SECURITIES AND EXCHANGE COMMISSION
	                           Washington, D.C.  20549


                                  	FORM 10-Q


                  	QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
	                   OF THE SECURITIES EXCHANGE ACT OF 1934


         For Quarter Ended April 30, 1998    Commission File #0-15284



                                J2 COMMUNICATIONS                       
	           (Exact name of registrant as specified in its charter)


        California                            95-4053296          
(State or other jurisdiction         (IRS Employer Identification
incorporation or organization)                 Number)


10850 Wilshire Blvd., Ste. 1000, Los Angeles, CA  90024         
	(Address of principal executive office)


Registrant's telephone number, including area code: 310-474-5252


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 and 
(2) has been subject to such filing requirements for the past 90 
days.  Yes   X      No      


Number of shares outstanding of each of the issuers classes of 
common stock as of the latest practicable date:  3,599,990
common shares, no par value were outstanding as of June 8, 1998.

     





J2 COMMUNICATIONS AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<S>                                          <C>               <C>
  							                                  04/30/98		        7/31/97
		  					                                 Unaudited  		         
Assets	

Cash and cash equivalents	  			           $  920,000		     $  641,000
Short term investments				                   677,000		        861,000 
Accounts receivable, net				                   9,000		         43,000
Inventories, net					                         13,000		         12,000
Intangible assets, less accumulated
  amortization of $2,249,000 and
  $2,069,000 as of 04/30/98 and
  7/31/97, respectively					               3,716,000     		 3,896,000
Other assets						                            35,000           20,000
							           		           
Total assets						                        $5,370,000	     	$5,473,000

Liabilities and Shareholders' Equity

Liabilities:

Accounts payable		                     			$  149,000	     	$  130,000
Accrued expenses					                        614,000	     	   629,000
Accrued royalties					                       390,000	     	   499,000
Accrued income taxes					                     38,000		         38,000
Deferred revenues					                        81,000	     	   208,000
Common stock payable		                 			   203,000     		   203,000
Minority interest					                       117,000     		    84,000
Total liabilities				                   		 1,592,000     		 1,791,000

Shareholders' Equity:

Preferred stock, no par value; 
  authorized 2,000,000 shares; 
  none issued and outstanding                  	-                 -

Common stock, no par value; 
  authorized 8,000,000 shares; issued 
  and outstanding, 3,600,000
  as of 04/30/98 and 7/31/97				            8,659,000		      8,654,000
Less: notes receivable on common stock		     (126,000)		      (121,000)
Accumulated deficit					                   (4,755,000)    		(4,851,000)
							           		           
Total shareholders' equity				              3,778,000		      3,682,000
							           		           
Total liabilities and shareholders' equity $5,370,000		     $5,473,000 

</TABLE>

The accompanying notes are an integral part of these consolidated balance 
sheets.



J2 COMMUNICATIONS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS AND NINE MONTHS ENDED APRIL 30, 1998 AND 1997

<TABLE>

<S>                        <C>           <C>           <C>           <C>
					                  3 mos. ended  3 mos. ended  9 mos. ended 	9 mos. ended
					                    4/30/98   	   4/30/97       4/30/98   	   4/30/97     


Revenues:
 Movies, television and 
  theatrical	             $ 156,000	  $ 234,000	     $ 607,000	   $ 975,000	
 Video sales, net of 
  returns		                   1,000	     23,000	        (3,000)	     98,000	
 Royalty income				          81,000      22,000	       133,000	      50,000	
 Magazine				                   -	       55,000	         	-    	     56,000	
 Other				 	                 19,000      18,000	       133,000	      37,000	
					            	            	 
Total revenues				            257,000	    352,000	      870,000	  1,216,000


Costs and expenses:
 Cost of videocassettes sold  1,000	      9,000	         5,000	      46,000
 Royalty expense				         12,000	      8,000	        29,000	      34,000	  
 Cost of movies, television 
   and theatrical               -   	        -     	        -	       53,000
 Cost of magazine			            -	       39,000 	           -	       39,000
 Selling, general and 
   administrative	          183,000	    220,000	       588,000	     595,000	
 Amortization of intangible 
   assets	                   60,000	     60,000	       180,000	     180,000	
					            	            	 
   Total expenses				       256,000     336,000	       802,000	     947,000
					            	            	 
   Income from operations	  		1,000	     16,000	        68,000	     269,000
   

Other income:
 Interest income			      	   25,000  	   15,000      	  67,000	      38,000
 Minority Interest in income
 of consolidated subsidiary	 (1,000)	       -	         (33,000)	    (82,000)
					            	            	 
           	            
					              	              	
Income before income taxes	  25,000	     31,000	       102,000	     225,000

Provision for income taxes		    -	          -	           6,000	       7,000
					            	            	 
           	            
Net income           				$  25,000     $ 31,000     	 $ 96,000   	 $218,000    



Income per common share:

 Basic and diluted income 
   per share	                 $0.01   	   $0.01          $0.03   	    $0.06   

 Weighted average number 
   of sharesof common 
   stock outstanding		    3,600,000   3,600,000      3,600,000   	3,600,000   


</TABLE>


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



J2 COMMUNICATIONS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED APRIL 30, 1998 AND 1997
<TABLE>
<S>                                                <C>             <C>
                                       						     1998     		      1997    

Cash flows from operating activities:

Net income		                               			  $ 96,000		       $218,000	
Adjustments to reconcile net income to
 net cash provided by (used in)
 operating activities:

    Amortization of intangible assets		          180,000	     	   180,000
    Minority interest in income of
     consolidated subsidiary			                   33,000		         72,000
    Changes in assets and liabilities:
    Accounts receivable, net			                   34,000		        (18,000)
    Inventory					                                (1,000)		         2,000
    Accounts payable				                          19,000	     	   101,000
    Accrued expenses		                       		  (15,000)		       (62,000)
    Accrued royalties				                       (109,000)		         3,000 
    Deferred revenues				                       (127,000)	    	     4,000  
    Other assets				                             (15,000) 		       22,000
						              		              
    Net cash provided by  
    operating activities				                      95,000		        522,000
						              		              

Cash flows from investing activities:

    Purchase of short-term investments	         (676,000)	    	(1,053,000)	
    Sale of short-term investments		             860,000	     	   822,000
						              		              
    Net cash provided by (used in) investing
     activities					                             184,000     		  (231,000)    	
								              		 
             
   
	
Net increase in cash 
 and cash equivalents				                        279,000		        291,000
Cash and cash equivalents,
 beginning of period				                         641,000	     	   120,000	
						              		              
Cash and cash equivalents,
 end of period		                      			      $ 920,000      	$  411,000    

</TABLE>

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



J2 COMMUNICATIONS
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
APRIL 30, 1998


Item 1

Basis of Financial Statement Presentation

The consolidated financial statements of J2 Communications and 
subsidiaries (collectively the "Company") have been prepared in 
accordance with generally accepted accounting principles for 
interim financial information.  Interim financial statements do 
not include all of the information and footnotes required by 
generally accepted accounting principles for complete year-end 
financial statements.  The accompanying financial statements 
should be read in conjunction with the more detailed financial 
statements and related footnotes for the fiscal year ended July 
31, 1997, as included in the Company's 1997 Annual Report on Form 
10-K (the "Annual Report") filed with the Securities and Exchange 
Commission.  A signed independent accountants' report relating to 
the July 31, 1997 balance sheet is included in the Annual Report. 
 Significant accounting policies used by the Company are 
summarized in Note 1 to the financial statements included in the 
Annual Report.

In the opinion of management, all adjustments (which include only 
recurring normal adjustments) required for a fair presentation of 
the financial position of the Company as of April 30, 1998, and 
the results of its operations and cash flows for the periods ended 
April 30, 1998 and 1997 respectively, have been made.  Operating 
results for the three-month and nine-month periods ended April 30, 
1998, are not necessarily indicative of the operating results for 
the entire fiscal year.
 

Earnings Per Share

The Company has adopted SFAS No. 128, "Earnings Per Share", for 
the period commencing in its quarter ending January 31, 1998.  
Under SFAS No. 128, primary EPS is replaced by "Basic" EPS, which 
excludes dilution and is computed by dividing income available to 
common shareholders by the weighted average number of common 
shares outstanding for the period.  "Diluted" EPS, which is 
computed similarly to fully diluted EPS, reflects the potential 
dilution that could occur if securities or other contracts to 
issue common stock were exercised or converted into common stock. 
 



When dilutive, stock options are included as share equivalents in 
computing diluted earnings per share using the treasury stock 
method.  The weighted average number of shares used in computing 
basic earnings per share was 3,600,000 in the three months ended 
April 30, 1998 and April 30, 1997 and nine months ended April 30, 
1998 and April 30, 1997 respectively.  Options of 659,500 shares 
for the period ending April 30, 1998 and 567,500 shares for the 
period ending April 30, 1997 and Warrants to purchase 1,753,211 
shares at $2.00 per share are not included in the calculation of 
Diluted EPS, because they are antidilutive.  There was no change 
in the basic and dilutive income per share due to adoption of SFAS 
No. 128.


Shareholders Equity

The increase in common stock during the period relates to accrued 
interest on notes receivable on common stock.


Joint Venture

As part of the acquisition of NLI, the Company acquired a 75 
percent interest in a joint venture of which the only operations 
consist of revenues received from the licensing of a certain 
"National Lampoon" motion picture.  Total revenues received by the 
joint venture related to this motion picture were $123,000 and 
$287,000 for the periods ended April 30, 1998 and 1997.



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


Special Note Regarding Forward Looking Statements

	Certain statements in this Quarterly Report on Form 10-Q, 
particularly under Item 2, may constitute "forward-looking 
statements" within the meaning of Private Securities Litigation 
Reform Act of 1995 (the "Reform Act").  Such forward-looking 
statements involve known and unknown risks, uncertainties, and 
other factors which may cause the actual results, performance or 
achievements of the company to be materially different from any 
future results, performance or achievements, expressed or implied 
by such forward-looking statements.




Results of Operations

Quarter Ended April 30, 1998 Versus April 30, 1997

Total revenues for the current quarter were $257,000 compared with 
$352,000 in the prior year quarter.  Movies, television and 
theatrical revenues were $156,000 in the current quarter compared 
with $234,000 in the prior year quarter.  The reduction of $78,000 
was due primarily to a decrease of $81,000 in the profit 
participation from the film "National Lampoon's Vacation" as well 
as $12,000 from the film "National Lampoon's European Vacation" 
which were originally released in 1983 and 1985, respectively.  
National Lampoon's original movie for Showtime "National Lampoon's 
Favorite Deadly Sins" generated $26,000 of profit participation in 
the prior year quarter compared to no profit participation in the 
current year quarter.  These reductions were partially offset by 
an increase of $51,000 in profit participation from the film 
"National Lampoon's Loaded Weapon I", originally released in 1993, 
which produced $67,000 in the current quarter compared to $16,000 
in the prior year quarter.  Video sales net of returns were $1,000 
in the current year quarter down $22,000 from the $23,000 from the 
corresponding prior year quarter.  The company has de-emphasized 
this segment of its business due to declining profitability.  
Royalty income increased $59,000 in the current year quarter to 
$81,000 from $22,000 from the prior year quarter, primarily due to 
the recognition of the balance of an advance license fee upon 
expiration of the license agreement.  There were no revenues 
related to the magazine for the current quarter compared to 
$55,000 in the prior year quarter due to the company receiving a 
waiver from any obligation to publish the magazine during the 
current fiscal year.  Other income increased $1,000 to $19,000 in 
the current quarter, compared to $18,000 in the prior year 
quarter.

Cost of videocassettes sold represents duplication, shipping and 
other costs, which decreased $8,000 to $1,000 in the current year 
quarter from $9,000 in the prior year quarter.  This was primarily 
due to reduced video sales in the current year quarter.

Royalty expense increased $4,000 to $12,000 in the current year 
quarter compared to $8,000 in the prior year quarter.

There was no cost of magazine due to the company not publishing a 
magazine this fiscal quarter.



Selling, general and administrative expenses decreased $37,000 to 
$183,000, in the current quarter, compared with $220,000 in the 
corresponding prior year quarter.  The decrease was primarily due 
to a reduction in salary, legal and insurance expenses partially 
offset by increased corporate expenses related to the Company's 
efforts to increase its visibility within the financial community.

There was no provision for income taxes in the current quarter 
because of the utilization of the tax loss carryforwards.

Interest income increased $10,000 to $25,000 in the current year 
quarter compared to $15,000 in the prior year quarter primarily 
due to increased interest income recognized on the maturity of 
short-term investments, as well as higher cash balances invested 
in interest bearing accounts during the current quarter.

The net income for the current quarter was $25,000 equal to $0.01 
per share compared with net income of $31,000 in the corresponding 
prior year quarter, also equal to $0.01 per share.  The decrease 
in net income is primarily due to a reduction in movies, 
television and theatrical as well as video sales, partially offset 
by a reduction in general and administrative expenses and an 
increase in interest income.

On April 15, 1998 the Company entered into an agreement with 
International Family Entertainment, Inc. ("IFE"), a wholly-owned 
subsidiary of Fox Kids Worldwide, Inc., whereby IFE entered into 
an exclusive option to acquire certain exclusive rights in and to 
the "National Lampoon" brand (including name, logos, and related 
elements).  On June 10, 1998 IFE elected to exercise that option. 
 The rights acquired by IFE consist of the right to use the 
National Lampoon name in connection with a Monday through Friday 
half-hour comedy strip, a once-weekly movie and/or comedy night as 
well as in connection with original made-for-TV movies and series. 
 We anticipate that the first two projects resulting from this 
alliance to be original made-for-television motion pictures 
entitled "National Lampoon's Men In White" and "National Lampoon's 
Golf Punks".  This programming would be produced for initial 
telecast on the new Fox Family Channel, which debuts on August 15, 
1998.  In addition, IFE's exercise of the option entitles them to 
four (4) additional, consecutive, conditional annual options to 
renew and extend this agreement through August 2003.  



In consideration of the exercise of each option, the Company will 
receive a guaranteed annual fee for each broadcast season with 
annual increases for each subsequent option renewal.  In addition 
to the guaranteed fees, the Company will receive a contingent 
participation in revenues generated from the exploitation of 
original programming, in all media including domestic home video, 
network, foreign distribution and worldwide interactive/ 
multimedia.
 

Nine Months Ended April 30, 1998 Versus April 30, 1997

Total revenues for the period were $870,000 compared to $1,216,000 
in the prior year period.  Movies, television and theatrical 
revenues decreased $368,000 to $607,000 in the current year period 
compared with $975,000 in the prior year period.  The reduction 
was primarily due to a decrease of $205,000 in the profit 
participation from the film "National Lampoon's Animal House" that 
was originally released in 1978 and a decrease of $36,000 in the 
profit participation from the New Line Cinema film "National 
Lampoon's Loaded Weapon I" which was originally released in 1993. 
 In addition, the profit participation from the Warner Brothers 
film "National Lampoon's Vacation" which was originally released 
in 1983 decreased $81,000 to $81,000 this period from $162,000 in 
the prior year period.  Video sales net of returns posted negative 
sales of $3,000 compared to $98,000 in the corresponding prior 
year period primarily due to reduced video sales which were offset 
by returns from distributors.  Royalty income for the current 
period increased $83,000 to $133,000 from $50,000 in the prior 
year period primarily due to the recognition of the balance from 
two advance license fees upon expiration of the license 
agreements.  There were no revenues related to the magazine for 
the current period compared with $56,000 for the prior year period 
due to the company receiving a waiver from any obligation to 
publish the magazine during the current fiscal year.  Other income 
increased $96,000 to $133,000 from $37,000 from the prior year 
period, primarily due to the reversal of previous accruals related 
to potential royalties which were extinguished at a reduced 
amount.

Cost of videocassettes sold represent duplication, shipping and 
other costs which decreased $41,000 to $5,000 in the current year 
period from $46,000 in the prior year period.  This was primarily 
due to reduced video sales in the current year period.

Royalty expense decreased $5,000 to $29,000 in the current year 
period compared to $34,000 in the prior year period due to reduced 
video royalties payable to licensors based on reduced video sales 
as noted above.



There were no cost of movies, television and theatrical in the 
current year period compared to $53,000 in the prior year period, 
primarily due to payments being required under a movie-for-cable 
licensing agreement in the prior period which did not occur in the 
current year period.

There was no cost of magazine this period compared to $39,000 in 
the prior year period due to the company not publishing a magazine 
this fiscal year.

Selling, general and administrative expenses decreased $7,000 to 
$588,000, in the current year period, compared with $595,000 in 
the corresponding prior year period.  The decrease was primarily 
due to reduced legal and insurance expenses, partially offset by 
increased corporate expenses related to the Company's efforts to 
increase its visibility within the financial community.

There was no significant provision for income taxes in either 
quarter because of the utilization of the tax loss carryforwards.

Interest income increased $29,000 to $67,000 in the current year 
period compared to $38,000 in the prior year period primarily due 
to increased interest income recognized on the maturity of short-
term investments, as well as higher cash balances invested in 
interest bearing accounts during the current period.

The net income for the current period was $96,000 equal to $0.03 
per share compared with net income of $218,000 in the 
corresponding prior year period equal to $0.06 per share.  The 
decrease in net income is primarily due to the decrease in 
revenues from movies partially offset by an increase in royalty 
and other income as explained above.


Liquidity and Capital Resources

Cash and short term investments at April 30, 1998 totaled 
$1,597,000, an increase of $95,000 from the July 31, 1997 fiscal 
year end.

The Company has no current plans for any significant capital 
expenditures in its current line of business and believes that its 
current level of cash and cash equivalents, augmented by 
internally generated funds, will provide sufficient cash resources 
through fiscal 1998.



Cash Flows

Nine months ended April 30, 1998 compared to the nine months ended 
April 30, 1997.

Net cash provided by operating activities decreased $427,000 
primarily due to a decrease in net income, accrued royalties, 
deferred revenues and minority interest income of consolidated 
subsidiary, partially offset by a reduction in net accounts 
receivable.  Net cash provided by investing activities increased 
$415,000 from the prior year due to increased cash flow from the 
maturity of short term investments.  The company had no cash flows 
from financing activities in either quarter.


PART II.  OTHER INFORMATION


Item 5 - Other events


On February 27, 1998 the company was notified by Nasdaq that the 
company's security was not in compliance with the new minimum bid 
price requirement, pursuant to NASD Marketplace Rule 431(c)(04), 
which became effective February 23, 1998.  As a result, the 
Company was provided with 90 calendar days, which expired May 28, 
1998, in order to regain compliance with this standard.  

On May 29, 1998 the company was notified by Nasdaq that its staff 
had reviewed the company's common stock trading history with 
respect to the closing bid price and had deemed that the Company 
was in compliance with the new bid requirement for continued 
listing on the Nasdaq Stock Market.

The Company believes that it will be able to comply with the 
Nasdaq requirements for minimum bid price, pursuant to NASD 
Marketplace Rule 431(c)(04), but no assurance can be given that 
the Company will be able to continue to maintain the minimum bid 
price requirement on a going forward basis.

 

   


 




	SIGNATURES



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


						J2 COMMUNICATIONS


Date_________________		By:____________________________
						   JAMES P. JIMIRRO
						   Chairman of the Board
						   President
						   (Principal Executive 
Officer)




Date_________________		By:____________________________
						   RUDY R. PATINO
						   Chief Financial Officer
						   (Principal Financial 
Officer)