Form 10-QSB
Securities and Exchange Commission
Washington DC 20549

|X| Quarterly Report Pursuant to Section 13 or 15(D)
of the Securities Exchange Act of 1934

For Quarter Ended March 31, 1998

or

|_| Transition Report Pursuant to Section 13 or 15(D)
of the Securities Exchange Act of 1934

For the transition period from ________________ to _________________

Commission file number: 2-96392-A

Triangle Imaging Group, Inc.
(Exact Name of Registrant as Specified in its Charter)

Florida                                                  59-2493183
State or other jurisdiction of                        I.R.S. Employer
incorporation or organization                         Identification No.

4400 West Sample Road, Coconut Creek, Florida                      33073
(Address of Principal Executive Office)                          (Zip Code)

954-968-2080
(Registrant's telephone number including area code)

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 |__| 

The number of shares of registrant's Common Stock, $.001 par value, 
outstanding as of April 6, 1998 was 11,419,513 shares.



Triangle Imaging Group, Inc.
Index

Part I

Financial Information

Item 1

Financial Statements

Consolidated Balance Sheet
March 31, 1998

Consolidated Statement of Operations
For the Three Months Ended March 31, 1998 and 1997

Consolidated Statement of Cash Flows
For the Three Months Ended March 31, 1998 and 1997

Notes to Financial Statements


Item 2

Management's Discussion and Analysis




Part II

Other Information

Signatures




Part I
Financial Information


Item 1
Financial Statements

<TABLE>

                 Triangle Imaging Group, Inc. and Subsidiary
                         Consolidated Balance Sheet
                                 (Unaudited)

                                   Assets

                                                           March 31, 1998

<S>                                                        <C>    
CURRENT ASSETS:

Cash and cash equivalents                                       1,203,158 
Accounts receivable, net of allowance for doubtful
accounts of $130,000                                            1,073,578 
Prepaid expenses                                                   38,489 
Deferred tax asset                                                156,000
TOTAL CURRENT ASSETS                                            2,471,225 
EQUIPMENT                                                         169,323 
GOODWILL                                                        1,618,039 
DEFERRED TAX ASSET                                                130,000 
OTHER ASSETS                                                      915,654 

TOTAL ASSETS                                                    5,304,241 


                      Liabilities and Stockholders' Equity

CURRENT LIABILITIES:

Accounts payable and accrued expenses                             519,019 
Deferred revenue                                                  313,413 
Due to stockholders                                                50,000 
Deferred tax liability                                             34,000 
Current portion of note payable                                   375,000 

TOTAL CURRENT LIABILITIES                                       1,291,432 

NOTE PAYABLE                                                    1,025,000 
DEFERRED TAX LIABILITY                                            133,000 
STOCKHOLDERS' EQUITY:
Preferred stock, Class A, $1.00 par, 1,000,000
     shares authorized, 10,000 shares issued and
     outstanding                                                   10,000 
Common stock, $.001 par value,
     authorized 50,000,000 shares: 9,919,513
     issued and outstanding                                         9,920 
Additional paid-in capital                                      3,300,317 
Accumulated deficit                                              (318,628)
Stock subscription receivable                                     (25,050)
Deferred compensation                                            (121,750)
TOTAL STOCKHOLDERS' EQUITY                                      2,854,809 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      5,304,241 

See notes to financial statements.

</TABLE>



<TABLE>

                 Triangle Imaging Group, Inc. and Subsidiary
                     Consolidated Statement of Operations
                                   (Unaudited)

                                                Three months ended
                                                     March 31,

<S>                                      <C>            <C> 
                                               1998            1997
SALES                                    $  1,687,365   $   1,111,221 
COST OF SALES                                 275,781         244,055 
GROSS PROFIT                                1,411,584         867,166 
SELLING, GENERAL AND ADMINISTRATIVE
     EXPENSES                                 942,770         694,591 
NON-CASH IMPUTED COMPENSATION EXPENSE          49,640          13,375 
AMORTIZATION OF GOODWILL                       21,665          24,106 
INCOME FROM OPERATIONS                        397,509         135,094 
INTEREST EXPENSE                               19,752          19,486 
INCOME BEFORE MINORITY INTEREST AND
     INCOME TAX PROVISION                     377,757         115,608 
MINORITY INTEREST                                -             26,141 
NET INCOME BEFORE INCOME TAX PROVISION        377,757          89,467 
PROVISION FOR INCOME TAXES                    107,000            -
NET INCOME                               $    270,757   $      89,467 
NET INCOME PER SHARE:
     Basic                               $       0.03   $        0.02 
     Diluted                             $       0.02   $        0.01 
NUMBER OF SHARES USED IN COMPUTATION:
     Basic                                  9,668,160       5,533,332 
     Diluted                               12,096,077       7,155,275 

See notes to financial statements.

</TABLE>


<TABLE>

                   Triangle Imaging Group, Inc. and Subsidiary
                      Consolidated Statement of Cash Flows
                                  (Unaudited)

                                                Three months ended
                                                     March 31,
                                               1998            1997

<S>                                       <C>              <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
     Net income                           $   270,757      $    89,467 
     Adjustment to reconcile net
     income to net cash provided
     by operating activities:        
          Depreciation                         31,419           25,256 

     Amortization of goodwill                  21,665           24,106 
     Non-cash imputed compensation             49,640           13,375 
     Minority interest                         26,141           

Changes in assets and liabilities:
     Increase in accounts receivable         (295,023)         (36,104)
     Decrease in prepaid expenses              13,096 
     Decrease in deferred tax asset           107,000 
     Increase in other assets                (285,321)          (1,055)
     Increase in accounts payable
          and accrued expenses                114,765          144,780 
     Decrease in deferred revenue             (77,512)         (75,784)

CASH PROVIDED BY (USED IN)
     OPERATING ACTIVITIES                     (62,610)         223,278 

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchase of equipment                    (46,253)         (30,327)
CASH USED IN INVESTING ACTIVITIES             (46,253)         (30,327)
CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from sale of stock              396,411             -
     Decrease in stock subscription
          receivable                          501,250             -
     Payment of debt                         (100,000)            -
     Cost of purchasing and
          retiring stock                      (10,649)            -
CASH PROVIDED FROM INVESTING ACTIVITIES       787,012             -
NET INCREASE IN CASH                          678,149          192,951 
CASH - BEGINNING OF PERIOD                    525,009          200,264 
CASH - END OF PERIOD                     $  1,203,158    $     393,215 

See notes to financial statements.

</TABLE>


                  Triangle Imaging Group, Inc. and Subsidiary
                        Notes to Financial Statements
                                 (Unaudited)

1
Basis of Presentation

The accompanying unaudited consolidated financial statements of Triangle 
Imaging Group, Inc. (the "Company") have been prepared in accordance with 
generally accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB and Article 10 of Regulation S-X. 
Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
considered necessary for a fair presentation (consisting of normal
recurring accruals) have been included. 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 disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. 
Actual results could differ from those estimates. Operating results for
the three month period ended March 31, 1998 are not necessarily
indicative of the results that may be expected for the year ending
December 31, 1998. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Company's
Annual Report on Form 10-KSB for the year ended December 31, 1997.

2
Earnings Per Share

Basic earnings per share are computed on the weighted average number of
common shares actually outstanding during the period. Diluted earnings
per share considers potential shares issuable upon exercise or
conversion of other outstanding instruments where dilution would
result. The earnings per share for the prior period have been restated
to conform with the Company's adoption of FAS No. 128.

3
Stockholders' Equity

On March 24, 1998, the CEO of the Company notified the Company of his
intent and converted 10,000 shares of Class A Preferred Stock into
1,500,000 shares of common stock.


Item 2
Management's Discussion and Analysis of Financial Condition

Three Months Ended March 31, 1998 Compared to the Three Months Ended March
31, 1997

Triangle Imaging Group's, Inc. (the "Company") total revenues for the first 
quarter of 1998 were $1,687,365, which is an increase of 52% over the 
Company's first quarter 1997 revenues of $1,111,221. Management believes the 
increase resulted from increased software revenues, reoccurring revenues, and 
the sale of services, which can be attributed an increase in the Company's 
sales force as well as low interest rates, record high home resales and 
increased consumer spending and debt accumulation.

Reoccurring revenues in the CRIS(TM) and ACES(TM) product lines constituted 
47% of the Company's revenues in the first quarter 1998. Revenues from the 
ACES(TM) product line contributed 13% of the reoccurring revenues for the 
first quarter 1998 while the remaining 34% of revenues contributed to 
reoccurring revenues were derived from the CRIS(TM) product line. Reoccurring 
revenues consist of annual software maintenance contracts, technical support 
revenues, software purchased on a per report basis and monthly software
rental programs. New sales of CRIS(TM) products constituted 3% of the
Company's revenues for first quarter 1998 and new sales of ACES(TM)
products comprised 18% of the revenues. Outsourcing revenues accounted
for approximately 31% of the Company's revenues in first quarter 1998.
Other income, including interest income, comprised the remaining 1% of
revenues for the first quarter 1998.

The cost of revenues was $275,781 in first quarter 1998, which was a 5%
cost of revenues decrease from the Company's first quarter 1997 costs of
$244,055. Gross profit, $1,411,584, as a percentage of revenues was 84%
in first quarter 1998 as compared to the 79%, or $867,166, for the first
quarter 1997. The decrease in costs and increase in gross profit
resulted primarily from an increase in operational efficiency and
management's increased involvement in and control of profit margins.

Selling, general and administrative expenses were $942,770 in first quarter 
1998 compared to $694,591, a 35% increase of $248,179 and a cost of revenues 
decrease of 7%. Management believes that the monetary increase in selling, 
general and administrative expenses was due to the increased expenses 
associated with increased sales as well as continued and increased investment 
in its product lines while the decrease as a percentage of revenues was due
to greater operational efficiencies. Non-cash imputed compensation for the
first quarter 1998 was $49,640, a 271% increase compared to $13,375 for
first quarter 1997. The increase was due to the Company's issuance of
stock, during calendar year 1997, to consultants for services necessary
for the dynamic growth of the company. The non-cash imputed compensation
also allowed additional funds to be invested in the company's existing
and developing product lines.

The Company's net income in first quarter 1998 includes a 12% increase in
non-cash expenses of approximately $71,305 and a provision for income
taxes of $107,000 as compared to non-cash expenses of $63,622 for first
quarter 1997. Such expenses were incurred as a result of depreciation and
amortization of assets acquired with the acquisition of EBS as well as
the Goodwill created in the acquisition. The increase of the non-cash
expenses was again primarily attributable increased monetary cost of
revenues. While the Company currently holds a $984,000 net operating
loss carry forward, of which $657,000 is available for the 1998 fiscal
year, the creation of a provision for income taxes is required due to
the current high level of earned income.

Interest expense was $19,752 in first quarter 1998, compared to $19,486 in
the first quarter 1997, reflecting interest paid on a promissory note of 
$1,600,000. The promissory note, which is an 8.25%, plus $25,000 per month
of principle, note with a $775,000 balloon payment due 2/1/00, is held by
the selling shareholders of EBS, created during the sale of stock to
Triangle Imaging Group, Inc. Minority interest for the first quarter 1998
was eliminated by the Company acquiring the remaining 5% of the outstanding
shares of Engineered Business Systems Inc. The acquisition completed on
December 31, 1997 involved the Company purchasing the remaining 5% of the
shares of Engineered Business Systems, Inc. from three minority interest
holders with a combination of cash and stock.

The Company's net gain before any income tax provision for first quarter 1998 
was $377,757, a 322% increase from the net gain before any income tax 
provision for first quarter 1997 of $89,467. The Company's final net income 
after tax provisions increase of 202% was $270,757 for the first quarter 1998 
as compared to the final net income after tax of $89,467 for the first
quarter 1997. The increase in the net gains in first quarter 1998 is
primarily attributable to a combination of all the factors discussed above.

Liquidity and Capital Resources

The Company has funded the vast majority of its working capital and capital 
expenditure requirements with cash provided from operations. The primary 
source of cash receipts is from payments for CRIS(TM), ACES(TM), and 
outsourcing revenues and accounts receivables. The management of the company 
believes cash flows from continuing operations will be sufficient to fund 
expenditures into the foreseeable future.

At March 31, 1998, the Company had working capital of $1,203,158 an increase 
of 206% from the working capital balance of $393,000 as of March 31, 1997.
The March 31, 1998 working capital was derived from and accumulation of
$335,000 from operating cash flows as well as an accumulation of $868,158
raised through the sale of private placement shares of common stock. The
increase is due to the improved cash flow from the increased revenues of
EBS and the issuance of additional private stock and common stock options. 







Part II
Other Information


Item 6
Exhibit and Reports on Form 8-K

A. Exhibits
None.

B. Report on Form 8-K
None.







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.



Triangle Imaging Group, Inc.


Dated: _________________ By: _____________________________________ 
                             /s/ Vito A. Bellezza
                             Chairman of the Board, Chief Executive Officer,
                                and Chief Financial Officer