FORM 10-QSB

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				              
June 30, 1998

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

For the Quarter Ended June 30, 1998			             
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 August 18, 1998
2,119,077

UNICO, Inc.

INDEX

Page No.

PART 1 - FINANCIAL INFORMATION

Item 1  Consolidated Balance Sheets
     	  June 30, 1998 and December 31, 1997		                  3 & 4

     	  Consolidated Statements of Operations
    	        For the Quarter Ended June 31, 1998
	            and the Quarter Ended June 31, 1997	                5

             For the Six Months Ended June 30, 1998              6
             And the Six Months ended June 30, 1998

        Consolidated Statements of Cash Flow
             For the Quarter Ended June 30, 1998
     	       and the Quarter Ended June 30, 1997	                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					                                
13

SIGNATURE PAGE							                                           
15 

PART 1.  FINANCIAL INFORMATION

UNICO, Inc.

CONSOLIDATED BALANCE SHEETS                         1 of 2

ASSETS                                        June 30,       December 31,
                                                1998              1997
-------                                       ---------       ------------

CURRENT:
	
Cash and cash equivalents	                    $  89,342	       $  129,860
Accounts receivable:
 Trade (net of allowance for 
 Uncollectible accounts of 
 $40,163 and $60,000)                           267,835           292,003
Inventory                                       204,116           119,203
Other receivables                                     0             2,877
Prepaid expenses                                      0             9,140
                                              ----------        ----------
	Total current assets                           561,293           553,083

PROPERTY:

Printing and office equipment                 3,513,286         3,428,274
Computer equipment and software                 604,591           604,591
Transportation equipment                        138,693           138,693
Leasehold improvements                           63,063            63,063
                                            ------------      ------------
Total                                         4,319,633         4,234,621
Less accumulated depreciation                (2,482,532)       (2,166,065)
                                            ------------      ------------
Net property and equipment                    1,837,101         2,068,556

DEPOSITS AND OTHER ASSETS                         8,105            18,302
                                            ------------      ------------
TOTAL ASSETS                                $ 2,406,499       $ 2,639,941

The accompanying Notes To Financial Statements are an integral 
part of these financial statements.

UNICO, Inc.

CONSOLIDATED BALANCE SHEETS                               2 of 2

                                              June 30,        December 31,	
LIABILITIES & STOCKHOLDERS' EQUITY       	      1998              1997
                                              ---------       ------------
CURRENT LIABILITIES:
Accounts payable                            $   948,677	      $ 1,307,198
Accrued liabilities                             444,149           485,433
Notes payable, current portion                  202,934         1,449,384
Deferred revenue                                 82,623           120,509
                                            ------------      ------------
Total current liabilities                     1,678,383         3,362,524

LONG TERM LIABILITIES:
Notes payable                                   307,398           360,622
Deferred rent                                   331,374           320,874
                                            ------------      ------------
Total long term liabilities                     638,772           681,496

Total liabilities                             2,317,155         4,044,020

COMMITMENTS AND CONTINGENCIES (Note 2)

DEFICIENCY IN STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value:  
5,000,000 shares authorized; 
designated as:
Redeemable Preferred; 
70 shares issued and outstanding	                     1                 1
	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, 
authorized, 428,185 shares issued 
and outstanding                                    4,282            4,282
Common stock - $.01 par value; 
20,000,000 shares authorized; 
2,119,077 shares issued and 
outstanding			                                    21,191           
21,191
Additional paid-in capital                     6,801,008        6,801,008
Deferred compensation                             (4,557)          (4,557)
Accumulated deficit                           (6,732,581)	     (8,226,004)
                                             ------------     ------------
Total stockholders'equity		                       89,344 	     
(1,404,079)
                                             ------------     ------------
TOTAL LIABILITIES AND 
STOCKHOLDERS' EQUITY                         $ 2,406,499      $ 2,639,941

The accompanying Notes To Financial Statements are an integral 
part of these financial statements.

UNICO, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED June 30, 1998 AND 1997


                                            1998          1997    
                                            ----          ----
REVENUES:

Coupon and advertising sales,
    Net of discounts and allowances        $     0      $1,585,896
Franchise fees                                   0           5,433
Other	                              						       0          
97,191
	                                          ---------     ----------
TOTAL REVENUES                                   0       1,688,520

EXPENSES:

Production                                       0      1,161,525
General and administrative                 (73,153)       581,372
Franchise development                            0         14,806
Interest expense - affiliate                     0         19,331
Interest expense - other                     7,048         38,534
                                          ---------     ---------
TOTAL EXPENSES                             (66,105)     1,815,568
                                          ---------     ---------

NET INCOME (LOSS) BEFORE INCOME TAXES       66,105       (127,048)
DEFERRED INCOME TAX EXPENSE                      0          9,000
                                          ---------     ----------
NET INCOME (LOSS) BEFORE TAX 
EXTRAORDINARY ITEM                          66,105       (136,048)

EXTRAORDINARY GAIN FROM FORGIVENESS 
OF DEBT                                  1,314,248              0

EXTRAORDINARY GAIN FROM BUSINESS
DISSOLUTION                                173,187        429,385
                                        -----------      ---------

NET INCOME (LOSS)                       $1,553,540       $293,337
                                        ===========      =========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING                              2,119,077       2,119,077
                                        -----------     -----------

NET INCOME (LOSS) PER COMMON SHARE       $    .733      $     .138
                                        ===========     ===========

The accompanying Notes To Financial Statements are an integral 
part of the financial statements.


UNICO, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED June 30, 1998 AND 1997


                                            1998          1997    
                                            ----          ----
REVENUES:

Coupon and advertising sales,
    Net of discounts and allowances      $       0      $3,033,187
Franchise fees                                   0          78,118
Other	                              						   7,973         
225,946
	                                         ---------     ----------
TOTAL REVENUES                               7,973       3,337,251

EXPENSES:

Production                                       0      2,151,072
General and administrative                  44,729      1,054,946
Franchise development                            0        141,505
Interest expense - affiliate                     0         46,422
Interest expense - other                    12,729         54,874
                                          ---------     ---------
TOTAL EXPENSES                              57,458      3,448,819
                                          ---------     ---------

NET INCOME (LOSS) BEFORE INCOME TAXES      (49,485)      (111,568)
DEFERRED INCOME TAX EXPENSE                      0         18,000
                                          ---------     ----------
NET INCOME (LOSS) BEFORE TAX 
EXTRAORDINARY ITEM                         (49,485)      (129,568)

EXTRAORDINARY GAIN FROM FORGIVENESS 
OF DEBT                                  1,314,248              0

EXTRAORDINARY GAIN FROM BUSINESS
DISSOLUTION                                228,660        429,385
                                        -----------      ---------

NET INCOME (LOSS)                       $1,493,423       $299,817
                                        ===========      =========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING                              2,119,077       2,119,077
                                        -----------     -----------

NET INCOME (LOSS) PER COMMON SHARE       $    .705      $     .142
                                        ===========     ===========

The accompanying Notes To Financial Statements are an integral 
part of the financial statements.


UNICO, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED June 30, 1998 AND 1997


                                            1998          1997    
                                            ----          ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                              $1,493,423      $  299,817
Adjustments to reconcile net income
To net cash provided by operating 
activites:
Depreciation and amortization              316,467         210,286
Provision for bad debts                    (19,837)         60,938
Deferred income taxes                       18,000          18,000

Changes in operating assets
And liabilities:                    
Accounts and notes receivable               24,168       (166,100)
Prepaid expenses and inventory             (72,896)       (36,864)
Deposits and other                               0        (14,067)
Accounts payable and accrued liabilities  (399,805)      (125,737)
Deferred revenue                            37,866       (124,788)
                                         ----------     ----------
Net Cash Provided by (Used in) 
Operating Activities                     1,397,406        121,485

CASH FLOWS FROM INVESTING ACTIVITIES:
Territory Buy Back Allowance 
Credits granted                                  0        (32,542)
Purchase of property                       (85,012)       (81,077)
                                        -----------     ----------
Net Cash Provided by (Used in)
Investing Activities                       (85,012)      (113,619)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable                175,500         31,894
Payment of notes payabe                    (87,000)       (64,662)
Debt forgiveness                        (1,441,412)             0
                                        -----------     ----------
Net Cash Provided (Used In) 
Financing Activities                    (1,352,912)       (32,768)
                                        -----------     ----------

CHANGE IN CASH AND CASH EQUIVALENTS:       (40,518)        (24,902)
Cash and Cash Equivalents - 
Beginning of Period                        129,860         233,971
                                        -----------     -----------
Cash and Cash Equivalents - 
End of Period                           $   89,342      $  209,069
                                        ===========     ===========

SUPPLEMENTAL CASH FLOW DISCLOSURE:
Cash paid for income taxes              $        0      $        0
Cash paid for interest                  $   12,729          31,088

The accompanying Notes To Financial Statements are an integral 
part of the financial statements.

UNICO, Inc.


NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED JUNE 30, 1998 and 1997

1.  BASIS OF PRESENTATION

The interim consolidated financial statements at June 30, 
1998 and for the three month and six month periods ended 
June 30, 1998 and 1997 are unaudited, but include all 
adjustments which the Company considers necessary for a 
fair presentation.  The December 31, 1997 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, 1997.  The accompanying unaudited 
interim financial statements for the three month and six 
month periods ended June 30, 1998 are not necessarily 
indicative of the results which can be expected for the 
entire year.

The preparation of financial statements in conformity with 
generally accepted accounting principles requires 
management to make estimates and assumptions that affect 
the reported amounts of assets and liabilities and 
disclosure of contingent assets and liabilities at the date 
of the financial statements and the reported amounts of 
revenues and expenses during the reporting period.  Actual 
results could differ from those estimates.

2. COMMITMENTS & CONTINGENCIES

The Company is exposed to various 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.

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 $18,000, reflected in the Statements of Operations for 
the quarter and six month periods ended June 30, 1998, 
represents state income taxes payable by United Marketing 
on operating profits that are not impacted by available net 
operating loss carryforwards.

4. SUBSIDIARY RESTRUCTURING 

Certain amounts in the 1997 financial statements as 
reported herein have been reclassified to conform with the 
1998 presentation.  These reclassifications relate 
primarily to reporting discontinued operations.  These 
reclassifications had no effect on the net income or loss, 
total current assets or total current liabilities as 
previously reported.

During 1997, the Company decided to dispose of its 
principal operating subsidiary United Marketing Solutions, 
Inc. (formerly United Coupon Corporation), by sale if a 
suitable purchaser could be obtained.  Accordingly, the 
results of operations for 1998 and 1997 have been presented 
showing the results of continuing operations and 
discontinued operations, net of applicable income taxes.  A 
summary of the subsidiary's operations for the three month 
and six month periods ended June 30, 1998 as follows:

                          3 Months Ended	   6 Months Ended
                           June 30, 1998	    June 30, 1998
                          ---------------------------------
REVENUE
Printing, design and 
advertising sales, net 	     $1,235,708         $2,431,356
Franchise fees                        0            138,785
Other                           369,659            419,931
                             ----------         ----------
Total revenue                 1,605,367          2,990,072

EXPENSES
Cost of sales                   970,748          1,768,678
Franchise development                 0            130,044
General and administrative      452,432            844,690
                             ----------          ---------
Total expenses                1,423,180          2,743,412
		
NET INCOME BEFORE INCOME TAX
(PROVISION)				                 182,187            246,660

INCOME TAX PROVISION              9,000             18,000
                             ----------         ----------
NET INCOME                   $  173,187         $  228,660

5. CORPORATE RESTRUCTURING

On May 12, 1998, $1,314,248 of subordinated notes 
previously owed to various third parties, were acquired, 
along with all issued and outstanding shares of the 
Company's Series C Preferred Stock, in connection with a 
series of agreements among Renaissance Capital Partners I, 
a Texas limited partnership ("Renaissance"), Duncan-Smith 
Company, a Texas corporation ("Duncan-Smith"), and Next 
Generation Media Corporation, a Nevada corporation 
("NexGen"), between the Company and NexGen and between 
NexGen and T.C. Equities..  As a component of these 
agreements, the subordinated notes were forgiven, resulting 
in an extraordinary gain of $1,314,248 for the Company.  
This gain is reflected in the accompanying financial 
statements.

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

Certain matters discussed herein (including the documents 
incorporated herein by reference) are forward-looking 
statements intended to qualify for the safe harbors from 
liabilities established by the Private Litigation Reform 
Act of 1995.  These forward-looking statements can 
generally be identified as such because the context of the 
statement will include words such as the Company 
"believes," "plans," "intends," "anticipates," "expects," 
or words of similar import.  Similarly, statements that 
describe the Company's future plans, objectives, estimates, 
or goals, are also forward-looking statements.  Such 
statements address future events and conditions concerning 
capital expenditures, earnings, litigation, liquidity, 
capital resources and accounting matters.  Actual results 
in each case could differ materially from those currently 
anticipated in such statements by reason of factors such as 
future economic conditions, including changes in customer 
demands; future legislative, regulatory and competitive 
developments in markets in which the Company operates; and 
other circumstances affecting anticipated revenues and 
costs.

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 $1,117,110 at 
June 30, 1998, a 60% improvement from December 31, 1997.  
This change reflects:  a reduction in Cash and Equivalents 
of $40,518 resulting primarily from the cash applied to 
payment of liabilities for the period; a net decrease of 
$16,298 in Trade and Other Accounts Receivable; an increase 
of $84,913 in paper and work in process Inventory at 
United Marketing Solutions, Inc. ("United Marketing"); a 
decrease of $9,140 in Prepaid Expenses related to 
utilization of annual insurance renewals and similar 
contracts;  These changes were impacted by a decrease of 
$358,521 in Accounts Payable and a $41,286 decrease in 
Accrued Liabilities related to utilization of seasonally 
accrued operating costs at United Marketing.  Working 
capital was also aided by a $1,246,450 reduction in the 
current portion of Notes Payable related to principal 
payments made on bank debt and write-off of $1,314,248 of 
debenture debt that was forgiven during the period.  These 
amounts were partially offset by $175,000 of additional 
borrowings during the period.  Deferred Revenue also 
decreased by $37,886 during the period.

Long term liabilities decreased by $42,724 during the 
period.

Management adopted a restructuring plan for its subsidiary 
Cal-Central Marketing Corporation during 1995.  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.  
During the quarter ended March 31, 1997, management 
determined that appropriate actions had been taken to 
eliminate the ultimate liability for approximately $403,000 
of Cal-Central obligations.  These amounts were written off 
during such period, resulting in other income of an equal 
amount.  Had this action not been taken, the Company would 
have experienced a consolidated operating loss of 
approximately $51,000 during the three-month period ended 
March 31, 1997.

Results of Operations - Quarter Ended June 30, 1998
as Compared to the Quarter Ended June 30, 1997

Total revenues for the Company decreased by 5% during the 
three month period ended June 30, 1998, compared to the 
same period in 1997, after restatement of both periods to 
reflect the plan to discontinue, through potential sale, 
the operations of the Company's remaining operating 
subsidiary, United Marketing.  This decline reflects a 
reduction of $350,188 in printing, advertising and design 
sales to third parties and a $5,433 decline in franchise 
fees.  These declines were partially offset by a $272,468 
increase in other revenue during the 1998 period.  Overall, 
the decline in total revenue reflects the dilution of 
management's efforts related to negotiations to sell United 
Marketing and to restructure UNICO.

Production Expenses, which include art development, 
printing, bindery, delivery, product development, 
distributor support and selling expenses, decreased by 
$190,777, during the 1998 quarter in contrast to 
the same period in 1997.  This decrease is directly related 
to the decline in printing advertising and design sales.

General and Administrative Expense decreased by $202,093 
over the same period last year primarily as a result of 
lower overall level of business and required administrative 
functions.

Franchise Development Cost, which includes the cost of 
developing, advertising, selling, training and supporting 
United Marketing franchises, was $14,806 lower than the 
prior year, reflecting attention directed to restructuring 
activities, as opposed to new franchise sales.

Interest Expense decreased $50,817 over the same period 
last year as a result of conversion of convertible 
debenture debt to equity during the past year.

An extraordinary gain of $1,314,248 was recorded during May 
1998, as a result of forgiveness of an equal amount of 
subordinated debenture debt by the holder.  No income tax 
provision was deemed necessary for this gain due to 
available net operating loss carryforward amounts.

Extraordinary gain related to Business Dissolution of 
United Marketing was $173,187 for the current period 
compared to $429,385 for the same period in 1997.  The 1997 
period was aided by approximately $403,000 of non-recurring 
income related to the write-off of Cal-Central obligations 
that were deemed extinguished during the period.

Consolidated Net Income for the current quarterly period 
was $1,553,540 compared to net income of $293,337 for the 
prior year. 

Results of Operations - Six Months Ended June 30, 1998
as Compared to the Six Months Ended June 30, 1997

Total revenues for the Company decreased by 10% during the 
six month period ended June 30, 1998, compared to the same 
period in 1997, after restatement of both periods to 
reflect the plan to discontinue, through potential sale, 
the operations of the Company's remaining operating 
subsidiary, United Marketing.  This decline reflects a 
reduction of $601,831 in printing, advertising and design 
sales to third parties and a $60,667 increase in franchise 
fees.  These changes were partially offset by a $201,958 
increase in other revenue during the 1998 period.  Overall, 
the decline in total revenue reflects the dilution of 
management's efforts related to negotiations to sell United 
Marketing and to restructure UNICO.

Production Expenses, which include art development, 
printing, bindery, delivery, product development, 
distributor support and selling expenses, decreased by 
$382,394, during the 1998 period in contrast to the same 
period in 1997.  This decrease is directly related to the 
decline in printing advertising and design sales.

General and Administrative Expense decreased by $165,527 
over the same period last year primarily as a result of 
lower overall level of business and required administrative 
functions.

Franchise Development Cost, which includes the cost of 
developing, advertising, selling, training and supporting 
United Marketing franchises, was $11,461 lower than the 
prior year, reflecting attention directed to restructuring 
activities, as opposed to new franchise sales.

Interest Expense decreased $42,145 over the same period 
last year as a result of conversion of convertible 
debenture debt to equity during the past year.

An extraordinary gain of $1,314,248 was recorded during May 
1998, as a result of forgiveness of an equal amount of 
subordinated note debt by the holder.  No income tax 
provision was deemed necessary for this gain due to 
available net operating loss carryforward amounts.

Extraordinary gain related to Business Dissolution of 
United Marketing was $228,660 for the current period 
compared to $429,385 for the same period in 1997.  The 1997 
period was aided by approximately $403,000 of non-recurring 
income related to the write-off of Cal-Central obligations 
that were deemed extinguished during the period.

Consolidated Net Income for the current six-month period 
was $1,493,423 compared to net income of $299,817 for the 
prior year. 

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

On May 12, 1998, 428,185 shares of the Company's Series C 
Preferred Stock (the "Preferred Shares") were delivered to 
Shane Sutton, Esquire, 689 Fifth Avenue, Sixth Floor, New 
York, New York 10022, as Escrow Agent (the "Escrow Agent"), 
for the account of T.C. Equities, Ltd., a Bahamas 
corporation ("T.C. Equities"), pursuant to a series of 
agreements between Renaissance Capital Partners I, a Texas 
limited partnership, ("Renaissance"), Duncan-Smith 
Company, a Texas corporation ("Duncan-Smith") and Next 
Generation Media Corporation, a Nevada corporation 
("NexGen"), between the Company and NexGen and between 
NexGen and T. C. Equities.  Pursuant to these agreements, 
T. C. Equities acquired effective control of the Company 
through its ownership of the preferred shares, which 
represent 44.7% of the total votes entitled to be cast by 
the holders of all classes of the Company's capital stock, 
and the agreement of the Company's current Board of 
Directors to resign from office, appointing T. C. Equities' 
nominees to fill the vacancies thereby created, upon the 
consummation of the sale of the Company's sole operating 
subsidiary, United Marketing Solutions, Inc., formerly 
United Coupon Corporation, ("United") to NexGen (the 
"United Acquisition").  The Preferred Shares were acquired 
from Renaissance and Duncan-Smith by NexGen, simultaneously 
with its acquisition of all of the Company's subordinated 
debt, in exchange for an aggregate consideration to the 
holders of the Preferred Shares and Subordinated Debt 
consisting of:  (i) cash in the amount of $100,000; (ii) 
250,000 shares of NexGen Series A Callable, Convertible 
Cumulative Preferred Stock; and (iii) ten year warrants to 
purchase 166,667 shares of NexGen's-common stock (subject 
to adjustment) at an exercise price of $.16 per share.  As 
part of that transaction, all of the Company's subordinated 
debt obligations were forgiven and the dividend preference 
of the Preferred Shares upon liquidation was canceled.  The 
source of the cash portion of the consideration paid by 
NexGen for the Preferred Shares, was T. C. Equities, which 
invested $350,000 in NexGen in exchange for:  (x) 70,000 
shares of NexGen Series B Callable Convertible Cumulative 
Preferred Stock; (y) five year warrants to purchase 
250,000 shares of NexGen's Common Stock (subject to 
adjustment) at an exercise price of $.16 per share; and (z) 
an agreement to transfer and deliver the Preferred Shares 
and certain shares of the Company's Common Stock (and the 
cancellation of any options to purchase shares of the 
Company's common stock) currently held by certain members 
of the Company's Board of Directors (the "Director Shares") 
to T.C. Equities.  Pursuant to agreements between 
NexGen and directors, Leon Zadel, Gerard R. Bernier and 
Gerald Bomstad, Jr., these individuals agreed to surrender 
the Director Shares to be conveyed to T.C. Equities (and in 
the case of director, Bomstad, a promissory note from UNICO 
having a principal balance of $12,000, and accrued interest 
of $1,400, to be forgiven by NexGen) to NexGen in exchange 
for 8,747, 329 and 37,600 shares of NexGen common stock, 
respectively (and in the case of director, Bomstad, five 
year options to purchase 1,787 shares of NexGen common 
stock at an exercise price of $.16 per share).  The 
Director Shares represent 10.3% of the total votes 
entitled to be cast by the holders of all classes of the 
Company's capital stock.  Accordingly, upon the 
consummation of the sale of United to NexGen, T.C. Equities 
will control 55% of the total votes entitled to be cast by 
the holders of all classes of the Company's capital stock.  
Until the United Acquisition is completed, after submission 
to and approval by the UNICO stockholders at a special 
meeting to be called for such purpose, the Preferred Shares 
and the Director Shares are held in escrow by the Escrow 
Agent who is required to vote affirmatively therefor, but 
to otherwise refrain from any other voting of such shares.

Item 6.     Exhibits and Reports on Form 8-K

A. Exhibits
27 Financial Data Schedule - Pursuant to EDGAR filing 
requirements for the period ended June 30, 1998, filed 
herewith this form 10-QSB dated August 18, 1998.

B. Reports on Form 8-K
Form 8-K was filed June 19, 1998 to reflect the resignation 
of the Registrant's Certifying Accountants.

Form 8-KA was filed June 29, 1998 to reflect the 
acknowledgment and approval of the Registrant's Certifying 
Accountants to the content of Form 8-K filed on June 19, 
1998.


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.
		
		
August 18, 1998	

By: /s/Gerard R. Bernier                                     
Chief Executive Officer
and President
		
		
August 18, 1998	

By:/s/Gerard R. Bernier                                     
Acting Chief Financial Officer