FORM 10-QSB

U. S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

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

For the Quarterly Period Ended				              
September 30, 1997

OR

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

For the Quarter Ended September 30, 1997        
Commission File # 0-15303

UNICO, Inc.
(Exact name of Registrant as specified in its Charter)

Delaware									       
(State or other jurisdiction of incorporation or organization)

73-1215433
(IRS Employer Identification Number)

8380 Alban Road, Springfield, VA  22150
(Address of principal executive offices)  (Zip Code)

(703) 644-0200
(Registrant's telephone number, including area code)			    

Indicate by check mark whether the Registrant (1) has filed all 
reports required to be filed by Section 13 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 CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of the latest practicable date.

Class:  Common Stock, $.01 Par Value

Number of shares outstanding as of November 8, 1997		
8,476,309

UNICO, Inc.


INDEX
                                                                       
Page No.

PART 1 - FINANCIAL INFORMATION

Item 1   Consolidated Balance Sheets
September 30, 1997 and December 31, 1996                    3 & 4

Consolidated Statements of Operations                         
For the Quarter Ended September 30, 1997
and the Quarter Ended September 30, 1996                      5       

For the Nine Months Ended September 30, 1997
And the Nine Months Ended September 30, 1996                  6        

Consolidated Statements of Cash Flow
For the Nine Months Ended September 30, 1997
and the Nine Months Ended September 30, 1996                  7 

Notes to Interim Consolidated Financial Statements            8      

Item 2  Management's Discussion and Analysis of Financial
        Condition and Results of Operations                  10           

PART 11 - OTHER INFORMATION                                  14              

SIGNATURE PAGE                                               19          

PART 1.  FINANCIAL INFORMATION

UNICO, Inc.

CONSOLIDATED BALANCE SHEETS                         1 of 2

ASSETS                               September 30,             December 31,
                                         1997                      1996         
                                     -------------             ------------
CURRENT:

Cash and Cash Equivalents             $  123,263                $  233,971
Accounts Receivable:
 Trade (net of allowance for 
 uncollectible accounts of 
 $121,311 and $355,000)                  352,795                   357,774
Inventory                                137,175                   140,015
Notes Receivable                         123,117                         -
Territory Buy Back Allowance             497,500                         -
Other Current Assets                      30,682                         -
Prepaid Expenses                           6,856                    22,636
                                      ----------                ---------- 
	Total current assets             1,271,388                   754,396

PROPERTY:

Furniture, fixtures and equipment      4,168,468                 4,006,961
Leasehold improvements                   109,995                   109,045
 Less accumulated depreciation        (2,128,646)               (1,759,425)
                                      -----------              ------------
 Property, net                         2,149,817                 2,356,581

GOODWILL                                 226,801                   232,407

DEPOSITS AND OTHER                        54,151                    75,830
                                      ----------                ----------
TOTAL                                 $3,702,157                $3,419,214
                                      ==========                ==========


The accompanying notes are an integral part of the consolidated financial 
statements.

UNICO, Inc.

CONSOLIDATED BALANCE SHEETS                         2 of 2
                                                                           
                                     September 30,             December 31,
LIABILITIES & STOCKHOLDERS' EQUITY        1997                      1996
----------------------------------   -------------             ------------

CURRENT LIABILITIES:
Accounts payable                      $1,190,176                $1,278,604
Accrued liabilities                      528,687                   428,092
Territory buy back payable               438,250                         -
Notes payable, current portion           175,197                   749,261
Deferred revenue                               -                   124,788
                                      ----------                ----------
 Total current liabilities             2,332,310                 2,580,745

LONG TERM LIABILITIES:
Notes Payable                          1,668,450                 1,110,275
Deferred Rent                            229,280                   229,280
                                      ----------                ----------
 Total long term liabilities           1,897,730                 1,339,555
                                      ----------                ----------
 Total liabilities                     4,230,040                 3,920,300

COMMITMENTS AND CONTINGENCIES(Note 2)

DEFICIENCY IN STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value:  
5,000,000 shares authorized; 
designated as:
 Redeemable Preferred; 
 280 shares issued and outstanding             3                         3
 Series A Convertible Preferred                -                         -
 Series B Preferred                            -                         -
Series C Preferred stock, $.01 par 
 value; voting on the basis of 4 
 votes to 1 vote for the common 
 stock, preferred in liquidation at 
 $1 per share over common shareholders, 
 convertible into common stock on the
 basis of 4 common shares for each 
 preferred share, with automatic
 conversion on August 1, 1998; 
 authorized, 2,000,000 shares, issued
 and outstanding, 1,712,739 shares        17,127                    17,127
Common stock - $.01 par value; 
20,000,000 shares authorized;
 8,476,309 shares issued and 
 outstanding                              84,763                    84,763
Additional paid-in capital             6,724,589                 6,724,589
Deferred Compensation                    (18,230)                  (18,230)
Accumulated deficit                   (7,336,135)               (7,309,338)
                                      -----------               -----------
 Total deficiency in stockholders' 
 equity                                 (527,883)                 (501,086)
                                      -----------               -----------
TOTAL LIABILITIES AND DEFICIENCY IN
STOCKHOLDERS' EQUITY                  $3,702,157                $3,419,214

The accompanying notes are an integral part of the consolidated financial 
statements.

UNICO, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED SEPTEMBER 30, 1997 AND 1996


                                         1997                       1996
                                      -----------               ------------ 
REVENUES:

Coupon and advertising sales,
 net of discounts and allowances      $1,185,345                 $1,263,685
Franchise fees                             4,847                     72,680
Other                                    118,768                    373,958
                                      ----------                 ----------
TOTAL REVENUES                         1,308,960                  1,710,323

EXPENSES:

Production                             1,258,648                  1,312,260
General and administrative               354,679                    232,941
Franchise development                     24,082                     58,218
Interest expense - affiliate              22,800                     14,264
Interest expense - other                  30,366                     57,158
                                      ----------                 ----------
TOTAL EXPENSES                         1,690,575                  1,674,841
                                      -----------                -----------
NET INCOME (LOSS) BEFORE INCOME TAXES   (381,615)                    35,482
DEFERRED INCOME TAX EXPENSE                9,000                      9,000
                                      -----------                -----------
NET INCOME (LOSS) BEFORE 
EXTRAORDINARY ITEM                      (390,615)                    26,482

EXTRAORDINARY GAIN FROM BUSINESS 
DISSOLUTION                               64,001                          -
                                     -----------                 -----------
NET INCOME (LOSS)                    $  (326,614)                 $  26,482
                                     ===========                 ===========
WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING                    8,476,309                  7,886,608
                                     -----------                 -----------
NET INCOME (LOSS) PER COMMON SHARE         (.039)                 $     .003
                                     ===========                 ===========


The accompanying notes are an integral part of the consolidated financial 
statements.

UNICO, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
                                                                      
                                         1997                       1996    
                                     ------------               ------------
REVENUES:                 

Coupon and advertising sales,
 net of discounts and allowances     $ 4,218,532                $ 4,640,826
Franchise fees                            82,965                    193,103
Other                                    344,714                    554,203
                                     -----------                -----------
TOTAL REVENUES                         4,646,211                  5,388,132

EXPENSES:

Production                             3,309,720                  3,748,191
General and administrative             1,509,625                  1,466,879
Franchise development                    165,587                    235,615
Interest expense - affiliate              69,222                     72,827
Interest expense - other                  85,240                    195,660
                                     -----------                -----------
TOTAL EXPENSES                         5,139,394                  5,719,172
                                     ------------               ------------
NET (LOSS) BEFORE INCOME TAXES          (493,182)                  (331,040)
DEFERRED INCOME TAX EXPENSE               27,000                     26,667
                                     
NET (LOSS) BEFORE EXTRAORDINARY ITEM    (520,182)                  (357,707)

EXTRAORDINARY GAIN FROM BUSINESS 
DISOLUTION                               493,386                          -
                                      -----------               ------------
NET INCOME (LOSS)                     $  (26,797)                 $(357,707)

WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING                     8,476,309                  7,884,274
                                      -----------               ------------
NET INCOME (LOSS) PER COMMON SHARE    $    (.003)                $     (.045)

The accompanying notes are an integral part of the consolidated financial 
statements.

UNICO, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

                                                                     
                                         1997                       1996    
                                    -------------               ------------

CASH FLOWS FROM OPERATING 
ACTIVITIES:
Net income (loss)                     $  (26,797)                $ (357,707)
Adjustments to reconcile net income 
to net cash provided by operating 
activities:
 Depreciation and amortization           344,124                    370,828
 Provision for bad debts                  83,114                     72,285
 Deferred income taxes                    27,000                          
 Gain on exchange of stock                                          (45,250)
Changes in operating assets and 
liabilities:
 Accounts and notes receivable          (118,138)                   366,969
 Prepaid expenses and inventory           (6,856)                    39,692
 Deposits and other                      (30,682)                    49,415
 Accounts payable and accrued 
  liabilities                            147,838                    274,272
 Deferred revenue                       (124,788)                  (110,921)
Net Cash Provided by (Used in)        -----------                ----------- 
 Operating Activities                    294,815                    659,583

CASH FLOWS FROM INVESTING ACTIVITIES:
Territory Buy Back Allowance Credits 
 Granted                                 (59,250)                         0
Purchase of property                    (118,271)                  (160,372)
Net Cash Provided by (Used in)         ----------                ----------- 
 Investing Activities                   (177,521)                  (160,372)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debentures                       0                     25,000
Proceeds from notes payable               31,894                     50,000
Payment of notes payable                (259,897)                  (708,319)
Net Cash Provided (Used In)            ----------                -----------
 Financing Activities                   (228,003)                  (633,319)
                                       ----------                -----------
CHANGE IN CASH AND CASH EQUIVALENTS:    (110,709)                  (134,108)
Cash and Cash Equivalents - 
 Beginning of Period                     233,971                    300,821
Cash and Cash Equivalents -            ----------                -----------
 End of Period                         $ 123,263                 $  166,713
                                       ==========                ===========
SUPPLEMENTAL CASH FLOW DISCLOSURES:
 Cash paid for income taxes            $       0                 $    5,000
 Cash paid for interest                $  85,240                 $  268,487

The accompanying notes are an integral part of the consolidated financial 
statements.

UNICO, Inc.

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED SEPTEMBER 30, 1997 and 1996

1. BASIS OF PRESENTATION
   ---------------------

The interim consolidated financial statements at September 30, 1997 
and for the three month and nine month, periods ended September 30, 
1997 and 1996 are unaudited, but include all adjustments which the 
Company considers necessary for a fair presentation.  The 
December 31, 1996 balance sheet was derived from the Company's 
audited financial statements.
 
The accompanying unaudited financial statements are for the 
interim periods and do not include all disclosures normally 
provided in annual financial statements, and should be read 
in conjunction with the Company's audited financial statements 
included in the Company's Form 10-KSB for the year ended 
December 31, 1996.  The accompanying unaudited interim financial 
statements for the three month and nine month periods ended September 
30, 1997 are not necessarily indicative of the results, which can 
be expected for the entire year.

2. COMMITMENTS & CONTINGENCIES
   ---------------------------

Prior to 1995, the Florida Department of Revenue issued a 
Notice of Intent to levy additional sales taxes with penalty 
and interest charges totaling approximately $480,000 against 
the Company's subsidiary, Cal-Central Marketing Corporation.
A liability for a portion of this matter was recorded by 
Cal-Central and was included in other long-term liabilities in 
the financial statements at December 31, 1994. Subsequent to 
December 31, 1995, written settlement was reached with Florida 
authorities whereby the Company agreed to a payoff of $35,000, 
payable at $5,000 per quarter, over seven quarters beginning in 
June, 1996.  The agreed to amount is recorded as a liability at 
December 31, 1996 and September 30, 1997. 

The Company is exposed to various other legal matters encountered 
in the normal course of business.  In the opinion of management, 
the resolution of these matters will not have a material adverse 
effect on the Company's consolidated financial position or results 
of operations.

On June 20, 1997, the Company's wholly-owned subsidiary, Cal-
Central Marketing Corporation, was dissolved resulting in the 
recording of an extraordinary gain of $429,385, the net effect 
of asset and liability amounts written off. Final accounting
for this transaction increased the gain to $493,386 at 
September 30, 1997.

3. INCOME TAXES
   ------------

The Company accounts for income taxes in accordance with the 
provisions of Statement of Financial Accounting Standards No. 
109, "Accounting for Income Taxes" ("SFAS 109"), which requires 
an asset and liability approach to accounting for income taxes.  
Under SFAS 109, deferred tax assets or liabilities are computed 
on the difference between the financial statement and income tax 
bases of assets and liabilities ("temporary differences") using 
the enacted marginal tax rate.  Deferred income tax expenses or 
benefits are based on the changes in the deferred tax asset or 
liability from period to period.

Management has determined that it is not more likely than not 
that the Company will be able to realize all the tax benefits 
from available net operating loss carryforwards and has, 
therefore, provided a valuation allowance of an equal amount. 
The deferred income tax expense of $9,000 and $27,000, reflected 
in the Statements of Operations for the quarter and nine month 
periods ended September 30, 1997, represents state income taxes 
payable by United Coupon on operating profits that are not 
impacted by available net operating loss carryforwards.

4. SUBSIDIARY RESTRUCTURING 
   ------------------------

The Company acquired Cal-Central Marketing Corporation as a 
wholly owned subsidiary on October 27, 1993.  Operating 
profitability and cash flow for the subsidiary were below 
management's expectations and anticipated potential since 
the acquisition.  During the third quarter of 1995, management 
determined that it was in the best interest of shareholders 
and the Company to close the Fort Lauderdale, Florida, 
production facility and consolidate all art and printing 
functions for Cal-Central into the Company's newly expanded 
facility in Springfield, Virginia.  This transition was 
accomplished during December 1995, and a restructuring charge 
of $772,433 was recorded during 1995 to reflect initial costs 
associated with the restructuring.

During the quarter ended March 31, 1996, the Company further 
evaluated the collectibility of remaining accounts receivable 
of Cal-Central, including receivables related to advertising 
commitments completed during the period.  As a result of this 
review, the Company recorded additional bad debt expense of 
$60,000 related to Cal-Central accounts receivable.  During 
the fourth quarter of 1996, management abandoned plans for 
resurrecting the Cal-Central operation and all remaining 
accounts receivable and goodwill related to the purchase 
of Cal-Central were written off.

On June 20, 1997, the Company's wholly-owned subsidiary, 
Cal-Central Marketing Corporation, was dissolved, resulting 
in the recording of an extraordinary gain of $429,385, the net 
effect of asset and liability amounts written off. Final 
accounting for this transaction increased the gain to 
$493,386 at September 30, 1997.

5. CORPORATE RESTRUCTURING
   -----------------------

On March 4, 1996, the Company entered into a Third Restated 
and Amended Loan Agreement with BancFirst, which provided for 
the renewal of the Company's existing term and revolving credit 
facilities until January 31, 1997.

In March 1996, as a component of the plan to consolidate the 
corporate office functions from Oklahoma City to the expanded 
offices of the Company in Springfield, Virginia, the Company's 
Board of Directors appointed Gerard R. Bernier Chief Executive 
Officer and President of the Company.  This transition of 
corporate authority and relocation of corporate headquarters 
became effective March 31, 1996.


Item 2.  Management's Discussion and Analysis of Financial 
         Condition and Results of Operations
         -------------------------------------------------

Liquidity and Capital Resources
-------------------------------

The Company's principal measures of liquidity are cash, 
certificates of deposit, accounts receivable and salable 
inventory.  Also, management deems appropriately managed and 
collateralized bank lines of credit as a proper supplement to 
its liquidity.

The Company's working capital was a deficit $1,060,922 at 
September 30, 1997, a 42% improvement from December 31, 1996.  
This change reflects:  a decrease in Cash and Equivalents of 
$110,708 resulting primarily from use of operating cash flow 
to reduce current liabilities; a net increase of $118,138 in 
trade Accounts and Notes Receivable, related to continuing 
operations; a decrease of $2,840 in paper and work in process 
Inventory; a decrease of $15,780 in Prepaid Expenses related 
to utilization of annual insurance renewals and similar 
contracts; and an increase of $497,500 in Territory Buy Back 
Allowances. These changes were impacted by a decrease of 
$88,428 in Accounts Payable and a $100,595 increase in Accrued
Liabilities related to accrual of seasonal operating costs
at United Coupon, as well as deferral of interest expense and 
other debt service costs. Working capital was also aided by a 
$574,064 reduction in current portion of Notes Payable and a 
$124,788 reduction in deferred revenues during the period.
Working capital was negatively impacted by $438,250 of 
Obligations entered into for Territory Buy Back Agreements.

During the first quarter of 1997, United Coupon Corporation 
purchased the rights to acquire and resell non-developed 
territories previously granted to various franchisees of 
United Coupon.  This purchase was recorded as an addition of 
$497,500 to Territory Buy Back Allowances, a reflected as a 
short term investment, offset by a liability of an equal amount.  
The purchase price is paid to franchisees in the form of 
production expense credits of $500 per 10,000 homes mailed, 
granted at the time that Franchisees complete on-going 
cooperative advertising mailings. Such credits are recorded 
as period expenses when incurred. Period credits of $26,708 
were granted during the third quarter of 1997.

Long-term liabilities, net of payment made, increased by $558,175
during the period as a result of deferral of interest payments on 
subordinated debt and extension of notes payable obligations beyond 
twelve months.

During the latter half of 1995, the Company's subsidiary Cal-
Central developed a serious liquidity shortfall as a result of 
an unexpected, rapid decline in the subsidiary's core 
cooperative advertising business.  The decline, which was 
precipitated by a temporary interruption of service by two 
key advertising distributors, limited Cal-Central's ability 
to meet current operating and debt-service obligations.  As 
a result, UNICO management initiated a restructuring program 
for Cal-Central, which immediately reduced operating 
expenditures, through the elimination of non-critical 
personnel, marginal sales centers, and unprofitable sales 
and manufacturing functions.  In addition, management 
arranged a deferral of interest payments on subordinated 
debt obligations and arranged convertible debt financing 
with the Company's major debenture holders to provide 
supplemental working capital for financing the restructuring 
plan. Management abandoned its restructuring plan for 
Cal-Central during the fourth quarter of 1996 and wrote 
off remaining accounts receivable and goodwill associated 
with this operation.  On June 20, 1997, the Company's 
wholly owned subsidiary, Cal-Central Marketing Corporation, 
was dissolved, resulting in an extraordinary gain of $429,385,
the net effect of asset and liability amounts written off. 
Final accounting for this transaction increased the gain
to $493,386 at September 30, 1997.

On May 16, 1997, the Company received a notice of delisting 
from NASDAQ Stock Market, Inc. due to capital and surplus 
requirement deficiencies.  Company management aggressively 
pursued actions to maintain the NASDAQ listing.  The NASD 
Panel reviewing the Company's Plan to remedy its maintenance 
requirement deficiencies found that the Plan did not present 
a plan of compliance which could be completed within a 
reasonable period of time and assure long term compliance 
with the maintenance requirements.  Accordingly, the Company's 
Common Stock was delisted from the NASDAQ Stock Market, 
effective July 11, 1997.  The Company has appealed the NASD 
Determination and is developing additional plans to regain 
this listing for the Company's Common Stock, should the 
Company's appeal not succeed.  No assurances of success from 
these actions can be determined at this time.

Results of Operations - Quarter Ended September 30, 1997
As Compared to the Quarter Ended September 30, 1996
---------------------------------------------------

Gross Revenue for the quarter ended September 30, 1997 decreased 
23% from the same period in 1996, from $1,710,323 to $1,308,960.  
Coupon and Advertising Sales, which include coupon production 
service fees, national account advertising fees, advertising sales 
and commercial printing, and which represent 91% of total revenue 
for 1997, decreased by 6% from the corresponding period in 1996.  
This decrease reflects the elimination of Cal-Central sales and 
limitations placed on sales efforts as a result of limited working 
capital availability.

Franchise Fee Income for the period declined by 93% from the 
prior year, with $4,847 reported for the 1997-quarter compared 
to $72,680 for the same period in 1996.  Franchise sales are 
receiving intensive effort and management attention, although 
efforts are currently hampered by limited working capital. In
recent weeks, the Company has hired an experienced Western 
Region Franchise Sales Director and is currently completing an
Internet web site for franchise opportunities.

Other Revenue for the current period was $118,768 compared to 
$373,958 in 1996.  This decrease is related to higher miscellaneous 
service fees and interest income offset by the elimination of 
Cal-Central other revenue. 

Production Expenses, which include art development, printing, 
bindery, delivery, product development, distributor support 
and selling expense, decreased by $53,612, 4%, during the 1997 
quarter in contrast to the same period in 1996.  This decrease 
is related to reduced sales levels, partially offset by slightly
higher prevailing operating costs and actions to improve quality
and customer service.

General and Administrative Expense increased by 52% over the same 
period last year primarily as a result of costs associated with 
Company restructuring, and pursuit of business expansion and 
combination opportunies with third party organizations.

Franchise Development Cost, which includes the cost of 
developing, advertising, selling, training and supporting United 
Coupon franchises, was 59% less than the prior year, reflecting 
lower sales and reduction of advertising costs.

Interest Expense decreased $18,256 over the same period last 
year as a result of conversion of convertible debenture debt 
to equity during the latter portion of 1996, as well as reduction
or other long-term debt during 1997.

During the latter portion of 1995, the Company's subsidiary, 
Cal-Central, experienced a significant cash flow shortfall as 
a result of the temporary interruption of product distribution 
by two key distributors. This shortfall received reaction from 
UNICO management through the initiation of a restructuring plan 
to reduce Cal-Central administrative overhead and operating 
expenses and to implement more efficient and effective approaches 
to sales administration and product manufacturing.  During the 
initial phases of restructuring, Cal-Central was unable to meet 
all product art and printing requirements.  In addition, the 
interruption of distribution of Cal-Central products caused a 
delay in Cal-Central's ability to meet the distribution 
commitment of advertising sales contracts.  During the three 
month period ended March 31, 1996, the Company completed art 
and printing functions and delivered advertising products 
related to approximately $460,000 in Cal-Central advertising 
contracts.  The Company did not record sales or accounts 
receivable for these items due to the lateness in which such 
delivery was completed.  Art and printing costs related to 
this work are reported as production expense for the 1996 
period. 

Consolidated Net Loss for the current quarterly period was 
$326,614 compared to net income of $26,482 for the prior year.  
This decline in profitability is directly related to lower 
sales levels and higher general and administrative expenses
during the current period.

Results of Operations - Nine months Ended September 30, 1997
As Compared to the Nine months Ended September 30, 1996
-------------------------------------------------------

Gross Revenue for the nine months ended September 30, 1997 declined 
by 14% from the same period in 1996, from $5,388,132 to $4,646,211.  
Coupon and Advertising Sales, which include coupon production 
service fees, national account advertising fees, advertising 
sales and commercial printing, and which represent 91% of total 
revenue for 1997, decreased by 9% from the corresponding period 
in 1996.  This decrease reflects the elimination of Cal-Central 
sales and limitations placed on sales efforts as a result of 
limited working capital availability.

Franchise Fee Income for the period declined by 57% from the 
prior year, with $82,965 reported for the 1997 period compared 
to $193,103 for the same period in 1996. Franchise sales continue 
to receive management attention, including expanded sales direction
and methods, although efforts are currently hampered by limited 
working capital.

Other Revenue for the current period was $344,714 compared to 
$554,203 in 1996.  This decrease is related to higher miscellaneous 
service fees and interest income offset by elimination of Cal-Central
fees.

Production Expenses, which include art development, printing, 
bindery, delivery, product development, distributor support 
and selling expense, declined by $438,471, 12%, during the 1997 
period in contrast to the same period in 1996.  This decline is 
related to the lower sales levels and cost containment activities 
early in the year, partially offset by higher prevailing operating 
costs and actions to improve quality and customer service.

General and Administrative Expense increased by 3% over the same 
period last year, primarily as a result of the costs of the 
restructuring, as well as expenditures related to pursuit of 
business combination opportunities.

Franchise Development Cost, which includes the cost of developing, 
advertising, selling, training and supporting United Coupon 
franchises, was 30% less than the prior year, reflecting lower 
sales and reduction of advertising costs.

Interest Expense decreased $114,025 over the same period last 
year as a result of conversion of convertible debenture debt 
to equity during the latter portion of 1996.

During the latter portion of 1995, the Company's subsidiary, 
Cal-Central, experienced a significant cash flow shortfall as 
a result of the temporary interruption of product distribution 
by two key distributors. This shortfall received reaction from 
UNICO management through the initiation of a restructuring plan 
to reduce Cal-Central administrative overhead and operating 
expenses and to implement more efficient and effective 
approaches to sales administration and product manufacturing.  
During the initial phases of restructuring, Cal-Central was 
unable to meet all product art and printing requirements. In 
addition, the interruption of distribution for Cal-Central 
products caused a delay in Cal-Central's ability to meet the 
distribution commitment of advertising sales contracts. In 
early 1996, the Company completed art and printing functions 
and delivered advertising products related to approximately 
$460,000 in Cal-Central advertising contracts. The Company did 
not record sales or accounts receivable for these items 
due to the lateness in which such delivery was completed. 
Art and printing costs related to this work are reported as 
production expense for the 1996 period. 

Consolidated Net Loss for the nine months ended September 30, 
1997 was $26,797 compared to a net loss of $357,707 for 
the prior year.  This improvement is directly related to 
the restructuring of subordinated debt, reduced operating 
expenses at United Coupon, and recognition of an extraordinary 
gain of $429,385 related to the dissolution of Cal-Central 
Marketing Corporation.


PART II - OTHER INFORMATION
          -----------------

Item 1.  Legal Proceedings
         -----------------

Omitted from this report as inapplicable.

Item 2.  Changes in Securities
         ---------------------

Omitted from this report as inapplicable.

Item 3.  Default Upon Senior Securities
         ------------------------------

Omitted from this report as inapplicable.

Item 4.  Submission of Matters to Vote of Securities Holders
         ---------------------------------------------------

Omitted from this report as inapplicable.

Item 5.  Other Information
         -----------------

The transaction contemplated by the letter of intent executed 
With a prospective third party investor as described in Item 5
of the Company's 10-QSB filed on August 14, 1997 did not close
on October 1, 1997. "As of the date of this filing, negotiations 
with the same third party investor are still ongoing."

Item 6.
-------

Exhibits and Reports on Form 8-K
--------------------------------

A. Exhibits
-----------

The following exhibits are filed with this Form 10-QSB and 
are identified by the numbers indicated.


2     Plan of Reorganization and Agreement of Merger among 
UNICO, Inc., AEC Acquisitions, Inc. and Cal-Central Marketing 
Corporation (1)

3.1   Certificate of Incorporation, as amended (2)

3.2   By-laws, as amended (2)

3.3   Amendment to the Certificate of Incorporation to 
increase the authorized shares of common stock (3)

3.4   By-laws, as amended (10)

4.1   Form of Common Stock Purchase Warrant, dated 
September 11, 1988 (4)

4.2   Form of Class B Common Stock Purchase Warrant, 
November 1, 1993 (3)

4.3   Form of Subordinated Debenture dated October 26, 
1993, offered through Duncan-Smith Company (3)

4.4   Certificate of Designations, Preferences, and Rights 
of Series A Convertible Preferred Stock (3)

4.5   Certificate of Designations, Preferences, and Rights 
of Series A Redeemable Preferred Stock (3)

4.6   Certificate of Designations, Preferences, and Rights 
of Series B Redeemable Preferred Stock (3)

4.7   Certificate of Designations, Preferences, and Rights 
of Series C Preferred Stock (10)

10.4  Form of Common Stock Purchase Warrant dated October 26, 
1993 offered through Duncan-Smith Company (3)

10.5  Second amendment to Lease Agreement Cal-Central Marketing 
Corp. (3)

10.6  United Coupon Corporation Franchise Agreement (2)

10.7  Employment Agreement between United Coupon Corporation 
and Gerard R. Bernier, as amended January 1, 1995 (5)

10.9  Credit Agreement by and between UNICO, Inc. and its 
Subsidiaries and BancFirst (2)

10.10 Purchase Agreement with Concord Video (2)

10.11 Omnibus Equity Compensation Plan (2)

10.12 Convertible Debenture Loan Agreement by and between 
UNICO, Inc. and its subsidiaries, United Coupon Corporation 
and AEC Acquisitions, Inc. and Renaissance Capital Partners, 
Ltd. Dated December 31, 1991 (2)

10.13 Amended and Restated Loan Agreement by and between 
UNICO, Inc. and its Subsidiaries and BancFirst, as amended 
August 31, 1994 (5)

10.17 Restructure Agreement among UNICO, Inc., Cal-Central 
Marketing Corporation and The American Education Corporation, 
dated as of December 31, 1993 (3)

10.18 United Coupon Corporation Lease Agreement (5)

10.19 Master Agreement and Schedules of Indebtedness 1 and 
2 between CIT Group and United Coupon Corporation (5)

10.27 Subordinated Loan Agreement dated June 30, 1995, 
among UNICO, Inc. and Cal-Central Marketing Corporation and 
the Harlon Morse Fentriss Trust, Philip W. Stephenson, Jr., 
RHOJOAMT Partnership, Ltd., CITCAM Stock Co., Barbara T. 
Grinnan, and Goose Creek (7)

10.28 Form of Common Stock Purchase Warrant, dated June 30, 
1995 (7)

10.29 Subordinated Convertible Debt Loan Agreement, dated 
October 1995, and schedule of advances, among UNICO, Inc., 
United Coupon Corporation, and Cal-Central Marketing 
Corporation and Renaissance Capital Group, Inc. and Duncan-
Smith Company (7)

10.30 Third Restated Loan Agreement dated March 4, 1996, 
among UNICO, Inc., United Coupon Corporation, Cal-Central 
Marketing Corporation and BancFirst (7)

10.31 Debt Exchange Agreement among UNICO, Inc., Renaissance 
Capital Partners, Ltd. And Duncan-Smith Investment Co. dated 
July 1996 (8)

10.32 Employment Agreement Between United Coupon Corporation 
Gerard R. Bernier, dated April 1, 1996 (10)

10.33 Modification and Extension to the Third Restated Loan 
Agreement between UNICO, Inc., United Coupon Corporation, 
Cal-Central Marketing Corporation, and BancFirst, dated 
August 15, 1996 (10)

10.34 Consolidated Renewal Promissory Note between UNICO, 
Inc., United Coupon Corporation and BancFirst, dated August 
15, 1996 (10)

10.35 Loan Conversion Agreement between UNICO, Inc. and Kurt 
H.C. Bottcher, dated September 30, 1996 (10)

27    Financial Data Schedule-Pursuant to EDGAR filing 
requirements for the period ended September 30, 1997, filed herewith 
this Form 10-QSB dated August 13, 1997.

*********************

(1) Incorporated by reference to the Registrant's Form 8-K, dated 
October 27, 1993 (SEC File No. 0-15303).
(2) Incorporated by reference to the Registrant's Form 10-K for 
the fiscal year ended December 31, 1992 (SEC file no. 0-15303).
(3) Incorporated by reference to the Registrant's Form 10-KSB for 
the fiscal year ended December 31, 1993 (SEC file no. 0-15303).
(4) Incorporated by reference to the Registrant's Form S-18 
Registration Statement (SEC file no. 33-73 10-FW).
(5) Incorporated by reference to the Registrant's Form 10-KSB for 
the fiscal year ended December 31, 1994 (SEC file no. 0-15303).
(7) Incorporated by reference to the Registrant's Form 10-KSB for 
the fiscal year ended December 31, 1996 (SEC file no. 0-15303).
(8) Incorporated by reference to the Registrant's Form 8-K, dated 
July 30, 1996 (SEC file no. 000-15303).
(9) Incorporated by reference to the Registrant's Form 8-K/A 
dated December 12, 1996 (SEC file no. 000-15303).
(10) Incorporated by reference to the Registrant's Form 10-KSB 
for the fiscal year ended December 31, 1997 (SEC file no. 0-15303).
(11) Incorporated by reference to the registrant's Form 10-QSB for
period ended June 30, 1997 (SEC File No. 0-15303)

B.  Reports on Form 8-K

There were no reports on Form 8-K filed during the three-
month period ended September 30, 1997.

SIGNATURES
----------

Pursuant to the requirements of the Securities and Exchange Act 
of 1934, the Registrant has duly caused this report to be signed 
on its behalf by the Undersigned.

UNICO, INC.

November 11, 1997

By:  /s/Gerard R. Bernier                                     
     --------------------
     Chief Executive Officer
     and President


November 11, 1997

By:  /s/Subhash Ghei                                     
     --------------------
     Chief Financial Officer