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 2, 1998


   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.

                     2,826,957 shares of Registrant's
    Common Stock, $.025 par value, were outstanding as of May 29, 1998.

<PAGE>
          
                            MULTIGRAPHICS, INC.

                                   INDEX


                                                               Page
   PART I -       Financial Information

        Item 1 -  Condensed Consolidated Statement of
                  Operations for the Nine Months Ended May 2, 1998
                  and May 3, 1997 (unaudited).                      1

                  Condensed Consolidated Balance Sheet
                  as of May 2, 1998 (unaudited) and
                  July 31, 1997.                                    2

                  Condensed Consolidated Statement of
                  Cash Flows for the Nine Months Ended
                  May 2, 1998 and May 3, 1997
                  (unaudited).                                      3

                  Notes to Condensed Consolidated Financial
                  Statements (unaudited).                           4 - 9

        Item 2 -  Management's Discussion and Analysis of Financial
                  Condition and Results of Operations.              10 - 14


   Part II             Other Information

        Item 6    -    Exhibits                                     15


<PAGE>
<TABLE>

                      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    Nine Months Ended
                                     May 2,    May 3,    May 2,     May 3,
                                      1998      1997       1998      1997
<S>                                  <C>       <C>        <C>        <C>
Revenues
         Machines and Supplies       $16,806   $10,006     $39,932   $35,714
         Services                     10,625    10,863      30,398    33,621
               Total Revenues         27,431    20,869      70,330    69,335
Cost of sales
         Machines and Supplies        12,916     8,193      31,065    29,475
         Services                      7,350     6,399      21,191    20,779
               Total Cost of Sales    20,266    14,592      52,256    50,254
Gross Margin                           7,165     6,277      18,074    19,081
Selling, general and administrative    5,830     5,744      15,652    20,274
         Unusual items, net                -         -           -    (2,095)   
Operating income (loss)                1,335       533       2,422       902
Non-operating income (expense):
     Interest income                      32       367         193     1,094
     Interest expense                   (453)     (632)     (1,175)   (2,186)
     Other, net                          (18)        -         (24)      120
Income (loss) before income taxes        896       268       1,416       (70)
        Income tax (expense) benefit    (341)        -        (538)        -
Net income (loss)                    $   555   $   268     $   878  $    (70)
Net income (loss) per common share       
                  Basic:             $  0.20   $  0.10     $  0.31   $ (0.02)
                  Diluted:           $  0.19   $  0.10     $  0.31   $ (0.02)
(a)Weighted average shares of common
stock and common stock equivalents
outstanding (in thousands)             
                  Basic:               2,818     2,805       2,816     2,804
                  Diluted:             2,919     2,805       2,879     2,804
<FN>
(a)The weighted average number of common shares outstanding and net income per
common share have been restated to reflect the effect of the 1 for 2 1/2
share reverse stock split which was effected by the Company's shareholders
on May 28, 1997.
The Notes to Consolidated Financial Statements are an integral part of these
financial statements.
</TABLE>
<PAGE>
<TABLE>

                          MULTIGRAPHICS, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEET
            (Dollars in thousands, except per share amounts)
                                                (Unaudited)
                                                 May 2,1998     July 31,1997
<S>                                                <C>          <C>
Assets
Current assets:
    Cash and cash equivalents                       $ 2,666     $10,376 
    Accounts receivable, net                         12,287      10,746
    Inventories, net                                 12,522      11,893
    Prepaid expenses and other assets                   687         744
Total current assets                                 28,162      33,759
    Property, plant and equipment, net                9,580      10,222
    Goodwill                                          2,756           -
    Other assets, net                                 1,040         919
Total assets                                        $41,538     $44,900
Liabilities and Shareholders' Equity
Current liabilities:
    Short-term borrowings and current
    maturities of long-term debt                    $ 8,526     $ 5,773
    Accounts payable                                  6,029       5,217
    Service contract deferred income                  9,834      11,738
    Payroll related expenses                          5,240       6,803
    Other                                             8,412      10,152
Total current liabilities                            38,041      39,683
    Long-term debt                                    1,278       3,352
    Post-retirement benefit obligations              10,893      11,966
    Other long-term liabilities                       1,810       1,799
Total liabilities                                    52,022      56,800
Shareholders' Equity
  Common stock, $.025 par value; 9.5 million
  shares authorized;
      2,826,957 issued as of May 2, 1998 and                      
      2,815,337 issued as of July 31, 1997               70          70
      Capital in excess of par value                 22,700      22,162
      Accumulated earnings (deficit)                (33,254)    (34,132)
Total shareholders' equity                          (10,484)    (11,900)
Total liabilities and shareholders' equity          $41,538     $44,900
<FN>
The Notes to Consolidated Financial Statements are an integral part of 
these financial statements.
</TABLE>
<PAGE>
<TABLE>
                           MULTIGRAPHICS, INC.
             CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
            (Dollars in thousands, except per share amounts)
                             (Unaudited)

                                                    Nine Months Ended
                                                    May 2,       May 3,
                                                     1998         1997
<S>                                              <C>          <C>
Cash Flows from Operating Activities:             
Net income/ (loss)                               $    878      $     (70)
Adjustments to reconcile net income to
cash flow from operating activities:
  Depreciation of property, plant and
  equipment                                         1,377          1,401
  Amortization of Goodwill                             30              -
  Benefit from operating loss carryforwards           538              -
  Change in assets and liabilities:
  Accounts receivable, net                          1,868         11,296
  Inventory,net                                     2,136         (1,156)
  Prepaid expenses and other assets                    48            908
  Accounts payable                                 (2,492)       (10,700)
  Other current liabilities                        (5,866)       (15,103)
  Other, net                                         (973)          (827)
Cash flow from operating activities                (2,456)       (14,251)
Cash Flows from Investing Activities:
  Acquisition activities                           (5,612)             -
  Capital expenditures                               (321)        (1,579)
  Net proceeds from divested operations                 -         50,638
  Proceeds from disposition of PP&E                     -            140
Cash flow from Investing Activities                (5,933)        49,199
Cash Flows from Financing Activities:
  Net borrowings (payments) under
  revolving credit facilities                       4,367         (5,430)
  Payments of Bankruptcy Claims                    (3,161)        (3,149)
  Payments under capital lease arrangements          (527)        (1,041)
Cash flow from financing activities                   679         (9,620)

Increase (decrease)in cash and cash equivalents    (7,710)         25,328
Cash and cash equivalents at beginning of period   10,376           2,560     
Cash and cash equivalents at end of period        $ 2,666         $27,888
<FN>
The Notes to Consolidated Financial Statements are an integral
part of these financial statements.
</TABLE>
<PAGE>

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

   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,
   1997.

   Note 2 - Acquisitions

   In December, 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 in northeast  and central Ohio  with equipment and  systems
   integration solutions utilizing digital technologies for design, pre-
   press, imaging, and interactive  media applications.  Hanley  Graphic
   Products Company  is  a  leading  regional  dealer  of  graphic  arts
   equipment and supplies  serving customers in  Northern Illinois.  The
   aggregate purchase price was approximately $6.0 including expenses of
   the transactions, and could  increase by a  maximum of $2.1  million,
   contingent  upon  the  companies'  attainment  of  certain  operating
   targets over the next two years.  The purchases included  intangibles
   such as trademarks and goodwill  that have been assigned  preliminary
   value of approximately $2.8 million, which will be written off over a
   period not to exceed forty years.   The allocation of purchase  price
   was based on  preliminary estimates, and  may be revised  at a  later
   date.

   Both  acquisitions   will  be   accounted  for   as  purchases   and,
   accordingly, the financial statements  include results of  operations
   from the  date  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.
<PAGE>
<TABLE>               
   Note 2    Acquisitions (continued)

                                     Quarter Ended        Nine Months Ended
                                  May 2,       May 3,     May 2,     May 3,
                                   1998         1997       1998       1997
   <S>                          <C>           <C>         <C>        <C>
   Revenues                     $ 27,431      $ 27,684    $ 79,165   $ 90,376
   Net Income                   $    555      $    395    $    927   $    174
   Earnings per share:
          Basic:                $   0.20      $   0.14    $   0.33   $   0.06
          Diluted:              $   0.19      $   0.14    $   0.32   $   0.06
</TABLE>
Note 3 - Borrowing Arrangements

The Company's short  and long-term  borrowings are  comprised of  the
following:
<TABLE>                                    May 2, 1998      July 31, 1997
        <S>                                  <C>               <C>
        Revolving Credit Facility            $ 4,367           $      -
        General Unsecured Claims &
        Priority Tax Claims                    3,488              6,649
        Capital Leases                         1,949              2,476  
                    Total                    $ 9,804            $ 9,125

Classified in the Consolidated Balance Sheet
as follows:
        Short-term                           $ 8,526            $ 5,773
        Long-term                              1,278              3,352 
        Total                                $ 9,804            $ 9,125   
 </TABLE>
   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.  At May 2, 1998 the Company had borrowings of
   $4,367  under  the  Revolving  Credit  Facility  and  was   utilizing
   approximately $2,263 of the facility to secure outstanding letters of
   credit.  Interest generally will be charged
<PAGE>
   Note 3 - Borrowing Arrangements (continued)

   at a spread of 1% above  the reference (i.e. prime) rate of  Foothill
   and can be reduced in 1/2% increments in each of the next two  fiscal
   years if certain performance measures are  achieved.  At May 2,  1998
   the reference rate  was 8.5%.   Letter of  credit fees  are 1.5%  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 provides
   for quarterly measures of working capital 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.  At May 2, 1998 the Company was  in
   compliance with the covenants of the  Revolving Credit Facility.   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.  As of May 2, 1998 the calculated
   borrowing base was in  excess of $10,000.   The Company is  operating
   its business with  existing cash reserves  and liquidity provided  by
   the Foothill  Revolving  Credit  Facility  which,  based  on  current
   projections, are adequate to finance current operations.

   On October 13, 1993 the Company  concluded a reorganization when  the
   United States Bankruptcy Court for the District of Delaware confirmed
   the Company's Plan of Reorganization (Plan).  The Plan provides  that
   holders of  allowed general  unsecured claims  receive cash  payments
   toward satisfaction  of the  full amount  of  their claims  in  equal
   quarterly payments payable on the last business day of each  calendar
   quarter ending  after  October  13, 1993  over  a  five-year  period,
   together with interest  at 5%  per annum.   Holders  of priority  tax
   claims are paid 10%  of the allowed claim  together with accrued  and
   unpaid interest at  8% per annum  on the then  outstanding amount  on
   each anniversary of October 13, 1993 which occurs prior to the  sixth
   anniversary of  the date  of assessment,  and  the balances  of  such
   claims  along  with  accrued  and   unpaid  interest  on  the   sixth
   anniversary.  For  financial reporting purposes  interest on  general
   unsecured claims has  been imputed at  9% per annum.   The timing  of
   payments of disputed claims commence with the allowance of the  claim
   by the Bankruptcy Court  and may occur at  a rate different from  the
   equal quarterly  payments  made to  holders  of the  allowed  general
   unsecured claims discussed  above.  At  May 2, 1998  the Company  had
   $1,936 of  restricted  cash  which  pertains  to  the  settlement  of
   disputed claims in accordance with the Plan.

   Note 4 - Capital Structure

   On May 1, 1997  the Board of Directors  declared a dividend of  $2.00
   per common share, payable  to holders of record  as of May 13,  1997.
   The dividend of approximately $14,080 was disbursed on May 27, 1997.

   On May 28, 1997 the Company's shareholders approved amendments to the
   Company's Second Restated Certificate of Incorporation (1) decreasing
   the authorized number of shares of
   capital stock  from  50,000,000  shares  to  10,000,000  shares  with
   9,500,000 shares  being reserved  for issuance  as Common  Stock  and
   500,000 shares being  reserved for issuance  as Preferred Stock,  (2)
   changing the  name of  the Company  to  Multigraphics, Inc.  and  (3)
   effecting a 1 for 2 /  share reverse stock split, thereby  decreasing
   the number of issued and outstanding  shares of the Company's  Common
   Stock  to  2,815,337,  without   giving  effect  to  elimination   of
   fractional shares, and increasing the par value of each Common  share
   from $.01 to  $.025 per share.   All references  in the  accompanying
   financial statements to  the number  of common  shares and  per-share
   amounts have been  restated to reflect  the reverse  stock split  and
   change in par value.
<PAGE>
   Restated for the reverse stock split and the payment of the $2.00 per
   share dividend, as of
   May 2, 1998, 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 2, 1998 options  to
   purchase 351,049  shares were  outstanding at  option prices  ranging
   from $2.1875 to $8.2139.   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.  The Company's warrants issued in accordance  with
   the Plan expired unexercised.

   Note 5 - Commitments and Contingencies

   The  Company   received  creditor   claims  during   its   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  2,  1998
   disputed claims  amounted to   approximately  $8,205.   The  disputed
   claims are primarily comprised of environmental and product liability
   claims.   The  Company has  been  notified of  various  environmental
   matters  in  connection  with  certain  current  or  former   Company
   locations in Illinois, Ohio, Indiana, Pennsylvania, and Rhode Island.
   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  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>
                                            May 2, 1998      July 31, 1997
<S>                                           <C>              <C>
Accounts receivable:
     Accounts receivable                      $12,744          $11,080
     Allowance for doubtful accounts             (457)            (334)
          Total accounts receivable, net      $12,287          $10,746

Inventories:
     Raw materials and Work-in-process        $   180          $    225
     Finished goods                            12,342            11,668
          Total inventories, net              $12,522           $11,893
</TABLE>
<PAGE>
   Inventories and cost of goods sold reported in the interim  financial
   statements are based,  in part, on  accounting estimates relating  to
   inventory  obsolescence  and  differences  resulting  from   periodic
   physical inventories which  are conducted on  dates on  or about  the
   Company's fiscal year  end.  Accumulated  depreciation deducted  from
   property, plant and equipment was $5,028 at May 2, 1998 and $7,077 at
   July 31,  1997.   The policy  of the  Company with  respect to  fully
   depreciated assets  is  to  adjust the  gross  cost  and  accumulated
   depreciation at the date  of disposition, and  to recognize gains  or
   losses as incurred.   During the quarter ended  January 31, 1998  the
   Company  recorded  adjustments  to  write  off  the  gross  cost  and
   accumulated depreciation values of fully depreciated assets  disposed
   as a result of its exit from machine manufacturing activities.  There
   was no gain or loss recognized, and no impact on depreciation expense
   as a result of that process.

   Note 7 - Unusual Items, Net

   On September 20, 1996 the Company completed the sale of its 2,148,000
   shares of AM Japan Co., Ltd.  ("AM Japan")  and the Company  received
   proceeds of approximately $10,600, net of  certain costs.  A gain  of
   approximately $2,600 was recorded by the Company in the quarter ended
   November 2, 1996 after providing for expenses related to the sale.

   On December 2, 1996, the Company and  Xeikon,  N. V. entered into  an
   agreement  under  which   the  parties  agreed   not  to  renew   the
   distribution  agreement  pursuant  to  which  the  Company  sold  and
   serviced Xeikon digital color presses in  North America.  As part  of
   this agreement, Xeikon America, Inc. has acquired certain assets from
   the Company  and assumed  certain liabilities  of the  Company.   The
   divestiture of the  assets resulted in  a net  loss of  approximately
   $500 which the Company   recorded in the  quarter ending November  2,
   1996.

   Note 8 - Earnings Per Share

   In February 1997, Statement of Financial Accounting Standards  No.128
   "Earnings per  Share"  ("SFAS  128")  was  issued  by  the  Financial
   Accounting  Standards   Board   ("FASB").      SFAS   128   specifies
   modifications to  the calculation  of earnings  per share  from  that
   currently used by the Company.   Under SFAS 128, "basic earnings  per
   share" is calculated based upon the weighted average number of common
   shares actually  outstanding, and  "diluted  earnings per  share"  is
   calculated based upon  the weighted average  number of common  shares
   outstanding and other potential common  shares if they are  dilutive.
   Common share  equivalents consisting  of  common shares  issuable  on
   exercise of  outstanding  options  are computed  using  the  treasury
   method.

   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, 1997.
<PAGE>
   The interim results of  operations for the nine  months ended May  3,
   1997 include the results of two foreign subsidiaries which have  been
   divested.  The  Company sold its  interest in AM  Japan Co., Ltd.  in
   September, 1996,  and on  October 17,  1996, the  Company's  Canadian
   subsidiary filed a voluntary assignment in bankruptcy.

   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.  Both  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.
<TABLE>
   Consolidated Results of Operations

<S>                              Quarter Ended           Nine Months Ended
($ in millions)                 May 2,     May 3,       May 2,      May 3,
                                 1998       1997         1998        1997
                             <C>         <C>          <C>          <C>
Revenues                     $   27.4    $  20.9      $  70.3      $  69.3 
Gross margin                      7.1        6.3         18.1         19.1
Gross margin %                   26.1%      30.1%        25.7%        27.5%
Operating expenses                5.8        5.8         15.7         20.3
Unusual items, net (income)         -          -            -         (2.1)
Operating income / (Loss)         1.3        0.5          2.4          0.9
Non-operating expense, net        0.4        0.2          1.0          1.0
Net income/(Loss) before tax $    0.9    $   0.3      $   1.4      $  (0.1)
Net income/(Loss)            $    0.6    $   0.3      $   0.9      $  (0.1) 
</TABLE>
   Third Quarter

   The net income  for the quarter  ended May 2,  1998 was $0.6  million
   ($0.19 per common share), an improvement  of $0.3 million ($0.09  per
   common share) over the prior year comparable period. The  improvement
   in net income reflects the benefit of various operating  improvements
   which have resulted  in lower  operating expenses,  and the  positive
   contributions from the acquisitions made in the second quarter of the
   current fiscal year.

   Third quarter revenues  of $27.4  million increased  by $6.6  million
   over the  corresponding  prior year  period.   The  32%  increase  in
   revenues was attributable to the acquisition of two regional  graphic
   arts  equipment  and  supply  dealers  earlier  in  the  year.    The
   operations acquired serve  the same customer  base as  Multigraphics,
   and further enhance the Company's broad product offering and  service
   capabilities in its  Midwestern market.   In addition  to its  growth
   through acquisition strategy, the  Company continued to increase  its
   focus on the distribution of new products and product lines, and  the
   addition  of  third  party   service  agreements.    Market   demand,
   particularly in  the  in-plant  market  segment,  for  the  Company's
   manufactured duplicator  press  products has  experienced  long  term
   decline due in part to inroads from competing printing  technologies.
   As a result,  the installed base  of the  Company's duplicator  press
   equipment has declined which has led to decreased sales of duplicator
   supplies and services.  Revenues from acquisitions, new products  and
   service offerings  collectively have  been  more than  sufficient  to
   offset  the   decline  in   revenues  from   the  discontinuance   of
   unprofitable  product  lines  and  other  traditional  supplies   and
   services, which decreased $1.0 million  from the prior year  quarter.
   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,  and  believes
   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 $7.1  million increased  by  $0.8 million  over  the
   comparable prior year  period.   Increased margins  derived from  the
   acquired operations and from new products and product lines more than
   offset the $1.0  million decline in  margin from traditional  service
   revenues, and  discontinued  product  lines.   As  noted  above,  the
   Company has sought  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, the Company has  invested
   in  information  systems  and  has  undertaken  other  reorganization
   measures to increase efficiency and lower expenses.

   Operating expenses in the third quarter of $5.8 million were equal to
   the prior year  period, but improved  significantly as  a percent  of
   sales.   The  improved expense  levels  were the  result  of  various
   actions taken by the Company  which have lowered headcount,  facility
   and other selling, general and administrative costs, while  improving
   service levels and operational efficiency.

   Nine Months

   For the nine months ended May 2,  1998 the Company had net income  of
   $0.9 million ($0.31 per common share).  In the prior year  comparable
   period, the Company had a gain of $2.6 million on the divestiture  of
   its interest in AM Japan Co., Ltd. which reduced its net loss to $0.1
   million ($0.02  per  common  share).    Excluding  the  gain  on  the
   divestiture, net operating  income improved  by $3.5  million in  the
   first nine months.

   Revenues for  the nine  months ended  May 2,  1998 of  $70.3  million
   increased $1.0 million over the corresponding prior year period.  The
   increase was primarily attributable to  the acquisitions made in  the
   prior quarter, which have  contributed sufficiently to the  Company's
   operations to partially offset the decline in revenues from the prior
   year  divestitures   of  operations   in   Japan  and   Canada,   the
   discontinuance of  unprofitable  product  lines, and  the  exit  from
   manufacturing duplicator presses which, collectively, had contributed
   revenues of $7.5 million to the comparable prior year period.

   The Company  has developed  strategies to  increase revenues  through
   product line  additions,  distribution  agreements,  joint  ventures,
   third party  service agreements  and  acquisitions, and  believes  an
   increase in  revenue levels  could improve  profitability, since  the
   Company has infrastructure and  systems capable of absorbing  greater
   volumes of  transactions.   The Company  is  now focused  on  selling
   supplies,  graphic  arts  equipment  and  integration  services,  and
   providing maintenance service and parts to  its chosen markets.   The
   additional revenues generated  from acquisitions  and investments  in
   infrastructure  targeted  to  improve  efficiency  in  supply   chain
   management have begun to offset the declining demand for products and
   services historically offered by the Company.
<PAGE>
   Gross margin of $18.1 million for  the first nine months of 1998  was
   $1.0 million  lower than  the comparable  prior year  period, as  the
   overall margin rate declined 1.8 points  to 25.7%.  The lower  margin
   rates largely  resulted  from  the shift  in  revenue  mix  from  the
   Company's traditional  manufactured  products and  service  offerings
   which historically carried higher margins,  but demand for which  has
   been in long  term decline, to  revenues derived  from product  lines
   added  through  distribution  agreements,  affiliations  with   third
   parties, and acquisitions of graphic  arts dealers.  In  anticipation
   of  the  decline  in  margin  rates,  the  Company  has  invested  in
   information  systems,  and  has  instituted  various   reorganization
   measures which  have  increased operational  efficiency  and  lowered
   expense levels.  It is management's  intent to continue execution  of
   its growth through acquisition strategy, while maintaining a focus on
   cost   containment   and   opportunities   to   enhance   operational
   efficiencies.

   Operating expenses for  the nine months  ended May 2,  1998 of  $15.7
   million were  $4.6  million  lower than  the  comparable  prior  year
   period.  The decrease in expenses was largely due to the  divestiture
   of  foreign  operations,   discontinued  product   lines  and   costs
   associated with the  Company's exited  manufacturing operation  which
   collectively added $2.4 million to the prior year.  The remainder  of
   the decrease  in  expenses  resulted from    reductions  in  selling,
   general and  administrative and  corporate  expenses as  the  Company
   transitioned to a distribution organization.

   Unusual item income in  the prior year quarter  resulted from a  $2.6
   million gain on the sale of the Company's majority ownership interest
   in AM Japan  Co., Ltd. in  a transaction completed  on September  20,
   1996, net of a $0.5 million  loss recorded on the disposition of  net
   assets employed following  the decision to  exit distribution of  the
   Xeikon digital color press.

   Non-operating expenses of $1.0 million  were equal to the  comparable
   prior year  period.   Compared to  the prior  year, interest  expense
   decreased by $1.0  million, primarily due  to lower prepetition  debt
   obligations, which have been reduced by scheduled payments, and lower
   interest  costs  incurred  on  postretirement  benefit   obligations.
   Interest income was $1.0 million lower in the current year, primarily
   due to  lower  investment balances  in  1998 largely  resulting  from
   payment of a $14.1 million dividend in May, 1997.

   The Company recorded income  tax expense of  $0.5 million during  the
   nine months ending May 2, 1998.  Fresh Start Reporting rules  require
   recognition of tax expense although the Company had no requirement to
   pay U.S.  Federal taxes  due to  utilization  of net  operating  loss
   carryforwards available to the Company.


   Liquidity and Capital Resources
   (nine months ended May 2, 1998 and May 3, 1997)

   The Company's cash and cash equivalents  were $2.7 million as of  May
   2, 1998,  having   decreased   $7.7 million  from the  $10.4  million
   balance on  July 31,  1997.   In  addition to  the decrease  in  cash
   balances, net borrowings  and other  debt increased  by $1.2  million
   during the first nine months of  the current year.  This overall  use
   of liquidity was primarily  attributable to acquisitions of  regional
   graphics arts  dealers  which the  Company  completed in  the  second
   quarter, as discussed below.
<PAGE>
   Operating Activities.   In  the nine  months ended  May 2,  1998  the
   Company had a cash outflow from operating activities of $2.5  million
   as compared with a  cash outflow of $14.3  million in the  comparable
   period ended May 3,  1997.  Net income  was $0.9 million as  compared
   with a net loss of $0.1 million in the comparable prior year period.

   Accounts receivable decreased by $1.9  million during the first  nine
   months of 1998 and $11.3 million in the first nine months of 1997  as
   a result of the collection of relatively higher outstanding  balances
   which exist at the inception of  each fiscal year and, for the  first
   nine months of 1997, the decrease also resulted from the  elimination
   of revenues related  to the phase-out  of the Company's  manufactured
   machines  and  generally  improved  collection  rates.    Inventories
   decreased $2.1 million in 1998 due primarily to lower stocking levels
   of machines resulting  from an increase  in drop  shipment sales  and
   improving supplies and service parts turnover rates reflective of the
   transition from a manufacturing to a distribution operation.   During
   the  prior  year  period,  inventories  increased  by  $1.2   million
   primarily as  a result  of increases  in supplies  and service  parts
   stock levels  to improve  product availability.   In  the first  nine
   months of 1998 accounts payable decreased  $2.5 million due to  lower
   inventory purchases and reductions  resulting from taking prompt  pay
   discounts offered by  vendors.  In  the prior  year period,  accounts
   payable decreased  $10.7  million  due  to  a  paydown  of  past  due
   creditors funded with the proceeds received from the divestitures  of
   Sheridan Systems  and  AM  Japan.   Other  current  liabilities  were
   reduced by  $5.9  million  during  the  first  nine  months  of  1998
   primarily  due  to  payment  of  $1.6  million  of  payroll   related
   liabilities, payment of $0.6 million to settle a recourse  obligation
   of a divested operation, and restructuring payments of  approximately
   $1.1 million relating to the Company's phase-out of its  manufactured
   machine product line and  other exit costs  of a previously  divested
   foreign  subsidiary.    In  the  prior  year  period,  other  current
   liabilities declined  $15.1 million  (exclusive  of a  $14.1  million
   liability to record the declaration of the Company's $2.00 per  share
   dividend which  was  disbursed on  May  27, 1997)  due  primarily  to
   restructuring  payments  for  severance,   accrued  vacation  and   a
   settlement of  a  lease  obligation related  to  a  divested  foreign
   subsidiary.

   Investing Activities.  During the second quarter of 1998 the  Company
   acquired Itasca, Illinois based  Hanley Graphic Products Company  and
   Akron, Ohio based Publishing Solutions Inc. for a total cost of  $5.6
   million.    These  acquisitions  were  financed  from  existing  cash
   reserves.   During the  first nine  months of  1997 the  Company  had
   capital expenditures of $1.6 million primarily to upgrade systems and
   equipment, and  the  Company  also  received  $50.6  million  of  net
   proceeds from the divestitures of  its Sheridan Systems division  and
   AM Japan subsidiary.

   Financing Activities.  During the second  and third quarters of  1998
   the Company had net borrowings under its Revolving Credit Facility of
   $4.4 million  which  occurred  as  a  result  of  the  operating  and
   investing activities discussed above.  Payments of general  unsecured
   claims and priority tax  claims were $3.2 million  in the first  nine
   months of 1998 and $3.1  million in the first  six months of 1997  in
   accord with scheduled Plan  payments.  In the  first quarter of  1997
   the Company repaid outstanding borrowings under its Revolving  Credit
   Facility of $5.4 million with proceeds from the divestitures.
<PAGE>
   The Company's primary source  of financing is  its $10 million  three
   year secured revolving credit facility which it entered into in  May,
   1997.  The Company believes that  its existing cash reserves and  the
   liquidity provided by the credit  facility are sufficient to  finance
   current operations and to support future growth strategies which  may
   include the acquisition of other regional dealers or distributors  in
   the graphic arts industry.


   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.  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, 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.

   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 had duly caused this report to be signed on its behalf
   by the undersigned thereunto duly authorized.

                                      MULTIGRAPHICS, INC.

        Date:     June 10, 1998        /s/ Gregory T. Knipp
                                       Gregory T. Knipp
                                      Vice President and Chief Financial
                                      Officer
                                      (authorized officer and principal
                                      accounting officer)
<PAGE>