United States
                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.   20549

                                FORM 10-QSB


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

                 For the quarterly period ended September 30, 1997
                             
                                    OR

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

            Commission File Number 0-26624
            ALTERNATE POSTAL DELIVERY, INC.
            (Exact name of small business issuer as specified in its charter)

                 Michigan                                38-2841197
(State or other jurisdiction of                        (IRS Employer
incorporation or organization)                          Identification No.)

One Ionia, SW, Suite 300, Grand Rapids, Michigan              49503
(Address of principal executive offices)                    (Zip Code)

          616-235-0698                                  FAX 616-235-3405
(Issuer's telephone number, including area code)

     Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 October 31, 1997, 4,022,894 shares of the issuer's common stock were
outstanding.

                     This report contains 12 pages.

                     ALTERNATE POSTAL DELIVERY, INC.

                               FORM 10-QSB

                                  INDEX


                                                                      Page
PART I.   Financial Information:                                       No.

          Condensed Consolidated Balance Sheets - September 30, 1997,
           and December 31, 1996. . . . . . . . . . . . . . . . . . . 3 & 4
           
          Condensed Consolidated Statements of Operations - three
           and nine months ended September 30, 1997 and 1996 . . . . . . .5

          Condensed Consolidated Statements of Cash Flows - nine
           months ended September 30, 1997 and 1996 . . . . . . . . . . . 6

          Notes to Condensed Consolidated Financial Statements. . . . . . 7

          Management's Discussion and Analysis or Plan
           of Operation. . . . . . . . . . . . . . . . . . . . . . . .8 - 9

PART II.  Other Information:

          Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . . .10
     
          Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . .11


Part I.  Financial Information

             ALTERNATE POSTAL DELIVERY, INC. AND SUBSIDIARIES
                    Condensed Consolidated Balance Sheets
                                 
<TABLE>
<CAPTION>
                                  ASSETS
                                               September 30,    December 31,
                                                   1997             1996
                                                (unaudited)
                                               ------------     ------------
Current assets:
     <S>                                       <C>             <C>
     Cash and cash equivalents                 $ 1,242,101     $ 1,857,955
     Accounts receivable, trade, less
      allowance of $69,600 and $100,000
      at September 30 and December 31
      respectively                               2,609,829       2,511,361
     Notes receivable, current portion              37,375          37,375
     Prepaid expenses and other assets             246,903         255,863
                                               -----------     -----------
          Total current assets                   4,136,208       4,662,554

Notes receivable, less current portion              40,750          34,595

Property and equipment:
     Furniture and equipment                       954,519         891,833
     Accumulated depreciation and
      amortization                                (742,348)       (658,877)
                                               -----------     -----------
                                                   212,171         232,956

Computer software, net                              92,972          43,151

Intangible assets, net                           1,159,804       1,220,490

0ther assets                                        13,491          32,241
                                               -----------     -----------
                                               $ 5,655,396     $ 6,225,987
                                               ===========     ===========

</TABLE>

                                  Continued

             ALTERNATE POSTAL DELIVERY, INC. AND SUBSIDIARIES
                    Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                 LIABILITIES

                                               September 30,   December 31,
                                                  1997             1996
                                               (unaudited)
                                               ------------    -----------
Current liabilities:
     <S>                                      <C>             <C>
     Notes payable, bank                       $               $   300,000
     Accounts payable                              991,344         860,710
     Accrued liabilities                           321,475         416,947
     Deferred revenue                              333,901         302,096
     Current portion of long-term
      obligations                                  108,403         181,150
                                               -----------     -----------
          Total current liabilities              1,755,123       2,060,903

Long-term obligations                                4,574         334,941

Commitments and contingencies

                              SHAREHOLDERS' EQUITY

Preferred stock-no par value, 2,000,000
 authorized shares, no shares issued and
 outstanding
Common stock-no par value, voting, 8,000,000
 authorized shares; 4,022,894 shares issued and
 outstanding                                     9,677,530       9,677,530
Accumulated losses, through September 30, 1993
 (Note 4)                                       (1,291,039)     (1,291,039)
                                               -----------     -----------
          Total common stock                     8,386,491       8,386,491

Accumulated losses, since October 1, 1993
 (Note 4)                                       (4,490,792)     (4,556,348)
                                               -----------     -----------
          Total shareholders' equity             3,895,699       3,830,143
                                               -----------     -----------
                                               $ 5,655,396     $ 6,225,987
                                               ===========     ===========
</TABLE>

  The accompanying notes are an integral part of the condensed consolidated
financial statements.


             ALTERNATE POSTAL DELIVERY, INC. AND SUBSIDIARIES
              Condensed Consolidated Statements of Operations

<TABLE>
<CAPTION>
                                Three months ended        Nine months ended
                                   September 30,            September 30,
                              ----------------------  ------------------------
                                 1997        1996        1997        1996
                              ----------  ----------  -----------  -----------
                                   (unaudited)              (unaudited)
<S>                          <C>         <C>         <C>          <C>
Net sales                    $4,428,190  $3,880,014  $13,826,222  $14,929,748
Cost of sales                 3,283,659   2,947,121   10,248,415   11,215,967
                             ----------  ----------  -----------   -----------
  Gross profit                1,144,531     932,893    3,577,807    3,713,781
Selling, general and
 administrative expenses      1,139,713   1,391,655    3,599,183    4,315,827
Other operating expenses                (     7,230)                  254,222
                             ----------  ----------  -----------  -----------
                              1,139,713   1,384,425    3,599,183    4,570,049
                             ----------  ----------  -----------  -----------
 Income (loss) from operations    4,818 (   451,532)(     21,376)(    856,268)

Other income (expense), net      12,866      16,612       47,910       20,541
                             ----------  ----------  -----------  -----------
Income (loss) before income 
 taxes and extraordinary gain    17,684 (   434,920)      26,534 (    835,727)

Income tax expense(benefit)       1,283             (        877)       6,430
                             ----------  ----------  -----------  -----------
Income (loss) before
 extraordinary gain              16,401 (   434,920)      27,411 (    842,157)

Extraordinary gain from early
 retirement of debt                                       38,145      216,376
                             ----------  ----------  -----------  -----------
Net income (loss)            $   16,401 ($  434,920) $    65,556 ($   625,781)
                             ==========  ==========  ===========  ===========
Income (loss) per share (Exhibit 11.1)
Primary:
Income (loss) before extraordinary
 gain                        $      .00 ($      .12) $       .01 ($       .22)
Extraordinary gain                                           .01          .06
                             ----------  ----------  -----------  -----------
Net income (loss) per share  $      .00 ($      .12) $       .02 ($       .16)
                             ==========  ==========  ===========  ===========
Fully diluted:
Income (loss) before extraordinary
 gain                        $      .00 ($      .12) $       .01 ($       .24)
Extraordinary gain                                           .01          .06
                             ----------  ----------  -----------  -----------
Net income (loss) per share  $      .00 ($      .12) $       .02 ($       .18)
                             ==========  ==========  ===========  ===========
Weighted average number of shares
 outstanding: (Exhibit 11.1)
  Primary                     4,022,894   3,606,046    4,022,894    3,838,049
                             ==========  ==========  ===========  ===========
  Fully diluted               4,022,894   3,516,838    4,022,894    3,511,729
                             ==========  ==========  ===========  ===========
</TABLE>

  The accompanying notes are an integral part of the condensed consolidated
financial statements.

             ALTERNATE POSTAL DELIVERY, INC. AND SUBSIDIARIES
              Condensed Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>

                                                    Nine months ended
                                                      September 30,
                                               --------------------------
                                                   1997          1996
                                               ------------  ------------
                                                      (unaudited)

<S>                                            <C>           <C>
Net cash flows from operating activities       $   225,437   ($  366,208)
                                                ----------    ----------
Net cash flows from investing activities       (   138,177)  (    77,118)
                                                ----------    ----------
Net cash flows from financing activities       (   703,114)  (   719,426)
                                                ----------    ----------
Net increase (decrease) in cash and
 cash equivalents                              (   615,854)  ( 1,162,752)

Cash and cash equivalents, beginning
 of period                                       1,857,955     3,391,065
                                                ----------    ----------
Cash and cash equivalents, end of
 period                                         $1,242,101    $2,228,313
                                                ==========    ==========
</TABLE>

  The accompanying notes are an integral part of the condensed consolidated
financial statements.


             ALTERNATE POSTAL DELIVERY, INC. AND SUBSIDIARIES
            NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 (unaudited)

1.   The interim financial data is unaudited; however, in the opinion of
management, the interim data includes all adjustments, consisting only of
normal recurring adjustments necessary for a fair presentation of the results
of operations for the interim periods.  The financial statements included
herein have been prepared by the Company pursuant to the rules and regulations
of the Securities and Exchange Commission.  Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company believes that the
disclosures included herein are adequate to make the information presented not
misleading.  The results of operations for the three months and the nine
months ended September 30, 1997 are not necessarily indicative of the results
of operations expected for the year ended December 31, 1997.

2.   The organization and business of the Company, accounting policies
followed by the Company and other information are contained in the notes to
the Company's financial statements filed as part of the Company's Form 10-KSB.
This quarterly report should be read in conjunction with the Form 10-KSB.

3.   Income (loss) per share calculation has been determined assuming exercise
of all outstanding options and warrants. This per share information is
provided in Exhibit 11.1.

4.   Shareholders' equity represents combined equity after a pooling of
interests on March 29, 1996.  Accumulated losses, through September 30, 1993,
represent the losses and capital of the Company during the period of time it
was a subchapter S corporation.  All subsequent losses of the combined
entities are presented under Accumulated losses, since October 1, 1993.

5.   Certain amounts, as presented in prior periods, have been reclassified to
conform with the amounts presented for the three months and the nine months
ended September 30, 1997.  These reclassifications do not have an impact on
the net income and losses previously reported.


             ALTERNATE POSTAL DELIVERY, INC. AND SUBSIDIARIES
        MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Overview and Plan of Operation

    In the third quarter of 1997 the Company significantly repositioned its
Direct Network (Company-owned private delivery) as a part of its
transformation from a private delivery company to a marketing services
company.  The Direct Network's repositioning consisted of executing a national
distribution agreement with a major telephone directory company for 1998 and
1999.  This network also renewed two of its newspaper distribution agreements
with a third agreement terminating at expiration.  The result of these changes
is to continue to improve operating efficiencies and enhance net profit
opportunities moving forward.

     The Company also experienced the benefits of its Media Optimizer TM
initiative.  The Media Optimizer TM process enables the Company to execute
sample and insert business at a lower operating cost than in the past.

Results of Operations

     During the three months ended September 30, 1997, the Company realized an
increase of approximately 14% in revenue over the same period of the previous
year.  The product sample revenue area (Associate Network) and the newspaper
advertising revenue area (Suburban Network) recognized increased revenues over
the previous year, while the Address Specific Network and the Direct Network
(Company-owned private delivery) recognized sales lower than the same quarter
of the previous year.

     Operating expenses were lower than the same quarter of the previous year
due to the efficiencies implemented by the Company in previous quarters. The
Company has been able to get maximum efficiency out of its operating dollars
in the personnel area, due to the use of the Media Optimizer TM system.

     Other income and (expense), net consists of interest income and interest
expense.  Interest income for the three months ended September 30, 1997 and
1996 was $15,505 and $36,710 respectively.  Interest expense for the three
months ended September 30, 1997 and 1996 was $2,639 and $20,098 respectively.

Liquidity and Capital Resources

     The Company continues to have a strong cash position with cash and cash
equivalents totaling $1,242,101 at September 30, 1997 and $1,857,955 at
December 31, 1996.

     Cash used for the additions to property, equipment, and software for the
nine months ended September 30, 1997 and 1996, was approximately $135,000 and
$84,000, respectively with most of the expenditures attributable to the Media
Optimizer TM.  Cash used for net reduction of long-term notes payable for the
nine months ended September 30, 1997 and 1996 was approximately $379,000 and
$429,000, respectively.  Other changes in cash position were largely
attributable to working capital fluctuations.

     The Company has a bank line of credit for $500,000 to assist in future
cash flow needs.  The Company believes that this line of credit along with its
current cash balance will enable it to fund its current growth plans as well
as meet its presently anticipated capital requirements for the next twelve
months.

Outlook for Remainder of 1997

     The third quarter demonstrated the Company's drive to lower operating
expenses while maintaining revenues.  The Company noted that increases in
sampling and insert revenue grew but due to variable timing of orders will not
be consistent from quarter to quarter.  The fourth quarter of 1997 is expected
to have similar financial results to the Company's second quarter 1997
results.

     The Company expects to continue the trend of tight operating expense
control combined with a greater share of its revenue being derived from
marketing services.  The Company also expects to announce a new alliance in
the fourth quarter as well as to finalize its name change reflecting the new
marketing services strategy.

Forward-looking Statements

     Except for historical information contained herein, the matters set forth
in this management discussion and analysis are forward-looking statements
based on current expectations.  Actual results may differ materially.  These
forward-looking statements involve a number of risks and uncertainties
including, but not limited to, competition, the timing of receipt of orders,
the effectiveness of the marketing program, and the Company's success in
capitalizing on its strategic alliances.

PART II.    Other Information:

Item 6.     Exhibits and Reports on Form 8-K.

Exhibit 11.1 Computation of income (loss) per share.  Page 12.

During the period of this report, there were no required filings on Form 8-K.


                                    SIGNATURE

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                        ALTERNATE POSTAL DELIVERY, INC.


Date: October 31, 1997                    By: /s/Phillip D. Miller
                                              Phillip D. Miller
                                              President and Chief Executive
                                              Officer
                                          By: /s/Sandra J. Smith
                                              Sandra J. Smith
                                              Chief Financial Officer