UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB

(Mark One)

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the quarterly period ended - August 31, 1998

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _______________________ to _____________________

                         Commission File Number 0-18299
                            NEWS COMMUNICATIONS, INC.
                            -------------------------
        (Exact name of small business issuer as specified in its charter)

            Nevada                                         13-3346991
(State or other jurisdiction of               (IRS Employer Identification No.)
incorporation or organization)

           174-15 Horace Harding Expwy., Fresh Meadows, New York 11365
           -----------------------------------------------------------
                    (Address of principal executive offices)

                                 (718) 357-3380
                                 --------------
                           (Issuer's telephone number)

                ________________________________________________
                 (Former name, former address and former fiscal
                          if changed since last report)

Check  whether the issuer (1) filed all reports  required to be filed by Section
12, 13 or 15 (d) of the  Exchange Act during the past 12 months (or 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 __

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court. Yes X No

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity , as of October 13, 1998: 8,207,374 shares $ .01 par value common stock.

Transitional Small Business Disclosure Format  (check one)  Yes       No      X


<PAGE>


                                   FORM 10-QSB

                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES

                                TABLE OF CONTENTS

                                                                        PAGE
PART I.           Financial Information


    Item 1.  Financial Statements

             Unaudited Consolidated Balance Sheet
             at August 31, 1998.....................................      3

             Unaudited Consolidated Statements of
             Operations for the three and nine months
             ended August 31, 1998 and August 31, 1997..............      5

             Unaudited Consolidated Statements of Cash
             Flows for the nine months ended
             August 31, 1998 and August 31, 1997....................      6

             Notes to Consolidated Financial Statements.............      8

   Item 2.   Management's Discussion and Analysis
             or Plan of Operation...................................      9

PART II.     Other Information......................................     11
                  Item 2. Changes in Securities

                  Item 6. Exhibits and Reports on Form 8-K

Signatures..........................................................     12




<PAGE>


                                  PART I-ITEM 1

                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                CONSOLIDATED BALANCE SHEET AS OF AUGUST 31, 1998
                                   (UNAUDITED)

Assets:
Current Assets:
  Cash                                                         $   199,634
  Accounts receivable [less: allowance for
    doubtful accounts of $1,282,304]                             3,574,031
  Due from related parties                                          38,610
  Other                                                            214,468

                                                                 ----------
  Total Current Assets                                           4,026,743

Investment in unconsolidated entities                              249,729

Property and equipment at cost- net of
 accumulated depreciation of $680,924                              382,209
 Goodwill - net                                                  3,271,629
 Other - net                                                        58,106
                                                                ----------
  Total Assets                                                  $7,988,416
                                                                ----------


<PAGE>


                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                CONSOLIDATED BALANCE SHEET AS OF AUGUST 31, 1998
                                   (UNAUDITED)

Liabilities and Stockholders' Equity:
Current liabilities:
  Accounts payable                                                   $1,091,040
  Accrued expenses                                                    1,315,855
  Note payable - bank                                                   800,000
  Note payable - related parties                                      2,478,834
  Unearned Revenue                                                      151,129
  Due to related parties                                                103,438
                                                                    -----------
  Total current liabilities                                           5,940,296
                                                                    -----------

  Minority interest                                                     281,474

Stockholders' Equity:
 Preferred Stock, $1.00 Par Value; 500,000 Shares Authorized:
  $2,727,000 aggregate liquidation value                                220,340

 Common Stock, $.01 Par Value; Authorized 100,000,000
 Shares; 8,358,374 Shares Issued                                         83,584

  Paid-in-Capital Preferred Stock                                     2,257,025

  Paid-in-Capital Common Stock                                       14,430,444

  (Deficit)                                                         (14,816,018)

   Total                                                           $  2,175,375
   Less: Treasury Stock [151,000 Shares]-
         At Cost                                                       (408,729)
                                                                       -------- 
 Total Stockholders' Equity                                           1,766,646
                                                                      ---------

 Total Liabilities and Stockholders' Equity                        $  7,988,416



<PAGE>


                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>

                                    Three Months Ended August 31,  Nine Months Ended August 31,
                                       1998          1997            1998           1997
                                                            Unaudited
<S>                                     <C>            <C>            <C>            <C>

Net Revenues                        $5,112,657   $5,102,167       $13,654,111     $13,051,666
                                    ----------   ----------       -----------     -----------

Expenses:
 Direct Mechanical Costs             1,801,256    1,917,530         4,458,967       4,504,294
 Salaries, Benefits and
    Outside Labor Costs              2,152,080    1,956,958         6,753,411       6,212,264
 Rent, Occupancy & Utilities           240,251      244,060           658,691         658,144
 Provisions for Doubtful Accounts      100,700      122,700           332,200         301,250
 General and Administrative            634,763      657,063         1,793,030       1,757,274
                                   -----------   ----------      ------------       ---------

 Total Expenses                      4,929,050    4,898,311        13,996,299      13,433,226
                                   -----------  -----------       -----------      ----------

Operating Income (Loss) Before Interest
 Expense and Equity in Loss From
 Unconsolidated Entities               183,607      203,856          (342,188)       (381,560)

Interest Expense                       (79,639)     (45,842)         (240,173)       (143,101)

Equity In Loss From Unconsolidated
Entities                               (30,000)       ---            (160,000)           ----
                                   ------------      ------        -----------         ------

Income from Continuing Operations       73,968      158,014          (742,361)       (524,661)

Loss from Discontinued Operations         ----     (149,474)            ----         (348,168)
                                    ----------     ---------        ----------     -----------

Net Income (Loss)                   $   73,968  $     8,540          (742,361)      $(872,829)
                                    ----------  -----------      -------------      ----------

Net Income (Loss) Per Share            $   .01         $.00             $(.09)         $( .11)
                                    -----------   ---------          ---------       ---------

Weighted Average Shares
Outstanding                          8,207,374    8,042,061          8,191,136       7,952,654
                                     ---------    ---------          ---------       ---------

</TABLE>

<PAGE>


                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                           Nine Months Ended August 31,
                                              1998           1997
                                              ----           ----
                                                         Unaudited

Operating Activities:
  Net Income (Loss)                       $ (742,361)     $   (872,829)
                                          -----------      -------------
  Adjustments to Reconcile Net
    (Loss) to Net Cash Provided
    by Operating Activities:
   Depreciation and Amortization             428,700           374,470
   Provision for Losses on Accounts
    Receivable                               332,200           301,250
 Change in Assets and Liabilities:
   (Increase) Decrease in Accounts
    Receivable                              (426,962)       (1,465,061)
   (Increase) Decrease in Other Current
    Assets                                   (37,729)           (7,679)
   (Increase) in Due from Related Parties    (58,247)           26,126
   (Increase) in Investment in
     Unconsolidated Entities                (175,986)              ----
 Decrease (Increase) in Other Assets           7,705           (28,869)
    Increase (Decrease) in Accounts Payable
    and Accrued Expenses                     265,221           355,829
    Increase (Decrease) in Other Current
      Liabilities                             13,477             4,222
                                           ---------         ---------

   Total Adjustments                         348,379          (439,712)
                                           ---------         ---------
  Net (Deficit) - Operating Activities -    (393,982)       (1,312,541)
                                           ---------         ---------
                                                     Forward

<PAGE>


                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                   Nine Months Ended August 31,
                                                      1998             1997
                                                      ----             -----
                                                             Unaudited
Net (Deficit) - Operating Activities -
    Forwarded                                         (393,982)     (1,312,541)
                                                      ---------     -----------

Investing Activities:
Capital Expenditures                                  (109,289)        (85,090)
                                                      ---------     ------------

Net Cash Used in Investing Activities                 (109,289)        (85,090)
                                                      ---------     ------------

Financing Activities:
  Proceeds from Exercise of Warrants                     ----          131,935
  Dividend on Preferred Stock                          (23,780)        (17,620)
  Proceeds from Preferred Stock                         200,000           ---
Principal Payments - Notes Payable                     (100,000)      (275,000)
Decrease in Net Assets of Discontinued Operations       202,065         88,632
                                                       --------      -----------

Net Cash Provided by (used in) Financing Activities     278,285        (72,003)
                                                       --------       ----------

Net (Decrease) in Cash                                 (224,986)    (1,469,634)

Cash - Beginning of Periods                             424,620      1,546,704
                                                       --------       ----------

Cash - End of Periods                                  $199,634     $   77,020
                                                       --------       ----------


Supplemental Disclosures of Cash Flow Information:
  Cash paid during the period for:
   Interest                                            $ 94,730     $   75,674


<PAGE>


                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


A.       Basis of Presentation:

     In the opinion of the  Company's  management,  the  accompanying  unaudited
consolidated  financial  statements contain all adjustments  (consisting of only
normal  recurring  adjustments)  necessary to present fairly the information set
forth  therein.  These  consolidated  financial  statements  are condensed  and,
therefore,  do not  include all of the  information  and  footnotes  required by
generally accepted accounting principles for complete financial statements.  The
results for the interim  periods are not  necessarily  indicative of the results
for a full year.

     These consolidated  financial statements should be read in conjunction with
the company's  annual report Form 10-KSB for the fiscal year ended  November 30,
1997 and the related audited financial statements included therein.

B.       Loss per Share:

     Loss per share is based on the weighted average number of shares
outstanding during the periods.

C.       New Authoritative Accounting Pronouncements:

     The FASB has issued the following  standards  which  principally  relate to
presentation  and  disclosure  items.  While not  required  to be adopted by the
company until 1999, the company does not anticipate that the standards will have
a material impact on the company's financial statement  presentation or footnote
disclosures.

   -SFAS No. 130,  "Reporting Comprehensive Income"
   -SFAS No. 131,  "Disclosures about Segments of an Enterprise and Related
                    Information"
   -SFAS No. 132,  "Employers' Disclosure about Pensions and othe
                    Post-Retirement Benefits"


<PAGE>


PART I-ITEM 2

                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

     The  information  contained  in this Item 2,  Management's  Discussion  and
Analysis or Plan of Operation,  contains "forward looking statements" within the
meaning of Section 27A of the Securities  Act 1933, as amended (the  "Securities
Act"),  and Section 21E of the Securities  exchange Act of 1934, as amended (the
"Exchange  Act").  Actual results may materially  differ from those projected in
the forward  looking  statements as a result of certain risks and  uncertainties
set forth in this report. Although management believes that the assumptions made
and  expectations  reflected in the forward  looking  statements are reasonable,
there is no assurance that the underlying assumptions will, in fact, prove to be
correct  or  that  actual  future   results  will  not  be  different  from  the
expectations expressed in this report.

Results of Operations:

     News Communications, Inc. publishes various weekly community newspapers and
related targeted audience publications.

Three Months Ended August 31, 1998 and 1997
-------------------------------------------

     The Company  recorded  Net Income for the third  quarter of $74,000 up from
$9,000 in 1997, an increase of $65,000 (722%).  Operating income before interest
expense and equity in loss of unconsolidated subsidiary was $184,000 as compared
to $204,000 in 1997, a decrease of $20,000 (10%).

     Increased  profit at The Hill, which was a result of its strong increase in
revenues,  was offset by an increased  loss at Nassau  Newspapers  which is in a
transitional  year  due to  management  changes,  the  replacing  of  marginally
profitable third party printing and distribution  revenues with new revenues and
excess costs due to the acquisition of the South Shore Record.

     Total  revenues for the Company were  $5,113,000  for the third  quarter of
1998, up $11,000 from $5,102,000 in 1997. The increase in revenues was primarily
a result of The Hill's  increased  sales  effort and new sales  management,  and
Dan's  Papers'  capitalization  on the  continued  growth  of the  market in the
Hamptons  resort  area  of  Long  Island  and  its  positioning  as  one  of the
advertising  standards on Long Island's east end. These increases were offset by
decreases at the Manhattan  newspapers (Our Town,  Manhattan  Spirit and Chelsea
Clinton/Westsider).   The  decrease  in   non-advertising   revenues  at  Nassau
Newspapers was offset by increased revenues from the South Shore Record.


<PAGE>

     Direct mechanical costs decreased  $116,000 (6%) from $1,917,000 in 1997 to
$1,801,000  in  1998  primarily  as  a  result  of  decreases  in  printing  and
distribution  costs related to the  discontinued  third party revenues at Nassau
Newspapers.  Payroll  increased  $195,000  (10%)  from  $1,957,000  in  1997  to
$2,152,000 in 1998  primarily as a result of the  acquisition of The South Shore
Record.

Nine Months Ended August 31, 1998 and 1997
------------------------------------------

     The Company reduced its net loss for the nine months by $130,000 (15%) from
($872,000) in 1997 to ($742,000) in 1998. Operating loss before interest expense
and equity in loss of unconsolidated  subsidiary  decreased by 40,000 (10%) from
($382,000) in 1997 to ($342,000) in 1998 primarily from increased  profit at The
Hill,  which  was  result  of its  strong  increase  in  revenues,  offset by an
increased  loss at  Nassau  Newspapers  which is in a  transitional  year due to
management change and has included replacing marginally  profitable  third-party
printing  and  distribution  revenues  with new  revenues  while  absorbing  the
acquisition  of the South Shore  Record.  The  increase  in interest  expense of
$97,000 (68%) from $143,000 in 1997 to $240,000 in 1998 was a result of the loan
from an affiliate of a principal  shareholder  and officer being  outstanding in
1998.

     Total revenues for the Company were $13,654,000 for the nine months of 1998
an increase of almost  $602,000 (5%) from  $13,052,000  in 1997. The increase in
revenues  was  primarily a result of The Hill's  increased  sales effort and new
sales  management,  and Dan's Papers'  capitalization on the continued growth of
the market in the Hamptons resort area of Long Island and its positioning as one
of the  advertising  standards on Long Island's east end.  These  increases were
offset by decreases at the Manhattan  newspapers (Our Town, Manhattan Spirit and
Chelsea   Clinton/Westsider).   Decreased  non-advertising  revenues  at  Nassau
Newspapers was offset by increased revenues from the South Shore Record.

Liquidity and Capital Resources:

     At August 31, the  Company had a shortage  of current  assets over  current
liabilities in the amount of approximately $1,914,000.  During the quarter ended
February 28, 1998, the Company  repaid  $100,000 of bank loans from cash on hand
at the  beginning of the year. In October  1998,  the bank  presented the demand
loans for payment.  The Company repaid $50,000 of the bank loans, and payment of
the balance has been extended to December 31, 1998.

     In  order  to  comply  with  the  requirements  of  NASD  Marketplace  Rule
4310(c)(2), the Company is planning to offer its existing shareholders the right
to purchase  additional  shares of its Common Stock.  The gross  proceeds of the
offering would be approximately $6,000,000. The Company has obtained a temporary
extension of the shareholder loan which was due May 21, 1998 in order that it be
repaid from the capital raised.


<PAGE>

     Management  believes that the Company's  stock offering and operations will
generate  positive  cash flow for the fiscal  year  ending  November  30,  1998.
Although there can be no assurances to this effect,  management believes that it
has available a variety of funding and revenue to meet its cash needs.


PART II.  OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K

                  A.       Exhibits - Exhibit 27 - Financial Data Schedule

                  B.       Reports on Form 8-K - None




<PAGE>



                                   SIGNATURES



In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.



                                         NEWS COMMUNICATIONS, INC.
                                         (Registrant)



Date: October 15, 1998                   By:/s/ Michael Schenkler
                                            ---------------------
                                            Michael Schenkler, President




Date: October 15, 1998                   By:/s/ Robert Berkowitz
                                            --------------------
                                            Robert Berkowitz, Controller




<PAGE>