UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                  FORM 10-QSB/A
                                   AMENDMENT 1

(Mark One)

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

For the quarterly period ended - May 31, 1996

[  ] 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 July 12, 1996: 7,826,415 shares $ .01 par value common stock

                                        1


<PAGE>



                                  FORM 10-QSB/A

                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES

                                TABLE OF CONTENTS

                                                                         PAGE
PART I.               Financial Information


    Item 1.           Financial Statements

                           Unaudited Consolidated Balance Sheet
                           at May 31, 1996.................................3-4

                           Unaudited Consolidated Statements of
                           Operations for the three and six months
                           ended May 31, 1996 and May 31, 1995.............5


                           Unaudited Consolidated Statements of Cash
                           Flows for the six months ended
                           May 31, 1996 and May 31, 1995...................6-7

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

     Item 2.            Management's Discussion and Analysis
                               or Plan of Operation........................9-13

PART II.                Other Information..................................14

     Item 6.            Exhibits and Reports on Form 8-K

Signatures.................................................................15




                                        2



<PAGE>



                                  PART I-ITEM 1

                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                  CONSOLIDATED BALANCE SHEET AS OF MAY 31, 1996
                                   (UNAUDITED)
<TABLE>
<CAPTION>
<S>                                                                                                 <C>  
Assets:
Current Assets:
  Cash and Cash Equivalents                                                                 $      389,885
  Accounts Receivable [Less: Allowance for
    Doubtful Accounts of $1,482,314]                                                             5,066,265
  Due From Related Parties                                                                         123,645
  Other Current Assets                                                                             167,989
                                                                                           ---------------


  Total Current Assets                                                                           5,747,784

Property and Equipment at Cost- Net of
 Accumulated Depreciation of $769,964                                                              598,621
 Goodwill - Net                                                                                  3,523,430
 Other Assets                                                                                      124,725
                                                                                             -------------

  Total Assets                                                                               $   9,994,560
                                                                                             =============
</TABLE>


                                        3



<PAGE>



                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
                  CONSOLIDATED BALANCE SHEET AS OF MAY 31, 1996
                                   (UNAUDITED)
<TABLE>
<CAPTION>
<S>                                                                                                 <C> 
Liabilities and Stochholders' Equity:
Current Liabilities:
  Accounts Payable                                                                            $  1,167,388
  Accrued Expenses                                                                                 670,442
  Accrued Payroll and Payroll Taxes                                                                320,914

  Notes Payable - Bank                                                                           1,175,000
  Due to Related Parties                                                                            13,567
                                                                                            --------------
  Total Current Liabilities                                                                      3,347,311
                                                                                              ------------

Minority Interest                                                                                   47,788

Notes Payable - Shareholder                                                                      1,000,000
                                                                                           ---------------
Stockholders' Equity:
 Preferred Stock, $1.00 Par Value; 500,000 Shares Authorized:

 10% Convertible Preferred Stock, 1,250 Shares Authorized;
 32 Issued and Outstanding, $500 Per Share Per Annum
 Cumulative Dividends, $160,000 Liquidation Value                                          $            32


 8% Convertible Preferred Stock, 500 Shares Authorized,
 217 Issued and Outstanding, $80 Per Share Per Annum
 Cumulative Dividends, $217,000 Liquidation Value                                                      217

 12% Convertible Preferred Stock, 200 Shares Authorized,
 200 Issued and Outstanding, $120 Per Share Per Annum
 Cumulative Dividends, $200,000 Liquidation Value                                                      200

 Common Stock, $.01 Par Value; Authorized 100,000,000
 Shares; 7,977,415 Shares Issued                                                                    79,774

  Paid-in-Capital Preferred Stock                                                                  519,873

  Paid-in-Capital Common Stock                                                                  13,883,256

  (Deficit)                                                                                     (8,475,162)
                                                                                                ------------
   Total                                                                                        $6,008,190
   Less: Treasury Stock [151,000 Shares]-
            At Cost                                                                               (408,729)
                                                                                                ------------
 Total Stockholders' Equity                                                                      5,599,461
                                                                                                ------------
 Total Liabilities and Stockholders' Equity                                                 $    9,994,560
                                                                                           =================
</TABLE>
                                       4
<PAGE>

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


                                                     Three Months Ended May 31,             Six Months Ended May 31
                                                     --------------------------             -----------------------
                                                       1996               1995                 1996           1995
                                                       ----               ----                 ----           ----
                                                                                  Unaudited

<S>                                                    <C>                <C>                  <C>             <C>   
Net Revenues                                        $4,928,085        $4,632,504           $8,452,588       $8,001,614
                                                    ----------        ----------           ----------       ----------


Expenses:
 Direct Mechanical Costs                             1,760,072         1,571,528            3,264,350        2,913,303
 Salaries, Benefits and

    Outside Labor Costs                              2,397,526         2,383,379            4,704,679        4,561,602
 Rent, Occupancy & Utilities                           222,231           196,954              463,675          387,662

 Provisions for Doubtful Accounts                       43,000            36,000               88,000           72,000

 General and Administrative                            722,153           722,483            1,237,601        1,246,297
                                                   -----------       -----------        -------------     ------------


 Total Expenses                                      5,144,982         4,910,344            9,758,305        9,180,864
                                                    ----------        ----------           ----------      -----------

Operating Income (Loss) Before Interest
 Expense and Interest Income                          (216,897)         (277,840)          (1,305,717)      (1,179,250)

Interest Expense                                       (20,727)            ----               (40,318)          (6,475)

Interest Income                                          ---              23,542                 ---            31,579
                                                  --------------    ------------    -----------------     ------------

Net Income (Loss)$                                    (237,624)      $  (254 298)        $ (1,346,035)     $(1,154,146)
                                                    ============    ============         =============     ============

Net Income (Loss) Per Share                             $ (.03)           $ (.03)               $(.17)          $( .15)
                                                 ===============   =============      ================    =============


Weighted Average Shares
Outstanding                                          7,823,415         7,776,709            7,820,978        7,772,742
                                                     ===========       =========           ===========     ============
</TABLE>


                                        5

<PAGE>


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

                                                                                    Six Months Ended May 31,
                                                                                 1996                        1995
                                                                                 ----                        ----
                                                                                             Unaudited
<S>                                                                               <C>                         <C>  
Operating Activities:
  Net Income (Loss)                                                         $ (1,346,035)               $  (1,154,146)
                                                                            -------------               ---------------
  Adjustments to Reconcile Net
    (Loss) to Net Cash Provided
    by Operating Activities:
   Depreciation and Amortization                                                 232,891                      252,636

   Provision for Losses on Accounts
    Receivable                                                                    88,000                       72,000

    Compensation Recognized Related to Warrants Issued                           128,000                         ---

 Change in Assets and Liabilities:
   (Increase) Decrease in Accounts
    Receivable                                                                  (423,584)                    (764,579)
   (Increase) Decrease in Other Current
    Assets                                                                       (89,919)                     (83,579)
   (Increase) in Due from Related Parties                                        ( 4,412)                      (6,294)
                 Decrease (Increase) in Other Assets                                ----                       (1,051)

   (Increase) Decrease in Goodwill                                                29,454                       (4,074)
    Increase (Decrease) in Accounts Payable
    and Accrued Expenses                                                         107,067                      (14,282)

    Increase (Decrease) in Payroll Taxes Payable                                  (1,238)                     (72,789)

    Increase (Decrease) in Other Current Liabilities                             (15,615)                     106,980

                                                                               __________                    _________
                                                                                

   Total Adjustments                                                              50,644                     (515,032)
                                                                            ------------                  -------------

  Net (Deficit) - Operating Activities -                                      (1,295,391)                  (1,669,178)
   Forward
</TABLE>

                                        6


<PAGE>

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

                                                                                    Six Months Ended May 31,
                                                                                 1996                           1995
                                                                                 ----                           ----
                                                                                             Unaudited
<S>                                                                               <C>                           <C>  
Net (Deficit) - Operating Activities -
    Forwarded                                                                 (1,295,391)                    (1,669,178)
                                                                              ===========                    ===========

Investing Activities:
 Sale of Marketable Securities                                                   ----                           924,633
 Capital Expenditures                                                            (31,516)                       (87,082)
                                                                              -----------                   ------------

Net Cash Provided (Used) by Investing Activities                                 (31,516)                       837,551
                                                                               ----------                   -----------


Financing Activities:
  Principal Payments Long-Term Debt                                              (24,000)                       (75,747)
  Proceeds from Exercise of Warrants                                              19,498                          9,216
  Dividend on Preferred Stock                                                    (20,680)                       (20,680)
  Proceeds from Exercise of Stock Options                                         12,500                         12,500
  Proceeds from Notes Payable - Bank                                             675,000                        225,000
  Proceeds from Notes Payable - Shareholder                                    1,000,000                          ----

                                                                               ----------                   -----------


Net Cash Provided by Financing Activities                                      1,662,318                        150,289
                                                                          ---------------                   ------------


Net Increase (Decrease) in Cash                                                  335,411                       (681,388)

Cash - Beginning of Periods                                                       54,474                        842,857
                                                                            ------------                    -----------

Cash - End of Periods                                                        $   389,885                    $   161,519
                                                                           =============                    ===========


Supplemental Disclosures of Cash Flow Information:
  Cash paid during the period for:
   Interest                                                              $        24,713                  $       9,547
   Income Taxes                                                               -----------                     ---------
</TABLE>

Supplemental Schedule of Non-Cash Investing and Financing Activities:

     On December 9, 1993 the Company acquired certain assets of Long Island News
Group and MB  Publishing  Co.,  publishers  of eight paid weekly  newspapers  in
Nassau  County,  New York (the  "Nassau  Newspapers").  The net  purchase  price
consisted of cash and stock valued at approximately  $655,000.  The cash portion
($313,000)  was paid at the time of  acquisition  with the stock to be issued in
annual installments beginning in December 1996.


                                       7



<PAGE>



                   NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


A. Basis of Presentation:

   The  Consolidated  Balance  Sheet  as of May 31,  1996  and the  Consolidated
Statements of Operations for the three and six-month  periods ended May 31, 1996
and May 31,  1994,  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 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 Form 10-KSB for
the fiscal  year ended  November  30,  1995 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. The  results of  operations  for 1996 and 1995 have been  restated to reflect
additional expenses and loss resulting from compansation  recognized relating to
warrants issued and unrecorded printing expenses.


                                        8


<PAGE>



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

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

     The Company publishes the Dan's Papers, and the Montauk Pioneer,  Our Town,
the Manhattan  Spirit,  the Chelsea Clinton News, and the Westsider,  the Queens
Tribune,  the  Bronx  Press  Review,  (and the  Riverdale  Re iew),  the  Nassau
Newspapers,  (including  Lynbrook USA,  Malverne Times,  Rockville Centre News &
Owl,  Valley  Stream  MAILeader,  Independent  Voice of Long Beach,  Oceanside &
Island Park, Rockville  Centre-Oceanside  Beacon, Baldwin Citizen, East Rockaway
Observer, six editions of the Long Island Market and Long Island Lifestyles) and
the  Brooklyn  Skyline  - all  weekly  regional  newspapers.  The  Company  also
publishes a monthly  glossy  magazine,  Manhattan  File,  and The Hill, a weekly
newspaper devoted to coverage of the United States Congress. The following table
sets forth, for the periods indicated,  certain information  relating to each of
the  Company's  publications  and to  certain  expenses  incurred  by the parent
company,  News  Communications,  Inc.  The numbers  set forth below  reflect the
operations of the  following  acquired or start-up  publications  from the dates
indicated:  Bronx Press  Review - December  1992;  Nassau  Newspapers - December
1993;  Brooklyn  Skyline  August 1994;  Manhattan File - August 1994; The Hill -
September 1994; Westside  Publications - September 1994. The information for the
three and six months ended May 31, 1996 and May 31, 1995 is unaudited.


                                        9


<PAGE>

<TABLE>
<CAPTION>


                                                         Three Months Ended May 31,          Six Months Ended May 31
                                                           1996            1995 (3)           1996          1995 (3)
                                                        ---------         ----------        --------     ------------
                                                                                   Unaudited
<S>                                                        <C>                <C>              <C>            <C>  
Net Revenues:
 Queens Tribune                                        $1,001,923          $ 830,624      $1,691,475       $1,499,493
 Dan's Papers                                             821,218            679,817       1,098,354          913,884
 Manhattan Spirit                                         427,107            468,906         800,513          838,341
 Our Town                                                 370,532            400,965         708,782          787,480
 The Bronx Press/Riverdale Review                         250,911            247,912         466,280          474,079
 Nassau Newspapers                                        619,775            664,887       1,148,951        1,249,459
 The Hill                                                 414,625            439,130         691,743          616,611
 Manhattan File                                           454,160            359,197         788,303          675,918

 Brooklyn Skyline                                         323,462            247,727         595,883          451,196
 Westside Publications                                    244,372            293,339         462,304          495,153
                                                     -------------        -------------    -------------   -------------

Total Net Revenues                                    $ 4,928,085        $ 4,632,504     $ 8,452,588      $ 8,001,614
                                                     =============        =============    =============   =============


Income (Loss) Publications Before Goodwill:
 Queens Tribune                                      $    242,946       $    180,518         272,793          293,843
 Dan's Papers                                             223,505            189,173         123,791          114,970
 Manhattan Spirit                                          24,172             37,582          25,880           20,523
 Our Town                                                  38,950             46,847          50,111           80,092
 The Bronx Press/Riverdale Review                          34,456              (2,900)        11,251          (14,921)
 Nassau Newspapers                                        (27,542)           (84,627)       (172,711)        (185,131)
 The Hill                                                 (88,435)           (69,068)       (307,233)        (340,108)
 Manhattan File                                           (54,211)           (92,620)       (218,602)        (244,931)
 Brooklyn Skyline                                         (12,874)           (31,805)        (54,119)         (84,726)
 Westside Publications                                      9,399             16,473         (25,911)          18,314
                                                     --------------      --------------   ------------      ------------

Income (Loss) - Publications                         $    390,366         $  189,573     $  (294,750)      $ (342,075)
                                                     ==============      ==============   ============      =============

Income (Loss) Publications After Goodwill (1):
 Queens Tribune                                          $216,229         $  153,801         219,359          240,409
 Dan's Papers                                             210,830            176,498          98,441           89,620
 Manhattan Spirit                                          24,172             37,582          25,880           20,523
 Our Town                                                  25,489             33,386          23,189           53,170
 The Bronx Press/Riverdale Review                          30,894             (6,462)          4,127          (22,045)
 Nassau Newspapers                                         23,997            (92,376)       (129,633)        (200,629)
 The Hill                                                 (88,435)           (69,068)       (307,233)        (340,108)
 Manhattan File                                           (55,011)           (92,620)       (220,202)        (244,931)
 Brooklyn Skyline                                         (14,404)           (33,199)        (57,179)         (87,514)
 Westside Publications                                      5,325             13,212         (34,059)          11,792
                                                     --------------      --------------  --------------     ------------
Income (Loss)-Publications                           $    319,086        $   120,754      $ (437,310)     $  (479,713)
                                                     ==============        ===========     ============     ============
</TABLE>
                                        9

<PAGE>
<TABLE>
<CAPTION>
<S>                                                        <C>                 <C>              <C>              <C> 
Parent Company Expenses:
 Personnel, Rent, General and Administrative              535,983            398,594         868,407          699,537
 Interest (2)                                              20,727            (23,542)         40,318          (25,104)
                                                    -------------    ----------------     ----------    --------------
 Total Parent Company Expenses                            556,710            375,052         908,725          674,433
                                                    ------------       -------------     -----------     -------------

Net Income (Loss)                                   $    (237,624)     $    (254,298)    $(1,346,035)    $ (1,154,146)
                                                    ===============    ==============   =============    =============
<FN> 

(1)  Reflects expense for amortization of goodwill by publication as follows:
                                                                                                 
                       Three Months Ended May 31,      Six Months Ended May 31,
                        1996              1995             1996       1995

Queens Tribune          $26,717         $26,717          $53,434     $53,434
Dan's Papers             12,675          12,675           25,350      25,350
Our Town                 13,461          13,461           26,922      26,922
The Bronx Press Review    3,562           3,562            7,124       7,124
Nassau Newspapers         8,461           7,749           16,922      15,498
Brooklyn Skyline          1,530           1,394            3,060       2,788
Manhattan File              800           ---              1,600        ---
Westside Publications     4,074           3,261            8,148       6,522
                       --------       ----------       -----------   -----------
                        $71,280         $68,819         $142,560      $137,638
                       ========       ==========       ===========   ===========
                                                    
                                                     

(2) Net of interest  income of $23,542 for the three  months  ended May 31, 1995
and $31,579 for the six months ended May 31, 1995.

(3) The results of operations for 1995 have been restated to reflect  additional
expenses and loss.
</FN>
</TABLE>

Results of Operations:

The following  discussion  compares  results of operations  for the three months
ended and six months ended May 31, 1996 and May 31, 1995.

Three Months Ended May 31, 1996 and May 31, 1995

Net Revenues:
         Total revenues from existing  publications  were up over 6%. The Queens
Tribune had an increase  (21%) due to expansion  with the "Bayside Trib at Home"
and the shifting of its anniversary

                                       11

<PAGE>

issue to the second quarter. Dan's Papers has continued to expand its geographic
base further west in the Long Island posh resort area, the Hamptons,  as well as
positioning  itself  as the  advertising  standard  on Long  Island's  east  nd,
increasing its revenues (21%). There were decreases in revenues at the Manhattan
Spirit (9%), Our Town (8%)and Westside (17%),  attributed in part to a change in
sales  management.  The Hill  had a  decrease  (6%) in  revenue  as a result  of
frequent  periods when  Congress was not in session  during the quarter due to a
presidential election year. Manhattan File had an increase (26%) in revenue as a
result of an improved sales effort.  Brooklyn  Skyline had an increase (31%) due
to its expansion into a fifth zone and an ongoing increased sales effort.

Income (Loss) - Publications:
         Net Income from publications  increased dramatically as the Company has
started to feel the  effect of a series of budget  cuts,  instituted  during the
second  quarter,  which will save the Company  approximately  $1.3 million on an
annualized basis In addition, the Company has ongoing negotiations with printers
to take  advantage  of  decreasing  newsprint  prices.  Although the Company was
paying substantially more for newsprint/printing  during this period as compared
to the previous year,  during the third quarter  printing prices are expected to
be lower than the prior year.  The  increases  in income for the Queens  Tribune
(34%) and Dan's Papers (18%),  are  attributed to their  increased  revenues and
budget cuts. The Bronx Press Review had a profit compared to a loss last year as
a result of the its budget  cuts.  The  increase in sales for Nassau  Newspapers
combined  with budget  cuts  resulted in a reduced  loss  (67%).  The  Manhattan
Spirit,  Our Town and Westside had  decreases in income as a result of decreased
revenues.  The Hill had an increased  loss as a result of lower  revenues.  As a
result of budget cuts and incresed  revenues,  Manhattan File decreased its loss
as compared to last year.

       The Company is continuing to focus on  increasing  sales and  controlling
costs.

Parent Company Expenses:
      The  increase  in  parent  company  expenses  was  primarily  a result  of
increased  interest  expense and  compensation  recognized  relating to warrants
issued ($128,000).

Six Months Ended May 31, 1996 and May 31, 1995

Net Revenues:
         Total revenues from existing publications were up almost 6%. The Queens
Tribune had an increase  (13%) due to expansion with the "Baysi e Trib at Home".
Dan's  Papers has  continued to expand its  geographic  base further west in the
Long Island posh resort area, the Hamptons, as well as positioning itself as the
advertising  standard on Long Island's east end,  increasing its revenues (20%).
There were  decreases in revenues at the Manhattan  Spirit (5%),  Our Town (10%)
and Westside (7%), attributed in part to a change in sales management.  The Hill
had a increase  (12%) in revenue as a result of the capture of increased  market
share.  Manhattan  File had an  increase  (17%)  in  revenue  as a result  of an
improved  sales  effort.  Brooklyn  Skyline  had an  increase  (32%)  due to its
expansion into a fifth zone and an ongoing increased sales effort.

Income (Loss) - Publications:
       As the  Company  starts to feel the  effect  of a series of budget  cuts,
instituted during the second quarter,  which will save the Company approximately
$1.3  million on an  annualized  basis the Company has bee able to decrease  its
loss for the six months. In addition,  the Company has ongoing negotiations with
printers to take advantage of decreasing newsprint prices.  Although the Company
was paying  substantially  more for  newsprint/printing  during  this  period as
compared to the previous  year,  during the third  quarter  printing  prices are
expected to be lower than the prior year.  The decrease in income for the Queens
Tribune (7%) was due to start-up costs during the first quarter  associated with
its Bayside Trib at Home expansion. The Bronx Press Review had a profit compared
to a loss last year as a result of the its budget  cuts.  The  increase in sales
for Nassau Newspapers  combined with budget cuts resulted in a smaller loss than
last year. The increased sales for Brooklyn  Skyline  resulted in a smaller loss
than last year.  Our Town had  decreased  (37%)  income as a result of decreased
revenues.  The  increase  in income for Dan's  Papers  (8%),  is  attributed  to
increased revenues and budget cuts.

       The Company is continuing to focus on  increasing  sales and  controlling
costs.

Parent Company Expenses:
     The increase in parent company expenses was primarily a result of increased
interest  expense  and  compensation  recognized  relating  to  warrants  issued
($128,000).
                                       12

<PAGE>

Liquidity and Capital Resources:
      At May 31, 1996,  the Company had an excess of current assets over current
liabilities in the amount of approximately $2,400,000.  During the quarter ended
May 31, 1996, the Company obtained $175,000  additional bank loans whose payment
to the bank has been  guaranteed  by the Chairman of the Board.  In May 1996 the
Company obtained a $1,000,000 two-year loan, from its largest shareholder, to be
used primarily for working capita needs resulting from seasonal  fluctuations in
cashflow.
      Although there can be no assurance, management believes that the Company's
operations will generate  positive cash flow for the fiscal year ending November
30, 1996 and has sufficient funds to meet its needs.



                                       13



<PAGE>

      Part II.  OTHER INFORMATION

      Item 6.  Exhibits and Reports on Form 8-K

              A.   Exhibits - None

              B.   Reports on Form 8-K - None


                                       14

<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: July 15, 1997                           By:    /s/ Michael Schenkler
                                                  ----------------------------
                                                  Michael Schenkler, President




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


                                       15

<PAGE>