SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.  20549



                                  FORM 10-Q




(Mark One)
[ x ] Quarterly report pursuant to section 13 of 15(d) of the Securities 
Exchange Act of 1934 for the quarterly period ended March 31, 1999

[   ] Transition report pursuant to section 13 of 15(d) of the Securities 
Exchange Act of 1934 for the transition period from ------------- to 
       
      ------------- 


                        Commission File No. 0-21038


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



    Rhode Island                                     05-0366090       
(State or other jurisdiction of          (I.R.S. Employer Identification No.)
  incorporation or organization)


                 475 Kilvert Street, Warwick, Rhode Island  02886
            (Address of principal executive offices, including zip code)
             
                               (401) 732-9000
             (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 of 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    .

As of March 31, 1999, there were 780,156 shares of the registrant's Common 
Stock, $.10 par value, outstanding.
<PAGE>

                            PART 1 - FINANCIAL INFORMATION

Item 1.  Financial Statements

                                Network Six, Inc.
                           Condensed Balance Sheets

<TABLE>
<CAPTION>
                                               Mar. 31, 1999    Dec. 31, 1998
Assets                                           (unaudited)
Current assets:                                 ------------     ------------
<S>                                              <C>               <C>
 Cash                                         $    1,331,204    $   1,442,035
 Contract receivables, less allowance for
   doubtful accounts of $69,175 at March 31,
   1999 and December 31, 1998                      1,431,149        1,966,788
 Costs and estimated earnings in excess of
   billings on contract                            1,371,005        1,220,253
 Other current assets                                130,365          112,433
                                                ------------     ------------
     Total current assets                          4,263,723        4,741,509


Property and equipment
  Computers and equipment                            599,555          590,527
  Furniture and fixtures                             162,687          163,532
  Leasehold improvements                              20,191           20,191
                                                ------------     ------------
                                                     782,433          774,250
Less: accum. depreciation and amortization           593,446          602,033
                                                ------------     ------------
       Net property and equipment                    188,987          172,217

Deferred taxes                                        37,097           37,097

Contract receivables and costs in excess
   of billings on Hawaii contract                  3,459,382        3,459,382
Other assets                                         277,220          290,577
                                                ------------     ------------
                                              $    8,226,409    $   8,700,782
                                                 ===========      ===========
</TABLE>
<PAGE>


<TABLE>
<CAPTION>
                                              Mar. 31, 1999     Dec. 31, 1998
                                                (unaudited)
Liabilities and Stockholders' Equity           ------------     ------------
Current liabilities:
<S>                                               <C>            <C>
  Notes payable to bank                                    -                -
  Current installment of obligations
     under capital leases                     $       83,582   $       89,483
  Current portion of long-term debt:
    Vendors                                          200,000          200,000
    Others                                            88,835           91,997
  Accounts payable                                   121,441           58,456
  Accrued salaries and benefits                      422,535          579,320
  Accrued subcontractor expense                       27,380           24,950
  Other accrued expenses                             296,236          320,982
  Billings in excess of costs and
     estimated earnings on contracts                 357,871          341,572
  Income taxes payable                               126,011          780,066
  Deferred taxes                                      42,491           42,491
  Preferred stock dividends payable                  874,588          795,992
                                                ------------     ------------
    Total current liabilities                      2,640,970        3,325,309

Obligations under capital leases,
    excluding current installments                    29,958           38,090
Long-term debt, less current portion:
    Vendors                                          542,239          542,239
    Others                                           390,310          409,778
Hawaii Payable                                       576,483          576,483
                                                ------------     ------------
     Total Liabilities                             4,179,960        4,891,899
Stockholders' equity:
  Series A convertible preferred stock,
    $3.50 par value. Authorized 857,142.85
    shares; issued and outstanding 714,285.71
    shares at March 31, 1999 and December 31,
    1998; liquidation of $3.50 per share
    plus unpaid and accumulated dividends          2,235,674        2,235,674
  Common stock, $.10 par value. Authorized
    4,000,000 shares; issued 780,156 shares
    at March 31, 1999 and 764,663 at
    December 31, 1998                                 78,016           76,466
Additional paid-in capital                         1,853,698        
1,796,284Retained earnings (accumulated deficit)    (120,939)        (299,541)
                                                ------------     ------------
     Total stockholders' equity                    4,046,449        3,808,883
                                                ------------     ------------
     Total Liabilities & Stockholders' Equity $    8,226,409   $    8,700,782
                                                 ===========      ===========

</TABLE>
<PAGE>



                                Network Six, Inc.
                         Condensed Statements of Income
                                 (Unaudited)

<TABLE>
<CAPTION>
                                               Three months      Three months
                                               ended 3/31/99     ended 3/31/98
                                               -------------     -------------
<S>                                               <C>               <C>
Contract revenue earned                            2,688,400        2,221,618
Cost of revenue earned                             1,574,522        1,446,656
                                                ------------      ------------
     Gross profit                                  1,113,878          774,962

Selling, general & administrative expenses           661,920          557,824
                                                ------------      ------------
     Income from operations                          451,958          217,138

Other deductions (income)
     Interest expense                                 29,956           29,187
     Interest earned                                 (13,927)         (50,124)
                                                ------------      ------------
          Income before income taxes                 435,929          238,075

Income taxes                                         178,731           97,610
                                                ------------      ------------
Net income                                           257,198          140,465
                                               =============     =============
Net income per share:
Basic                                                   0.23             0.08
                                               =============     =============
Diluted                                                 0.23             0.08
                                               =============     =============
Shares used in computing net income per share:
Basic                                                774,975          749,503
                                               =============     =============
Diluted                                              774,975          749,503
                                               =============     =============
Preferred dividends declared                          78,596           83,219
                                               =============     =============
</TABLE>
<PAGE>
                                Network Six, Inc.
                      Condensed Statements of Cash Flow
                                  (Unaudited)
<TABLE>
<CAPTION>
                                              Three months        Three months
                                                   ended               ended
                                           March 31, 1999      March 31, 1998
                                           ---------------     ---------------
<S>                                            <C>                    <C>
Net Income                                        257,198             140,465
Adjustment to reconcile net income to net cash
  provided by operating activities:
    Depreciation and amortization                  16,032              14,522
    Provision for doubtful accounts                     -                   -
    Loss on sale/disposal of fixed assets               8               4,316
    Changes in operating assets and liabilities:
    Contract receivables                          535,639           1,231,423
    Cost and estimated earnings
      in  excess of billings on contracts        (150,752)           (272,502)
    Other current assets                          (17,932)             84,722
    Other assets                                   13,357              11,948
    Accounts payable                               62,985             (31,618)
    Accrued salaries and benefits                (156,785)            (18,180)
    Accrued subcontractor expense                   2,430            (853,252)
    Other notes payable                                 -             (63,871)
    Other accrued expenses                        (24,746)                (27)
    Billings in excess of costs
      and estimated earnings on contracts          16,299              28,396
    Income taxes payable                         (654,055)             75,281
                                           ---------------     ---------------
     Net cash provided by (used in)
        operating activities                     (100,322)            351,623
                                           ---------------     ---------------
Cash flows from investing activities:
   Cash Proceeds from Sale/Disposal
          of Capital Assets                           350                 -
   Capital expenditures                           (33,160)            (44,123)
                                           ---------------     ---------------
      Net cash used in investing activitie        (32,810)            (44,123)
                                           ---------------     ---------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                             Three months        Three months
                                                 ended               ended
                                           March 31, 1999      March 31, 1998
                                           ---------------     ---------------
Cash flows from financing activities:
  Principal payments on capital
<S>                                             <C>                <C>
    lease obligations                             (14,033)            (16,835)
  Payments on long term debt                      (22,630)                  -
  Net payments on note payable to bank                  -          (1,160,000)
  Proceeds from issuance of common stock           58,964              43,726
                                           ---------------     ---------------
     Net cash provided by (used in)
         financing activities                      22,301          (1,133,109)
                                           ---------------     ---------------
  Net decrease in cash                           (110,831)           (825,609)
  Cash at beginning of period                   1,442,035           1,291,924
                                           ---------------     ---------------
  Cash at end of period                         1,331,204             466,315
                                            ==============      ==============
Supplemental cash flow information:
    Cash paid during the period for:
        Income taxes                              832,786              23,180
        Interest                                   22,849              25,678
                                            =============       ==============

</TABLE>
<PAGE>


                              Network Six, Inc.
                        Notes to Financial Statements
                              March 31, 1999
                                (unaudited)


(1)  Basis of Presentation

The interim financial statements have been prepared without audit, pursuant 
to the rules and regulations of the Securities and Exchange Commission 
(SEC).  Certain information and footnote disclosures, normally included in 
financial statements prepared in accordance with generally accepted 
accounting principles, have been condensed or omitted pursuant to SEC rules 
and regulations; nevertheless, management believes that the disclosures 
herein are adequate to make the information presented not misleading.  
These financial statements should be read in conjunction with the financial 
statements and notes thereto included in the Form 10K and Proxy Statement. 
 In the opinion of management, all adjustments, consisting only of normal 
recurring adjustments, necessary to present fairly the financial position 
of the Company as of March 31, 1999, and the statements of income and cash 
flows for the three month periods ended March 31, 1999 and 1998, have been 
included herein.  The results of operations for the interim periods are not 
necessarily indicative of the results for the full years.

(2)  Under the new requirements in SFAS No. 128 for calculating basic earnings 
per share, the dilutive effect of stock options and warrants are 
excluded.  



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS

Cautionary Statement Regarding Forward-Looking Statements

     This report contains forward-looking statements reflecting the Company's 
expectations or beliefs concerning future events that could materially affect 
Company performance in the future.  All forward-looking statements are subject 
to the risks and uncertainties inherent with predictions and forecasts.  They 
are necessarily speculative statements, and unforeseen factors, such as 
competitive pressures, litigation results and regulatory and state funding 
changes could cause results to differ materially from any that may be 
expected.  In particular, adverse decisions in on-going material litigation 
could have a material adverse effect on the Company's financial condition and 
operating results.  Actual results and events may therefore differ 
significantly from those discussed in forward-looking statements. Moreover, 
forward-looking statements are made in the context of information available as 
of the date stated, and the Company undertakes no obligation to update or 
revise such statements to reflect new circumstances or unanticipated events as 
they occur.

General
     In January 1999, the Company announced that the State of Rhode Island, 
Department of Administration, had increased its contract with the Company for 
an additional $2.5 million for enhancing the State's InRHODES computer system, 
used by the Department of Human Services and the Division of Taxation - Child 
Support Enforcement.  This brings the total value of the Company's support 
contract with the State of Rhode Island for InRHODES-related work to $5.3 
million.

     In February 1999, the Company announced that Dr. Samara H. Navarro, 
formerly Deputy Commissioner, Department of Children and Families, State of 
Florida, joined the Company as Vice President of Governmental Services.

     In April 1999, the Company announced the resignation of Director Clifton 
C. Dutton and the appointment of Director Peter C. Wallace.
  
Year 2000 Disclosure

     The Year 2000 issue concerns the inability of information systems, 
primarily computer software programs, to recognize properly and process date 
sensitive information subsequent to December 31, 1999.  The Company has 
committed resources (approximately $56,000) over the past nine months to 
improve its information systems ("IS project").  The Company has used this IS 
project as an opportunity to evaluate its state of readiness, estimate 
expected costs and identify and quantify risks associated with any potential 
year 2000 issues.

State of Readiness:

     In evaluating the Company's exposure to the year 2000 issue, management 
first identified those systems that were critical to the ongoing business of 
the Company and that would require significant manual intervention should 
those systems be unable to process dates correctly following December 31, 
1999.  These systems were the Company's internal time tracking system and 
internal administrative system.  Once these systems were identified, 
management identified and agreed to undertake the following steps to ascertain 
the Company's state of readiness:

I.     Obtaining letters from software and hardware vendors concerning  
       the ability of their products to properly process dates after    
       December 31, 1999;
II.    Testing the operating systems of all hardware used in the        
       Company, and internal administration systems to determine if     
       dates after December 31, 1999 can be processed correctly;
III.   Surveying other parties who provide or process information in    
       electronic format to the Company as to their state of readiness  
       and ability to process dates after December 31, 1999; and
IV.    Testing the identified information systems to confirm that they  
       will properly recognize and process dates after December 31,     
       1999.

The Company anticipates completion of Step I - Step IV above for all 
material software and hardware by the end of June 1999. Any software or 
hardware determined to be non-compliant will be modified, repaired or 
replaced.  The Company estimates the aggregate costs of such modifications, 
repairs and replacements to be $100,000 at this time.

Costs:

     As noted above, the Company spent approximately $56,300 over the past 
nine months to improve its information systems.  In addition, the Company 
anticipates that it will spend approximately $44,000 over the next 9 months to 
further improve its information systems.

Risks:

     Effective August 4, 1998, the Securities and Exchange Commission 
issued Release No. 33-7558 (the "Release") in an effort to provide further 
guidance to reporting companies concerning disclosure of the year 2000 
issue.  In this Release, the Commission required that registrants include 
in its year 2000 disclosure a reasonable description of its "most 
reasonably likely worst case scenario."  Based on the Company's assessment 
and the results of remediation performed to date as described above, the 
Company believes that all problems related to the year 2000 will be 
addressed on a timely basis so that the Company will experience little or 
no disruption in its business immediately following December 31, 1999.  
However, if unforeseen difficulties arise, or if compliance testing is 
delayed or necessary remediation efforts are not accomplished in accordance 
with the Company's plans described above, the Company anticipates that its 
"most reasonably likely worst case scenario" (as required to be described 
by the Release) is that some percentage of the Company's time tracking 
related to contract labor costs would need to be processed manually for 
some limited period of time.  In addition, the Company anticipates that all 
businesses (regardless of their state of readiness), including the Company, 
will encounter some minimal level of disruption in its business (e.g., 
phone and fax systems, alarm systems, etc.) as a result of the year 2000 
issue.  However, the Company does not believe that it will incur any 
material expenses or suffer any significant loss of revenues in connection 
with such minimal disruptions.

Contingency Plans:

     As discussed above, in the event of the occurrence of the "most 
reasonably likely worst case scenario" the Company could hire an appropriate 
level of temporary staff to manually assist with the time tracking process.



Forward Looking Statements:

      Certain information set forth above regarding the year 2000 issue and 
the Company's plans to address those problems are forward looking statements 
under the Securities Act and the Exchange Act.  See the second paragraph of 
Management's Discussion and Analysis of Financial Condition and Results of 
Operations for a discussion of forward-looking statements and related risks 
and uncertainties.  In addition, certain factors particular to the year 2000 
issue could cause actual results to differ materially from those contained in 
the forward looking statements, including, without limitation: failure to 
identify critical information systems which experience failures, delays and 
errors in the compliance and remediation efforts described above, unexpected 
failures by key vendors, software providers or business partners to be year 
2000 compliant or the inability to repair critical information systems.  In 
any such event, the Company's results of operations and financial condition 
could be adversely affected.  In addition, the failure to be year 2000 
compliant of third parties outside of our control such as electric utilities 
or financial institutions could adversely effect the Company's results of 
operations and financial condition.


Results of Operations - Three Months Ended March 31, 1999 Compared to 1998

Contract revenue increased $466,782 or 21% from $2,221,618 in the three 
months ended March 31, 1998 to $2,688,400 in the three months ended March 31, 
1999 primarily due to increased work on the Rhode Island Department of Human 
Services contract due to welfare reform and increased revenues on private 
sector systems development activities and information technology consulting 
services.  

Cost of revenue earned, consisting of direct employee labor, direct 
contract expense and subcontracting expense, increased $127,866 or 9% from 
$1,446,656 in the three months ended March 31, 1998 to $1,574,522 in the three 
months ended March 31, 1999 due to the increased effort to support the higher 
level of business.

Gross profit increased $338,916 or 44% from $774,962 for the three 
months ended March 31, 1998 to $1,113,878 for the three months ended March 31, 
1999.  Gross profit as a percentage of revenue earned increased from 34.9% for 
the three months ended March 31, 1998 to 41.4% for the three months ended 
March 31, 1999.  The increase in gross profit percentage is due to higher 
margins on new projects. 

Selling, general and administrative (SG&A) expenses increased $104,096 
or 19% from $557,824 in the three months ended March 31, 1998 to $661,920 in 
the three months ended March 31, 1999 due to an increase in marketing and 
business development related expenses.  On a percentage of revenues basis, 
SG&A expenses were essentially flat at 25%.

	Interest expense increased $769 to $29,956, or 2.6%, from $29,187 due to 
a contractually higher interest rate on a long-term note payable.

As a result, income before income taxes increased $197,854 from $238,075 
for the three months ended March 31, 1998 to $435,929 for the three months 
ended March 31, 1999.

Net income increased $116,733, or 83%, from $140,465 for the three 
months ended March 31, 1999 to  $257,198 for the three months ended March 31, 
1999.



Liquidity and Capital Resources

In order to finance bid preparation costs and to obtain sufficient 
collateral to support performance bonds required by some customers, the 
Company has, in the past, entered into joint ventures with other firms with 
greater financial resources when bidding for contracts. The Company expects to 
continue and expand this practice prospectively as well as to pursue more time 
and material contracts than it has historically pursued. Time and materials 
contracts generally do not require performance bonds and almost always involve 
less risk to deliver what the customer requires.

The Company has historically not received its first contract progress 
payments until approximately three to six months after contract award, which 
itself was as much as 12 months after proposal preparation commences.  The 
Company was therefore required to fund substantial costs well before the 
receipt of related income, including marketing and proposal costs and the cost 
of a performance bond. Prospectively, the Company expects to tighten up this 
timetable, thereby reducing the requirement for additional working capital.

The Company has funded its operations through cash flows from 
operations, bank borrowings, borrowings from venture partners, and private 
placements of equity securities.  Net cash provided by (used in) operating 
activities was ($100,322) and $351,623 in the three months ended March 31, 
1999 and 1998 respectively.  Fluctuations in net cash provided by operating 
activities are primarily the result of changes in net income, accounts 
receivable and income tax receivable, accounts payable and costs and estimated 
earnings in excess of billings on contracts due to differences in contract 
milestones and payment dates.

 On December 31, 1997 the Company signed a $1.5 million line of credit 
with a commercial lender (the "Line of Credit"). Accounts receivable from four 
of the Company's contracts secure the new Line of Credit.  The Company can 
borrow up to 80% of the aggregate invoice amounts and is required to repay any 
borrowings within 90 days. The interest rate is prime plus five percent on 
balances below $1 million and prime plus one and one half percent on balances 
over $1 million.  The Line of Credit also carries a six- percent annual 
service fee on borrowed balances. At March 31, 1999 the Line of Credit had an 
outstanding balance of zero.

On September 21, 1998 the Company entered into two five-year term loans, 
each for $250,000.  One lender was the Small Business Loan Fund Corporation, 
("SBLFC"), a subsidiary of the Rhode Island Economic Development Corporation. 
 The other lender was the Business Development Corporation of Rhode Island 
("BDC"). The SBLFC loan carries an annual interest rate of 9.5% and must be 
repaid over five years.  The BDC loan carries an annual interest rate of 
10.25%, and an annual deferred fee of $5,000, and must be paid back over five 
years.  Both term loans are secured by substantially all the assets of the 
Company.  The BDC was also issued five-year warrants to purchase 11,500 
unregistered shares of the Company's Common Stock at a price of $4.50 per 
share. The warrants expire on September 20, 2003. The fair value of the 
warrants was estimated by the Company to be $36,806 using the Black-Scholes 
model and is being amortized ratably over the exercise period.  Such amount is 
included in other noncurrent assets on the accompanying balance sheet.

The Company believes that cash flows generated by operations will be 
sufficient to fund continuing operations through the end of 1999. This 
assumes, however, that there are no materially adverse decisions rendered in 
the ongoing litigation with Hawaii, MAXIMUS and CBSI. See Item 1 - Legal 
Proceedings. 

The Company believes that inflation has not had a material impact on its 
results of operations to date.
	PART 11 - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

In June 1995, the Company began negotiating a significant amendment to 
its contract for a child support enforcement ("CSE") system with the State of 
Hawaii (the State) when it determined that the total estimated cost to 
complete the system would be significantly greater than expected.  In March 
1996, the Company received final State and federal government approval for 
this contract amendment totaling $4.4 million.  As a result of numerous in-
depth reviews of this contract amendment, management determined that remaining 
contract costs would exceed the contract value by $440,000, and therefore, 
accrued this loss in December 1995. 

In June 1996 the Company announced a new subcontract agreement with 
Complete Business Solutions, Inc ("CBSI") to expand CBSI's role in the Hawaii 
CSE contract.  CBSI, at the request of Hawaii, was contracted to lead a 
detailed review of the current system under development.  Hawaii, in turn, 
agreed to pay CBSI $1.2 million from the Company's remaining contract budget 
when various milestones were achieved.  The Company had a significant role in 
the detailed review and had hoped that its results would facilitate the 
resolution of open contractual scope issues.

On September 13, 1996, the State of Hawaii terminated its contract with 
the Company, effective September 23, 1996, claiming that the Company had 
failed to fulfill its obligations under the contract.  In response, the 
Company also terminated the contract with the State effective September 23, 
1996.  The Hawaii contract, originally estimated to be a $20.7 million 
contract, was increased to $25.2 million by the State and the Company in 
February 1996, and was the Company's largest contract at the time. Prior to 
termination, approximately $16.5 million of costs had been incurred towards 
completion of the contract, and $11 million had been billed and substantially 
paid.

On November 12, 1996 the State of Hawaii filed a lawsuit in the Circuit 
Court of the First Circuit of the State of Hawaii against the Company and 
Aetna Casualty and Surety and Federal Insurance Company for damages due to 
breach of contract (the "Hawaii litigation").  Aetna Casualty and Surety and 
Federal Insurance Company provided the $10.3 million performance bond on the 
Company's contract with the State of Hawaii to develop and install the State's 
child support enforcement system.  The suit alleges the Company failed to meet 
contractual deadlines, provided late, incomplete and/or unsuitable 
deliverables, materially breached the contract by never completing the design, 
the application programming, and the system test and systems implementation.  
The State is seeking an unspecified amount for general damages, consequential 
and special damages, liquidated damages, attorneys' fees, reimbursement for 
the cost of the suit and interest costs that the court deems just and proper.

The Company vigorously denies the State's allegation and, on January 23, 
1997, filed a counter claim against the State alleging that the State has 
breached the contract.  The Company is seeking $70 million in damages and is 
alleging that the State fraudulently induced the Company into designing and 
building a system having capabilities and features far beyond the scope of the 
Company's contract.  The fraudulent inducement was in the form of withholding 
payments, improper rejection of work that satisfied the requirements of the 
contract and verbal and written abuse of the Company's employees and 
management.

In addition, Unisys, a vendor providing equipment under the Company's 
Hawaii contract, submitted a $896,000 claim against the $10.3 million 
performance bond.  In February of 1997, the State released all but $1.1 
million of the performance bond; the remainder is intended to cover amounts 
payable to Unisys and other subcontractors.  In April of 1997, after a 
detailed review of their records and discussions with the Company, Unisys 
agreed to lower their claim to $859,602 and Aetna Casualty and Surety paid 
that claim.  Lockheed Martin IMS (Lockheed), who guaranteed the performance 
bond, reimbursed Aetna for that claim.  In December 1997, the Company reached 
an agreement with Lockheed to repay the $859,602 over a five-year period.

On December 13, 1996 CBSI filed a lawsuit in the Superior Court of the 
State of Rhode Island for $517,503, which the Company had previously accrued, 
plus interest, costs and attorney's fees. The Company disputes the  $517,503 
owed to CBSI and filed a counterclaim against CBSI on January 13, 1997 
alleging, among other things, that CBSI failed to complete its duties required 
under the subcontract with the Company in a timely manner, improperly engaged 
in negotiations with the State of Hawaii to complete the project, hired and 
attempted to hire employees of the Company in violation of its subcontract 
agreement with the Company and obtained and utilized confidential information 
and proprietary intellectual property inappropriately.  Also, the Company 
alleges that CBSI owes the Company $482,750 as of December 31, 1996 for which 
the Company has not established a reserve for uncollectibility. 

On February 3, 1997, the Company filed a third-party complaint ("TPC") 
as part of the Hawaii litigation against MAXIMUS Corporation  ("MAXIMUS") and 
CBSI.  MAXIMUS has been the State of Hawaii's contract supervisor and advisor 
since the inception of the Hawaii project. The allegations the Company has 
made against MAXIMUS in this TPC are substantially similar to the allegations 
made against CBSI in the Company's counterclaim to CBSI's December 13, 1996 
lawsuit brought against the Company in Rhode Island.  The Company alleged, 
moreover, that MAXIMUS is liable to the Company on grounds that: (i) the 
Company was an intended third party beneficiary under the contract between 
MAXIMUS and Hawaii; (ii) MAXIMUS tortuously interfered in the contract between 
the Company and Hawaii; (iii) MAXIMUS negligently breached duties to the 
Company, and (iv) MAXIMUS aided and abetted Hawaii in Hawaii's breach of 
contract.  The Company's complaint seeks $70 million in damages.

In connection with the Hawaii litigation the Company was ordered to 
assign all Hawaii related leases to the State. One of the lessors has sued the 
Company for failure to pay.  The Company believes it was released of all 
responsibility on the lease per the court order. 

Management believes that the Company's claims against the State, MAXIMUS 
and CBSI have substantial merit and will vigorously pursue these claims. There 
is substantial uncertainty, however, inherent in all litigation. If the 
Company were not to prevail in its suit with the State, such a result could 
have a material adverse financial effect on the Company and could jeopardize 
the Company's ability to continue with its present listing on The NASDAQ 
SmallCap Market.  Management of the Company and its attorneys are unable to 
predict with any certainty the ultimate outcome of this litigation, although 
it is their belief that a favorable outcome is likely.  At March 31, 1999, the 
Company had unbilled work-in-process and related receivables from the State 
and CBSI of approximately $3.5 million, which is slightly less than 
stockholders' equity of approximately $4 million, for which no allowance for 
uncollectibility has been recorded.  The Company has not accrued for any 
potential liability to the State, which may result from this litigation. In 
addition, the Company has not accrued for any legal expense to be incurred in 
connection with this litigation, which could be significant.

Due to the significant uncertainty created by these events, the Company 
ceased recognition of revenue on the Hawaii contract in 1996.  An adjustment 
of $1.8 million was recorded in the fourth quarter to reverse revenue of $1 
million, $400 thousand and $400 thousand previously in the first, second and 
third quarters, respectively.  In addition, 1996 costs incurred related to the 
Hawaii contract of $1.96 million have been charged to expense.

Item 2.  Change 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 Materially Important Events

None

Item 6.  Exhibits and Reports

(a)   Exhibit 27 Financial Data Schedule

(b) The following reports on Form 8-K have been filed during the quarter 
for which this report is filed.

A current report on Form 8-K, dated January 13, 1999 was filed by the 
Company and included the press release dated January 13, 1999, 
announcing that the Company's received a contract amendment for 
enhancing the InRhodes computer system. 

A current report on Form 8-K, dated February 1, 1999 was filed by the 
Company and included the press release dated February 1, 1999, 
announcing new hire Samara H. Navarro. 

A current report on Form 8-K, dated February 24, 1999 was filed by the 
Company and included the press release dated February 23, 1999, 
announcing the Company's results for the year ended December 31, 1998.  
A Statement of Operations (without notes) for the years ended December 
31, 1998, 1997 and 1996 and a Balance Sheet as of December 31, 1998 and 
1997 was also included with the filing.

A current report on Form 8-K, dated March 19, 1999 was filed by the 
Company and included the press release dated March 19, 1999, announcing 
new hires and promotions. 

A current report on Form 8-K, dated April 1, 1999 was filed by the 
Company and included the press release dated April 1, 1999, announcing 
the resignation of Director Clifton C. Dutton and the appointment of 
Director Peter C. Wallace.



                                  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.


Network Six, Inc.




Date: April 27, 1999      By: /s/ Kenneth C. Kirsch                    
                              Kenneth C. Kirsch
                              Chairman, President and 
                              Chief Executive Officer




By: /s/ Dorothy M. Cipolla        
        Dorothy M. Cipolla
        Chief Financial Officer and Treasurer
        (principal financial officer)