SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                  FORM 10-QSB

                      FOR QUARTER ENDED DECEMBER 31, 1998

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

                        COMMISSION FILE NUMBER 1-10768
                                               -------


                      MEDIWARE INFORMATION SYSTEMS, INC.
            (Exact name of registrant as specified in its charter)

     New  York                                           11-2209324
     (State  of  other  Jurisdiction  of          (I.R.S.  Employer
     incorporation  or  organization)          Identification  Number)


     1121  Old  Walt  Whitman  Road
     Melville,  New  York                                  11747-3005
     (Address  of  Principal  Executive  Officer)          (Zip  Code)



                                (516) 423-7800
             (Registrant's telephone number, including area code)




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 ______
                                                          ------


As  of  December  31, 1998, there were 6,058,000 shares of Common Stock, $0.10
par  value,  of  the  registrant  outstanding.

<PAGE>



<TABLE>
<CAPTION>

MEDIWARE  INFORMATION  SYSTEMS,  INC.


                                              INDEX

Part I.      Financial Information                                                        Page
                                                                                          ----
<S>          <C>                                                                       <C>
                                                                       <C>                  <C>

ITEM 1.      Financial Statements
             Consolidated Balance Sheets as of December 31, 1998
             (unaudited) and June 30, 1998 (audited)                                        2


             Consolidated Statements of Operations
             for the three months and six months ended
             December 31, 1998 & 1997 (unaudited)                                           3

             Consolidated Statements of Cash Flows
             for the six months ended
             December 31, 1998 & 1997 (unaudited)                                           4

             Notes to Financial Statements                                                  5


ITEM 2.      Discussion and Analysis of Financial
             Condition and Results of Operations                                            6

             Year 2000 Compliance                                                           9


Signature Page                                                                             14

Exhibit 11
Schedule of Computation of Net Income per Share                                            15
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                 MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEET
                           AS AT DECEMBER 31, 1998
                                (UNAUDITED)
<S>                                                                     <C>           <C>
                                                                                <C>           <C> 

                       ASSETS                                              Dec-31        Jun-30
                      --------                                              1998          1998 
                                                                        ------------  ------------
Current assets:
   Cash and cash equivalents                                            $ 2,384,000   $ 4,681,000 
   Accounts receivable, less allowance for doubtful accounts
     of $485,000 at December 31, 1998 and $490,000 at June 30, 1998       9,148,000     7,485,000 
   Inventories                                                              335,000       331,000 
   Deferred Tax Asset                                                       550,000       550,000 
   Prepaid expenses and other current assets                                648,000       514,000 
                                                                        ------------  ------------
        Total current assets                                             13,065,000    13,561,000 

   Fixed assets, at cost, less accumulated depreciation of $2,306,000
      at December 31, 1998 and $2,058,000 at June 30, 1998                1,640,000     1,170,000 
   Capitalized software costs                                             2,967,000     2,444,000 
   Excess of cost over fair value of net assets acquired, net of
      accumulated amortization of $1,284,000 at December 31, 1998
      and $1,091,000 at June 30, 1998                                     6,575,000     5,853,000 
   Purchased technology less accumulated amortization of $19,000 at
      December 31, 1998                                                     479,000 
   Other assets                                                             102,000       719,000 
                                                                        ------------  ------------
                                                                        $24,828,000   $23,747,000 
                                                                        ============  ============

                       LIABILITIES
                      -------------
Current liabilities:
   Accounts payable                                                     $ 1,555,000   $ 1,176,000 
   Notes payable - current portion                                          854,000     4,600,000 
   Accrued expenses and other current liabilities                         2,657,000     2,618,000 
   Advances from customers                                                5,453,000     3,132,000 
   Current portion of capital leases payable                                  9,000         9,000 
                                                                        ------------  ------------
        Total current liabilities                                        10,528,000    11,535,000 
   Advances from customers - long term                                       10,000         7,000 
   Other liabilities - long term                                            106,000 
   Capital leases payable, less current portion                              11,000        15,000 
                                                                        ------------  ------------
        Total liabilities                                                10,655,000    11,557,000 
                                                                        ------------  ------------

                       STOCKHOLDERS' EQUITY
                       --------------------
Preferred stock - $.01 par value; authorized 10,000,000 shares; none
    issued and outstanding
Common stock - $.10 par value;  authorized 12,000,000 shares; issued
    and outstanding; 6,058,000 shares at December 31, 1998 and
    5,591,000 shares at June 30, 1998                                       606,000       559,000 
Unearned compensation                                                       (31,000)      (51,000)
Cumulative foreign currency translation adjustment                           34,000        36,000 
Additional paid-in capital                                               21,005,000    16,264,000 
(Deficit)                                                                (7,441,000)   (4,618,000)
                                                                        ------------  ------------
        Total stockholders' equity                                       14,173,000    12,190,000 
                                                                        ------------  ------------
                                                                        $24,828,000   $23,747,000 
                                                                        ============  ============
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                             MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                                  CONSOLIDATED STATEMENTS OF OPERATIONS
                                             (UNAUDITED)

                                   Three Months Ended December 31,     Six Months Ended December 31,
                                   -------------------------------      ----------------------------
                                            (unaudited)                          (unaudited)
                                        1998            1997                  1998          1997
                                   -------------------------------       ---------------------------
<S>                                         <C>              <C>                 <C>            <C>
                                               <C>            <C>                   <C>          <C> 
REVENUES:
    System sales                      $3,039,000     $1,198,000           $5,962,000     $3,061,000 
    Services                           3,897,000      3,210,000            7,102,000      6,306,000 
                                   -------------------------------       ---------------------------

      Total revenues                   6,936,000      4,408,000           13,064,000      9,367,000 
                                   -------------------------------       ---------------------------
COSTS AND EXPENSES:
   Cost of systems                       916,000        366,000            1,817,000      1,031,000 
   Cost of services                    1,085,000        731,000            1,992,000      1,478,000 
   Purchased research and development                                      4,553,000 
   Software development costs            858,000        598,000            1,521,000      1,182,000 
   Selling, general and administrative 3,055,000      1,814,000            5,663,000      4,005,000 
                                    -------------------------------      ---------------------------
     Total Costs & Expenses            5,914,000      3,509,000           15,546,000      7,696,000 

Earnings before interest and taxes     1,022,000        899,000           (2,482,000)     1,671,000 
Interest and other income                 29,000         60,000               70,000        105,000 
Interest (expense)                       (13,000)      (118,000)            (106,000)      (274,000)
                                    -------------------------------      ---------------------------
Earnings before taxes                  1,038,000        841,000           (2,518,000)     1,502,000 
Provision for income taxes               155,000         48,000              305,000         86,000 
                                    -------------------------------      ---------------------------

NET EARNINGS                          $  883,000     $  793,000          ($2,823,000)    $1,416,000 
                                   ===============================      ============================

Basic earnings (loss) per share            $ .15          $ .14                ($.48)         $ .26 
Diluted earnings (loss) per share          $ .13          $ .12                               $ .22 
Weighted average shares outstanding    6,049,000      5,503,000            5,840,000      5,366,000 
                                   ===============================      ============================
Average shares outstanding assuming 
dilution                               7,057,000      6,717,000                           6,511,000
</TABLE>



<PAGE>


<TABLE>
<CAPTION>

                    MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                      (UNAUDITED)

                                                                        Six Months Ended
                                                                 ------------------------------
<S>                                                           <C>                 <C>
                                                                            <C>            <C> 
                                                                  December 31       December 31
                                                                     1998              1997 
                                                                 ------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net earnings                                                     ($2,823,000)   $ 1,416,000 
   Adjustments to reconcile net earnings  (loss) to net
   cash provided by operating activities: (excluding
   Informedics acquisition)
      Purchased research and development                              4,553,000 
     Shares issued to directors                                          50,000 
     Compensatory stock options issued to consultants                    20,000         20,000 
     Provision for doubtful accounts                                     15,000       (442,000)
     Depreciation and amortization                                      653,000        555,000 
     Changes in operating assets and liabilities
            Accounts receivable                                      (1,352,000)      (704,000)
            Inventory                                                    11,000       (172,000)
            Prepaid and other assets                                   (232,000)      (440,000)
           Accounts payable, accrued expenses and
            customer advances                                         1,248,000        878,000 
                                                                   ----------------------------
                  Net cash provided by operating activities           2,143,000      1,111,000 
                                                                   ----------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Acquisitions of fixed assets                                        (665,000)      (339,000)
   Cash received from acquisition of Informedics                        653,000 
   Capitalized software costs                                          (714,000)      (545,000)
                                                                   ----------------------------
          Net cash (used in) investing activities                      (726,000)      (884,000)
                                                                   ----------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from exercise of options and warrants                        38,000         72,000 
   Proceeds of private placement                                                     2,138,000 
   Repayment of debt                                                 (3,750,000)    (1,058,000)
                                                                   ----------------------------
          Net cash (used in) provided by financing
          Activities                                                 (3,712,000)     1,152,000 
                                                                   ----------------------------

Effect of exchange rate changes on cash                                  (2,000)

NET INCREASE/ (DECREASE) IN CASH AND                                 (2,297,000)     1,379,000 
CASH EQUIVALENTS
Cash and cash equivalents, beginning of period                        4,681,000      1,935,000 
                                                                  -----------------------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                           $  2,384,000    $ 3,314,000 
                                                                   ============================

Supplemental disclosures of cash flow information:
    Cash paid during the period for:
    Interest                                                          $  98,000     $  179,000 
    Income taxes                                                      $  71,000     $   36,000 


</TABLE>


<PAGE>


              MEDIWARE INFORMATION SYSTEMS, INC., & SUBSIDIARIES
                    NOTES TO UNAUDITED FINANCIAL STATEMENTS

1.   FINANCIAL    STATEMENTS:
     ------------------------

     In  the  opinion of management, the accompanying unaudited, consolidated,
condensed  financial  statements  contain all adjustments necessary to present
fairly the financial position of the Company and its results of operations and
cash  flows for the interim periods presented.  Such financial statements have
been condensed in accordance with the applicable regulations of the Securities
and  Exchange Commission ("SEC") and therefore, do not include all disclosures
required  by  generally  accepted  accounting  principles.     These financial
statements  should be read in conjunction with the Company's audited financial
statements  for  the year ended June 30, 1998 included in the Company's annual
report  filed  on  Form  10-KSB.

     The results of operations for the three and six months ended December 31,
1998  are  not  necessarily  indicative  of the results to be expected for the
entire  fiscal  year.


2.   EARNINGS  (LOSS)  PER  SHARE:
     -----------------------------

     Basic  earnings  per  share have been computed using the weighted average
number  of  shares of common stock of the Company ("Common Stock") outstanding
for  each  period  presented.    In fiscal 1998 and for the three months ended
December 31, 1998, the dilutive effect of stock options and other common stock
equivalents is included in the calculation of diluted earnings per share using
the treasury stock method.  For the six months ended December 31, 1998, common
stock equivalents are not included in the calculation of loss per share as the
effect  would  be  anti-dilutive.

3.   ACQUISITION:
     ------------

     In September 1998, the Company acquired Informedics, Inc. ("Informedics")
in exchange for 439,525 shares of the Company's common stock on the basis of 1
Company  share  for  each 6.3 Informedics shares.  Informedics is developing a
Web-enabled software system technology and also develops, markets and supports
a line of stand-alone computer-based management information systems for use in
the  blood  bank  and  clinical  departments  of  hospitals.   The cost of the
acquisition,  which  was  accounted  for as a purchase, aggregated $7,100,000,
including acquisition costs of $801,000, assumed liabilities of $1,599,000 and
$4,700,000  of  common  stock  issued and options assumed (based on the market
price  of  the  Company's  common stock in December 1997, when the acquisition
agreement  was entered into).  Assets acquired aggregated $2,547,000 including
$917,000  of  goodwill,  $498,000  of  technology  and  $653,000  of  cash.  
<PAGE>

     The  following  unaudited pro forma financial information gives effect to
the  merger  as  if  it had occurred at the beginning of fiscal years 1998 and
1999.  A  one-time  acquisition  related  charge  of $4,553,000 for in-process
research and development which  was  recorded  by  the Company on consummation
of  the  acquisition  and  the  fiscal  1998  reversal  of  net  tax assets on
Informedics  financial  statements  has  not  been considered in the pro forma
results.  The pro forma financial information does not necessarily reflect the
results of operations that would have occurred had the acquisition taken place
during  such  periods.


<TABLE>
<CAPTION>



                                               Six Months Ended December 31,
                                              ------------------------------
<S>                                          <C>              <C>        <C>
                                                       <C>  <C>          <C>
                                                   1998             1997 
                                              -------------    -------------

Revenue:                                       $13,683,000       $10,938,000
                                              =============    =============
Net earnings                                   $ 1,731,000       $ 1,560,000
                                              =============    =============
Basic earnings per share                               .29               .27
Diluted earnings per share                             .25               .22

</TABLE>

4.   RECENT  ACCOUNTING  PRONOUNCEMENTS:
     -----------------------------------

      In  October 1997, the American Institute of Certified Public Accountants
issued  Statement of Position 97-2, "Software Revenue Recognition" (SOP 97-2).
SOP  97-2 is effective for transactions entered into in fiscal years beginning
after  December  15,  1997.   Retroactive application of the provisions of SOP
97-2  is  prohibited.

     Accordingly  the Company has adopted SOP 97-2 in its financial statements
in  the  fiscal  year  ended  June  1999.   Such adoption had no effect on the
Company's  results  of  operations.

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

FORWARD-LOOKING  STATEMENTS:

     Certain  statements  made  in  or  incorporating  this  10-QSB  are
forward-looking  statements,  such as descriptions of Mediware's intentions to
market  new  products,  extend  existing  products,  acquire  or  develop  new
products,  and  utilize  new  channels  of distribution.  Such forward-looking
statements  are  not guarantees of future performance and are subject to risks
and  uncertainties  that  could cause actual results to differ materially from
those expressed or implied in the forward-looking statements.  These risks and
uncertainties  include:   (i) Mediware's past operating results, (ii) the wide
variability  of Mediware's operating results, (iii) the market's acceptance of
the  Company's  WORx  product,  (iv)  the  intense competition in the hospital
computer  software  industry  (v)  the  rapid  and  significant  technological
advances  in the computer software industry, which renders the obsolescence of
computer  programs,  including  the  Company's  within  a short time, (vi) the
effect  of  governmental  regulation  on  the  Company,  (vii)  the  Company's
dependence  upon its key employees, (viii) the Company's ability to manage its
rapid  growth  and  (ix) the risks associated with the Company's international
operations.    Amplification  of  such risks may be found in the "Management's
Discussion  and  Analysis  of  Financial  Condition and Results of Operations"
section  herein  and  in  the  "Risk Factors" section of Mediware's Prospectus
contained  in  the  Registration  Statement  on  Form S-4, File No. 333-57693,
especially  those  under  the  headings  "Need  for  Additional  Financing",
"Variability  of  Operating Results", "Market Acceptance of new WORx Product",
"Competition",  "Technological  Obsolescence;  Continual  Need  for Successful
Marketing  and  Acceptance of New Products", "Product Protection", "Dependence
Upon  Key  Employees",  "Management  of  Growth",  "Risks  Associated  with
International  Operations",  and  "Government  Regulation".  Mediware does not
intend  to  update  publicly  any  forward-looking  statements.

RESULTS  OF  OPERATIONS:

     During  the  first  quarter  the  Company  acquired  Informedics,  Inc.
("Informedics").    Informedics  develops,  markets  and  supports  a  line of
stand-alone computer-based management information systems for use in the blood
bank  and  clinical  departments  of hospitals.  Additionally, Informedics has
been  developing a Web-enabled software system technology called IntraMed.net.
This internet/intranet oriented software is intended to provide the ability to
extract  data  from installed legacy computer systems and then store, download
or manipulate the data.  While no assurances can be made, the Company believes
that Informedics' Web-enabling technology, when implemented and sold to future
and  existing  customers,  will  expand  the  reach  of  the  three  clinical
departments  (Blood  Bank,  Pharmacy  and  Surgical  Suite) Mediware currently
addresses.    The  acquisition  was  completed  in  September,  1998,  and was
accounted  for  as  a  purchase.    The  Company's  operating  results include
Informedics  from  the  date  of  acquisition  which  consisted of revenues of
$738,000  and  operating  expenses  of  $713,000.   Additionally, in the first
quarter  the  Company  recorded  a  one-time  acquisition  related  charge  of
$4,553,000  for  in-process  research and development related to the estimated
fair  value  of  the  IntraMed.net  technology.

     Total  Company  revenues  increased  by  57.3% or $2,528,000 and 39.5% or
$3,697,000  for  the three and six months ended December 31, 1998 respectively
as compared to the same periods in fiscal 1998.  This increase was impacted by
all  product  lines  but  was  significantly  related  to revenue gains in the
Company's  Pharmacy  Division  and the effects of the Informedics acquisition.

     System sales increased by 153.7% or $1,841,000 and 94.8% or $2,901,000 in
the  quarter  and  first six months of the fiscal year as compared to the same
periods  in  the prior year.   For both periods, the increase is primarily due
to  increased system sales in the Company's Pharmacy and Blood Bank Divisions.

     Service  revenues  increased  21.4% or $687,000 and 12.6% or $796,000 for
the  three  and six months ended December 31, 1998 respectively.  The increase
is  primarily  due  to  the  acquisition of Informedics completed in September
1998.    The  December  quarter  represented  the  first  full  quarter of the
acquisition's  contribution  to  the  Company's  Blood  Bank  Division.

     Cost  of  systems  includes the cost of computer hardware and sublicensed
software  purchased  from  computer  and software manufacturers by Mediware as
part  of  its  complete  system  offering.  These costs can vary as the mix of
revenue  varies  between  high  margin  proprietary  software and lower margin
computer  hardware  and  sublicensed software components. Cost of systems were
30.1%  of  related  system sales for the second three months of fiscal 1999 as
compared  to 30.6% of related system sales for the same period in fiscal 1998.
For  the  first half of the current fiscal year, cost of systems were 30.5% of
related  system  sales  in comparison to 33.7% for the same time period in the
previous  fiscal  year.   Cost of systems increased by 150.3% or $550,000 from
$366,000  in  the second quarter of fiscal 1998 to $916,000 in the same period
in  fiscal 1999.  For the first six months, cost of systems increased by 76.2%
or $786,000 from $1,031,000 in fiscal 1998 to $1,817,000 in fiscal 1999.  This
increase  in  cost  is  principally due to the sharp increase in system sales.

     Cost  of  services  includes the salaries of client service personnel and
communications  expenses  along with the direct expenses.  Technical employees
can  perform  both  client  services  and  software  development  depending on
customer  requirements.    Thus  the  costs  associated  with  these technical
employees  and  the resulting costs of service which are booked will vary from
period  to period with customers needs. Cost of services increased by $354,000
from  $731,000 in the second quarter of the previous fiscal year to $1,085,000
and  by  $514,000  from  $1,478,000 for the first six months of fiscal 1998 to
$1,992,000  in  the  current  fiscal  year.     Cost of services were 27.8% of
related  revenue  for  the  three  months ended December 31, 1998 vs. 22.8% of
related  revenue  for the same period a year earlier. On a year-to-date basis,
cost  of  services were 28.0% of related revenue vs. 23.4% for the same period
in  fiscal  1998.    This  increase  in cost primarily reflects an increase in
technical  field  installation  and customer support activities related to the
Company's  Pharmacy  division.

     Software  development  costs include salaries, consulting, documentation,
office  and  other  expenses  incurred  in  product  development  along  with
amortization  of  software  development  cost.    Software  development  costs
increased $260,000 or 43.5% from $598,000 in the second quarter of fiscal 1998
to  $858,000  in  the  same  period  in fiscal 1999 and $339,000 or 28.7% from
$1,182,000  to  $1,521,000  for  the  first  six months of each fiscal period.
Expenditures    (amounts  including  both  capitalized  and  non-capitalized
expenditures  and  excluding  capitalized  software amortization) for software
development  for  the  three  months  ended  December  1998 were approximately
$1,052,000  as  compared to $795,000 for same time period ended December 1997.
On  a  fiscal  year  to date basis, expenditures for software development were
$2,044,000  for  the first six months of fiscal 1999 as compared to $1,504,000
for  the  same  time  period  in  fiscal  1998.    Spending on development has
increased  among  all  company  divisions  but  is  principally focused on the
Company's  Pharmacy  division's  WORx  product  line.   The Company expects to
increase  this  level  of  development  spending as it expands its development
efforts  to  the  Blood  Bank  and Operating Room divisions and integrates the
Web-based  communications  technology.

     Selling,  general and administrative expenses include marketing and sales
salaries,  commissions, travel and advertising expenses.  Also included is bad
debt  expense;  legal,  accounting  and  professional fees; salaries and bonus
expense  for  corporate,  divisional,  financial  and  administrative  staff;
utilities,  rent,  communication  and other office expenses; and other related
direct  administrative expenses.  Selling, general and administrative expenses
increased  by    $1,241,000  or 68.4% from $1,814,000 in the second quarter of
fiscal  1998  to $3,055,000 in the same period in fiscal 1999 and increased by
$1,658,000  or  41.4% from $4,005,000 to $5,663,000 in the first six months of
fiscal  1999.   This increase in cost is due to higher communications, travel,
administrative,  marketing,  legal  and  professional  costs.    This increase
reflects  the  cost  of  managing and growing the Company.   Additionally, the
increase  reflects  the  higher  commission  costs  related to increased sales
volume.

     Net  interest  expense  decreased   $105,000 or 89.0% in the second three
months of fiscal 1999 vs. the same period a year ago and decreased $168,000 or
61.3% in the first half of fiscal 1999 vs. the same period a year ago.  During
the  second  quarter  of  fiscal  1999,  the  Company paid off the outstanding
balance  remaining  from the acquisition of the Pharmakon and JAC divisions of
Continental Healthcare Systems, Inc.  The total principal and interest paid in
the  first half of fiscal year 1999 was $3,848,000 compared to $306,000 in the
previous  year.

     Net  earnings for the quarter increased $90,000 or 11.3% from $793,000 to
$883,000  for  the second period in fiscal 1999.  On a year-to-date basis, net
earnings  continue  to  be  directly  affected  by  the  $4,553,000  one-time
acquisition  related charge taken in the first quarter for in-process research
and  development  resulting  in  a net loss of $2,823,000.  Excluding this one
time  charge,  net  earnings  for the first six months ended December 31, 1998
increased  by  22.2%  or $314,000 from $1,416,000 for the first half of fiscal
1998  to  $1,730,000  for  the  same  period  in  fiscal  1999.

LIQUIDITY AND CAPITAL RESOURCES:

     The  Company's cash and cash equivalent position at December 31, 1998 was
$2,384,000, a decrease of $2,297,000 from June 30, 1998.  At December 31, 1998
the  current  ratio  was  1.2:1.  On  November  30,  1998  the  Company  paid
approximately  $3,600,000  owed  to  Continental  Healthcare  Systems,  Inc.
("Continental") related to  the acquisition of the Pharmakon and JAC divisions
of Continental.  The balance in notes payable  at the end of December 31, 1998
was owed to two directors and another  person.     The  Company  is  currently
operating with existing cash balances and is in  negotiation  with  a director
to  obtain  favorable  terms on a $2,000,000 line  of credit. The Company will
review other financing needs and  general cash  requirements  on  an  on-going
basis.  The Company will  require  additional  sources  of  liquidity  to fund
potential acquisitions, expanded research and  development  costs  along  with
other  financing  needs.

YEAR 2000 COMPLIANCE - AS OF FEBRUARY 10, 1999

     In General
     ----------

     Mediware  Information  Systems,  Inc.  develops,  manufactures, sells and
provides  support  for  management  information  systems  that  are  used  by
hospitals.    The  Company's sells software products in three distinct areas -
pharmacy,  blood  bank,  and operating room.  The Company's pharmacy and blood
bank  divisions  each  offer  multiple  products.

     The  Year  2000  issue  is  the result of computer programs being written
using  two  digits rather than four to define the applicable year.  Any of the
Company's  computer programs or products that have date sensitive software may
recognize  a date using "00" as the year 1900 rather than the year 2000.  This
could  result  in  a  system failure, loss of data, or miscalculations causing
disruption  of  operations.

     The  Company  is  performing  Year 2000 date-protocol tests and providing
remedial  action,  as needed, for all of its products, and is conducting tests
on  its  internal  information  technology  ("IT") systems and non-information
technology  ("Non-IT")  systems that contain embedded microchips.  The Company
is also investigating the Year 2000 preparedness of third parties with whom it
has  material relationships, such as suppliers of hardware, database software,
operating  systems, network operating systems and utility programs who provide
components on which the Company's software products are operated.  This review
includes  the  submission  of questionnaires on Year 2000 preparedness to such
third parties, whose failure to be Year 2000 compliant could negatively effect
the  operation  of  the  Company's  products  and  accordingly have a material
adverse  effect  on  the  Company.

     Among other actions, the Company is taking steps to make available to its
customers  Year  2000  compatible  third  party  components, to provide timely
releases  of  its  upgraded application software and databases containing Year
2000  fixes,  and  to  timely  schedule  the  installation  of  its  Year 2000
compatible upgrades.  The Company's customers have been notified that they are
responsible  for  ensuring  that  their  hardware, operating systems, computer
BIOS, and networking software are Year 2000 compatible, and will be compatible
with  the    upgraded  software  versions  provided  by  the Company, and must
cooperate  with  the  Company  in  scheduling  installation  of  the  software
upgrades.    The  failure  to successfully meet any or all of these conditions
could  result  in  affected  customers  being unable to operate their software
systems,  the  result  of  which  could  have a material adverse effect on the
Company's  business,  financial  condition  and  results  of  operations.

     The incremental costs to the Company in achieving Year 2000 compatibility
cannot  be  accurately predicted and will depend upon the timely completion of
tasks  by both the Company and its customers. Total costs can be substantially
affected  by  a  number  of  factors,  including  the availability and cost of
personnel trained in this area, the ability to locate and correct all relevant
computer  codes,  and  the extent of the cooperation provided by customers and
other  relevant  parties.

     Suppliers of the computers, operating systems and data bases necessary to
operate the current versions of the Company's software products have indicated
to  the  Company that those products are either currently Year 2000 compatible
or  will  be  by  the  end  of  1999.  The Company has conducted tests of such
computers,  operating  systems  and data bases with the Company's products now
being  marketed  and  currently  has  no  reason to believe that the Company's
products  are  not  Year  2000  compatible  when operated with such computers,
operating  systems  and  data  bases.

     Assessment  of  Year  2000  Issues Effecting the Company's Products.  The
problems  of  date-protocol  compatibility  in  the  Year  2000  are  somewhat
different for each of the Company's software information system products.  The
following  is  an  analysis of the Year 2000 status of each product offered by
each of the Company's divisions, as well as those currently under development.

Pharmacy  Division
------------------

     WORx:        WORx has been designed by the Company to meet conditions for
Year  2000  readiness, and believes the current 1.3 release meets requirements
for Year 2000 compatibility. As a client/server application, several layers of
software  manipulate  data.  This data is stored within an Informix relational
database,  which  supports  dates  beyond  December  31, 1999. The WORx client
(end-user  workstation)  runs  under  Microsoft Windows, uses the Windows date
formats,  and  will  support dates beyond December 31, 1999. Although WORx has
been  designed to be Year 2000 compatible, the Company is currently developing
an internal testing process for the WORx software to ensure Y2K compatibility.
The  completion  of this internal testing is expected during the quarter ended
June  30,  1999.  However, the Company does not anticipate the need to provide
WORx  customers  an  upgrade  to  the  current  1.3  release  to  be Year 2000
compatible.

     Digimedics XA:  The Company's Pharmacy Division has completed development
of Version 3.0 of its Digimedics XA pharmacy system, which has been designed to
be Year 2000 compatible. Version 3.0 of the Digimedics XA product is currently
in  internal  alpha  testing,  and  if  testing  is  successful,  will be made
available  to  beta  test  clients  during  the  quarter  ended June 30, 1999.

     Pharmakon  "Mini"  (Unix  based):  The  Company's  Pharmacy  Division has
completed internal testing of version 3.5 of its "Unix based" pharmacy system,
known  as  Mini.  External testing of version 3.5 will be completed during the
quarter  ended  March  31,  1999  and  if  testing  is successful will be made
available to the Company's installed client base during the quarter ended June
30,  1999.

     Pharmakon "Mainframe":  The Company's Pharmacy division has completed its
own internal testing of Version 5.0  of its "Mainframe based" pharmacy system,
which was determined to be Year 2000 compatible.  Version 5.0 of the Mainframe
product  is  currently in external beta testing, and if testing is successful,
will  be  made available to its installed client base during the quarter ended
June  30,  1999.

     The  new  versions  of Digimedics  XA,  Pharmakon  "Mini",  and Pharmakon
"Mainframe"  discussed above incorporate upgrades of the Company's application
software  systems  necessary for Year 2000 compatibility.  These releases will
be  distributed  to  customers  under  the  Company's  normal software support
contract  procedures  without cost.  However, depending upon the configuration
of  their  current  information  systems, some customers may incur other costs
associated with the acquisition of new hardware, third party data bases and/or
operating  systems  that  are  needed in order for the Company's upgrade to be
installed.    Furthermore,  the  computer  and operating system platforms of a
number  of  hospitals  will  not accommodate the Year 2000 compatible software
revisions  distributed  by  the  Company, and these hospitals must acquire and
bear  the  cost  of new computer hardware and associated operating systems and
third  party  data  bases  if  they  desire  to install the Company's software
upgrades.

JAC
---

     The  Company's  United  Kingdom  subsidiary,  JAC,  sells and distributes
information  systems  for hospital pharmacies in the United Kingdom.  In early
1998,  JAC  commenced notifying its clients of the appropriate steps they must
take  to ensure their entire computer system meets all aspects of the National
Health  Service  ("NHS")  directive  for  Year  2000  compatibility.   The NHS
directive  required  each  Trust  (hospital)  to  have  either  upgraded their
operating  systems to be Year 2000 compatible, have a plan to upgrade, or have
contingency  plans ready by December 31, 1998.  Although the JAC stock control
pharmacy  system  has  been  internally and externally certified as being Year
2000  compatible,  JAC  is  aware that some of its clients may have to upgrade
certain components of their computer hardware and associated operating systems
and  pharmacy  data  bases to ensure full compatibility.  In this respect, JAC
has  commenced  notifying  all  of  its  clients  of this issue in writing, by
telephone, and through articles in its newsletter, and has raised the issue at
its  National  and  Local  User  Group  meetings.



Operating  Room  Division
-------------------------

     The Operating Room Division has completed its own internal testing of the
Surgiware  product  and has determined that it is Year 2000 compatible.  A new
Year  2000 compatible revision, release 5.2, is now being offered to hospitals
as part of the normal support procedures of the Company. However, the computer
platforms  of a number of hospitals will not accommodate the updates necessary
to  become  Year  2000  ready,  and  these hospitals must bear the cost of new
computer  hardware  and  associated  operating systems and operating room data
bases.

Blood  Bank  Division
---------------------

     Hemocare:  The  Company's  Blood  Bank  Division  has  completed  its own
internal  testing  of  Version  5.2  of  its  "Unix based" Hemocare blood bank
system,  which  was  determined to be Year 2000 compatible. Version 5.2 of the
Hemocare  product is currently being made available to the Company's installed
client  base as part of the Company's normal software support procedures.  The
application  software  runs  under  a  UNIX  based  operating  system  and the
application  software  was  designed  utilizing  absolute  Julian dates, which
eliminates  the Year 2000 issue insofar as the Hemocare software is concerned.
The  absolute  Julian start date for the Hemocare blood banking application is
Jan.1,  1968.    That  specific date is known as Julian day 1.  Each day after
Jan.  1,  1968  causes  the Julian date to increase by one. Therefore, Feb. 1,
1968  has a Julian date of 32, since that was the 32nd day after Jan. 1, 1968.
On  Jan.  1,  1969, the Julian date was 367, representing 367 total days since
Jan.  1,  1968,  including the leap day. In a similar fashion, the Julian date
for  Jan. 1, 2000 will simply be one greater than the Julian date for Dec. 31,
1999.    The  fact  that  the last two digits of the year 2000 are 00 will not
impact  Hemocare's  date  calculations or comparisons, since the dates are not
stored  in  a  complex  form  made  up  of  years,  months,  and  days.

     Informedics LifeLine: The Company's Blood Bank Division has completed its
own  internal  testing of Version 4.3 of its Lifeline blood bank system, which
was determined to be Year 2000 compatible. Version 4.3 of the Lifeline product
is  currently  being  made available to the Company's installed client base as
part of the Company's normal software support procedures.  Customer's who have
previous  versions of Lifeline have been notified that the product is not Year
2000  compatible  and  that  it  will  be  necessary for them to upgrade their
systems  with  the  new  version  4.3  release.

     Informedics StarPath: The Company's Blood Bank Division has completed its
own  internal testing of Version 6.4C of its StarPath pathology product, which
was  determined  to  be  Year  2000  compatible.    This  product will be made
available  to  all  StarPath customers during the month of May 1999 as part of
the  Company's  normal  software  support  procedures.

     The  new  versions  of  Hemocare,  Informedics  Lifeline  and Informedics
StarPath  discussed  above  incorporate  upgrades of the Company's application
software  systems  necessary for Year 2000 compatibility.  These releases will
be  distributed  to  customers  under  the  Company's  normal software support
contract  procedures  without cost.  However, depending upon the configuration
of  their  current  information  systems, some customers may incur other costs
associated with the acquisition of new hardware, third party data bases and/or
operating  systems  that  are  needed in order for the Company's upgrade to be
installed.    Furthermore,  the  computer  and operating system platforms of a
number  of  hospitals  will  not accommodate the Year 2000 compatible software
revisions  distributed  by  the  Company, and these hospitals must acquire and
bear  the  cost  of new computer hardware and associated operating systems and
pharmacy data bases if they desire to install the Company's software upgrades.

Internal  Assessment  of  Year  2000  Readiness
-----------------------------------------------

     The Company has assigned a project team to examine relationships with all
of  its  vendors,  including suppliers of both IT and Non-IT Systems regarding
Year  2000 readiness.  All vendors that supply the Company with information or
critical services, process information for the Company, or provide internal IT
or Non-IT Systems using a microprocessor will be queried as to their Year 2000
readiness  and  the Year 2000 compliance status of products they have provided
to  the  Company.    The Company expects to complete its initial assessment of
such areas during the quarter ended June 30,  1999.    Following  such initial
assessment,  the  Company  will undertake Year 2000 remediation and testing of
these  applications. The Company cannot determine, at this time, the number of
its  IT  Systems  and  Non-IT Systems that will require remediation.  However,
based  on  the  current  state  of  its investigation, the Company knows of no
material Year 2000 problems with respect to its IT Systems and Non-IT Systems.



<PAGE>

                                  SIGNATURES

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




                                         MEDIWARE  Information  Systems,  Inc.
                                         -------------------------------------
                                                    (Registrant)



                                         By:
-------------------------------          -------------------------------------
     (Date)                                        John  Esposito
                                              President,  CEO  and  CFO


<PAGE>


<TABLE>
<CAPTION>


                           MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES

                                                EXHIBIT 11

                          SCHEDULE OF COMPUTATION OF NET INCOME (LOSS) PER SHARE

                                    Three months     Three months        Six months     Six months
                                       Ended            ended              ended           ended
                                    December 31,      December 31,       December 31,   December 31,

<S>                               <C>              <C>                <C>             <C>
                                              <C>                <C>               <C>                <C>
                                       1998              1997               1998            1997
                                   ----------------------------------------------------------------------

Net Income (Loss)                  $  883,000       $  793,000          ($2,823,000)     $1,416,000
                                   ----------------------------------------------------------------------
Weighted Average Share
Outstanding                         6,049,000        5,503,000            5,840,000       5,366,000
Effect of Dilutive
Securities: Common
Stock Equivalents
(Options & Warrants)                1,008,000        1,214,000                            1,145,000
                                   ----------------------------------------------------------------------
Average shares
     outstanding assuming
     dilution                       7,057,000        6,717,000                            6,511,000
                                   ----------------------------------------------------------------------


Basic earnings per share                $ .15           $ 0.14                ($.48)         $ 0.26
Diluted earnings per
     share                              $ .13           $ 0.12                               $ 0.22
                                    ---------------------------------------------------------------------

</TABLE>