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    APRIL 30, 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 May 27, 1998,
there are 1,719,758 shares of common stock outstanding.

<PAGE>
PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements
















                     FEDERATED PURCHASER, INC.


                  CONSOLIDATED CONDENSED FINANCIAL STATEMENTS


                            APRIL 30, 1998 AND 1997


<PAGE>
                     FEDERATED PURCHASER, INC.
                     CONSOLIDATED CONDENSED BALANCE SHEETS

                                    ASSETS

                                                   	April 30,     October 31,
                                                   	  1998          1997
                                                   	(Unaudited)
CURRENT ASSETS:
  Cash                                             	$   76,229    $   69,358
  Accounts receivable, less allowance for doubtful
    accounts of $19,803 at April 30, 1998 and $16,803	
    at October 31, 1997, respectively                 	   386,532       384,059
  Inventories                                         	   194,941       228,583
  Prepaid expenses and sundry receivables             	     1,606        49,754
  Note receivable - Freedom Electronics Corporation       107,500        27,500
  Restrictive covenant receivable                          15,000        24,375

  TOTAL CURRENT ASSETS                                    781,808       783,629

PROPERTY AND EQUIPMENT, at cost, less accumulated
  depreciation of $131,347 and $126,687                    15,941        20,600

OTHER ASSETS:
  Note receivable, Freedom Electronics Corporation,
    net of current portion                                      -        92,500
  Security deposits                                        10,845        10,845
  Other                                                    93,601        93,601

  TOTAL OTHER ASSETS                                      104,446       196,946

TOTAL ASSETS                                       	$  902,195    $1,001,175

                     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Current portion of long-term debt                	$    3,254    $    8,331
  Accounts payable                                 	   613,686       468,479
  Accrued expenses                                 	    36,772        31,984

  TOTAL CURRENT LIABILITIES                        	   653,712       508,794

DEFERRED INCOME                                    	    15,000        24,375

TOTAL LIABILITIES                                  	   668,712       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                              	(1,569,757)   (1,335,234)
    Total                                          	   294,561       529,084
  Less:  Treasury stock at cost                    	    61,078        61,078

  TOTAL STOCKHOLDERS' EQUITY                       	   233,483       468,006

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         	$  902,195    $1,001,175




                                      (1)

<PAGE>
                         FEDERATED PURCHASER, INC.
                     CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                                       (Unaudited)








<TABLE>
<CAPTION>	
          								      Three Months Ended       Six Months Ended
          							                APRIL 30,               APRIL 30,
          									   1998       1997    	   1998        1997

<S>										    <C>		 <C>			<C>		   <C>
SALES                              			    $  721,263	 $  876,689	$1,387,296   $1,678,386

OPERATING EXPENSES:
  Cost of sales                       				  547,181	    672,835	 1,045,954    1,282,995
  Selling, shipping and general and administrative       296,843	    266,710	   583,164	 498,674
  Interest expense                        				 840         708         1,694        1,307
  Depreciation and amortization         			    2,188       3,290         4,661        6,146

  TOTAL OPERATING EXPENSES            				  847,052     943,543     1,635,473    1,789,122

LOSS FROM OPERATIONS                 				 (125,789)    (66,854)     (248,177)    (110,736)

OTHER INCOME:
  Restrictive covenant               				    3,750       9,375         9,375       13,125
  Interest income                       			    1,298       3,908         3,340        6,883
  Miscellaneous income                  			    1,639           -         1,639            -

  TOTAL OTHER INCOME                    			    6,687      13,283        14,354       20,008


LOSS BEFORE PROVISION FOR
   INCOME TAXES                      				 (119,102)    (53,571)     (233,823)     (90,728)

PROVISION FOR INCOME TAXES                				 200            -          700          975

NET LOSS                           			    $ (119,302) $  (53,571)	$ (234,523)  $  (91,703)

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

LOSS PER BASIC AND DILUTED
  COMMON SHARE                  				    $     (.07) $     (.03)   $     (.14)  $     (.06)

CASH DIVIDEND PER COMMON SHARE 				    $      .00	 $      .00 	$      .00   $      .00
</TABLE>








                                           (2)
<PAGE>

                         FEDERATED PURCHASER, INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
                         SIX MONTHS ENDED APRIL 30, 1998 AND 1997

                                        (Unaudited)










<TABLE>
<CAPTION>
           															Common Stock
														                  Held in
									        Additional       			   Treasury
               				 COMMON STOCK       Paid-in		Accumulated        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                               -          -          -          (91,703)         -         -


BALANCES - April 30, 1997        1,719,758	$171,976	$1,692,342	$(1,145,036)	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                      		 -          -           -        (234,523)         -         -


BALANCES - April 30, 1998   	   1,719,758  	$171,976 	$1,692,342	$(1,569,757)   108,441	$61,078

</TABLE>




















                                            (3)
<PAGE>


                     FEDERATED PURCHASER, INC.
                CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                   SIX MONTHS ENDED APRIL 30, 1998 AND 1997

                                  (Unaudited)






                                                    	  1998           1997

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                        	$ (234,523)	$ (91,703)
  Adjustments to reconcile net loss
    to net cash from operating activities:
      Depreciation and amortization                         4,661         6,146
      Allowance for doubtful accounts                       6,000         3,000
      (Increase) decrease in operating assets:
        Accounts receivable                                (8,475)        8,163
        Inventories                                        33,642        25,148
        Prepaid expenses and sundry receivables            48,148         6,960
      Increase (decrease) in operating liabilities:
        Accounts payable                                  145,207        80,871
        Accrued expenses                                    4,788       (52,818)

  NET CASH USED BY OPERATING ACTIVITIES                      (552)      (14,233)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Collection of note receivable                            12,500        10,000
  Increase in association membership costs                      -        (2,273)

  NET CASH PROVIDED BY INVESTING ACTIVITIES                12,500         7,727

CASH FLOWS USED BY FINANCING ACTIVITIES:
  Payments on long-term debt                               (5,077)       (5,312)

NET INCREASE (DECREASE) IN CASH                             6,871       (11,818)

CASH - beginning                                           69,358        95,918

CASH - ending                                     	$   76,229    	$  84,100


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
  Cash paid during the period for:
    Interest                                      	$    1,694	$    1,307











                                      (4)

<PAGE>
                         FEDERATED PURCHASER, INC.
                  NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                 APRIL 30, 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 April 30, 1998 and the
results of operations for the six months ended April 30, 1998 and 1997.

NOTE 2

The results of operations for the six months ended April  30, 1998 and 1997 are
not necessarily indicative of the results to be expected for the full year.







































                                           (5)
<PAGE>
Item 2.
                         FEDERATED PURCHASER, INC.
                  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
               FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                (Unaudited)

RESULTS OF OPERATIONS

The Company recognized a loss of $234,523 for the six months  ended  April  30,
1998  on  net  sales  of  $1,387,296  compared to a loss of $91,703 for the six
months ended April 30, 1997 on net sales  of  $1,678,386.  The loss of $234,523
for the current six month period represents an increase of $142,820 in the loss
from the prior year to the current year. The net  loss  for  the  three  months
ended April 30, 1998 was $119,302 compared to a net loss of $53,571 for the six
months  ended  April  30,  1997.   The  current three-month loss of $119,302 is
$65,731  higher than the prior year for the  same  three-month  period.   As  a
result of  negative  cash  flows  associated with these losses, as of April 30,
1998,  working  capital had decreased  to  $128,096  and  the  Company  had  an
accumulated deficit  of  $1,569,757.    Because  the  Company  currently has no
access  to  any  outside  source  of capital (except for an existing  equipment
financing  arrangement),  management   must   meet   its   short-term   capital
requirements  solely  from  cash  from  operations  (if  any) and existing cash
reserves.  At April 30, 1998, the Company's cash reserves  were $76,229.  There
can  be  no  assurance that the Company's cash reserves will be  sufficient  to
satisfy the Company's  capital  requirements or that the Company's inability to
obtain  capital  from outside sources  will  not  force  the  Company  to  seek
protection under the United States Bankruptcy Code.

Net sales were $1,387,296  for  the six months ended April 30, 1998 as compared
to $1,678,386 for the six months  ended  April 30, 1997, a decrease of $291,090
or 17.3% under the prior year.  Net sales  were  $721,263  for the three months
ended April 30, 1998 as compared to $876,689 for the six months ended April 30,
1997, a decrease of $155,426 or 17.7% under the prior year for  the same three-
month  period.   This decrease in net sales is a result of intense  competition
from larger competitors,  as  well  as  certain  other  industry  trends  which
negatively  impact smaller electronics distributors such as the Company.  These
competitive circumstances  have continued to reduce the Company's sales volume,
which, along with gross margins, must improve in the short-term for the Company
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  the
Company'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  the Company's negative results of
operations.

Costs of sales were $1,045,954 for the six months ended April 30, 1998 compared
to $1,282,995 for the six months ended April 30,  1997.   Costs  of  sales were
$547,181 for the three months ended April 30, 1998 compared to $672,835 for the
three months ended April 30, 1997.  The decrease in cost of sales for  both the
six months and three months ended April 30, 1998 is the result of the Company's
decrease in sales volume.  The gross profit percentage for the six months ended
April  30, 1998 was 24.6% compared to 23.3% for the six months ended April  30,
1997.  The  increase  in  gross  profit  percentage  is  the  result  of modest
increases in sales prices to customers.

                                    (6)
<PAGE>

The gross profit percentage for the three months ended April 30, 1998 was 24.1%
compared  to 23.3% for the three months ended April 30, 1997. There can  be  no
assurances  that  the 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
$583,164 for the six months ended April 30, 1998, compared  to $498,674 for the
six months ended April 30, 1997, an increase of $84,490 or 16.9% over the prior
year.  The increase is primarily the result of an increase of  $5,000 in office
salaries and an increase of $80,000 in professional fees.  For the three months
ended April 30, 1998, selling, shipping and general and administrative expenses
were $296,843 as compared to $266,710 for the six months ended April  30, 1997,
an  increase  of  $30,133  over the prior year.  The increase is primarily  the
result of an increase of $42,000  in  professional  fees,  and  a  decrease  of
$10,000  in  sales salaries.  Management anticipates that further reductions in
SSG&A expenses  will  be  necessary  to reverse Federated's negative results of
operations.

Statement of Financial Accounting Standards  No.  128,  "Earnings  Per  Share",
became effective for financial statements for periods ending after December 31,
1997,  and  requires  presentation  of  two calculations of earnings per common
share.  "Basic" earnings per common share equals net income divided by weighted
average common shares outstanding during  the  period.   "Diluted" earnings per
common  share equals net income divided by the sum of weighted  average  common
shares outstanding  during  the  period  plus  common  stock  equivalents.  The
Company's Basic and Diluted per share amounts are the same since  there  are no
outstanding  common  stock  equivalents.  The Company restated all prior period
amounts to reflect these calculations.

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 $243,523 for the six
months ended April 30, 1998.  Moreover, the Company's liquidity position may be
further 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,  continue
to 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 operations costs, securing additional lines  of  credit  from  outside
lenders or entering into strategic alliances.  There can be no 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 protection under the United States Bankruptcy Code.

Cash and cash equivalents increased by $6,871  for  the  six months ended April
30, 1998 compared to a decrease of $11,818 for the six months  ended  April 30,
1997.   For  the  six  months  ended April 30, 1998, the Company used cash from
operating activities of $552 primarily  from  the loss of $234,523, an increase
of $149,995 in accounts payable and accrued expenses,  a decrease of $33,642 in
inventories and a decrease of $48,148 in prepaid expenses.   For the six months
ended  April  30,  1997,  the  Company used net cash of $14,233 from  operating
activities primarily as a result  of  the operating loss of $91,703, a decrease
of  $25,148 in inventories, a decrease of  $8,163  in  accounts  receivable,  a
decrease  of $52,818 in accrued expenses and an increase of $80,871 in accounts
payable.  The  Company  provided  cash of $12,500 from investing activities for
the six months ended April 30, 1998 by collections on a note receivable.

                                    (7)
<PAGE>
The Company provided cash of $7,727  from  investing  activities  for  the  six
months  ended  April  30,  1997 primarily from the $10,000 collection of a note
receivable.  The Company used  cash  in financing activities for the six months
ended April 30, 1998 for reducing long-term  debt  for  $5,077  and for the six
months ended April 30, 1997 for reducing long-term debt for $5,312.

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 55% of its accounts payable are more than 30
days old and 32% are more than 60 days old as of April 30, 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  April  30,  1998, open trade accounts payable and accrued
expenses for unsecured creditors totaled  $650,458.  Secured creditors on long-
term debt, namely for the purchase of computer  equipment  totaled $3,254.  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;  although  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  $3,254  outstanding   under   an  existing  equipment  financing
arrangement.  While management continues to seek  new sources of financing from
other financial institutions, no such arrangements  have  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  their  records on the accrual basis of accounting.  Income
is earned and recorded at the  time  of  shipment  which  is when title passes.
Expenses are recorded when incurred.  Any merchandise returned  by customers in
the normal course of business must be pre-approved by management.

In  conjunction  with  the  sale  of  all  the common stock of its wholly-owned
subsidiary, Freedom Electronics Corporation,  on  November  14, 1994, Federated
entered into a noncompete agreement with the purchases.  The $90,000 noncompete
agreement  is  being  recognized  into income over the four-year  term  of  the
agreement based upon monthly installments received.

The Company's balance sheet at April  30,  1998  reflects  working  capital  of
$128,096 as compared to $405,597 at April 30, 1997, which represents a decrease
of $277,501.

The  Company'  stockholders'  equity  amounted  to  $233,483 at April 30, 1998,
equivalent to a book value per common share of $.14.   As  of  April  30, 1997,
stockholders' equity amounted to $658,204 equivalent to a book value per common
share of $.41.



                                    (8)
<PAGE>
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. in an exchange of stock  which  will  be  accounted  for  as a
purchase  (the "Exchange"). As noted at Part II, Item 4 below, on May 28, 1998,
the shareholders  approved  an  amendment  (the  "Amendment")  to the Company's
Certificate  of  Incorporation to increase the number of authorized  shares  of
Common Stock.  The  Amendment  permits  the  Company to issue sufficient shares
under the terms of the Exchange, which has not  yet closed.  The parties to the
Exchange are continuing to negotiate certain provisions  regarding the closing,
and there can be no assurance that the Exchange will ultimately be consummated.
If the Company is not successful in consummating the Exchange,  it  may have to
seek protection under the United States Bankruptcy Code.

PART II - OTHER INFORMATION

ITEM 4 -  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

On  May  28,  1998,  a  Special Meeting of Shareholders was held to approve  an
amendment to the Company's  Certificate of Incorporation to increase the number
of shares of Common Stock authorized  from  5,000,000 to 10,000,000.  1,004,052
shares  of  Common  Stock were voted in favor of  the  amendment,  25,127  were
opposed, and 3,045 abstained.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

(a)     EXHIBITS

None

(b)     REPORTS ON FORM 8-K

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 six months ended April 30, 1997  other
than which has been reported.

There were  no  securities  of  the  Company sold by the Company during the six
months ended April 30, 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.

                                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

6/15/98
Date

                                   (9)