FORM 10-Q
                                
               SECURITIES AND EXCHANGE COMMISSION
                                
                      WASHINGTON, DC 20549

(Mark One)

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

     For the quarterly period ended March 31, 1997

                         or

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

     For the transition period from_________________ to _________________

     Commission File Number 0-14926

                                              Joule' Inc.                     
                      (Exact name of registrant as specified in its charter)

          Delaware                                                22-2735672 
     (State or other jurisdiction of                            (IRS Employer 
     incorporation or organization                          Identification No.)

          1245 Route 1 South,   Edison, New Jersey 08837    
            (Address of principal executive officers)
                         (Zip Code)

                                       (908) 548-5444                         
                   ( Registrant's telephone number including area code)

Indicate by check mark whether the Registrant (1) has filed all reports 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             
As of May 6, 1997 3,660,000 shares of the Registrant's common stock were 
outstanding.
<PAGE>



Part I - Financial Information
<TABLE>
Item 1. Financial Statements
<CAPTION>
                  Joule' Inc. and Subsidiaries
                  Consolidated Balance Sheets

                                    March 31,                 September 30,
    ASSETS                              1997                       1996         
<S>                                  <C>                         <C>
CURRENT ASSETS:
  Cash                             $129,000                        $175,000
  Accounts receivable, less 
   allowance for doubtful 
   accounts of $244,000 and 
   $217,000 respectively          8,247,000                       8,128,000
  Prepaid expenses and other 
   current assets                   177,000                         320,000
    Total Current Assets          8,553,000                       8,623,000
PROPERTY AND EQUIPMENT, NET OF 
  ACCUMULATED DEPRECIATION        1,924,000                       2,019,000

GOODWILL AND OTHER INTANGIBLES       96,000                         108,000

OTHER ASSETS                         46,000                          59,000
                                $10,619,000                     $10,809,000

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Loans payable to bank          $2,150,000                      $2,343,000
  Current portion of long term 
    debt                             25,000                          25,000
  Accounts payable and accrued 
    expenses                      1,344,000                       1,817,000
  Accrued payroll and related 
    taxes                         1,141,000                       1,094,000
  Income taxes                       29,000                           ---      
    Total Current Liabilities     4,689,000                       5,279,000

LONG TERM DEBT                      419,000                         431,000
    Total Liabilities             5,108,000                       5,710,000

STOCKHOLDERS' EQUITY:
  Preferred stock, $.01 par value:
     Authorized 500,000 shares, 
       none outstanding               ---                             ---       Common stock, $.01 par value:
     Authorized 10,000,000 
       shares-issued 3,807,000      38,000                           38,000

  Paid-in capital                3,637,000                        3,637,000
  Retained earnings              2,225,000                        1,813,000

  LESS: Cost of 146,400 shares 
    of common stock held in 
     treasury                      389,000                          389,000
  Total Stockholders' Equity     5,511,000                        5,099,000
                               $10,619,000                      $10,809,000
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>                                
<PAGE>                                
<TABLE>
<CAPTION>      
                  Joule' Inc. and Subsidiaries
               Consolidated Statements of Income

                    Three Months Ended                      Six Months Ended   
                March 31,          March 31,         March 31,       March 31,
                 1997               1996             1997              1996    
<S>               <C>               <C>              <C>             <C>
REVENUES       $12,471,000       $12,088,000       $23,414,000     $25,488,000

COSTS, EXPENSES, AND OTHER:

  COST OF 
   SERVICES    10,113,000        10,057,000        19,200,000       21,086,000

  SELLING, 
   GENERAL AND 
   ADMINISTRATIVE 
   EXPENSES     1,796,000         1,496,000         3,434,000        3,155,000

  INTEREST EXPENSE 52,000            89,000           114,000          201,000

  OTHER (INCOME)/
   EXPENSE        (19,000)          (26,000)          (20,000)        (20,000)

INCOME BEFORE 
 INCOME TAXES     529,000           472,000           686,000        1,066,000

INCOME TAXES      211,000           188,000           274,000          426,000

NET INCOME       $318,000           $284,000         $412,000         $640,000


NET INCOME PER 
 COMMON SHARE       $0.09              $0.08            $0.11            $0.18

AVERAGE NUMBER OF 
 SHARES AND EQUIVALENTS 
 OUTSTANDING    3,663,000          3,646,000        3,663,000        3,645,000

<FN>
<F1>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
<PAGE>

<TABLE>
                        Joule' Inc. and Subsidiaries
                   Consolidated Statements of Cash Flows
<CAPTION>                                     


                                                     Six Months Ended
                                                  March 31,         March 31,
                                                    1997                1996    
<S>                                               <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                      $412,000           $640,000
  Adjustments to reconcile net income to net
   cash flows from operating activities:
   Depreciation and amortization                   223,000            184,000
   Provision for losses on accounts receivable      44,000             36,000
  Changes in operating assets and liabilities:
   Accounts receivable                            (163,000)           885,000
   Prepaid expenses and other assets               154,000            230,000
   Accounts payable and accrued expenses          (473,000)           287,000
   Accrued payroll and related taxes                47,000            (82,000)
   Income taxes                                     29,000            148,000

     Net cash flows provided by operating 
      activities                                   273,000           2,328,000

CASH FLOWS FROM INVESTING ACTIVITIES:
   Acquisitions of property and equipment         (114,000)          (364,000)
     Net cash flows used in investing activities  (114,000)          (364,000)

CASH FLOWS FROM FINANCING ACTIVITIES:
   Decrease in loans payable to bank               (193,000)       (1,907,000)
   Payment of long term debt                        (12,000)          (12,000)
   Proceeds from exercise of stock options              ---             7,000 

     Net cash flows used in financing activities   (205,000)       (1,912,000)

NET CHANGE IN CASH                                  (46,000)           52,000

CASH, BEGINNING OF PERIOD                           175,000            70,000 

CASH, END OF PERIOD                                $129,000          $122,000 

SUPPLEMENTAL CASH FLOW INFORMATION:
   Interest paid                                   $114,000          $191,000 

   Income taxes paid                                $80,000          $278,000 

<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
<PAGE>
                                   
                  Joule' Inc. and Subsidiaries
                     Notes to Consolidated
                      Financial Statements
                          (Unaudited)
                                
(1)    The consolidated balance sheet at the end of the preceding fiscal year 
has been derived from the audited consolidated balance sheet contained in the 
Company's Form 10-K and is presented for comparative purposes.  All other 
financial statements are unaudited.  All unaudited amounts are subject to 
year end adjustments and audit, but the Company believes all adjustments, 
consisting only of normal and recurring adjustments, necessary to present 
fairly the financial position, results of operations and changes in cash flows 
for all interim periods presented, have been made.  The results of operations 
for interim periods are not necessarily indicative of the operating results for
the full year.

Footnote disclosures normally included in financial statements prepared in 
accordance with generally accepted accounting principals have been omitted in 
accordance with the published rules and regulations of the Securities and 
Exchange Commission.  These consolidated financial statements should be read 
in conjunction with the financial statements and notes thereto included
in the Company's Form 10-K and Annual Report to Stockholders for the most 
recent fiscal year.
<PAGE>
                 Joule' Inc. and Subsidiaries

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

Results of Operations

  The Company's revenues are derived from providing staffing services to its 
customers. Such services include providing office and light industrial 
workers, engineering and technical personnel, and skilled craft industrial plant
and facility maintenance labor.  Over 90% of revenue in each period was billed 
on a direct cost plus markup basis.  Revenues increased 3% to $12.5 million 
during the three months ended March 31, 1997 from $12.1 million for the year 
earlier period.  Revenues for the first six months of fiscal 1997 amounted to 
$23.4 million, an 8% decrease from the prior year.  Office and light 
industrial revenue increased 24% to $4.4 million, and 11% to $8.4 million for 
the respective three and six month periods ended March 31, 1997 as compared 
to the same periods a year ago.  Engineering and technical staffing revenues 
rose 11% to $3.2 million, for the current quarter as compared to the prior 
year's quarter, and improved 4% to $5.9 million for the 1997 six month period 
over the 1996 six month period.  Due largely to the adverse impact of the 
conclusion of certain long term contracts, principally in the first quarter of
fiscal 1997, and to a lesser degree, the following quarter, skilled craft 
sales declined 13% to $4.9 million and 25% to $9.1 million from the 
respective comparable 1996 periods.  The Company continues to strive to 
replace this business with new business.  Cost of services improved to 81.1% 
of revenue in the current three months from 83.2% in the prior year and to 
82.0% in the current six months compared to 82.7% a year earlier.  These 
expenses consist primarily of compensation to employees on assignment to 
clients and related costs, including social security, unemployment taxes, 
general liability and workers' compensation insurance, and other costs of
services.  

  Selling, general and administrative expenses amounted to $1,796,000 and 
$3,434,000 in the three and six months ended March 31, 1997 compared to 
$1,496,000 and $3,155,000 a year earlier.  These expenses amounted to 14.4% of 
revenue in the current three month period and 14.7% of revenue in the six 
months ended March 31,1997 compared to 12.4% for both prior year periods.  
These expenses included the salaries and related costs of staff employees, 
provision for the allowance for doubtful accounts, advertising, professional 
fees and other costs related to maintaining the Company's branch offices.  
The 1997 percentage increases in selling, general and administrative expenses 
reflect the anticipation of higher sales levels which have not yet fully 
materialized. Interest expense amounted to $52,000 and $114,000 in the 
current three and six months periods compared to $89,000 and $201,000 in the 
prior year, as both average borrowings and interest rates decreased.  The 
effective income tax rate was 40% for all periods presented.  As a result of 
the above, net income improved to $318,000 or $.09 per share in the current 
three month period from $284,000 or $.08 per share a year ago; for the six 
months ended March 31, 1997, net income was $412,000 or $0.11 per share compared
to $640,000 or $0.18 a share in the prior year.
<PAGE>
                  Joule' Inc. and Subsidiaries
                                
       Management's Discussion and Analysis of Financial
        Condition and Results of Operations (continued)


Liquidity and Capital Resources

Current assets at March 31, 1997 were $8,553,000 as compared to $8,623,000 at 
September 30, 1996 and current liabilities were $4,689,000 compared to 
$5,279,000 as of September 30, 1996. Employees typically are paid on a 
weekly basis.  Clients generally are billed on a weekly basis. The Company 
has generally utilized bank borrowings to meet its working capital needs.  
The Company has a $4,500,000 bank line of credit; loans thereunder are secured 
principally by receivables and bear interest at LIBOR plus two and one quarter 
percent or the bank's base rate, at the Company's option; $2,150,000 was 
outstanding under this line as of March 31, 1997.

The Company believes that internally generated funds and available borrowings 
will provide sufficient cash flow to meet its requirements for the next 12 
months.
<PAGE>
                  Joule' Inc. and Subsidiaries
                   Part II - Other Information


Item 6.   Exhibits and Reports on Form 8-K

 (a)      Exhibits: None
 (b)      Reports on Form 8-K
          No reports on Form 8-K have been filed during the quarter for which 
          this report is filed.

                           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 there unto duly authorized.

                           JOULe' INC.
                          (Registrant)
                                

May 12, 1997
                                                     E. N. Logothetis           
                                               E. N. Logothetis, Chairman
                                            (Principal Executive Officer)


May 12, 1997        
                                                 Bernard G. Clarkin             
                                  Bernard G. Clarkin, Vice President and Chief
                                            Financial Officer
                                       (Principal Financial Officer)