SECURITIES AND EXCHANGE COMMISSION
                            Washington, D. C.  20549

                                   FORM 10-Q

                 QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

                    For the Quarter Ended September 27, 1998

                         Commission File Number 1-12767

                              CHEMFAB CORPORATION
             (Exact name of registrant as specified in its charter)

               Delaware                                03-0221503
          (State or other jurisdiction of              (I.R.S. Employer
          incorporation or organization)               Identification No.)

          701 Daniel Webster Highway
          Merrimack, New Hampshire                     03054
          (Address of principal executive office)      (Zip Code)

          Registrant's telephone number including
          area code:                         (603) 424-9000

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 the number  of shares outstanding  of each of  the issuer's classes  of
common stock, as of the latest practicable date.


                 Class                  Outstanding at October 30, 1998
     Common Stock, $ .10 par value      7,850,700 shares


                              CHEMFAB CORPORATION
                                     INDEX


Part I - Financial Information:                                       Page No.
                                                                      --------

     Item 1 -  Financial Statements
               --------------------

               Consolidated Balance Sheets at September                    3
               27, 1998 and June 30, 1998

               Consolidated Statements of Income for                       5
               the Three Months Ended September 27,
               1998 and September 28, 1997

               Consolidated Statements of Cash Flows                       6
               for the Three Months Ended September
               27, 1998 and September 28, 1997

               Notes to Consolidated Financial Statements                  7

   Item 2 -    Management's Discussion and Analysis of                     8
               ---------------------------------------
               Financial Condition and Results of Operations
               ---------------------------------------------

Part II - Other Information:

     Item 6(a) - Exhibits                                                  11
                 --------

     Item 6(b) - Reports on Form 8-K                                       11
                 -------------------

     Signatures                                                            12

<TABLE>
<S><C>

                                   CHEMFAB CORPORATION
                                   -------------------
                               CONSOLIDATED BALANCE SHEETS
                               ---------------------------
                         (in thousands except par value amounts)

                                                        September 27,             June 30,
                                                                 1998                 1998
                                                        _____________          ___________
                                                          (Unaudited)
Current assets:
    Cash and cash equivalents                                $  4,468            $ 11,099
    Receivables:
       Trade                                                   19,061               20,946


       Other                                                        -                   17
     Inventories                                               19,750               17,403
     Costs and estimated earnings in excess of
       billings on uncompleted contracts                        2,098                1,373

    Prepaid expenses, and other current assets                  1,202                  720
    Deferred tax assets                                           731                  730
                                                             --------             --------

       Total current assets                                    47,310               52,288

Property, plant and equipment, at cost                         55,701               50,260
    Less: accumulated depreciation                            (27,074)             (26,043)
                                                             --------              -------

   Net property, plant and equipment                           28,627               24,217

Goodwill, net                                                  15,671                9,926
Other assets                                                    2,869                2,673
                                                             --------             --------

          Total assets                                       $ 94,477            $  89,104
                                                             ========             ========

See accompanying Notes to Consolidated Financial Statements.


                                   CHEMFAB CORPORATION
                                   -------------------
                               CONSOLIDATED BALANCE SHEETS
                               ---------------------------
                         (in thousands except par value amounts)

                                                             Sept. 27,            June 30,
                                                                 1998                1998
                                                            ----------            --------
                                                           (Unaudited)
Current liabilities:
    Accounts payable and accrued
         expenses                                            $  13,838           $  12,307
    Accrued income taxes                                         3,164               2,540
    Billings in excess of costs and
         estimated earnings on
         uncompleted contracts                                     345                 151
                                                               -------             -------

       Total current liabilities                                17,347              14,998
                                                               -------             -------

Deferred tax liabilities                                         1,752               1,752

Shareholders' equity:
    Preferred stock, par value $.50:
       authorized - 1,000 shares,
       none issued                                                   -                   -
    Common stock, par value $.10:
       authorized - 15,000 shares;
       issued 8,701 shares at September 27, 1998                    870                 869
       and 8,689 shares at June 30, 1998

    Additional paid-in capital                                  25,115              25,008
    Retained earnings                                           63,429              61,036
    Treasury stock, at cost
        (877  shares at September 27, 1998
         and at June 30, 1998)                                 (15,137)            (15,137)



     Foreign currency translation
         adjustment                                              1,101                 578
                                                               -------             -------

       Total shareholders' equity                               75,378              72,354
                                                               -------             -------

       Total liabilities and shareholders' equity            $  94,477           $  89,104
                                                               =======             =======

               See accompanying Notes to Consolidated Financial Statements.


                                   CHEMFAB CORPORATION
                                   -------------------
                            CONSOLIDATED STATEMENTS OF INCOME
                            ---------------------------------
                                       (Unaudited)
                          (in thousands except par value amount)

                                                                 Three Months Ended
                                                           Sept. 27, 1998   Sept. 28, 1997
                                                           --------------   --------------
Net sales                                                       $  25,233        $  22,154
Cost of sales                                                      16,796           14,595
                                                                 --------         --------

Gross profit                                                        8,437            7,559
Selling, general and
   administrative expenses                                          4,254            3,969
Research and development                                              860              659
Other (income) expense                                               (124)              16
Interest income, net                                                 (103)             (82)
                                                                 --------         --------
Income before income taxes                                          3,550            2,997

Provision for income taxes                                          1,157              959
                                                                 --------          -------

Net income                                                      $   2,393        $   2,038
                                                                 ========         ========

Earnings per share:
   - Basic                                                          $0.31            $0.26
   - Diluted                                                        $0.30            $0.25

Weighted average common share outstanding:
   - Basic                                                          7,816            7,973
   - Diluted                                                        8,092            8,281

               See accompanying Notes to Consolidated Financial Statements.



                                   CHEMFAB CORPORATION
                                   -------------------
                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                          -------------------------------------
                                       (Unaudited)
                                      (in thousands)
                                                                 Three Months Ended
                                                                 ------------------
                                                           Sept. 27, 1998   Sept. 28, 1997
                                                           --------------   --------------
Cash flows from operating activities:
   Net income                                                    $  2,393         $  2,038
   Adjustments to reconcile net income to net
     cash provided by operating activities:
        Depreciation & Amortization                                 1,338            1,205
        Change in assets and liabilities:


           Receivables                                              2,619             (114)
           Costs and estimated earnings in excess
             of billings on uncompleted contracts, net               (531)             540
           Inventories                                             (1,324)          (1,262)
           Prepaid expenses and other                                (251)            (199)
           Other assets                                              (531)             (68)
           Accounts payable and accrued expenses                      (37)          (1,427)
           Accrued income taxes                                       588              827
           Deferred tax assets and liabilities                         (1)              (2)

           Total adjustments                                        1,870            (500)

           Net cash provided by operating activities                4,263            1,538
   Cash flows from investing activities:
        Purchase of Vdb/hi-tex                                     (6,123)               0
        Capital expenditures (net)                                 (4,933)          (1,205)
           Net cash used in investing activities                  (11,056)          (1,205)

   Cash flows from financing activities:
        Proceeds from exercise of stock options                       108              946
        Purchase of treasury shares                                     0           (1,889)

           Net cash provided by/(used in) financing                   108             (943)
           activities

   Effect of exchange rate changes on cash                             54              (50)

   Net decrease in cash and cash equivalents                       (6,631)            (660)

   Cash and cash equivalents at beginning of year                  11,099            8,055

   Cash and cash equivalents at end of period                  $    4,468        $   7,395
                                                                =========        =========

  Interest paid                                                $        0        $       0

  Income taxes paid                                            $      677        $     203

 See accompanying Notes to Consolidated Financial Statements
</TABLE>



                              CHEMFAB CORPORATION
                              -------------------
                  Notes To Consolidated Financial Statements.
                  ------------------------------------------
                               September 27, 1998
                               ------------------
                                  (Unaudited)

Note 1-  Significant Accounting Policies

         Principles of Consolidation:

         The  consolidated  financial statements  of  Chemfab  Corporation  (the
         Company) included  in this report  reflect all adjustments  (consisting
         of  only  normally  recurring  accruals)  which,  in  the  opinion   of
         management, are necessary  for a fair presentation of the  consolidated
         financial position  at September  27, 1998 and  June 30,  1998 and  the
         consolidated statements of income  and cash flows for the three  months
         ended  September  27, 1998  and  September  28, 1997.    The  unaudited
         results  of  operations  for  the  interim  periods  reported  are  not
         necessarily indicative of results to be expected for the year.

         Certain notes and other  information have been condensed  or omitted
         from these interim financial  statements.   The statements,  therefore,
         should be read in conjunction  with  the  consolidated  financial
         statements  and related  notes included in the  Chemfab Corporation
         Annual Report on  Form 10-K  for the  year ended June 30, 1998 (file
         no. 1-12767).



Note 2-  Acquisitions:

        Purchase - Vdb/hi-tex Technische Gewebe Gmbh

        On September 7, 1998 the Company completed the purchase of the
        business assets (principally inventory, equipment, certain liabilities
        and accounts payable, accruals and intangibles) of Vdb/hi-tex Technische
        Gewebe Gmbh (Vdb) for approximately $6.2 million in cash including
        associated transaction costs.  The acquisition was accounted for using
        the purchase method of accounting.  Prior to the acquisition, Vdb's main
        business was in the fabrication and distribution of PTFE composite
        products  principally purchased from Chemfab.  This business is
        expected to continue.   Vdb's primary markets are in Germany, Turkey
        and Eastern European countries.  The acquisition of Vdb resulted in the
        recognition of goodwill of approximately $5.9 million which will be
        amortized over 15 years.

Note 3-  Inventories:

         Inventories consist of the following:
                                        Sept. 27, 1998      June 30,1998
                                        --------------      ------------
                                                  (in thousands)
         Finished Goods                      $ 7,832        $ 5,674
         Work in Process                       6,344          7,396
         Raw Materials                         5,574          4,333
                                             -------        -------
                                             $19,750        $17,403
                                             =======        =======

Note 4-  Commitments and Contingencies:


         The Birdair, Inc. (Birdair) litigation  described in Part 1, Item 3  in
         the  fiscal  1998  Annual  Report  is  still  pending.    The   Company
         vigorously denies  liability.   While the  litigation is  in the  early
         stages  of pretrial  discovery, the  Company continues  its efforts  to
         resolve the dispute.

         Various other lawsuits and claims are pending or have been asserted  by
         and against the Company, including matters previously disclosed by  the
         Company in its  Form 10-K for the year ended  June 30, 1998.   Although
         the outcome  of such  matters cannot  be predicted  with certainty  and
         some lawsuits or claims may be disposed of unfavorably to the  Company,
         management  believes  that   the  disposition  of  its  current   legal
         proceedings, to the  extent not covered by  insurance, will not have  a
         material  adverse  effect on  the  Company's  financial  condition  and
         results of operations.

ITEM 2   Management's Discussion and Analysis of
         ---------------------------------------
         Financial Condition and Results of Operations
         ---------------------------------------------
         Three Months Ended September 27, 1998
         -------------------------------------

Net Sales
---------

The Company's consolidated net  sales for the three  months ended September  27,
1998, the  first quarter  of  fiscal 1999,  increased  14% to  $25,233,000  from
$22,154,000 in  the  same  quarter  last  year.    Shipments  of  the  Company's
engineered products worldwide increased  4% over the  year earlier period  while
shipments of architectural products rose 73%.  Had mainland European  currencies
and the  Pound  Sterling remained  at  the same  exchange  rates as  last  year,
consolidated revenue  would  have  increased by  13%  and  worldwide  engineered
products would have increased by 3% over the previous year.

Engineered  Products  -   Americas  sourced  sales   (which  include  all   non-
architectural product  sales  from  the  Company's  U.S.  manufacturing  plants;
principal geographic markets are the Americas and the Far East) increased 4%  to
$11,898,000 from  $11,472,000  for the  same  quarter  last year.    This  sales
increase resulted principally  from strength  in the  Company's food  processing
markets.   It is  expected  that revenues  from  sales of  engineered  products,
particularly into the Americas, will remain relatively solid through the end  of
the fiscal year.

Engineered Products - Europe sourced sales (which include all product sales from
the Company's European  manufacturing plants; principal  geographic markets  are
Europe, Africa and the Far East) increased to $6,429,000 from $6,054,000 in  the
same quarter last year.  The British Pound,  which is the currency in which  the
Company's  European  sales  are  recorded,  strengthened  relative  to  mainland
European currencies  and relative  to the  U.S. Dollar.   Measured  in  constant
currency rates, sales would  have increased 2% over  the same period last  year.
The impact of the purchase of Vdb (see Note 2) was minor as the acquisition  was
transacted shortly before  the end of  the quarter.   For the  remainder of  the
year, the Company expects to benefit from the inclusion of the revenue from  the
Vdb acquisition.   Sales  growth for  the balance  of the  European business  is
expected to continue  at approximately the  same rate for  the remainder of  the
fiscal year.

Engineered Products - Asia Pacific Business Group sales (which include all  non-
architectural product  sales  to  customers  in  the  Far  East  and  Australia)
decreased slightly to $1,479,000 from $1,500,000 in the same quarter last  year.
This decrease was the result of a  continued weakness of the economy in  certain
Asian countries  which has  caused a  downward trend  in revenues.    Percentage
revenue growth from industrial product shipments into the Asia Pacific region is
expected to continue at approximately this level for the remainder of the fiscal
year.

Architectural Product sales increased 73% to  $5,427,000 from $3,128,000 in  the
same quarter last year.  This increase in revenues was the result of an increase
in sizable projects underway to-date this  year versus last year.  On  September
30, 1998, the  Company entered  into a  $28,600,000 million  contract to  supply
PTFE-coated fabric as the roof membrane for thousands of tent-styled shelters in
Mina, Kingdom of Saudi Arabia.  The Company expects to ship the entire order  in
fiscal 1999,  subject  to  various normal  raw  material  and  production  risks
associated with large-volume orders.   Based on  recent post-period order  entry
and other relevant market data, the  Company expects that architectural  product
sales for the remainder  of the year  are likely to  continue at record  levels,
subject to  various normal  raw material  and production  risks associated  with
record volumes.

Gross Profit Margins
--------------------

Gross profit margins as a percentage of consolidated net sales declined slightly
to 33.4% for the quarter, down  from 34.1% for the  first quarter of last  year.
The decline is principally attributable to product mix, with high  architectural
sales, and some out-of-period costs associated  with the Tent City project,  the
revenues for which are not  expected to be realized  until the second and  third
quarter of fiscal year 1999.


Selling, Administrative, Research and Development Expenses
----------------------------------------------------------

Selling, general and  administrative expenses  increased 7%  to $4,254,000  from
$3,969,000 in  the same  quarter  last year.    Increased selling,  general  and
administration expenditures resulted  from additional expenses  relating to  Vdb
(see Note  2) and  additional legal  expenses, as  well as  normal increases  in
salaries and other  costs.  Selling,  general and administrative  expenses as  a
percentage of sales were 17%, down slightly from the first quarter of last year.

Research and development expenses were $860,000 compared to last year's level of
$659,000.  This  level of spending,  at approximately 3%  of total revenues,  is
consistent with recent, as well as  planned, levels of research and  development
spending.

Interest Expense, Net
---------------------

The Company had net interest income of $103,000 for the quarter compared to  net
interest income of $82,000 for the same  quarter last year, largely as a  result
of excess average cash balances.


                        LIQUIDITY AND CAPITAL RESOURCES

During the quarter ended September 27, 1998, the Company generated $4,263,000 of
cash from operations,  which was up  from the same  quarter of  the prior  year.
During this same period, the Company invested $4,933,000 in property, plant  and
equipment additions, and  expended $6,123,000 to  acquire Vdb/hi-tex  Technische
Gewebe Gmbh (see Note 2).  The  Company also received $108,000 in cash  proceeds
and related tax benefits from the exercise of stock options during this period.

Working capital decreased to $29,963,000 from  $37,290,000 at the end of  fiscal
1998.  As of September  27, 1998, the Company  had approximately $21 million  of
additional credit  available  under  its domestic  and  international  borrowing
facilities. During the  first month of  the second fiscal  quarter, the  Company
commenced draws on its line of credit to finance operations, and expects that it
will continue to do so in connection with the cash flow requirements of the Tent
City project.   Management believes that  the combination of cash on hand,  cash
expected to be generated from operations,  and available credit facilities  will
be adequate  to finance  operations during  fiscal  1999 and  to deal  with  any
liabilities or contingencies described in Note  4 to the Consolidated  Financial
Statements.

                           FORWARD-LOOKING STATEMENTS

Except for the historical information contained herein, the matters discussed in
this Form 10-Q are forward-looking statements within the meaning of the  Private
Securities Litigation Reform Act of 1995,  as amended.  Investors are  cautioned
that forward-looking statements  are inherently uncertain.   Actual  performance
and results  may differ  materially from  those projected  or suggested  due  to
certain risks and uncertainties, including raw material procurement,  production
and related risks, and shipment delays for  a contract of the magnitude of  Tent
City, fluctuation in  the demand for  the Company's  architectural products  and
similar economic and  industry risks related  to the award  and continuation  of
certain large  projects, and  the Company's  ability to  penetrate the  consumer
bakeware liner  market.   Additional information  concerning certain  risks  and
uncertainties that could cause  actual results to  differ materially from  those
projected or suggested is contained in the Company's Annual Report on Form  10-K
for the fiscal year ended June 30, 1998 which has been filed with the Securities
and Exchange  Commission.    The  forward-looking  statements  contained  herein
represent the Company's judgment as of the date of this filing, and the  Company
cautions readers not to place undue reliance on such statements.


                          PART II - OTHER INFORMATION
                          ---------------------------

ITEM 3 _ Legal Proceedings
--------------------------

See the information under the caption "Note 4 _ Commitments and Contingencies"
in Notes to Consolidated Financial Statements of this 10Q.

ITEM 6 - Exhibits and Reports on Form 8-K
-----------------------------------------

    6(a)      Exhibits
              --------

    10(b)10   Asset Purchase Agreement between Chemfab Corporation and
              Vdb/hi-tex Technische Gewebe Gmbh dated July 17, 1998.

    6(b)      Reports on Form 8-K
              -------------------
              None.


                              CHEMFAB CORPORATION
                                   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.


         CHEMFAB CORPORATION
         -------------------
             (Registrant)

    By:/S/ John W. Verbicky
       --------------------
         President, Chief Executive Officer and Director

    By:/S/Moosa E. Moosa
       -----------------
         Moosa E. Moosa
         Vice President - Finance, Treasurer and Chief Financial Officer
         (Principal Financial Officer)

    By:/S/ Hilary A. Arwine
       --------------------
         Hilary A. Arwine
         Corporate Controller
         (Principal Accounting Officer)

Date: November 11, 1998