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              January 30, 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
                             March 12, 1999.




                            MULTIGRAPHICS, INC.
   INDEX

      <PAGE>
                                                                  Page
      PART I -       Financial Information

        Item 1 -  Condensed Consolidated Statement of
                  Operations for the Three and Six Months
                  Ended January 30, 1999 and
                  January 31, 1998 (unaudited).                     1
                  Condensed Consolidated Balance Sheet
                  as of January 30, 1999 (unaudited) and
                  July 31, 1998.                                    2

                  Condensed Consolidated Statement of
                  Cash Flows for the Six Months Ended
                  January 30, 1999 and January 31, 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 4-   Submission of Matters to a Vote of Security
                  Holders                                           14

        Item 6-   Exhibits                                          14



   <PAGE>
                         PART I - FINANCIAL INFORMATION
      Item 1 - Financial Statements
                               MULTIGRAPHICS, INC.
                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                (Dollars in thousands, except per share amounts)
                                   (Unaudited)

                             Three Months Ended     Six Months Ended
   <TABLE>
                             January     January   January    January
                            30, 1999    31, 1998  30, 1999   31, 1998
   <S>                        <C>         <C>       <C>        <C>
   Revenues
    Machines and Supplies    $ 15,650    $ 12,966  $ 31,386    $23,126
    Services                    9,305       9,233    19,238     19,773

        Total revenues         24,955      22,199    50,624     42,899


   Cost of Sales
    Machines and Supplies      12,784      10,292    25,267     18,149
    Services                    6,366       6,543    12,685     13,841

        Total cost of sales    19,150      16,835    37,952     31,990


   Gross Margin                 5,805       5,364    12,672     10,909
   Operating Expenses
    Selling, general and
    administrative              6,075       5,136    12,160     10,188
    Miscellaneous (income)
    expense                       (33)       (350)       (9)      (366)

    Total operating
    expenses                    6,042       4,786    12,151      9,822
   Operating income (loss)       (237)        578       521      1,087   
   Non-operating income 
   (expense):
    Interest income                17          41        37        161
    Interest expense             (484)       (349)     (979)      (722)
    Other, net                    (20)         (6)      (41)        (6)


   Income (loss) before
   taxes                         (724)        264      (462)        520

   Income tax expense (benefit)  (275)        100      (175)        197


   Net income (loss)          $  (449)   $    164   $  (287)    $   323



   <PAGE>
   Net income (loss) per common
   share :
               Basic          $ (0.16)    $   0.06  $ (0.10)    $  0.11

              Diluted         $ (0.16)    $   0.06  $ (0.10)    $  0.11



   Weighted average shares of common stock and
   common stock equivalents outstanding
    (in thousands):
               Basic             2,833       2,831    2,832       2,818

              Diluted            2,833       2,893    2,832       2,844

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



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

                                   (Unaudited)
                                                  January 30,  July 31,
     <TABLE>                                         1999         1998
      <S>                                              <C>         <C>
   Assets
   Current assets:
   Cash and cash equivalents                       $  1,602     $ 2,869
   Accounts receivable, net                          13,392      14,629
   Inventories, net                                  13,312      13,188
   Prepaid expenses and
   other assets                                         450         726

   Total current assets                              28,756      31,412

   Property, plant and equipment, net                 8,976       9,554
   Goodwill                                           4,052       3,681
   Other assets, net                                  1,092         992

   Total assets                                    $ 42,876     $45,639


   Liabilities and Shareholders' Equity
   Current liabilities:   Short-term borrowings and current
   maturities of long-term debt                    $ 10,916     $10,745
   Accounts payable                                   9,787       7,312
   Service contract deferred income                  10,408      12,013
   Payroll related expenses                           4,511       5,504
   Other                                              4,115       5,248

   Total current liabilities                         39,737      40,822

   <PAGE>
   Long-term debt                                       810       1,048
   Post-retirement benefit obligations                8,188       8,626
   Other long-term liabilities                        4,728       5,287

   Total liabilities                                 53,463      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 January 30, 1999
   and 2,829,526 as of July 31, 1998                     70          70
   Capital in excess of par
   value                                             22,691      22,847
   Accumulated earnings (deficit)                   (33,348)    (33,061)
   Total shareholders'equity                        (10,587)    (10,144)

   Total liabilities and
   shareholders' equity                           $  42,876    $ 45,639
   </TABLE>

   The Notes to Consolidated Financial Statements are an
   integral part of these financial statements.



   <PAGE>
                            MULTIGRAPHICS, INC.
              CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
             (Dollars in thousands, except per share amounts)
                                (Unaudited)
                                                Six Months Ended

                                              January 30,  January 31,
                                                 1999        1998
   <TABLE>
      <S>                                         <C>         <C>
   Cash Flows from Operating
   Activities:
   Net income                                 $  (287)   $     323
   Adjustments to reconcile net income
   to cash flow from operating
   activities:
   Depreciation of property, plant
   and equipment                                  907          913
   Amortization of goodwill                        41            6
   Benefit from operating loss
   carryforwards                                 (175)         197
   Change in assets and
   liabilities:
   Accounts receivable, net                     1,237        2,308
   Inventory, net                                (124)       2,119
   Prepaid expenses and other assets              276          129   
   Accounts payable                             2,475       (3,275) 
   Other current liabilities                   (1,744)      (4,268)
   Other, net                                  (2,129)      (1,421)

   Cash flow from operating activities            477       (2,969)


   Cash Flows from Investing
   Activities:
     Acquisition activities                      (462)      (5,415)

     Capital expenditures                        (349)        (270)
   Other                                               20            -
   Cash flow from investing
   activities                                    (791)      (5,685)


   Cash Flows from Financing
   Activities:
   Net borrowings (payments) under revolving
   credit facilities                            1,466        2,975
   Payments of claims                          (2,068)      (1,999)
   Payments under capital lease
   arrangements                                  (351)        (346)


   Cash flow from financing
   activities                                    (953)         630
   <PAGE>
   Increase (decrease) in cash and
   cash equivalents                            (1,267)      (8,024)
   Cash and cash equivalents at
   beginning of period                          2,869       10,376

   Cash and cash equivalents at end
   of period                                 $  1,602    $   2,352

   </TABLE>

   The Notes to Consolidated Financial Statements are
   an integral part of these financial statements.




                            MULTIGRAPHICS, INC.
                CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
             (Dollars in thousands, except per share amounts)
                                (Unaudited)

   Note 1 - Basis of Presentation

   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.
   <PAGE>
   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.


                   Three Months Ended        Six Months Ended

                January 30,   January 31,  January 30,  January 31,
                   1999          1998         1999         1998

   <TABLE>
   <S>             <C>          <C>          <C>         <C>
   Revenues        $ 24,955    $  25,836     $ 50,834    $ 53,474

   Net Income       $  (449)   $      87      $  (284)   $    243

   Earnings per share:

   Basic            $ (0.16)   $    0.03      $ (0.10)   $   0.09

   Diluted          $ (0.16)   $    0.03      $ (0.10)   $   0.09

   </TABLE>

   Note 3 - Borrowing Arrangements

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

                                           January 30,   July 31,
                                               1999       1998
   <TABLE>
   <S>                                        <C>        <C>
   Revolving Credit Facility                 $ 9,233    $  7,768
   Capital Leases                              1,410       1,760   
   Other long-term obligations                 1,083       2,265 

                    Total                    $11,726    $ 11,793



      Classified in the Consolidated Balance
      Sheet as follows:

         Short-term                          $10,916    $ 10,745
         Long-term                               810       1,048

                       Total                 $11,726    $ 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 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 January 30, 1999, the calculated borrowing
   base was approximately $11,800.  As of January 30, 1999, the  Company
   had borrowings of $9,233 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 January 30,  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  January 30, 1999, the Company was  in
   compliance with the covenants of the Revolving Credit Facility.
   <PAGE>
   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  January 30, 1999 options  to   
   purchase 351,316 shares were outstanding at option prices ranging 
   from  $2.1875 to $8.2139 per share.

   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.

   <PAGE>
   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 January 30,  1999
   disputed claims  amounted  to  approximately $5,105.    The  disputed
   claims are primarily comprised of environmental and product liability
   claims, including one claim for $4.0 million which the Company
   believes is overstated and for which 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.

   <PAGE>
   Note 6 - Components of Certain Balance Sheet Accounts


                                  January 30,      July 31,
                                          1999             1998
   <TABLE>
   <S>                                   <C>               <C>
   Accounts receivable:

   Accounts receivable                   $13,758           $14,929
   Allowance for doubtful
   accounts                                 (366)             (300)

   Total accounts receivable, net        $13,392           $14,629   
   Property, plant and equipment: 
        Machinery and equipment          $12,258           $11,985
        Leasehold improvements             3,338             3,338

                                          15,596            15,323

   Less accumulated depreciation and
   amortization                           (6,620)           (5,769)


   Property, plant and equipment, net    $ 8,976           $ 9,554


   Goodwill:
          Goodwill                       $ 4,135           $ 3,723
          Accumulated amortization           (83)              (42)
          Goodwill,  net                 $ 4,052           $ 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, and 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.
   <PAGE>
   Consolidated Results of Operations

                               Three Months Ended     Six Months Ended
   <TABLE>
   <S>                           <C>       <C>        <C>         <C>
   ($ in millions)               January   January   January    January
                                 30, 1999  31, 1998  30, 1999   31, 1998

   Revenues                       $25.0     $22.2     $50.6      $42.9
   Gross margin                     5.8       5.4      12.7       10.9
   Gross margin %                  23.3%     24.2%     25.0%      25.4%
   Operating expenses               6.0       4.8      12.2        9.8
   Operating income (loss)         (0.2)      0.6       0.5        1.1
   Non-operating expense, net       0.5       0.3       1.0        0.6
   Income tax expense
   (benefit)                       (0.3)      0.1      (0.2)       0.2
   Net income (loss)              $(0.4)     $0.2     $(0.3)      $0.3
   </TABLE>


   Second Quarter

   Second quarter revenues  of $25.0 million  increased by $2.8  million   
   over the  comparable prior  year period.   Since  December 1997,  the 
   Company has acquired four  regional graphic arts  dealers as part  of
   its strategy of expanding  its target customer  base in the  in-plant
   and small to mid-size commercial printing market segments. The growth
   in revenues was attributable to the acquisitions of regional  graphic
   arts dealers. Revenues from acquired  companies more than offset  the
   historic revenue  erosion from  the Company's  duplicator supply  and
   service customers. Market demand  for digital  prepress equipment was
   weaker than expected during the quarter, however, demand for these
   products is  cyclical.   The 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.

   Gross margin  of $5.8  million increased  by  $0.4 million  over  the
   comparable prior year period, while the overall margin rate decreased
   by 0.9 percentage  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 reflects the impact of a  changing customer base and  product
   mix, which includes more branded items.  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.
   <PAGE>
   Operating expenses in the second quarter of $6.0 million increased by
   $1.2 million over the prior year period, largely due to the  addition
   of sales personnel and related expenses of the acquired entities.

   Lower than  expected  revenues during  the  quarter resulted  in  the
   second quarter  operating  loss.  To address the revenue shortfall,
   over the course of the past six months, the Company has expended
   significant efforts to secure new customers and new distribution
   agreements with  manufacturers. The results of these efforts have led
   to significant new account activity which will be reflected in the
   third and  fourth quarters. The Company expects to be profitable in
   the third and fourth quarters and for the full fiscal year.

   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 borrowings  primarily
   incurred to finance acquisitions.   Interest expense related to  pre-
   petition debt obligations decreased $0.1 million from the prior year.
   The final scheduled prepetition  payment obligation was disbursed  in
   September 1998.

   Six Months

   Revenues for the first six months of $50.6 million increased by  $7.7
   million over the  prior year comparable  period.  The  18% growth  in
   revenues was  primarily  attributable  to  the  acquisitions  of  the
   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.   Gross margin of $12.7 million for  the first 
   six months increased  by $1.8 million compared to the prior  year, 
   largely as a result of  the increased revenue volume in the current 
   year.

   Operating expenses in the first six months of $12.2 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  $1.0  million  increased  by  $0.4  million,
   primarily due to higher net interest  expense on debt resulting  from
   acquisition financing.

   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.
   <PAGE>
   Liquidity and Capital Resources
   (Six months ended January 30, 1999 and January 31, 1998)

   Cash balances at January 30, 1999 were $1.6 million, having decreased
   by $1.3 million from July 31, 1998.  The reduction was due  primarily
   to settlement of  bankruptcy claims that  were paid  out of  existing
   cash reserves.  Although cash decreased during the six months, short-
   term debt increased by approximately $0.2  million.   A $1.5  million
   increase in revolver borrowings was largely offset by a reduction  in
   general unsecured bankruptcy claims.

   Operating Activities.  During the six months ended January 30,  1999
   the Company had positive cash flow from operating activities of  $0.5
   million, which was a $3.5 million  improvement over the $3.0  million
   outflow in the comparable  prior year period.   The net loss for  the
   current period  was $0.3  million, compared  to  net income  of  $0.3
   million in the  comparable prior  year period.   Accounts  receivable
   decreased by $1.2 million in the current year and $2.3 million in the
   comparable prior year  period, while collection  rates were lower  in
   the current year period primarily due to higher equipment sales which
   historically take  longer  to  collect.     Inventory  balances  have
   remained fairly  stable in  the  current year.    In the  prior  year
   period, inventory decreased  by $2.1 million  due primarily to  lower
   stocking levels  of machines.   Accounts  payable increased  by  $2.5
   million during the current  year due to  extended payment terms  with
   vendors.  In  the prior year  period, accounts  payable decreased  by
   $3.3 million  due  to  lower  inventory  purchases.    Other  current
   liabilities decreased  by  $1.7  million  during  the  current  year,
   largely due to payment of $1.0 million in payroll related liabilities
   and  payment  of  $0.4  million  in  product  liability  claims   and
   settlement fees. Current liabilities decreased by $4.3 million in the
   prior year due primarily to  payment of payroll related  liabilities,
   settlement  of  a  recourse  obligation  of  a  divested  subsidiary,
   costs related to  the phase  out of  the  Company's manufactured
   machine product line and other exit costs of a  divested foreign
   subsidiary.    During  the current  year,  other  liabilities
   decreased by $2.1 million due to a seasonal reduction of $1.6 million
   in deferred service liabilities and payment  of $0.4 million of  post
   retirement related liabilities.  In the prior year, other liabilities
   decreased by approximately $1.4 million mainly due to payment of post
   retirement related liabilities and the seasonal reduction in deferred
   service liabilities.

   Investing Activities.  Current year investing activities resulted  in
   a cash outflow of approximately $0.8  million.  This outflow was  the
   result of $0.5 million  in acquisition related expenditures.  Capital
   expenditures of  $0.3 million were for computers, software and  other   
   related equipment.  The prior year comparable period cash outflow  of 
   $5.7 million was mainly related to the acquisitions of Hanley Graphic
   Products Company and Publishing Solutions Inc.

   Financing Activities.   During the six months ended January 30, 1999,
   financing activities  resulted in  a cash  outflow of  $1.0  million.
   During the period, net revolver borrowings increased by $1.5  million
   compared to the  prior year increase  of $3.0 million.   Payments  of
   $2.1 million were for general unsecured bankruptcy claims during  the
   period.  Current year payments under capital lease arrangements  were
   $0.4 million.
   <PAGE>
   The Company's primary  source of  financing is  its revolving  credit
   facility which  was  established in  May,  1997 and  which  has  been
   subsequently amended  to  provide  liquidity needed  to  execute  the
   Company's growth strategy.   The Company  believes that its  existing
   cash reserves and the liquidity provided  by the credit facility  are
   sufficient to finance current operations.  The Company  also  intends
   to seek to increase  its capital availability  to support its  growth
   strategy which may include the 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 first six  months
   ended January 30, 1999,  the Company expended  $0.2 million 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, the Company's strategies for growth and
   expansion, and third and fourth quarter operating results, as well as
   results for the entire fiscal year. 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,  including  the  
   integration of  acquired  businesses, the continued availability  of  
   sources of financing  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 January  30, 1999,  the  Company had  approximately  $9.2
   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  $1.4  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 4.   Submission of Matters to a Vote of Security Holders.

   On  December  3,  1998,  Registrant   held  its  Annual  Meeting   of
   Stockholders for the fiscal year ended July 31, 1998.

   Registrant's stockholders reelected the five incumbent members of the   
   Board of Directors to  serve until the next  annual meeting or  until 
   their successors are elected and qualified.   The Board of  Directors
   consists of Robert E.  Anderson III, Jeffrey  D. Benjamin, Robert  N.
   Dangremond, Jeff M. Moore, and Thomas D. Rooney.

   Registrant's stockholders  also ratified  the appointment  of  Arthur
   Andersen LLP as the  Registrant's independent public accountants  for
   the fiscal year ending July 31,  1999.  The vote total was  2,763,575
   votes _for_, 2,626 votes _against_, and 577 votes to _abstain_.

   Item 6.   Exhibits

             (a)            Exhibits

             10             Material Contracts
             (a)            1998  Stock  Incentive  Plan  for  Directors
                  (incorporated  by   reference  to   Exhibit  99.1   to
                  Registrants' Registration Statement on Form S-8  (File
                  No. 333-67069)).
             (b)            Form of  Stock  Option  Agreement  for  Non-
                  Employee  Directors  (incorporated  by  reference   to
                  Exhibit 99.2 to Registrants' Registration Statement on
                  Form S-8 (File No. 333-67069)).

             27   Financial Data Schedule

             (b)  Reports on form 8-K
                  None
   Pursuant to the requirements of the Securities Exchange Act of  1934,
   the registrant had duly caused this report to be signed on its behalf
   by the undersigned thereunto duly authorized.
   <PAGE>
                                    MULTIGRAPHICS, INC.

   Date:     March 15, 1999      /s/ Gregory T. Knipp
                                 Gregory T. Knipp
                                 Vice President and Chief Financial
                                 Officer
                                 (authorized officer and principal
                                 accounting officer)


                                EXHIBITS

             No.          Description

             10             Material Contracts
             (a)            1998  Stock  Incentive  Plan  for  Directors
                  (incorporated  by   reference  to   Exhibit  99.1   to
                  Registrants' Registration Statement on Form S-8  (File
                  No. 333-67069)).
             (b)            Form of  Stock  Option  Agreement  for  Non-
                  Employee  Directors  (incorporated  by  reference   to
                  Exhibit 99.2 to Registrants' Registration Statement on
                  Form S-8 (File No. 333-67069)).

             27   Financial Data Schedule


   <PAGE>