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, 1997

[  ] 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     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, 1997: 8,042,631 shares $ .01 par value common stock.

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

                                        1

<PAGE>

                                   FORM 10-QSB

                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                             PAGE
<S>                            <C>                                                            <C>  
PART I.                    Financial Information

    Item 1.                Financial Statements

                           Unaudited Consolidated Balance Sheet
                           at August 31, 1997............................................      3

                           Unaudited Consolidated Statements of
                           Operations for the three and six months
                           ended August 31, 1997 and August 31, 1996.....................      5

                           Unaudited Consolidated Statements of Cash
                           Flows for the six months ended
                           August 31, 1997 and August 31, 1996...........................      6

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

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

PART II.                   Other Information.............................................      10

                               Item 2. Changes in Securities

                               Item 6. Exhibits and Reports on Form 8-K

Signatures...............................................................................      11
</TABLE>

                                        2

<PAGE>

                                  PART I-ITEM 1

                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                CONSOLIDATED BALANCE SHEET AS OF AUGUST 31, 1997
                                   (UNAUDITED)
<TABLE>
<CAPTION>
<S>                                                                                                   <C> 
Assets:
Current Assets:
  Cash                                                                                     $        77,070
  Accounts receivable [less: allowance for
    doubtful accounts of $1,099,671]                                                             4,354,010
  Due from related parties                                                                          12,891
  Net Assets of Discontinued Operations                                                            305,472
  Other                                                                                            141,434
                                                                                            --------------


  Total Current Assets                                                                           4,890,877

Property and equipment at cost- net of
 accumulated depreciation of $946,861                                                              438,345
 Goodwill - net                                                                                  3,159,695
 Other - net                                                                                       115,352
                                                                                            --------------

  Total Assets                                                                               $   8,604,269
                                                                                            ==============
</TABLE>



                                        3


<PAGE>

                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                CONSOLIDATED BALANCE SHEET AS OF AUGUST 31, 1997
                                   (UNAUDITED)
<TABLE>
<CAPTION>
<S>                                                                                                  <C>  
Liabilities and Stockholders' Equity:
Current liabilities:
  Accounts payable                                                                          $      750,507
  Accrued expenses                                                                                 978,680
  Accrued payroll and payroll taxes                                                                330,069
  Note payable                                                                                     900,000
  Unearned Revenue                                                                                 126,875
  Due to related parties                                                                            95,864
                                                                                               -----------
  Total current liabilities                                                                      3,181,995
                                                                                               -----------

 Related party - long term debt                                                                    977,333
                                                                                               -----------

  Minority interest                                                                                114,228

Stockholders' Equity:
 Preferred Stock, $1.00 Par Value; 500,000 Shares Authorized:
  $2,527,000 aggregate liquidation value                                                           200,346

 Common Stock, $.01 Par Value; Authorized 100,000,000
 Shares; 8,193,631 Shares Issued                                                                    81,936

  Paid-in-Capital Preferred Stock                                                                2,098,793

  Paid-in-Capital Common Stock                                                                  14,305,517

  (Deficit)                                                                                    (11,947,150)

   Total                                                                                        $4,739,442
   Less: Treasury Stock [151,000 Shares]-
            At Cost                                                                               (408,729)
 Total Stockholders' Equity                                                                      4,330,713

 Total Liabilities and Stockholders' Equity                                                    $ 8,604,269
                                                                                               ===========

</TABLE>


                                        4



<PAGE>



                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>

                                                   Three Months Ended August 31,         Nine Months Ended August 31,
                                                      1997               1996                 1997           1996
                                                                                Unaudited
<S>                                                    <C>                <C>                 <C>              <C> 
Net Revenues                                        $5,102,167        $5,023,245          $13,051,666      $12,586,808
                                                   -----------       -----------         ------------     ------------

Expenses:
 Direct Mechanical Costs                             1,917,530         1,869,090            4,504,294        4,570,069
 Salaries, Benefits and
    Outside Labor Costs                              1,956,958         2,221,536            6,212,264        6,519,806
 Rent, Occupancy & Utilities                           244,060           206,925              658,144          621,751
 Provisions for Doubtful Accounts                      122,700           102,000              301,250          175,000
 General and Administrative                            657,063           465,689            1,757,274        1,629,293
                                                   -----------       -----------         ------------     ------------

 Total Expenses                                      4,898,311         4,865,240           13,433,226       13,515,919
                                                   -----------       -----------         ------------     ------------

Operating Income (Loss) Before Interest
 Expense and Interest Income                           203,856           158,005             (381,560)        (929,111)

Interest Expense                                       (45,842)          (32,122)            (143,101)         (72,439)

Interest Income                                            ---             1,750                  ---            1,750
                                                   -----------       -----------         ------------     ------------

Income from Continuing Operations                      158,014           127,633             (524,661)        (999,800)

Loss from Discontinued Operations                     (149,474)          (26,949)            (348,168)        (245,551)
Gain (Loss) on Disposal                              

Net Income (Loss)                                   $    8,540         $ 100,684        $    (872,829)     $(1,245,351)
                                                   ===========       ===========         ============     ============

Net Income (Loss) Per Share                            $   .00              $.01                $(.11)          $( .16)
                                                   ===========       ===========         ============     ============

Weighted Average Shares
Outstanding                                          8,042,061         7,826,415            7,952,654        7,822,790
                                                   ===========       ===========         ============     ============
</TABLE>


                                        5



<PAGE>



                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>

                                                                                    Nine Months Ended August 31,
                                                                                 1997                        1996
                                                                                 ----                        ----
                                                                                             Unaudited
<S>                                                                              <C>                           <C>   
Operating Activities:
  Net Income (Loss)                                                           $ (872,829)                $ (1,245,351)
                                                                              ----------                 ------------
  Adjustments to Reconcile Net
    (Loss) to Net Cash Provided
    by Operating Activities:
   Depreciation and Amortization                                                 374,470                      360,736
   Provision for Losses on Accounts
    Receivable                                                                   301,250                      199,000
 Compensation Recognized Related to Warrants Issued                                  ---                      128,000
 Change in Assets and Liabilities:
   (Increase) Decrease in Accounts
    Receivable                                                                (1,465,061)                    (956,522)
   (Increase) Decrease in Other Current
    Assets                                                                        (7,679)                    (104,314)
   (Increase) in Due from Related Parties                                         26,126                       17,325
                 Decrease (Increase) in Other Assets                             (28,869)                       1,552
   (Increase) Decrease in Goodwill                                                   ---                          ---
    Increase (Decrease) in Accounts Payable
    and Accrued Expenses                                                         434,351                      370,567
    Increase (Decrease) in Payroll Taxes Payable                                 (78,522)                    (103,137)
    Increase (Decrease) in Other Current Liabilities                               4,222                      (15,615)
                                                                              ----------                 ------------
                                                                                

   Total Adjustments                                                            (439,712)                    (102,408)
                                                                              ----------                 ------------

  Net (Deficit) - Operating Activities -                                      (1,312,541)                  (1,347,759)
   Forward


</TABLE>

                                        6

<PAGE>

                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>

                                                                                     Nine Months Ended August 31,
                                                                                 1997                           1996
                                                                                 ----                           ----
                                                                                             Unaudited
<S>                                                                               <C>                            <C>  
Net (Deficit) - Operating Activities -
    Forwarded                                                                 (1,312,541)                    (1,347,759)
                                                                             ===========                    ===========

Investing Activities:
Capital Expenditures                                                             (85,090)                       (42,194)
                                                                             -----------                    -----------

Net Cash Provided (Used) by Investing Activities                                 (85,090)                       (42,194)
                                                                             -----------                    -----------

Financing Activities:
  Principal Payments Long-Term Debt                                                  ---                        (24,000)
  Proceeds from Exercise of Warrants                                             131,935                         19,498
  Dividend on Preferred Stock                                                    (17,620)                       (31,020)
  Proceeds from Exercise of Stock Options                                            ---                         12,500
  Proceeds from Notes Payable - Bank                                                 ---                        675,000
  Proceeds from Notes Payable - Shareholder                                          ---                      1,000,000
  Principal Payments - Notes Payable                                            (275,000)                           ---
  Decrease in Net Assets of Discontinued Operations                               88,684                            ---
                                                                             -----------                    -----------

Net Cash Provided by Financing Activities                                        (72,001)                     1,651,978
                                                                             -----------                    -----------

Net Increase (Decrease) in Cash                                               (1,469,632)                       262,025

Cash - Beginning of Periods                                                    1,546,704                         54,474
                                                                             -----------                    -----------

Cash - End of Periods                                                       $     77,070                    $   316,499
                                                                             ===========                    ===========


Supplemental Disclosures of Cash Flow Information:
  Cash paid during the period for:
   Interest                                                                 $     75,674                    $    72,439

</TABLE>


                                        7



<PAGE>



                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


A. Basis of Presentation:

   The  Consolidated  Balance  Sheet as of August 31, 1997 and the  Consolidated
Statements  of Operations  for the three and six-month  periods ended August 31,
1997 and August 31, 1996,  and the  Consolidated  Statements  of Cash Flows have
been prepared by the company  without audit.  In the opinion of management,  all
adjustments  (which  include  only normal  recurring  adjustments)  necessary to
present fairly the financial position,  results of operations and cash flow have
been made. The results for the interim period are not necessarily  indicative of
the results for a full year.

   Certain information and footnote  disclosures  normally included in financial
statements prepared in accordance with generally accepted accounting  principles
have been  consolidated  or omitted.  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,  1996 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. Restatement:

The results of  operations  for 1996 have been  restated  to reflect  additional
expenses and loss resulting from  compensation  recognized  relating to warrants
issued and unrecorded printing expenses.


D. Accounting Pronouncements

In February 1997 the FASB issued SFAS No. 128,  "Earnings  Per Share".  SFAS No.
128 specifies  revised  computational  guidelines,  presentation  and disclosure
requirements  for earnings per share and supersedes  Accounting  Principal Board
Opinion No. 15. SFAS No. 128 is effective  for financial  statements  issued for
periods  ending after  December 15, 1997,  including  interim  periods.  Earlier
application  is not  permitted,  however,  upon  adoption  SFAS No. 128 requires
restatement of all prior period earnings per shar  information.  The Company has
not yet determined the impact SFAS No. 128 would have on earnings per share.

E. Legal Proceedings

An action entitled Jean Jee v. News  Communications,  Inc. was instituted in the
Supreme Court,  New York County,  in January 1991.  The complaint  alleges libel
claims  against  the  Company  in  connection  with an  article  printed  in the
Manhattan Spirit and claims  $2,000,000 in compensatory  damages and unspecified
punitive  damages.  The  Company  has  filed  an  answer  denying  the  material
allegations of the complaint. Discovery has not yet commenced and there has been
no activity  in the case for a number of years.  Management  believes,  although
there can be no assurance,  that, based upon the application of the relevant law
[as explained to management  by counsel  representing  the Company] to the facts
known to it, the claims  asserted in this action are  without  merit.

An action entitled Tracey  Robinson v. The Hill,  News  Communications, Inc. and
Media Venture Group,  Inc., was initiated in September 1996 in the United States
District  Court for the  District of Columbia in which the  plaintiff,  a former
national advertising executive for Capitol Hill, has alleged race discrimination
and  retaliation in connection  with her discharge and claims  compensatory  and
punitive damages of $5.2 million. The Company believes that the claim is without
merit and has filed an answer denying the material  allegations of the complaint
and  asserting  affirmative  defenses.  A trial  is set for  the  Fall of  1997.
Management of the Company is unable to predict or determine the final outcome of
the  aforementioned  proceedings  or whether the resolution of the matters could
materially  affect the Company's  financial  position,  results of operations or
liquidity.

F. Discontinued Operations

In August 1997,  the Company  adopted a plan to  discontinue  the Manhattan File
glossy magazine business. The Company anticipates that the business will be sold
by December 31, 1997. Accordingly,  Manhattan File is reported as a discontinued
operation  for the  periods  ended  August  31,  1997 and  1996.  Net  assets of
Manhattan File consist primarily of accounts receivable and accounts payable.

                                                         

                                       8



<PAGE>



                                  PART I-ITEM 2
                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


Results of Operations:

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

Three Months Ended August 31, 1997 and 1996

      The Company  recorded  Income  from  Continuing  Operations  for the third
quarter of  $158,000,  an increase of $30,000 from  $128,000 in 1996.  Operating
Income before interest  expense was $204,000 as compared to $158,000 in 1996, an
increase of $46,000 in 1997 even after taking into account the Company modifying
its  assumptions  in estimating its provision for doubtful  accounts  causing an
increase  of $20,700  (20%)  from  $102,000  in 1996 to  $122,700  in 1997.  The
increase in interest expense of $13,000 (40%) from $32,000 in 1996 to $45,000 in
1997 was a result of the loan from shareholder being outstanding in 1997.

      Total  revenues for the Company were  $5,102,000  for the third quarter of
1997 an increase of almost $79,000 (2%) from $5,023,000 in 1996. The increase in
revenues  was  primarily  a result of The  Hill's  increased  sales  effort  and
increased  congressional  activity,  Dan's  Papers'  capitalization  on an  ever
growing market in the Long Island posh resort area, the Hamptons and positioning
itself as the advertising standard on Long Island's east end offset by decreases
at the Queens Tribune and Nassau Newspapers.

       Direct mechanical costs had increases due to expansions made during 1996,
however,  these  were  offset in part by budget  cuts and  decreased  prices for
newsprint.  Direct  mechanical  costs increased  $48,000 (3%) from $1,869,000 in
1996 to $1,917,000 in 1997.

Nine Months Ended August 31, 1997 and 1996

     The Company reduced its loss from continuing operations for the nine months
by 475,000 (47%) from ($1,000,000) in 1996 to ($525,000) in 1997. Operating loss
before  interest  expense  decreased  $547,000 (59%) from  ($929,000) in 1996 to
($382,000)  in 1997 even after  taking into  account the Company  modifying  its
assumptions  in  estimating  its  provision  for  doubtful  accounts  causing an
increase of  $126,250  (72%) from  $175,000  in 1996 to  $301,250  in 1997.  The
increase in interest expense of $71,000 (99%) fro $72,000 in 1996 to $143,000 in
1997 was a result of increased  bank loans and the loan from  shareholder  being
outstanding in 1997.

      Total  revenues  for the Company were  $13,052,000  for the nine months of
1997 an increase of almost $465,000 (4%) from  $12,587,000 in 1996. The increase
in revenues  was  primarily a result of The Hill's  increased  sales  effort and
increased  congressional  activity,  Dan's  Papers'  capitalization  on an  ever
growing market in the Long Island posh resort area, the Hamptons and positioning
itself as the  advertising  standard  on Long  Island's  east  end,  offset by a
decrease at the Queens  Tribune  which  included  lower profit  margin  printing
revenue.



Liquidity and Capital Resources:

     At August 31, the  Company  had an excess of current  assets  over  current
liabilities in the amount of approximately $1,709,000.  During the quarter ended
February 28, 1997, the Company  repaid  $275,000 of bank loans from cash on hand
at the beginning of the year. During the quarter ended May 31, 1997, the Company
received $181,090 from the exercise of C Warrants.

     Management  believes that the Company's  operations will generate  positive
cash flow for the fiscal year ending November 30, 1997. Although there can be no
assurances  to this  effect,  management  is confident  that it has  available a
variety of funding and revenue to meet its cash needs. 



                                        9



<PAGE>




      Part II.  OTHER INFORMATION

      Item 2.  CHANGES IN SECURITIES

           The following securities were issued by the Company during the period
covered by this report and were not registered under the Securities Act of 1933,
as amended ("the Act").  Each of the  transactions  is claimed to be exempt from
registration with the Securities  Exchange  Commission pursuant to Section 4 (2)
of the Act as transactions by an issuer not involving a public offering.  All of
such  securities are deemed to be restricted  securities for the purposes of the
Act.

     (i) On or about June 12, 1997,  25,238  shares of Common Stock and Warrants
to purchase an additional  22,238 shares of Common Stock  (exercisable  at $2.10
per share)  were issued to Michael V.  Sterlacci  upon  conversion  by him of 53
shares of the Company's 8% Convertible Preferred Stock.

      Item 6.  Exhibits and Reports on Form 8-K

              A.   Exhibits - Exhibit 27 - Financial Data Schedule

              B.   Reports on Form 8-K - None


                                       10



<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, 1997                       By:   /s/ Michael Schenkler
                                                ------------------------------
                                                  Michael Schenkler, President




Date: October 15, 1997                       By:   /s/ Robert Berkowitz
                                                ------------------------------
                                                  Robert Berkowitz, Controller


                                       11



<PAGE>