SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C. 20549
                                 FORM 10-Q

             Quarterly Report Pursuant to Section 13 or 15(d)
                  of the Securities Exchange Act of 1934

   For Quarterly Period Ended              May 1, 1999


   Commission file number        1-683


                       Multigraphics, Inc.
          (Exact name of registrant as specified in its charter)

   Delaware                                          34-0054940
   (State or other jurisdiction of                   (I.R.S. Employer
   incorporation or organization)                    Identification No.)

   431 Lakeview Court Mt. Prospect, IL                    60056
   (Address of principal executive offices)               (Zip Code)

                       (847) 375-1700
           (Registrant's telephone number, including area code)

                       AM International, Inc.
                       (Former Name)

   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

   Indicate by check mark whether the registrant has filed all documents
   and reports required to be filed by  Sections 12, 13 or 15(d) of  the
   Securities Exchange Act  of 1934  subsequent to  the distribution  of
   securities under a plan confirmed by a court.

             Yes  X              No

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

                     2,833,322 shares of Registrant's
   Common Stock, $.025 par value, were outstanding as of June 11, 1999.

                            MULTIGRAPHICS, INC.

                                   INDEX


                                                               Page
   PART I -       Financial Information
<PAGE>
        Item 1 -  Condensed Consolidated Statement of
                  Operations for the Three and Nine Months
                  Ended May 1, 1999 and
                  May 2, 1998 (unaudited).                          1

                  Condensed Consolidated Balance Sheet
                  as of May 1, 1999 (unaudited) and
                  July 31, 1998.                                    2

                  Condensed Consolidated Statement of
                  Cash Flows for the Nine Months Ended
                  May 1, 1999 and May 2, 1998
                  (unaudited).                                      3

                  Notes to Condensed Consolidated Financial
                  Statements (unaudited).                          4 - 8

        Item 2 -  Management's Discussion and Analysis of Financial
                  Condition and Results of Operations.            9 - 13

        Item 3 -  Quantitative and Qualitative Disclosures about Market
                  Risk                                              14

   Part II             Other Information

        Item 6    -    Exhibits                                     14

                      PART I - FINANCIAL INFORMATION
<TABLE>
   Item 1 - Financial Statements

                            MULTIGRAPHICS, INC.

              CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
             (Dollars in thousands, except per share amounts)
                            (Unaudited)

                               Three Months Ended     Nine Months
                                                         Ended

                              May 1,    May 2,     May 1,    May 2,
                                1999     1998       1999       1998
   <S>                         <C>        <C>       <C>        <C>
   Revenues
    Machines and Supplies     $20,735 $   16,806  $ 52,121  $   39,932
    Services                   10,364     10,625    29,602      30,398

       Total revenues          31,099     27,431    81,723      70,330


   Cost of Sales
    Machines and Supplies      16,763     12,916    41,920      31,065
    Services                    6,799      7,350    19,594      21,191

       Total cost of sales     23,562     20,266    61,514      52,256


   Gross Margin                 7,537      7,165    20,209      18,074
<PAGE>
   Operating Expenses
    Selling, general and
    administrative              6,252      5,832    18,412      16,020
    Miscellaneous (income)
    expense                         3        (2)       (6)       (368)

    Total operating expenses    6,255      5,830    18,406      15,652

   Operating income             1,282      1,335     1,803       2,422

   Non-operating (income)
   expense:
    Interest income               (7)       (32)      (45)       (193)
    Interest expense              570        453     1,550       1,175
    Other, net                     21         18        62          24


   Income before taxes            698        896       236       1,416

   Income tax expense             265        341        90         538


   Net income                    $433       $555      $146        $878

   Net income per common
   share :
               Basic            $0.15      $0.20     $0.05       $0.31

               Diluted           $0.15      $0.19     $0.05      $0.30

   Weighted average shares of
   common stock and common
   stock equivalents
   Outstanding(in thousands):
               Basic            2,833      2,818     2,832       2,816

               Diluted          2,854      2,919     2,898       2,879



   The Notes to Consolidated Financial Statements are an integral
   part of these financial statements.
</TABLE>

<TABLE>
                            MULTIGRAPHICS, INC.
                   CONDENSED CONSOLIDATED BALANCE SHEET
             (Dollars in thousands, except per share amounts)
                                   (Unaudited)

                                            May 1,      July 31,
                                             1999         1998
   <S>                                       <C>         <C>
   Assets
   Current assets:
       Cash and cash equivalents           $   1,401    $  2,869
       Accounts receivable, net               14,606      14,629
       Inventories, net                       12,838      13,188
       Prepaid expenses and other assets         643         726
<PAGE>
   Total current assets                       29,488      31,412


   Property, plant and equipment, net          8,682       9,554
   Goodwill                                    4,032       3,681
   Other assets, net                           1,127         992

   Total assets                            $  43,329    $ 45,639



   Liabilities and Shareholders' Equity
   Current liabilities:
   Short-term borrowings and current
   maturities of long-term debt           $   11,802    $ 10,745
       Accounts payable                       10,892       7,312
       Service contract deferred income        8,510      12,013
       Payroll related expenses                4,965       5,504
       Other                                   3,446       5,248

   Total current liabilities                  39,615      40,822


   Long-term debt                                721       1,048
   Post-retirement benefit obligations         8,235       8,626
   Other long-term liabilities                 4,636       5,287

   Total liabilities                          53,207      55,783

   Shareholders' Equity:
   Preferred stock, 0.5 million shares
   authorized; no shares issued                    -           -
   Common stock, $.025 par value; 9.5
   million shares authorized;
   2,833,322 issued as of May 1, 1999 and
   2,829,526 issued as of July 31, 1998           70          70
       Capital in excess of par value         22,967      22,847
       Accumulated earnings (deficit)       (32,915)    (33,061)

   Total shareholders' equity                (9,878)    (10,144)


   Total liabilities and shareholders'
   equity                                  $  43,329    $ 45,639


          The Notes to Consolidated Financial Statements are an
           integral part of these financial statements.
</TABLE>
<TABLE>
                            MULTIGRAPHICS, INC.
              CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
             (Dollars in thousands, except per share amounts)
                                (Unaudited)
                                              Nine Months Ended

                                              May 1,      May 2,
   <S>                                         1999        1998
<PAGE>                                         <C>          <C>
   Cash Flows from Operating
   Activities:
   Net income                                 $   146      $  878
   Adjustments to reconcile net income to
   cash flow from operating activities:
     Depreciation of property, plant and
     equipment                                  1,400       1,377
     Amortization of goodwill                      61          30
     Benefit from operating loss
     carryforwards                                 90         538
     Change in assets and liabilities:
      Accounts receivable, net                     23       1,868
      Inventories, net                            350       2,136
      Prepaid expenses and other assets            83          48
      Accounts payable                          3,580     (2,492)
      Service contract deferred income        (3,503)     (1,904)
      Other current liabilities               (1,992)     (5,866)
      Other, net                                (537)         931

   Cash flow from operating activities          (299)     (2,456)


   Cash Flows from Investing Activities:
     Acquisition activities                     (462)     (5,612)
     Capital expenditures                       (575)       (321)
     Proceeds from the disposition of PP&E         47           -

   Cash flow from investing activities          (990)     (5,933)


   Cash Flows from Financing Activities:
     Net borrowings under revolving credit
     facilities                                 2,459       4,367
     Payments of Claims                        (2,188)     (3,161)
     Payments under capital lease
     arrangements                               (450)       (527)

   Cash flow from financing activities          (179)         679


   Decrease in cash and cash equivalents      (1,468)     (7,710)
   Cash and cash equivalents at
   beginning of period                          2,869      10,376

   Cash and cash equivalents at
   end of period                              $ 1,401      $2,666


   The Notes to Consolidated Financial Statements are an integral
   part of these financial statements.
</TABLE>
                            MULTIGRAPHICS, INC.
                CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
             (Dollars in thousands, except per share amounts)
                                (Unaudited)

   Note 1 - Basis of Presentation
<PAGE>
   The Condensed Consolidated Financial Statements included herein  have
   been prepared by the  Company, without audit,  pursuant to the  rules
   and regulations of the  Securities and Exchange  Commission.  In  the
   opinion  of   management,   the  Condensed   Consolidated   Financial
   Statements reflect all adjustments, which are of a recurring  nature,
   necessary for fair  presentation.   Certain prior  year amounts  have
   been reclassified to conform with the current year presentation.  The
   accompanying Condensed  Consolidated  Financial  Statements  and  the
   related notes should  be read  in conjunction  with the  Consolidated
   Financial Statements and  the related notes  thereto included in  the
   Company's Annual Report  on Form  10-K for  the year  ended July  31,
   1998.

   Note 2 - Acquisitions

   In December 1997, the Company purchased all of the outstanding shares
   of Publishing Solutions  Inc., and acquired  the operating assets  of
   Hanley Graphic Products Company.   Publishing Solutions provides  its
   customers with equipment and systems integration solutions  utilizing
   digital technologies for design, pre-press, imaging, and  interactive
   media applications.  Hanley Graphic Products  Company is a   regional
   dealer of graphic  arts equipment and  supplies serving customers  in
   Northern Illinois.  In June 1998,  the Company acquired the  business
   and certain assets  of Progressive Lithoplate  and Supply Company,  a
   regional graphic arts dealer serving customers in Northern  Illinois.
   In September  1998, the  Company acquired  the business  and  certain
   assets of  Austin,  Texas  based  Texas  PrePress  Systems,  Inc.,  a
   regional prepress systems integrator.   The aggregate purchase  price
   for the four  acquired companies was  approximately $7,213  including
   expenses of  the transactions,  and could  increase by  a maximum  of
   $875, contingent upon the  acquired companies' attainment of  certain
   operating targets  over the  two years  following their  acquisition.
   The excess purchase price  over the fair market  value of net  assets
   acquired amounts  to a  preliminary value  of $4,135,  which will  be
   amortized over a period not to exceed forty years.

   The  acquisitions  have   been  accounted  for   as  purchases   and,
   accordingly, the financial statements  include results of  operations
   from the respective dates  of acquisition.   The following pro  forma
   summary presents the results of operations for the current and  prior
   period as though the acquisitions had taken place at the beginning of
   the prior  period.   The pro  forma amounts  give effect  to  certain
   adjustments   including   increased   interest   expense,    goodwill
   amortization, estimated income tax expense as well as other  factors,
   and do not necessarily reflect the results which would have  occurred
   had the businesses operated as a  single entity during such  periods,
   nor are they necessarily indicative of results which may be  obtained
   in the future.
<TABLE>
                    Three Months Ended      Nine Months Ended

                    May 1,     May 2,     May 1,       May 2,
                     1999      1998        1999         1998
   <S>               <C>        <C>         <C>         <C>
   Revenues         $31,099    $28,088     $81,933     $81,562

   Net Income       $   433    $   479     $   149     $   722
<PAGE>
   Earnings per share:
     Basic          $  0.15    $  0.17     $  0.05     $  0.26
     Diluted        $  0.15    $  0.17     $  0.05     $  0.25
</TABLE>


   Note 3 - Borrowing Arrangements

   The Company's short and long-term borrowings are comprised of the
   following:
<TABLE>

                                             May 1,    July 31,
                                              1999       1998
      <S>                                     <C>         <C>
      Revolving Credit Facility              $10,226    $  7,768
      Capital Leases                           1,311       1,760
      Other short-term obligations               986       2,265

                    Total                    $12,523    $ 11,793



   Classified in the Consolidated Balance
   Sheet as follows:
      Short-term                             $11,802    $ 10,745
      Long-term                                  721       1,048

                    Total                    $12,523    $ 11,793
</TABLE>
<PAGE>
   In May, 1997 the  Company entered into a  $10,000 three year  secured
   Revolving Credit  Facility (subject  to borrowing  base  limitations)
   with Foothill Capital Corporation (_Foothill_).  The Revolving Credit
   Facility includes a $5,000 sub-facility  for the issuance of  letters
   of credit.  As  security  for utilization  of  the  Revolving  Credit
   Facility, the Company  granted a security  interest and general  lien
   upon all of its  assets.  On February  19, 1998 the Revolving  Credit
   Facility was  amended  and  restated (_the  Amendment_)  to  add  the
   Company's wholly owned  subsidiary, Publishing Solutions  Inc., as  a
   co-borrower under the Revolving Credit  Facility.  The Amendment  was
   made, among other things, to allow the eligible assets of  Publishing
   Solutions Inc. to be included in the Company's borrowing base and  to
   reset  the   Company's  covenant   requirements  in   light  of   the
   acquisitions made by the Company during the quarter ended January 31,
   1998.  On  July 30, 1998  the Revolving Credit  Facility was  amended
   further to, among other things; (1) grant the Company the ability  to
   increase the Revolving Credit Facility limit in increments of  $1,000
   up to a maximum limit of $15,000, and (2) extend the expiration  date
   an additional two years  to May 30, 2002  plus an automatic one  year
   extension unless terminated  pursuant to the  terms of the  Revolving
   Credit Facility.  The Revolving  Credit Facility limit was  increased
   to $11,000 on July 31, 1998, $12,000 on November 6, 1998 and  $13,000
   on February 12, 1999.   On May 1, 1999, the calculated borrowing base
   was approximately  $13,000.   As  of May  1,  1999, the  Company  had
   borrowings of $10,226  under the  Revolving Credit  Facility and  was
   utilizing approximately $1,829 of the Facility to secure  outstanding
   letters of credit.  Interest generally will be charged at a spread of
   1% above  the reference  (i.e. prime)  rate of  Foothill and  can  be
   reduced by 1/2% at the end of this fiscal year if certain performance
   measures are achieved.   As of  May 1, 1999,  the reference rate  was
   7.75%.  Letter of credit fees are 0.75% per annum plus issuance costs
   and processing fees.   The agreement  contains restrictive  covenants
   limiting capital expenditures, restricting  the payment of  dividends
   and other payments  and providing for  quarterly measures of  working
   capital, income, and net worth, among other things.  In addition, the
   agreement limits  the  Company's  ability to  borrow  or  to  request
   letters of credit following a  material adverse change as  determined
   by Foothill.  As of May 1,  1999, the Company was in compliance  with
   the covenants of the Revolving Credit Facility.

   Note 4 - Capital Structure

   The Company has  authorized 10,000,000 shares  of capital stock  with
   9,500,000 shares  being reserved  for issuance  as Common  Stock  and
   500,000 shares being reserved for issuance  as Preferred Stock.   The
   Company's 1994 Long Term Incentive Plan provides for the issuance  of
   560,000 shares of Common Stock.  Options to purchase the Common
   Stock are awarded at a price not  less than 100% of the market  price
   on the  date  of  the grant,  become  exercisable  at  various  dates
   generally from one to four years after the date of grant, and  expire
   ten years  after the  date of  grant.   At  May  1, 1999  options  to
   purchase 345,866  shares were  outstanding at  option prices  ranging
   from $2.1875 to $8.2139 per share.
<PAGE>
   On October 20, 1998,  the Company's Board  of Directors approved  the
   Multigraphics, Inc. 1998 Stock Incentive Plan for Directors.  Options
   to purchase a total of 140,000  shares of the Company's Common  Stock
   are included in the Plan.  Under the Plan, each non-employee director
   received an option  for 10,000 shares  on October 20,  1998 and  will
   receive an additional 5,000  share option grant on  the date of  each
   annual meeting  of stockholders,  commencing in  1999, at  an  option
   exercise price per share equal to the fair market value of a share of
   Common Stock on the date of  grant.  Such options are exercisable  in
   part or in full on the date of grant and will expire ten years  after
   the date of grant.

   The Company has not issued any Preferred Stock.  The Common Stock  is
   not subject to conversion or redemption and when issued is fully paid
   and non-assessable and has no preemptive rights.


   Note 5 - Commitments and Contingencies

   The Company  received  creditor  claims during  its  1993  bankruptcy
   proceedings which the Company believes are duplicative, erroneous  or
   exaggerated and to which the Company believes it has valid  defenses.
   The Company  has filed  objections to  these disputed  claims in  the
   United States  Bankruptcy Court  in  Delaware.   As  of May  1,  1999
   disputed claims  amounted  to  approximately $5,105.    The  disputed
   claims are primarily comprised of environmental and product liability
   claims, including  one  claim  for  approximately  $4,000  which  the
   Company believes is  overstated and  for which  the Company  believes
   appropriate reserves have been set.

   The Company has  been notified  of various  environmental matters  in
   connection with  certain  current  or  former  Company  locations  in
   Illinois and Ohio.   The Company  is also involved  in various  other
   administrative and  legal  proceedings incidental  to  its  business,
   including product liability  and general  liability lawsuits  against
   which the Company is partially insured.

   The disputed claims in the bankruptcy proceeding and the other  legal
   proceedings are in many cases in excess of recorded reserves.  At the
   present time,  it  is  management's  opinion,  based  on  information
   available to the Company and management's experience in such matters,
   that the resolution  of these legal  proceedings is  not expected  to
   have a material adverse effect on the Company's financial  condition,
   results of operations or liquidity.

   Note 6 - Components of Certain Balance Sheet Accounts
<TABLE>
   The components of certain balance sheet accounts are
   as follows:
                                         May 1,          July 31,
                                          1999             1998
   <S>                                    <C>               <C>
   Accounts receivable:
        Accounts receivable              $15,019           $14,929
        Allowance for doubtful accounts    (413)             (300)

        Total accounts receivable, net   $14,606           $14,629
<PAGE>
   Property, plant and equipment:
        Machinery and equipment          $12,407           $11,985
        Leasehold improvements             3,338             3,338

                                          15,745            15,323

        Less accumulated depreciation
        and amortization                 (7,063)           (5,769)


        Property, plant and equipment,
        net                              $ 8,682           $ 9,554


   Goodwill:
          Goodwill                       $ 4,135           $ 3,723
          Accumulated amortization         (103)              (42)

          Goodwill,  net                 $ 4,032           $ 3,681

</TABLE>



   Item 2.
                   MANAGEMENT'S DISCUSSION AND ANALYSIS
             OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

   The discussion of the results  of operations and financial  condition
   presented below  should  be  read in  conjunction  with  Management's
   Discussion and Analysis  included in the  Company's Annual Report  to
   Shareholders for the year ended July 31, 1998.

   As previously reported, the Company acquired the operating assets  of
   Hanley Graphic Products Company, and purchased all of the outstanding
   shares  of  Publishing  Solutions   Inc.  in  separate   transactions
   consummated in the second quarter of  fiscal 1998.  In June 1998  the
   Company acquired  the  business  and certain  assets  of  Progressive
   Lithoplate and  Supply  Company.    In  September  1998  the  Company
   acquired the business and certain assets of Austin, Texas based Texas
   Prepress Systems, Inc., a regional prepress systems integrator.   The
   acquisitions have been accounted  for as purchases and,  accordingly,
   the consolidated  financial statements  include the  post-acquisition
   results of these operations since their respective acquisition dates.
   All per share data is presented on a diluted basis.


   Consolidated Results of Operations
<TABLE>
   ($ in millions)             Quarter Ended      Nine  Months Ended

                             May 1,     May 2,    May 1,      May 2,
                             1999       1998      1999        1998
<PAGE>
   <S>                         <C>       <C>        <C>        <C>
   Revenues                   $  31.1   $  27.4    $  81.7    $  70.3
   Gross Margin                   7.5       7.1       20.2       18.1
   Gross Margin %               24.2%     26.1%      24.7%      25.7%
   Operating Expenses             6.2       5.8       18.4       15.7
   Operating Income               1.3       1.3        1.8        2.4
   Non-operating expenses,
   net                            0.6       0.4        1.6        1.0
   Net income  before tax         0.7       0.9        0.2        1.4
   Net Income                 $   0.4   $   0.6    $   0.1    $   0.9


   Third Quarter

   The net income  for the quarter  ended May 1,  1999 was $0.4  million
   ($0.15 per common share).  In  the comparable prior year period,  the
   Company had  a  profit of  $0.6  million ($0.19  per  common  share).
   Current quarter  revenues were  more  heavily weighted  with  machine
   sales, which carry margin rates  relatively lower than the  Company's
   supply and  service product  offerings. This  sales mix  reduced  the
   overall margin rate.  Selling  expenses and interest costs  increased
   over prior year levels, both as  a result of the previously  reported
   acquisition activities, leading to the lower net income.

   Third quarter revenues  of $31.1  million increased  by $3.7  million
   over the corresponding prior year period. Since December of 1997, the
   Company has acquired four regional graphic arts dealers to expand its
   target  customer  base  in  the  in-plant  and  smaller  to  mid-size
   commercial printing  market  segments.  The growth  in  revenues  was
   primarily attributable to the acquisitions of three regional  graphic
   arts dealers which the  Company completed in  the prior fiscal  year,
   and the  September  1998 acquisition  of  Texas PrePress  Systems,  a
   regional prepress systems integrator.  These acquisitions  complement
   the Company's internal efforts to  expand its product offerings,  and
   bring enhanced digital sales and support capabilities and an expanded
   customer base in  the Company's traditional  markets.  The  Company's
   primary objective is to achieve  continued growth within the  graphic
   arts market  by expanding  the  product offering,  enhancing  digital
   support capabilities and increasing market penetration and geographic
   coverage through selected acquisitions.  Company management  believes
   that additional increases  in revenues  could improve  profitability,
   since the Company has infrastructure and systems capable of absorbing
   greater volumes of transactions.
<PAGE>
   Gross margin  of $7.5  million increased  by  $0.4 million  over  the
   comparable prior year period, while the overall margin rate decreased
   by 1.9 basis points.  The increased margins derived from the acquired
   operations, new products and product lines more than offset  declines
   in margin from press  products and related  services, upon which  the
   Company had historically been dependent, and which have been in  long
   term decline.   The lower  margin rate  in the  current year  quarter
   resulted from a sales mix more  heavily weighted with machines  which
   carry margin rates  relatively lower  than the  Company's supply  and
   service product offerings.  As previously reported,  the Company  has
   pursued a growth strategy to replace the revenues previously  derived
   from its  historically  higher  margin  manufactured  products,  with
   product lines added through distribution agreements, joint  ventures,
   affiliations with  third parties  and  acquisitions of  graphic  arts
   dealers.   To offset  the lower  margin rates  which accompany  those
   relationships, the Company  has invested in  information systems  and
   has undertaken other reorganization  measures to increase  efficiency
   and lower expenses.

   Selling, general and administrative expenses in the third quarter  of
   $6.2 million increased by  $0.4 million over  the prior year  period,
   largely due to the addition of  sales personnel, and higher  variable
   expenses related  to the  increasing revenue  levels.   The  improved
   relationship of expenses to revenue levels was the result of  various
   actions taken by the Company to  lower headcount, facility and  other
   general and administrative costs, while improving service levels  and
   operational efficiency.

   Non-operating expenses  consist primarily  of net  interest  expense,
   which increased $0.2 million  from the prior  year.  Higher  interest
   costs in the current  year quarter were  due to increased  borrowings
   primarily incurred  to finance  acquisitions and  higher interest  on
   post retirement  benefit obligations.   Interest  expense related  to
   pre-petition debt obligations decreased  $0.1 million from the  prior
   year.  The final scheduled  pre-petition debt payment obligation  was
   disbursed in September 1998.

   Nine Months

   For the nine months ended May 1,  1999 the Company had net income  of
   $0.1 million ($0.05 per common share).  In the prior year  comparable
   period, the Company recorded  net income of  $0.9 million ($0.30  per
   common share).

   Revenues for  the nine  months ended  May 1,  1999 of  $81.7  million
   increased by $11.4 million over the corresponding prior year  period.
   The  16%  growth  in  revenues  was  primarily  attributable  to  the
   acquisitions of three regional graphic arts dealers which the Company
   completed in the prior fiscal year and the September 1998 acquisition
   of Texas PrePress  Systems, a regional  prepress systems  integrator.
   The acquisitions complement the Company's internal efforts to  expand
   its product offerings, and bring  enhanced digital sales and  support
   capabilities as well as  an expanded customer  base in the  Company's
   traditional markets.
<PAGE>
   Gross margin  of $20.2  million for  the first  nine months  of  1999
   increased by $2.1 million  compared to the prior  year, largely as  a
   result of the  increased revenue  volume in  the current  year.   The
   margin rate decreased 1.0 percentage points  due to a sales mix  more
   heavily weighted  with machines  which carry  rates relatively  lower
   than the Company's supply and service product offerings.

   Selling, general and administrative expenses in the first nine months
   of $18.4 million increased by $2.4 million compared to the prior year
   period, but decreased as a percent  of sales.  The increased  expense
   levels were largely due to the  addition of sales personnel from  the
   acquired entities.   Non-operating expenses of $1.6 million increased
   by $0.6 million, primarily due to higher net interest expense on debt
   resulting from acquisition financing  and higher interest expense  on
   post retirement benefit obligations.

   As noted above  and in previous  reports, the  Company has  developed
   strategies to increase revenues through product line additions, third
   party service agreements  and acquisitions.   An increase in  revenue
   levels  could   improve   profitability   since   the   Company   has
   infrastructure and systems which are  capable of absorbing a  greater
   volume of transactions.

   Liquidity and Capital Resources
   (nine months ended May 1, 1999 and May 2, 1998)

   Cash and cash equivalents  at May 1, 1999  were $1.4 million,  having
   decreased $1.5 million from July 31, 1998.  The reduction in cash was
   due primarily to  settlement of bankruptcy  claims.   A $2.5  million
   increase in revolver borrowings was largely offset by a reduction  in
   general unsecured bankruptcy claims and capital lease obligations.
<PAGE>
   Operating Activities.    In  the nine months  ended May  1, 1999  the
   Company had a cash outflow from operating activities of $0.3  million
   compared with a  $2.5 million outflow  in the  comparable prior  year
   period. The  net  income  was $0.1  million  in  the  current  period
   compared to net income of $0.9  million in the comparable prior  year
   period.  Historically higher fourth quarter sales create the  highest
   receivable balance throughout the year, however, in the current year,
   increased sales  during the  third quarter  resulted in  an  accounts
   receivable  balance  approximating  that   of  the  prior   year-end.
   Accounts receivable  in the  comparable prior  year period  decreased
   $1.9  million.    Inventories  decreased  by  $2.1  million  in   the
   comparable prior year period primarily  due to lower stocking  levels
   of machines.   Deferred service  revenues decreased  by $3.5  million
   during the first nine  months of 1999 and  $1.9 million in the  first
   nine months of  1998 primarily  as a result  of the  higher level  of
   contract renewals which exist at the  beginning of each fiscal  year,
   and for the  first nine months  of 1999, the  decrease also  resulted
   from a  shift by  customers to  shorter  duration contracts.    Other
   current liabilities were  reduced by $2.0  million largely  resultant
   from payment of various product  liability claims, and reductions  in
   payroll related liabilities.   Prior year  other current  liabilities
   were reduced by $5.9  million primarily due  to payments for  payroll
   related liabilities,  settlement  of  a recourse  obligation  from  a
   previously  divested  operation,  phase  out  costs  related  to  the
   Company's outsource of its manufactured machine product line and exit
   costs of  a  previously  divested foreign  subsidiary.    During  the
   current year period accounts payable increased by $3.6 million due to
   extending payment terms with  vendors and a  higher level of  machine
   sales.   In  the prior  year  comparable period,    accounts  payable
   decreased by  $2.5  million  due to  lower  inventory  purchases  and
   reductions resulting  from taking  prompt  pay discounts  offered  by
   vendors.

   Investing Activities.   Cash  outflow from  investing activities  was
   $1.0 million in  the current period  largely due to  $0.6 million  in
   capital expenditures  to  upgrade  systems  and  equipment  and  $0.5
   million in acquisition related activities.  The comparable prior year
   period cash outflow of  $5.9 million was  largely resultant from  the
   purchases of Hanley Graphic Products Company and Publishing Solutions
   Inc.

   Financing Activities.   Financing  activities resulted  in a  current
   year cash outflow of  $0.2 million.   The outflow resulted  primarily
   from payment of general unsecured  bankruptcy claims of $2.2  million
   and payments under  capital lease arrangements  of $0.5 million  that
   were largely offset by increased revolver borrowings of $2.5 million.
   In the comparable prior  year period, a cash  inflow of $0.7  million
   arose, as revolver borrowings of $4.4 million were only partly offset
   by $3.2 million of payments  for general unsecured bankruptcy  claims
   and $0.6 million of capital leases payments.
<PAGE>
   The  Company's  principal  credit  facility  is  its  $15.0   million
   revolving credit  facility.    The utilizations  allowed  under  this
   facility are limited by a borrowing base which is calculated based on
   levels of  accounts receivable  and inventories,  as defined  in  the
   agreement.   The  Company's  ability to  meet  its  future  liquidity
   requirements  is  dependent  on  sustained  levels  of  billings   to
   customers. Variations  in  market demand,  competitive  pressures  or
   purchase mix  and the  timing  of revenues  and  costs could  have  a
   negative impact on the Company's credit  facility.  In light of  this
   the Company is  continuing to  implement cost  reduction programs  to
   minimize uses of cash.   The Company believes  that its current  cash
   balances, its current projections of future billings, the results  of
   identified cost  reduction  programs  and  the  continuation  of  the
   Company's credit  facilities will  provide the  Company with  capital
   resources and liquidity sufficient to finance its current  operations
   and fund non-operating obligations as  they come due, although  there
   can be no assurance  that such will  be the case.   In addition,  the
   Company also  intends to  seek  additional capital  from  prospective
   investors to  support its  current  operations and  growth  strategy,
   which may include acquisition of other regional graphic arts dealers.

   YEAR 2000 DISCLOSURE

   The Company's information systems will require certain  modifications
   to enable them to  be able to process  information without regard  to
   whether the date occurs prior to or after the year 2000.   Currently,
   some information systems do not properly identify a year that  begins
   with _20_ instead of  the familiar _19_.    These and similar  issues
   are generally  referred to  as _Year  2000_  issues.   The  Company's
   information systems  are  relatively  new,  and  its  recent  systems
   implementation in the Fall  of 1997 achieved  near compliance in  the
   Company's operating systems and full compliance in its host hardware.
   Based on the  Company's experience in  the new system  implementation
   and its analysis of the work remaining, the Company anticipates  that
   expenditures for  modifying the  systems will  be approximately  $0.3
   million, and the  work necessary  to complete  all modifications  and
   testing will be complete by mid  1999.  During the nine months  ended
   May 1, 1999 the Company expended substantially all of the total  $0.3
   million estimated  for  Year  2000 modifications.    The  Company  is
   working with its  software and  systems licensor  in completing  this
   project.    Accordingly,  the  Company  does  not  believe  that  the
   remaining actions or  the associated costs  will be  material to  the
   Company's operating results.

   The Company has also undertaken a  review of its other equipment  and
   operating systems,  and has  contacted  its significant  vendors  and
   service providers to  assess the possible  impact on  the Company  of
   such third parties' failure  to address Year  2000 issues.   Although
   the Company  cannot verify  the results  of  its inquiries  of  third
   parties, it has not received any  information which would lead it  to
   believe that there will be  material problems in obtaining  products,
   supplies and  services from  its third  party service  providers  and
   vendors.  Nevertheless, any significant or prolonged interruption  in
   the supply of essential services  or products could adversely  effect
   the Company's revenues  and financial results.   Similarly,  problems
   with any significant  portion of  the Company's  20,000 customers  in
   processing and paying invoices from the Company could result in  cash
   flow shortages and liquidity problems.
<PAGE>
   The Company is undertaking to prepare  a contingency plan to  address
   potential Year  2000  problems.   The  systems  issues  and  supplier
   contacts described above are a part  of those efforts.  In the  event
   that  the  Company  identifies  potential  problems  with  a  service
   provider or  other vendor,  it will  attempt to  obtain services  and
   products from other sources.  The Company has available to it a broad
   range of products, however, and it is unlikely that serious shortages
   will  materialize.    Similarly,  although  the  Company  will   have
   completed and tested its systems capabilities in advance of the  year
   2000,  the  Company  is  preparing  to  operate  without  significant
   portions of its operating and information systems.  Customer  service
   representatives are  trained to  take orders  without access  to  the
   information  systems,  purchasing  representatives  are  trained   to
   purchase parts without  access to  the information  systems, and  the
   Company's  finance  department  is  preparing  to  invoice  and  bill
   customers without access  to the information  systems, if  necessary.
   The Company is unable to anticipate whether significant customers  or
   significant numbers of its customers will have difficulty  processing
   and paying its  invoices.  Moreover,  the Company  cannot predict  or
   address all possible problems which may be associated with Year  2000
   issues.

   FORWARD LOOKING STATEMENTS

   This document contains certain  forward-looking statements and  other
   statements that  are not  historical  facts concerning,  among  other
   things, market conditions and the Company's strategies for growth and
   expansion.  These statements are highly  dependent upon a variety  of
   important factors that could cause such  results or events to  differ
   materially from those expressed or implied in such statements.  These
   factors include, but are not limited to, changing market  conditions,
   the availability  and cost  of products,  the impact  of  competitive
   products and pricing, the Company's ability to execute its  strategic
   plans and reduce costs, the availability  of sources of financing  to
   fund current  operations  and  to assist  in  the  execution  of  the
   Company's strategic plans, and other  risks detailed herein and  from
   time-to-time in  the  Company's Securities  and  Exchange  Commission
   filings.  There can be no  assurance that the Company has  accurately
   identified and properly weighed all of the factors that affect market
   conditions and demand for the  Company's products and services,  that
   the public information on which the Company has relied is accurate or
   complete or that the Company's analysis of the market and demand  for
   its products  and services  is correct  and, as  a result,  that  the
   strategies based on such analysis will be successful.

   Item 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

   The Company is exposed to market risk related to change in interest
   rates.  At May 1, 1999, the Company had approximately $10.2 million
   of debt outstanding on a revolving credit facility with floating
   interest rates tied to the prime rate.  If this rate was to increase
   10 percent, the increase in interest payments would not have a
   material impact on the Company's net income or cash flows.  In
   addition, the Company has fixed rate financing arrangements under
   capital lease obligations in the amount of $1.3 million.  A 10
   percent change in interest rates would not have a material impact on
   the fair market value of this debt.
<PAGE>
   PART II - OTHER INFORMATION

   Item 6.   Exhibits

             27   Financial Data Schedule

             (b)  Reports on Form 8-K
                  None

   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 the undersigned thereunto duly authorized.

                                 MULTIGRAPHICS, INC.

   Date:     June 14, 1999       /s/ Gregory T. Knipp
                                 Gregory T. Knipp
                                 Vice President and
                                 Chief Financial Officer
                                 (authorized officer and principal
                                 accounting officer)

<PAGE>

                                 EXHIBITS

   No.       Description

   27        Financial Data Schedule
<PAGE>


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