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 - February 28, 1998

                                                     OR

[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934.

For the transition period from ___________________ to ______________________


                         Commission File Number 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
               --------------------------------------------------- 
              (Registrant's telephone number, including area code)

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

Indicate by check mark whether the issuer: (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 __

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

Indicate  by check mark  whether  the  registrant  has filed all  documents  and
reports  required  to be  filed by  Section  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to 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 May 13, 1998. 8,207,374 shares $.01 par value common stock.




<PAGE>



                                   FORM 10-QSB

                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES

                                TABLE OF CONTENTS

                                                                          PAGE

PART I.    Financial Information............................................3

  Item 1.  Financial Statements.............................................3

           Unaudited Consolidated Balance Sheet
           February 28, 1998................................................3

           Unaudited Consolidated Statements of
           Operations for the three months ended
           February 28, 1998 and February 28, 1997..........................4

           Unaudited Consolidated Statements of Cash
           Flows for the three months ended
           February 28, 1998 and February 28, 1997..........................5

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

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


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

  Item 1.  Legal Proceedings...............................................10

  Item 2.  Changes in Securities and Use of Proceeds.......................10

  Item 6.  Exhibits and Reports on Form 8-K................................10

Signatures.................................................................11




                                        2

<PAGE>



                                PART I -- ITEM 1

                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
               CONSOLIDATED BALANCE SHEET AS OF FEBRUARY 28, 1998
                                   (UNAUDITED)

Assets:
Current Assets:

  Cash                                                         $      69,026
  Accounts receivable [less: allowance for
    doubtful accounts of $930,217]                                 3,124,587
  Due from related parties                                            37,043
  Other                                                              185,381
                                                                   ---------


  Total Current Asses                                             3,416,037

Investment in unconsolidated subsidiaries                            72,242
Property and equipment at cost- net                                 395,602
 Goodwill - net                                                   3,411,286
 Other - net                                                        241,747
                                                                 ----------
  Total Assets                                                  $ 7,536,914
                                                                ===========


                                        3

<PAGE>



                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
               CONSOLIDATED BALANCE SHEET AS OF FEBRUARY 28, 1998
                                   (UNAUDITED)

Liabilities and Stockholders' Equity:

Current liabilities:
  Accounts payable                                          $      1,104,562
  Accrued expenses                                                 1,219,079
  Accrued payroll and payroll taxes                                   92,516
  Note payable                                                       800,000
  Unearned revenue                                                   137,652
  Due to related parties                                           1,136,021
                                                                   ---------

  Total current liabilities                                        4,489,830

 Related party - long term debt                                    1,415,338
                                                                   ---------

  Minority interest                                                  281,474
                                                                   ---------

Stockholders' Equity:
 Preferred Stock, $1.00 par value; 500,000 shares authorized:
  $2,527,000 aggregate liquidation value                             200,340

 Common Stock, $.01 par value; authorized 100,000,000
  shares; 8,358,374 shares issued                                     83,583

  Paid-in-capital preferred stock                                  2,077,025

  Paid-in-capital common stock                                    14,430,444

  (Deficit)                                                      (15,032,391)
                                                                 ------------

   Total                                                          $1,759,001
   Less: treasury stock [151,000 shares]- at cost                    408,729
                                                                  ----------

 Total Stockholders' Equity                                        1,350,272
                                                                  ----------
 Total Liabilities and Stockholders' Equity                       $7,536,914
                                                                  ==========

                                        4

<PAGE>



                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>

                                                                         Three Months Ended February 28,
                                                               1998                                          1997
                                                               ----                                          ----
                                                                                    Unaudited
                                                                                    ---------
<S>                                                           <C>                                          <C>
Net Revenues                                                  $3,418,997                                    $3,303,874
                                                              ----------                                    ----------

Expenses:
 Direct mechanical costs                                       1,154,141                                     1,183,767
 Salaries, benefits and
    outside labor costs                                        2,255,956                                     2,028,969

 Rent, occupancy and utilities                                   210,320                                       202,398

 Provisions for doubtful accounts                                 79,500                                        86,000

 General and administrative                                      612,947                                       527,549
                                                                --------                                   ------------


 Total Expenses                                                4,312,864                                     4,028,683
                                                               ---------                                   -----------

Operating income (loss) before interest
 expense                                                        (893,867)                                     (724,809)

Interest expense                                                  80,367                                        52,554
                                                               ----------                                  -----------


Net (loss) on continuing operations                            $(974,234)                                   $ (777,363)
                                                               ----------                                  ------------


Loss from discontinued operations                                   ----                                      (148,314)
                                                               ----------                                     ---------

Net (loss)                                                     $(974,234)                                    $(925,677)
                                                               ==========                                    ==========

Net (loss) per share                                               $(.12)                                        $(.12)
                                                                  ======                                        =======

Weighted average number of common
shares outstanding                                             8,134,300                                      7,907,015
                                                            ============                                     ==========
</TABLE>


                                        5

<PAGE>



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

<TABLE>
<CAPTION>
                                                                                 Three Months Ended February 28,
                                                                                 1998                        1997
                                                                                 ----                        ----
                                                                                             Unaudited

<S>                                                                           <C>                        <C>
Operating Activities:
   Net (loss)                                                                   $(974,234)                 $  (925,677)
                                                                                ---------                 ------------

   Adjustments to reconcile net (loss) to net
    cash  provided  by  operating activities:

   Depreciation and amortization                                                  106,628                     122,538
   Provision for losses on accounts
    receivable                                                                     79,500                      94,500

 Changes in assets and liabilities:
  (Increase) decrease in accounts
    receivable                                                                    275,182                     (52,411)
  (Increase) in other current
    assets                                                                         (8,643)                    (16,085)
  (Increase) in due from related parties                                           (9,430)                     (5,826)
  Increase in due to related parties                                                  ---                       4,000
  Decrease in other assets                                                        (36,074)                     10,664
  (Increase) in investment in unconsolidated
   subsidiaries                                                                  (118,996)                        ---
  Increase in accounts payable
   and accrued expenses                                                           476,548                       8,039
   (Decrease) in payroll taxes payable                                                ---                    (122,320)
                                                                              ------------                   ---------

   Total Adjustments                                                              764,715                      43,099
                                                                                ---------                     --------

  Net Cash Used By Operating Activities - Forward                                (209,519)                   (882,578)
</TABLE>


                                        6

<PAGE>



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

<TABLE>
<CAPTION>
                                                                                 Three Months Ended February 28,
                                                                                 1998                           1997
                                                                                 ----                           ----
                                                                                               Unaudited
                                                                                               ---------
<S>                                                                             <C>                            <C>
Net Cash Used By Operating Activities -  Forward                                (209,519)                      (882,578)
                                                                                =========                      =========

Investing Activities:
  Capital expenditures                                                           (37,795)                       (25,865)
                                                                               ----------                   ------------

Net Cash Provided (Used) by Investing Activities                                 (37,795)                       (25,865)
                                                                               ----------                   ------------

Financing Activities:
  Principal payments note payable                                               (100,000)                      (275,000)
  Dividend on preferred stock                                                     (8,280)                        (9,466)
                                                                               ----------                     ---------


Net Cash (Used) Provided by Financing Activities                                (108,280)                      (284,466)
                                                                               ----------                   ------------

Net Increase (Decrease) in Cash                                                 (355,594)                    (1,192,909)

Cash - Beginning of Period                                                       424,620                      1,494,887
                                                                               ---------                   ------------

Cash - End of Period                                                           $  69,026                    $   301,978
                                                                               =========                    ===========


Supplemental Disclosures of Cash Flow Information:
  Cash paid during the period for:
   Interest                                                                    $  42,784                    $    51,483


</TABLE>



                                        7

<PAGE>



                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A.   Basis of Presentation:

     The Consolidated Balance Sheet as of February 28, 1998 and the Consolidated
Statements of Operations for the three-month periods ended February 28, 1998 and
February  28,  1997,  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 flows have
been made. The results for the interim periods 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 on 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  other
                      Post-Retirement Benefits"



                                        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.

     The Company's net loss for the first quarter did not change materially from
926,000 in 1997 to $974,000 in 1998.  Operating loss before interest expense and
loss on discontinued operations increased $169,000 (23%) from ($725,000) in 1997
to ($894,000) in 1998.  The increase was due primarily to an increase of 140,000
in the loss at Nassau  Newspapers as new management was installed to turn around
the  operations,  and the recording of the Company's 50% share  ($50,000) of the
loss in the New York Blade start-up  offset by a decrease of $40,000 in the loss
at The Hill as its revenues  continue to increase each quarter.  The increase in
interest  expense of $28,000 (54%) from $52,000 in 1997 to $80,000 in 1998 was a
result of a loan from an affiliate of a principal shareholder and officer of the
Company being outstanding in 1998.

     Total  revenues for the Company were  $3,419,000  for the first  quarter of
1998,  an increase  of over  $115,000  (3%) from  $3,304,000  in 1997.  This was
primarily  attributable to increases at The Hill ($153,000,  51%) as a result of
marketplace  recognition  of high  quality  editorial  content  combined  with a
circulation  audit and a change in sales  management  and staff,  Queens Tribune
($62,000,  10%) as a result of  redirection  of sales  efforts,  and at Brooklyn
Skyline where its growing acceptance as a newspaper and advertising force in the
community have helped increase revenues ($41,000,  13%), offset by a decrease at
Westside ($50,000,  19%) due to restructuring of sales management and staff, and
a decrease at Manhattan  Spirit  ($52,000,  14%) from a decrease in lower margin
outside printing jobs.

     Salaries and outside labor costs  increased  $227,000  (11%) as a result of
the  additional  personnel at the South Shore Record,  and from the upgrading of
the sales force at the publications.

Liquidity and Capital Resources:

     At February 28, 1998, the Company had an excess of current liabilities over
current  assets in the amount of  approximately  $1,074,000.  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  order  to  comply  with  the  requirements  of  NASD  Marketplace  Rule
4310(c)(2),  the Company intends to offer its existing shareholders the right to
purchase  additional  shares of its  Common  Stock.  The gross  proceeds  of the
offering  would be  approximately  $3,500,000.  To assure the  Company  that the
offering will raise the required  funds, an officer and shareholder and a holder
of  preferred  stock of the Company  have  committed  to purchase  all shares of
Common Stock not purchased by other shareholders.  The Company is in the process
of negotiating an extension of the shareholder loan which is due May 21, 1998 in
order that it be repaid from the capital raised.

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






                                        9

<PAGE>



                                    Part II.

                                OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS

     An action entitled Jean Jee v. News Communications,  Inc. was instituted in
Supreme Court,  New York County in January 1991. The  complainant  alleged libel
against  the  Company in  connection  with an article  printed in the  Manhattan
Spirit and claimed $2,000,000 in compensatory  damages and unspecified  punitive
damages.  The Company filed an answer  denying the material  allegations  of the
complaint  and the case was  dormant  for a number  of years.  In May 1998,  the
plaintiff voluntarily discontinued the action with prejudice.


Item 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

     In April 1998 the Company  issued  20,000  shares of newly  authorized  $10
Convertible  Preferred Stock,  Series 2, to Bershad  Investment Group, L.P., for
$200,000 in a transaction  exempt from registration  under the Securities Act of
1933 pursuant to Section 4(2) thereof.  Each share of $10 Convertible  Preferred
Stock,  Series 2, is convertible  into 5 shares  of  Common  Stock,  subject  to
adjustment in certain circumstances.


Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

          (a)      Exhibit
                   Number         Description  
                   ----------     ------------
                       4.2.6      Certificate of Designation of $10
                                  Convertible Preferred Stock Series 2

                      10.41       Subscription Agreement dated as of
                                  April 17, 1998 between the Company and
                                  Bushad Investment Group, L.P.  
                      
                      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: May 21, 1998                              By:/s/ Michael Schenkler
                                                   ---------------------
                                                Michael Schenkler, President


Date: May 21, 1998                              By:/s/ Robert Berkowitz
                                                   --------------------
                                                Robert Berkowitz, Controller
                                                (Principal Financial and 
                                                 Accounting Officer)




                                       11
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