate,  
  net of allowance for doubtful   
  accounts of $119,000 at August 31,  
  1996 and May 31, 1996, respectively    15,787            77,100  
Notes receivable - officers             102,867           102,867  
Inventories                              22,338            27,972  
Prepaid expenses and other current   
  assets                                245,975           172,897  
                                        -------           -------  
TOTAL CURRENT ASSETS                  1,881,449         2,147,034  
  
FIXED ASSETS, NET                     8,857,952         9,399,625  
  
OTHER ASSETS  
Cash surrender value of officer's   
life insurance, security deposits   
and other                               394,854           410,683  
  
TOTAL ASSETS                        $11,134,255      $ 11,957,342  
                                    -----------      ------------  
                                    -----------      ------------  
</TABLE>
<TABLE>
  
                 CONSOLIDATED CONDENSED BALANCE SHEETS  
<CAPTION>
  
                                          UNAUDITED     AUDITED  
                                          August 31,    May 31,   
                                            1996         1996  
<S>                                       <C>          <C>  
LIABILITIES AND SHAREHOLDERS' EQUITY:     
CURRENT LIABILITIES  
Accounts payable and accrued expenses     $  786,055   $1,022,058  
Current portion of long-term debt            659,678      768,354  
Note payable - affiliate                     155,000    1,000,000  
Deferred/unearned revenue                     12,787        4,299  
Deferred income                              265,858      205,252  
                                            --------    ---------  
TOTAL CURRENT LIABILITIES                  1,879,378    2,999,963  
  
LONG-TERM DEBT                             3,203,637    4,322,234  
NOTES PAYABLE - AFFILIATES                 1,642,000      462,000  
DEFERRED INCOME                              315,561      177,530  
DEFERRED INCOME TAXES                        124,750       83,000  
                                            --------    ---------  
TOTAL LIABILITIES                          7,165,326    8,044,727  
                                           ---------    ---------  
SHAREHOLDERS' EQUITY   
Common stock                                     816          816  
Additional paid in capital                 1,279,710    1,279,710  
Retained earnings                          2,825,289    2,768,975  
Treasury stock                              (136,886)   (136,886)  
                                           ---------     --------  
TOTAL SHAREHOLDERS' EQUITY                 3,968,929    3,912,615  
TOTAL LIABILITIES AND SHAREHOLDERS'   
EQUITY                                   $11,134,255$  11,957,342  
</TABLE>
<TABLE>
  
      UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS  
<CAPTION>
  
                                             THREE MONTHS ENDED  
                                                 AUGUST 31,  
                                           1996            1995  
<S>                                    <C>             <C>
REVENUES:  
Service fees                           $2,488,850      $2,074,000  
Real estate rental income                  81,540          35,994  
Other income                              83,2665           2,987  
Interest income                             2,980          14,190  
                                         --------       ---------  
                                        2,656,636       2,177,171  
                                        ---------       ---------  
COSTS AND EXPENSES:  
Service Fees:  
Operating                               1,432,035       1,209,758  
Selling, general and administrative       464,289         529,919  
Depreciation and amortization             302,940         230,360  
Interest expense                           53,943          53,296  
                                           ------          ------  
                                        2,253,207       2,023,333  
                                        ---------       ---------  
Real Estate:  
Operating                                 153,717          38,908  
Depreciation and amortization              28,358           4,520  
Interest expense                           81,540          30,631  
Real estate taxes                          39,000          10,000 
                                           ------          ------  
                                          302,615          84,059  
                                          -------          ------  
TOTAL COSTS AND EXPENSES               $2,555,822      $2,107,392  
                                        ---------       ---------  
Earnings from operations before  
income taxes                              100,814          69,779  
  
Income tax expense (benefit)               44,500          27,912  
                                           ------          ------  
NET EARNINGS                              $56,314         $41,867  
                                          -------         ------- 
                                          -------         -------  
EARNINGS PER COMMON SHARE                    $.03            $.05  
  
Weighted average common shares 
  outstanding                          $1,586,423        $766,418  
                                        ---------         ------- 
                                        ---------         -------  
</TABLE>
<TABLE>
 
      UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS  
<CAPTION>
  
                                          THREE MONTHS ENDED  
                                             AUGUST 31,  
                                          1996          1995  
<S>                                     <C>             <C>
Cash flows from operating activities:  
Net earnings                            $  56,314       $  41,867  
Adjustments to reconcile net earnings 
  to net cash provided by operating  
  activities:  
Depreciation and amortization             331,298         234,880  
(Gain) on disposal of fixed assets       (268,340)            ---  
Provision for losses on accounts  
  receivable                                  ---           1,500  
Recognition of deferred income            (69,704)        114,115  
Recognition of deferred revenue            (5,147)         68,591  
(Increase) decrease in operating  
  assets                                 (140,704)        120,539  
Increase (decrease) in operating  
  liabilities                              87,721        (56,383) 
                                           ------         -------  
Net cash (used in) provided by  
  operating activities                     (8,562)        525,109  
                                            -----         -------  
Cash flows from investing activities:  
Collection of note receivable - officer       ---         129,000  
Purchases of fixed assets                (446,283)    (1,082,160)  
Increases in advances from affiliates         ---        (13,000)  
Collection of note receivable-former  
  affiliate                                61,313          75,777  
Proceeds from sale/leaseback transaction  925,000             --- 
                                          -------      ---------- 
Net cash provided by (used in)  
  investing activities                    540,030       (890,383)  
                                          -------       ---------  
Cash flows from financing activities:  
Principal payments on term loan         (189,273)        (62,502)  
Proceeds from line of credit              700,000         950,000  
Principal payments on line of credit  (1,738,000)       (475,000)  
Proceeds from notes payable - 
  affiliates                            2,410,000             ---  
Principal payments on notes payable 
  - affiliates                        (2,075,000)             --- 
                                       ----------        --------  
Net cash  (used in) provided by  
  financing activities                  (892,273)         412,498 
                                       ---------          -------  
(Decrease) increase in cash and cash 
  equivalents                           (360,805)          47,224  
  
Cash and cash equivalents at beginning 
  of period                              368,400          102,613 
                                         -------          -------  
Cash and cash equivalents at end of  
  period                                $  7,595       $  149,837 
                                        --------       ---------- 
                                        --------       ----------  
</TABLE>

Note: During the three months ended August 31, 1995 the Company 
assumed $4,143,140 of debt as disclosed in the Notes to the 
Consolidated Condensed Financial Statements in conjunction with 
the acquisition of a facility.  
 
 
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS  
(Unaudited)  
  
1.  CONSOLIDATED CONDENSED FINANCIAL STATEMENTS  
  
The Consolidated Condensed Balance Sheet as of August 31, 1996, 
the Consolidated Condensed Statements of Operations and Cash 
Flows for the three-month period ended August 31, 1996 and 1995 
have been prepared by Sandata, Inc. and Subsidiaries (the 
"Company") without audit.  In the opinion of Management, all 
adjustments (which include only normal, recurring adjustments) 
necessary to present fairly the financial position as of August 
31, 1996 and for all periods presented have been made. 
 
For information concerning the Company's significant accounting 
policies, reference is made to the Company's Annual Report on 
Form 10-KSB for the year ended May 31, 1996.  Results of 
Operations for the period ended August 31, 1996 are not 
necessarily indicative of the operating results expected for the 
full year.  
  
2.  RELATED PARTY TRANSACTIONS  
  
(A)  On July 1, 1992, the Company loaned $1,000,000 to the 
Company's Chairman, bearing interest at the prime rate plus 1-
1/4% and was due July 1, 1995. On September 1, 1993, the Company 
issued a new note for the then outstanding balance of $490,000, 
bearing interest at prime plus 1-1/4% and was due April 30, 1994. 
On May 1, 1994, the Company extended the due date of the note to 
the earlier of April 30, 1995 or as the Company may demand at any 
time after the effective date of the then proposed privatization 
transaction. The Chairman paid $340,000 of the outstanding loan 
to the Company during the year ended May 31, 1995. On May 1, 
1995, the Company extended the due date of the note to October 
31, 1995. On July 31, 1995, the Chairman, as a result of the 
assignment of the lease with the Nassau County Industrial 
Development Agency ("NCIDA") from BFS Sibling Realty Inc., 
formerly known as Brodsky Sibling Realty Inc. ("BFS") to Sandata, 
Inc., repaid $129,000. The remaining balance of the note 
receivable was repaid by the Chairman during the quarter ended 
February 29, 1996.  
  
(B)  On June 1, 1994, BFS, an affiliate substantially owned by 
the Company's Chairman, borrowed $3,350,000 in the form of 
Industrial Development Revenue Bonds ("Bonds") to finance costs 
incurred in connection with the acquisition, renovation and 
equipping of the Company's new office space located at 26 Harbor 
Park Drive, Port Washington, New York (the "Facility" or the 
"Building") from the NCIDA. These Bonds were subsequently 
purchased by a bank (the "Bank"). The Bonds bore interest at 
prime plus 3/4 of 1% until August 11, 1995, at which time the 
interest rate became fixed at 9% for a five-year term through 
September 1, 2000.  At that time, the interest rate will be 
adjusted (at the Company's option) to a rate of either prime plus 
3/4 of 1%, or the applicable fixed rate, if offered by the Bank. 
Commencing October 1, 1995, principal, together with interest, 
will be repaid in equal monthly installments over a 15-year 
amortization period, with the balance of unpaid principal due 
September 1, 2005.  
 
(C)  On June 21, 1994 (as of June 1, 1994), the Company and its 
Chairman guaranteed the full and prompt payment of principal and 
interest of the Bonds and the Company granted the Bank a security 
interest and lien on all the assets of the Company. In connection 
with the issuance and sale of the Bonds, the Company entered into 
a lease agreement (the "Sublease") with BFS, whereby the Company 
leased the Facility for the conduct of its business and, in 
consideration therefor, was obligated to make lease payments that 
at least equal amounts due to satisfy the underlying Bond 
obligations.  
  
(D)  As of July 31, 1995, by an Assignment and Assumption and 
First Amendment to Lease between the Company and BFS, the Company 
became the beneficial owner of and leases the Facility from the 
NCIDA (collectively the "Assignment Transaction"). In connection 
with the Assignment Transaction, the Sublease was terminated.  
The Company currently pays rent for the Facility to NCIDA in the 
amount of $48,600 per month, subject to adjustment based upon the 
then effective interest rate, among other things, for a term 
expiring in September, 2005. The expiration of the lease term 
coincides with the maturity date of the existing Bond financing 
through NCIDA.  Upon the expiration of such term, the Company 
currently intends to exercise its right to become record owner of 
the Facility.  
  
In connection with the Assignment Transaction, the Company 
assumed certain indebtedness owed to affiliates of the Company's 
Chairman as follows: (i) the $364,570 remaining balance of a 48-
month term loan bearing interest at 8.7% per annum, and (ii) the 
$428,570 remaining balance of a 42-month term loan bearing 
interest at 8.91%.  Each of the foregoing loans were incurred in 
connection with the construction of improvements to the Building, 
are collateralized by the assets of the primary obligor and are 
guaranteed by the Company's Chairman. The Company entered into 
the Assignment Transaction primarily to satisfy certain 
requirements of the SBA.  
  
(E)  On August 11, 1995, the Company entered into a $750,000 loan 
agreement with the Long Island Development Corporation ("LIDC"), 
under a guarantee by the U.S. Small Business Administration 
("SBA").  The entire $750,000 proceeds have been used to repay a 
portion of the Bond indebtedness to the Bank.  The Term Loan is 
payable in 240 monthly installments and bears interest of 7.015%.  
 
3.  NET EARNINGS PER COMMON SHARE  
  
Earnings per share for the three months ended August 31, 1996 
includes the dilutive effect of outstanding stock options and 
warrants.  The number of common stock equivalents determined by 
applying the modified treasury stock method included in the 
calculation of earnings per share for the three months ended 
August 31, 1996 was 822,468.  The effect of outstanding options 
and warrants was antidilutive for the three months ended August 
31, 1995.  Accordingly, the outstanding options and warrants were 
not included in the calculation of earnings per share for the 
three months ended August 31, 1995.  
  
4.  SALE/LEASEBACK TRANSACTION  
  
In June 1996, the Company consummated a Sale/Leaseback of certain 
fixed assets (principally furniture, fixtures, computer hardware 
and equipment).  The fixed assets, which had a net book value of 
approximately $657,000, were sold for $925,000.  The resulting 
gain of approximately $268,000 was recorded as deferred income 
and is being recognized over the life of the lease, which is 
forty-eight (48) months.  Approximately $16,800 of deferred gain 
was recognized for the three months ended August 31, 1996.  
  
Item 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF 
OPERATION  
  
Management's Discussion and Analysis of Financial Condition and 
Results of Operations  
  
Results of Operations  
  
 Revenues were $2,656,636 for the three months ended August 31, 
1996 as compared to $2,177,171 for the three months ended August 
31, 1995, an increase of $479,465 or 22%.  
  
Service fee revenue for the three months ended August 31, 1996 
was $2,488,850 as compared to $2,074,000 for the same period of 
the prior fiscal year, an increase of $414,850 or 20%.  The 
increase is attributable to revenues derived from a new product 
called SanTrax.  
 
Real estate rental income for the three month period ended August 
31, 1996 was $81,540 as compared to $35,994 for the three month 
period ended August 31, 1995, an increase of $45,546 or 56%.  
  
Other income for the three month period ended August 31, 1996 was 
$83,266, as compared to $52,987 for the three month period ending 
August 31, 1995. This increase is primarily due from the gain 
realized upon the sale of assets in connection with the following 
sale/leaseback transaction.  
  
In June 1996, the Company consummated a sale/leaseback of certain 
fixed assets (principally furniture, fixtures, computer hardware 
and equipment).  The fixed assets, which had a net book value of 
approximately $657,000, were sold for $925,000.  The resulting 
gain of approximately $268,000 was recorded as deferred income 
and is being recognized over the life of the lease, which is 
forty-eight (48) months.  Approximately $16,800 of deferred gain 
was recognized for the three months ended August 31, 1996.  
  
Expenses Related to Services  
  
Operating expenses were $1,432,035 for the three months ended 
August 31, 1996 as compared to $1,209,758 for the three months 
ended August 31, 1995, an increase of $222,277 or 18%.  
  
Programming and payroll costs relating to existing applications 
and costs associated with SanTrax and its operations, including 
telephone and expenses related to equipment, were the primary 
factors for the increase in operating expenses.  
 
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION  
  
Selling, general and administrative expenses were $464,289 for 
the three months ended August 31, 1996, as compared to $529,919 
for the three months ended August 31, 1995, a decrease of $65,630 
or 12%.  The decrease is primarily due to a decrease in payroll 
and related costs and administrative costs related to SanTrax and 
existing product lines.  
  
Depreciation and amortization expense increased $72,580 to 
$302,940 for the three months ended August 31, 1996 as compared 
to $155,370 for the three months ended August 31, 1995. The 
increase was primarily attributable to fixed asset additions, 
including software capitalization costs.  
  
Interest expense was $53,943 for the three month period ended 
August 31, 1996 as compared to $53,296 for the three month period 
ended August 31, 1995.  
  
Expenses Related to Real Estate Operations  
  
Expenses include all expenses related to the operation of the 
Facility, as defined below, including real estate taxes, 
depreciation expense and interest expense.  
  
Income Tax Expenses  
  
Income tax expense for the three month period ended August 31, 
1996 was $44,500 as compared to $27,912 for the three month 
period ended August 31, 1995.  
  
Liquidity and Capital Resources  
  
The Company's working capital increased as of August 31, 1996 to  
$2,071, as compared with a deficiency at May 31, 1996 of 
$852,929.  
  
In June 1996, the Company entered into a sales/leaseback 
transaction whereby certain fixed assets were sold for $925,000 
and concurrently leased back to the Company.  The proceeds were 
used to repay outstanding advances against the Company's Credit 
Agreement (as defined below).  
  
The Company has spent approximately $446,000 in fixed asset 
additions, including software capitalization costs in connection 
with revenue growth and new product development.  
  
On July 1, 1992, the Company loaned $1,000,000 to the Company's 
Chairman, bearing interest at the prime rate plus 1-1/4% and was 
due July 1, 1995. On September 1, 1993, the Company was issued a 
new note for the then outstanding balance of $490,000, bearing 
interest at prime plus  
  
1-1/4% and being due April 30, 1994. On May 1, 1994, the Company 
extended the due date of the note to the earlier of April 30, 
1995 or as the Company may demand at any time after the effective 
date of the then proposed privatization transaction. The Chairman 
paid $340,000 of the outstanding loan to the Company during the 
year ended May 31, 1995. On May 1, 1995, the Company extended the 
due date of the note to October 31, 1995. On July 31, 1995, the 
Chairman, as a result of the assignment of the lease with the 
Nassau County Industrial Development Agency ("NCIDA") from BFS 
Sibling Realty Inc., formerly known as Brodsky Sibling Realty 
Inc. ("BFS"), an affiliate substantially owned by the Company's 
Chairman, to Sandata, Inc., repaid $129,000.  The remaining 
balance of the note receivable was repaid by the Chairman during 
the quarter ended February 29, 1996.  
  
On July 31, 1993, the Company received a promissory note from 
Compuflight, Inc. ("Compuflight"), a former affiliate (the 
Company's Chairman was a principal stockholder and Chairman of 
Compuflight through December 1, 1993) to evidence the Company's 
accounts receivable from Compuflight.  The note was payable in 
increments of $20,000 per month including interest at the rate of 
one percent above prime on the unpaid balance and was due April 
1, 1994.  On November 1, 1993, the note was amended.  The amended 
note is payable in minimum increments of $20,000 per month with 
interest at ten percent (10%) per annum and contains provisions 
for accelerated payments based upon Compuflight achieving certain 
results. Payments commenced on February 28, 1994 and are to 
continue until such time as the indebtedness and any accrued 
interest are paid in full.  In connection with the promissory 
note, the Company received a security interest in substantially 
all the then existing assets of Compuflight, which has been 
assigned to the Bank as collateral for the Company's Credit 
Agreement with the Bank.  At the present time, Compuflight is 
indebted to the Company in the amount of $160,570, of which 
$134,568 represents the balance due on the note and $26,002 
represents accounts receivable.  
  
On June 1, 1994, BFS borrowed $3,350,000 in the form of 
Industrial Development Revenue Bonds ("Bonds") to finance costs 
incurred in connection with the acquisition, renovation and 
equipping of the Company's new office space located at 26 Harbor 
Park Drive, Port Washington, New York (the "Facility" or the 
"Building") from the NCIDA. These Bonds were subsequently 
purchased by the Bank.  The aggregate cost incurred by BFS in 
conjunction with such acquisition, renovation and equipping was 
approximately $4,377,000.  In addition, the Company incurred 
approximately $500,000 in connection with additional capital 
improvements. The Bonds bore interest at prime plus 3/4 of 1% 
until August 11, 1995, at which time the interest rate became 
fixed at 9% for a five-year term through September 1, 2000.  At 
that time, the interest rate will be adjusted (at the Company's 
option) to a rate of either prime plus 3/4 of 1%, or the 
applicable fixed rate if offered by the Bank. Commencing October 
1, 1995, principal, together with interest, is being repaid in 
equal monthly installments based on a 15 year amortization, with 
the balance of unpaid principal due September 1, 2005.  On June 
21, 1994 (as of June 1, 1994), the Company and its Chairman 
guaranteed the full and prompt payment of principal and interest 
of the Bonds and the Company granted the Bank a security interest 
and lien on all the assets of the Company. In connection with the 
issuance and sale of the Bonds, the Company entered into a lease 
agreement (the "Sublease") with BFS, whereby the Company leased 
the Facility for the conduct of its business and, in 
consideration therefor, was obligated to make lease payments that 
at least equal amounts due to satisfy the underlying Bond 
obligations.  
  
As of July 31, 1995, by an Assignment and Assumption and First 
Amendment to Lease between the Company and BFS, the Company 
became the beneficial owner of and leases the Facility from the 
NCIDA (collectively the "Assignment Transaction"). In connection 
with the Assignment Transaction, the Sublease was terminated.  
The Company currently pays rent for the Facility to the NCIDA in 
the amount of $48,600 per month, subject to adjustment based upon 
the then effective interest rate, among other things, for a term 
expiring in September, 2005. The expiration of the Lease term 
coincides with the maturity date of the existing Bond financing 
through the NCIDA. Upon the expiration of such term, the Company 
currently intends to exercise its rights to become record owner 
of the Facility.  In connection with the Assignment Transaction, 
the Company assumed certain indebtedness owed to affiliates of 
the Company's Chairman as follows: (i) the $364,570 remaining 
balance of a 48-month term loan bearing interest at 8.7% per 
annum, and (ii) the $428,570 remaining balance of a 42-month term 
loan bearing interest at 8.91%.  Each of the foregoing loans were 
incurred in connection with the construction of improvements to 
the Building, are collateralized by the assets of the primary 
obligor and are guaranteed by the Company's Chairman.  
  
On August 11, 1995, the Company entered into a $750,000 loan 
agreement with the Long Island Development Corporation ("LIDC"), 
under a guarantee by the U.S. Small Business Administration 
("SBA").  The entire $750,000 proceeds have been used to repay a 
portion of the Bond indebtedness to the Bank.  The Company 
entered into the Assignment Transaction primarily to satisfy 
certain requirements of the SBA. The Term Loan is payable in 240 
monthly installments of $6,255, which includes principal and 
interest at a rate of 7.015%.  
  
On April 20, 1995 the Company's $2,000,000 secured revolving 
credit agreement (the "Credit Agreement") with the Bank was 
amended, extending the due date for a period of two years.  Upon 
maturity, the Company may, at its option convert the outstanding 
principal balance of the Credit Agreement to a five-year self-
amortizing term loan.  The amended Credit Agreement revised the 
Company's requirements to maintain a stated net worth amount and 
maximum net loss amount, plus specific working capital and 
liquidity ratios, capital expenditure limitations and 
restrictions on the payment of dividends.  Contemporaneously, the 
Bank tended a two-year term loan (the "Term Loan") of $500,000 to 
the Company. The proceeds of the Term Loan were used to partially 
repay outstanding advances against the Company's Credit 
Agreement.  Principal and interest of the Term Loan are to be 
repaid over a 24-month period.  As of August 31, 1996 there is no 
outstanding balance on the line of credit and $166,656 remaining 
on the Term Loan.  
  
The Company believes the results of its continued operations, 
together with the available Credit Line, Term Loan and financings 
from the IDA and SBA should be adequate to fund presently 
foreseeable working capital requirements.  
  
On September 30, 1996 Sandata announced that it entered into a 
letter of intent to raise, on a "best efforts--all or none" 
basis, $1,500,000 pursuant to a private offering of an aggregate 
of 300,000 shares of Common Stock and five year warrants for the 
purchase of 150,000 shares of Common Stock at an exercise price 
of $7.00 per share.  Neither the shares of Common Stock, the 
warrants nor the shares of Common Stock underlying the warrants 
will be registered under the Securities Act of 1933, as amended, 
and may not be offered or sold in the United States absent 
registration or an applicable exemption from registration 
requirements.  However, the letter of intent contemplates that 
purchasers of such Units will be granted certain registration 
rights.  In connection with such registration, it is contemplated 
that an additional 100,000 shares of the Company's Common Stock 
will be registered for certain security holders of the Company. 
Contemporaneously with the execution and delivery by the Company 
of the letter of intent, certain assignees of the placement agent 
acquired 100,000 shares of the Company's Common Stock at a 
purchase price of $3.00 per share.  The Company is in the process 
of preparing the offering document and negotiating a placement 
agreement.  No assurance can be given that the private offering 
will be consummated on the terms described herein or at all.  
  
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:  
  
Exhibit 27 - Financial Data Schedule (Electronic Filing Only)  
  
SIGNATURES  
  
Pursuant to the requirements of the Securities Exchange Act of 
1934, the Registrant has duly caused this report to be signed on 
its behalf by the undersigned thereunto duly authorized.  
  
  
  
                                          SANDATA, INC.  
                                          (Registrant)  
  
Date:  October 15, 1996                By: /s/ Bert E. Brodsky  
  
                                       Bert E. Brodsky  
                                       Chairman of the Board  
                                       President, Chief Executive   
                                       Officer,Chief Financial  
                                       Officer  
 
  
October 15, 1996  
  
  
  
Securities and Exchange Commission  
450 5th Street, N.W.  
Washington, D.C.  20549  
  
             Re:      Sandata, Inc., File No. 0-14401  
  
Dear Sir or Madam,  
  
Transmitted herewith through the EDGAR system is Form 10-QSB for 
the quarter ending August 31, 1996  for Sandata Inc.  If you have 
any questions or comments, please contact me at (516)484-4400, 
extension 215.  
  
Very truly yours,  
 
 
Linda Scarpantonio  
Legal Coordinator