FORM 10-Q

                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

(Mark one)

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

For the quarterly period ended    JANUARY 31, 1998

                                OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from                   to
Commission file number     1-4310


                   FEDERATED PURCHASER, INC.
      (Exact name of registrant as specified in its charter)

      NEW YORK                             22-1589344
(State or other jurisdiction of          (I.R.S. Employer
incorporation or organization)           Identification No.)

       268 CLIFFWOOD AVENUE, CLIFFWOOD, NEW JERSEY 07721
              (Address of principle executive offices)
                              (Zip Code)

               (908) 290-2900
        (Registrant's telephone number, including area code)


        (Former name, former address and former fiscal year,
                   if changed since last report)

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


         APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

           PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

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     No

               APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate  the  number of shares outstanding of each of the issuer's classes
of common stock,  as  of the latest practicable date.  As of March 9, 1998,
there were 1,719,758 shares of common stock outstanding.


<PAGE>

                           FEDERATED PURCHASER, INC.
                     CONSOLIDATED CONDENSED BALANCE SHEETS

                                    ASSETS

                                                  JANUARY 31,    OCTOBER 31,
                                                    1998           1997
                                                (Unaudited)
CURRENT ASSETS:
  Cash                                            $   135,589    $    69,358
  Accounts receivable, less allowance for doubtful
    accounts of $18,303 at January 31, 1998 and
    $16,803 at October 31, 1997, respectively         302,184        384,059
  Inventories                                         246,148        228,583
  Prepaid expenses and sundry receivables               5,989         49,754
  Note receivable - Freedom Electronics Corporation   115,000         27,500
  Restrictive covenant receivable                      18,750         24,375

  TOTAL CURRENT ASSETS                                823,660        783,629

PROPERTY AND EQUIPMENT, at cost, less accumulated
  depreciation of $118,115 and $115,259                18,127         20,600

OTHER ASSETS:
  Note receivable - over one year                      -              92,500
  Security deposits                                    10,845         10,845
  Other                                                93,601         93,601

  TOTAL OTHER ASSETS                                  104,446        196,946

TOTAL ASSETS                                      $   946,233     $1,001,175


                     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Current portion of long-term debt              $      5,910   $      8,331
  Accounts payable                                    511,648        468,479
  Accrued expenses                                     57,140         31,984

  TOTAL CURRENT LIABILITIES                           574,698        508,794

LONG-TERM DEBT, net of current portion                 -              -

DEFERRED INCOME                                        18,750         24,375

TOTAL LIABILITIES                                     593,448        533,169

STOCKHOLDERS' EQUITY:
  Common stock, $.10 par value,
    Authorized, 5,000,000 shares,
    Issued and outstanding, 1,719,758 shares          171,976        171,976
  Additional paid-in capital                        1,692,342      1,692,342
  Accumulated deficit                             (1,450,455)    (1,335,234)
    Total                                             413,863        529,084
  Less:  Treasury stock at cost                        61,078         61,078

  TOTAL STOCKHOLDERS' EQUITY                          352,785        468,006

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $   946,233     $1,001,175


									2


<PAGE>
                     FEDERATED PURCHASER, INC.
                CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                 THREE MONTHS ENDED JANUARY 31, 1998 AND 1997

                                  (UNAUDITED)







                                                    1998           1997

SALES                                             $   666,033    $   801,697

OPERATING EXPENSES:
  Cost of sales                                       498,773        610,160
  Selling, shipping and general and administrative    286,321        231,964
  Interest expense                                        854            599
  Depreciation and amortization                         2,473          2,856

  TOTAL OPERATING EXPENSES                            788,421        845,579

LOSS FROM OPERATIONS                                (122,388)       (43,882)

OTHER INCOME:
  Restrictive covenant                                  2,042          3,750
  Interest income                                       5,625          2,975

  TOTAL OTHER INCOME                                    7,667          6,725

LOSS BEFORE PROVISION FOR INCOME TAXES              (114,721)       (37,157)

PROVISION FOR INCOME TAXES                                500            975

NET LOSS                                         $  (115,221)   $   (38,132)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING                                       1,611,317      1,611,317

LOSS PER COMMON SHARE                             $         (.07)$         (.02)

CASH DIVIDEND PER COMMON SHARE                    $          .00 $          .00













                                       3


<PAGE>

                         FEDERATED PURCHASER, INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
                       THREE MONTHS ENDED JANUARY 31, 1998 AND 1997

                                        (UNAUDITED)










COMMON STOCK
<TABLE>
<CAPTION>
                                                 ADDITIONAL                      HELD IN
                                   COMMON STOCK         Paid-inAccumulated  TREASURY  AT COST
                                SHARES     AMOUNT    CAPITAL       DEFICIT       SHARES     AMOUNT
<S>								<C>		   <C>       <C>           <C>           <C>        <C>		

BALANCES - November 1, 1996		1,719,758  $171,976   $1,692,342   $(1,053,333)   108,441   $61,078


  Net loss                           -         -           -           (38,132)      -          -


BALANCES - January 31, 1997     1,719,758  $171,976   $1,692,342   $(1,091,465)   108,441   $61,078




BALANCES - November 1, 1997		1,719,758  $171,976   $1,692,342   $(1,335,234)   108,441   $61,078


  Net loss                           -         -            -         (115,221)      -          -


BALANCES - January 31, 1998     1,719,758  $171,976   $1,692,342   $(1,450,455)   108,441   $61,078















</TABLE>

                                             4


<PAGE>

	                     FEDERATED PURCHASER, INC.
                CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                 THREE MONTHS ENDED JANUARY 31, 1998 AND 1997

                                  (UNAUDITED)






                                                      1998          1997

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                          $(115,221)   $  (38,132)
  Adjustments to reconcile net loss
    to net cash from operating activities:
      Depreciation and amortization                      2,473         2,856
      Allowance for doubtful accounts                    1,500         1,500
      (Increase) decrease in operating assets:
        Accounts receivable                             80,375        80,133
        Inventories                                   (17,565)        59,172
        Prepaid expenses and sundry receivables         43,765         8,597
      Increase (decrease) in operating liabilities:
        Accounts payable                                43,169     (104,361)
        Accrued expenses                                25,156      (10,521)

  NET CASH PROVIDED BY (USED BY) OPERATING ACTIVITIES   63,652         (756)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Collection on note receivable                          5,000         5,000
  Payments on notes payable and long-term debt         (2,421)       (2,655)

  NET CASH PROVIDED BY FINANCING ACTIVITIES              2,579         2,345

NET INCREASE IN CASH                                    66,231         1,589

CASH - beginning                                        69,358        95,918

CASH - end                                           $ 135,589    $   97,507


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
  Cash paid during the period for:
    Interest                                         $     854    $     599












                                       5


<PAGE>
                     FEDERATED PURCHASER, INC.
             NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                           JANUARY 31, 1998 AND 1997

                                  (UNAUDITED)







NOTE 1

         IN THE OPINION  OF MANAGEMENT, THE ACCOMPANYING UNAUDITED CONSOLIDATED
         FINANCIAL STATEMENTS  CONTAIN  ALL  ADJUSTMENTS  (CONSISTING OF NORMAL
         RECURRING ACCRUALS) NECESSARY TO PRESENT FAIRLY THE FINANCIAL POSITION
         AS  OF JANUARY 31, 1998 AND THE RESULTS OF OPERATIONS  FOR  THE  THREE
         MONTHS ENDED JANUARY 31, 1998 AND 1997.

NOTE 2

         THE RESULTS  OF OPERATIONS FOR THE THREE MONTHS ENDED JANUARY 31, 1998
         AND 1997 ARE NOT  NECESSARILY INDICATIVE OF THE RESULTS TO BE EXPECTED
         FOR THE FULL YEAR.

































                                       6


<PAGE>
ITEM 2.
                     FEDERATED PURCHASER, INC.
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FOR THE PERIODS ENDED JANUARY 31, 1998 AND 1997

      RESULTS OF OPERATIONS

      The Company recognized  a  loss  of $115,221 on net sales of $666,033 for
the three months ended January 31, 1998,  as  compared  to a loss of $38,132 on
net sales of $801,697 for the three months ended January 31, 1997.  The current
period  loss of $115,221 is $77,089 higher than the prior  year  for  the  same
three month period.

      Net  sales  were  $666,033  for  the three months ended January 31, 1998,
compared  to  $801,697 for the three months  ended  January  31,  1997,  for  a
decrease of $135,664, or 16.9%, over the prior year.  The decrease in net sales
for the current  three  month period ended January 31, 1998, as compared to the
three month period ended  January  31,  1997,  is  due  to intense competition,
particularly in the Northeast United States, and trends adversely affecting the
electronics  industry  as  a  whole.   These  competitive  circumstances   have
continued  to reduce Federated's sales volume, which, along with gross margins,
must improve  in  the  short-term and in the long-term for Federated to reverse
its negative results of  operations.  The likelihood of achieving the necessary
increases in both sales volume and gross margins continues to be compromised by
several factors, including  the  loss of certain customers due to the departure
of key sales personnel, intense industry  competition  which  has  resulted  in
management  seeking  additional  sales  volume  through  price  reductions, and
certain  other  industry  trends  which  adversely  impact  smaller electronics
distributors.    These   trends  include  the  consolidation  of  other   small
distributors, the increase  in the use of technology (which Federated's limited
capital  resources  have  not  permitted   it   to   acquire),  the  diminished
availability  of  capital  within  the business, marketplace  changes  favoring
value-added services, and the reduction  of franchises by major vendors.  While
management  continues  its  effort to improve  sales  volume  while  preserving
Federated's current customer  base,  there can be no assurances that management
will  succeed  in  achieving the sales increases,  improved  margins  and  cost
reductions which are  necessary  to  reverse  Federated's  negative  results of
operations.

      Cost  of sales were $498,773 for the three months ended January 31,  1998
as compared to $610,160 for the three months ended January 31, 1997, a decrease
of $111,387 or  18.3%  over  the prior year.  The decrease is the result of the
decrease  in sales volume for the  three  months  ended  January  31,  1998  as
compared to  the  three  months  ended  January  31,  1997.   The  gross profit
percentage for the three months ended January 31, 1998 was 25.1% as compared to
23.9%  of  the three months ended January 31, 1997 or an increase of 1.2%  over
the prior year.   The  increase  in  gross  profit  percentage is the result of
modest increases in sales prices to customers.  There can be no assurances that
the minor improvement in Federated's gross profit percentage  can be sustained,
or that lower gross profits associated with the reduction in sales  volume will
not force Federated to seek protection under the United States Bankruptcy Code.

      Selling, shipping and general and administrative ("SSG&A") expenses  were
$286,321  for  the three months ended January 31, 1998, as compared to $231,964
for the three months  ended  January  31, 1997, an increase of $54,357 over the
prior  year.   The  increase  is  primarily   the  result  of  an  increase  of
approximately  $14,000  in  sales  salaries and an  increase  of  approximately
$38,000 in professional fees.  Management  anticipates  that further reductions
in SSG&A expenses will be necessary to reverse Federated's  negative results of
operations.

      LIQUIDITY AND CAPITAL RESOURCES

      The Company's liquidity position has been and continues  to  be adversely
affected by a variety of factors, including the operating loss of $281,901  for
the  year  ended  October  31, 1997, and the operating loss of $115,221 for the
three  months  ended  January 31,  1998.   Moreover,  the  Company's  liquidity
position  may  be negatively  impacted  to  the  extent  that  certain  trends,
including intense  competition  from  larger  competitors  in  the  electronics
industry  and  the  migration  of  certain  customers  from  smaller  to larger
distributors,  decrease  the  Company's sales levels, gross profit margins,  or
both.  The Company's ability to  satisfy  its  fixed costs of operations in the
future  will depend upon management's success in  increasing  sales,  improving
gross margins, reducing operating costs and securing additional lines of credit
from outside lenders or entering into strategic alliances.  There can be no

                                       7


<PAGE>
assurances  that  the  Company's  liquidity  position  will  not continue to be
impaired both in the short-term and in the future.  Due to Federated's impaired
liquidity position, negative financial performance, reliance on cash to sustain
operations and certain other factors, Federated's independent  auditors  raised
substantial  doubt regarding Federated's ability to continue as a going concern
in Federated's annual report for the year ended October 31, 1997.  If Federated
is not successful  in  achieving any or all of its strategic objectives, it may
have to seek projection under the United States Bankruptcy Code.

      Cash and cash equivalents increased by $66,231 for the three months ended
January 31, 1998 compared  to  an increase of $1,589 for the three months ended
January 31, 1997.  For the three  months  ended  January  31, 1998, the Company
provided cash from operating activities primarily from a decrease  in  accounts
receivable  of $80,375, and increase of $68,325 in accounts payable and accrued
expenses and the loss from the quarter of $115,221.  For the three months ended
January 31, 1997,  the  Company used net cash of $756 from operating activities
primarily as the result of the operating loss of $38,132, a decrease of $80,133
in accounts receivable, a  decrease of $59,172 in inventories and a decrease of
$104,361  in  accounts  payable.    The  Company  provided  cash  by  financing
activities of $2,579 for the quarter  ended  January  31,  1998, primarily as a
result of a $5,000 collection for a note receivable and payments  on  long-term
debt  of  $2,421.   For  the  three  months ended January 31, 1997, the Company
provided cash from financing activities  of  $2,345,  primarily  for the $5,000
collection of a note receivable and payments on long-term debt of $2,655.

      Based  upon the Company's continuing losses, the Company has  experienced
periods of declining cash balances, which have negatively impacted the accounts
payable balances  of trade creditors.  The Company has been slow in the payment
of its accounts payable  and approximately 51% of its accounts payable are over
30 days old and 21% are over 60 days old as of January 31, 1998.  On open trade
accounts payable for unsecured  creditors,  the Company has no knowledge of any
pending  or  threatened  legal  actions  which would  force  the  Company  into
bankruptcy.  As of January 31, 1998, open  trade  accounts  payable and accrued
expenses for unsecured creditors totaled $568,788.  Secured creditors  on long-
term  debt, namely for the purchase of computer equipment totaled $5,910.   The
Company  anticipates  that  the  increased  cash  flow  and  greater efficiency
resulting  from  the  Exchange  will  enable  it  to  resume a current  payment
schedule, and plans to do so as soon as it becomes practicable;  its ability to
do so quickly is limited by the fact that Federated is not receiving cash under
the Exchange.

      CAPITAL RESOURCES - WORKING CAPITAL REQUIREMENTS

      Federated  currently  has  no  access  to  any outside source of capital,
except  for  approximately  $5,910  outstanding  under  an  existing  equipment
financing  arrangement.  While management continues  to  seek  new  sources  of
financing from  other financial institutions, no such arrangements has yet been
established.  As a result, management must meet substantially all of its short-
term capital requirements  from cash from operations (if any) and existing cash
reserves, which continue to  deteriorate as a result of the Company's recurring
operating losses.  There can be  no  assurances that the Company's current cash
reserves will be sufficient to satisfy  the Company's financing requirements or
that the Company's inability to obtain capital  from  outside  sources will not
impair its ability to continue future operations.

      Federated  maintains  its  records  on  the  accrual basis of accounting.
Income  is  recorded  when  earned  and  expenses are recorded  with  incurred.
Federated's accounting policies with respect to customer right of returns is to
require written authorization by Federated,  except  for  special  order items,
which are handled on a case by cash basis.

      The Company's balance sheet at January 31, 1998 reflects working  capital
of  $248,962  as  compared to $457,683 at January 31, 1997, which represents  a
decrease of $208,721.

      The Company's  stockholders'  equity  amounted to $352,785 at January 31,
1998, equivalent to a book value per common share  of  $.21.  As of January 31,
1997, stockholders' equity amounted to $711,784 equivalent  to a book value per
common share of $.44.

      On October 1, 1997, Federated Purchaser, Inc. signed an agreement whereby
Federated  will  acquire  all  of  the  outstanding  shares  of stock  of  Wise
Components,  Inc.  from  Martin  L.  Blaustein,  in  an exchange of stock  (the
"Exchange") which will be accounted for as a purchase.

                                       8


<PAGE>
      GOING CONCERN QUESTION

      The  Company is addressing the threat to its ability  to  continue  as  a
going concern  primarily  by pursuing the Exchange with Wise and Mr. Blaustein,
and by continuing its efforts  to  diminish costs and increase sales -- both of
which will be much easier to attain  with the addition of Wise's resources.  It
is estimated that $150,000 would constitute  sufficient  funds  to overcome the
threat  to  Federated's  ability  to  continue  as a going concern.  Under  the
Exchange, neither Wise nor Blaustein have committed to provide these funds, and
it  is  doubtful  that  the Company will be able to raise  these  funds  either
through results of operations  or by other means.  However, management believes
that as the two firms integrate  their  operations,  the  losses experienced by
Federated  will  be  offset  by  the  much  stronger operations of  Wise.   The
combination of the two firms will also allow Federated to reduce certain of its
operating   expenses   by   eliminating   overlapping   operations.    Assuming
consummation of the Exchange, the Company's  auditors have indicated that their
report  for the year ending December 31, 1998 will  not  include  any  question
regarding Federated's ability to continue as a going concern.

PART II - OTHER INFORMATION

                     	   FEDERATED PURCHASER, INC.
                               OTHER INFORMATION
                           JANUARY 31, 1998 AND 1997

                                  (UNAUDITED)



ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

(A)   EXHIBITS

      NONE

(B)   REPORTS ON FORM 8-K

      ON  OCTOBER  1,  1997,  FEDERATED PURCHASER, INC. ("FEDERATED") ANNOUNCED
THAT  IT SIGNED AN AGREEMENT WITH  WISE  COMPONENTS,  INC.  ("WISE"),  AND  ITS
CHAIRMAN  AND  SOLE SHAREHOLDER, MARTIN L. BLAUSTEIN ("BLAUSTEIN"), UNDER WHICH
FEDERATED WILL ISSUE  APPROXIMATELY  4.5  MILLION SHARES OF ITS COMMON STOCK TO
BLAUSTEIN IN A TAX-FREE EXCHANGE FOR ALL OF  THE  OUTSTANDING  SHARES OF WISE'S
COMMON  STOCK.   UPON  CLOSING,  WISE WILL BECOME A WHOLLY-OWNED SUBSIDIARY  OF
FEDERATED AND BLAUSTEIN WILL BECOME  FEDERATED'S  PRINCIPAL SHAREHOLDER, OWNING
APPROXIMATELY 74% OF FEDERATED'S COMMON STOCK.  THE REMAINING 26% WILL CONTINUE
TO BE HELD BY CURRENT SHAREHOLDERS OF FEDERATED.  THE  TRANSACTION  IS EXPECTED
TO CLOSE IN THE SECOND QUARTER OF FISCAL 1998.

      THE  COMPANY WAS NOT REQUIRED TO REPORT ANY MATERIAL, UNUSUAL CHARGES  OR
CREDITS TO INCOME PURSUANT TO ITEM 10(A) OR A CHANGE IN INDEPENDENT ACCOUNTANTS
PURSUANT TO  ITEM  12  OF  FORM 8-K FOR THE THREE MONTHS ENDED JANUARY 31, 1998
OTHER THAN WHICH HAS BEEN REPORTED.

      THERE WERE NO SECURITIES  OF  THE  COMPANY SOLD BY THE COMPANY DURING THE
THREE  MONTHS  ENDED JANUARY 31, 1998, WHICH  WERE  NOT  REGISTERED  UNDER  THE
SECURITIES ACT OF  1933,  IN  RELIANCE  UPON  AN  EXEMPTION  FROM REGISTRATIONS
PROVIDED BY SECTION 4(2) OF THE ACT.











                                       9


<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.


                                             FEDERATED PURCHASER, INC.
                                             (Registrant)





                                             /S/ HARRY J. FALLON
											 ------------------------------
                                             Harry J. Fallon, President and
                                             Principal Accounting Officer




MARCH 10, 1997
Date

































                                      10