UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
                                    FORM 10-Q
                                   (Mark One)

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


                  For the quarterly period ended June 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 No. 0 - 20660

                             COMPUTER CONCEPTS CORP.
             (Exact name of registrant as specified in its charter)


           Delaware                               11-2895590
(State or other jurisdiction of               (I.R.S. Employer
 incorporation or organization)                Identification  No.)


   80 Orville Drive, Bohemia, N.Y.                   11716
(Address of principal executive offices)           (Zip Code)


Registrant's telephone number, including area code    (516) 244-1500

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 ___

     The number of shares of $.0001 par value stock outstanding as of August 14,
1998 was: 17,201,960.

                                       1
<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES

                                      INDEX




              PART I - FINANCIAL INFORMATION                           Page

              Condensed Consolidated Balance Sheets
              as of June 30, 1998 and December 31, 1997                  3

              Condensed Consolidated Statements of Operations
              and Comprehensive Income For the Three and
              Six Months Ended June 30, 1998 and 1997                    4

              Condensed Consolidated Statements of Cash Flows
              For the Six Months ended June 30, 1998 and 1997            5 

              Notes to Condensed Consolidated Financial Statements       6 - 13

              Management's Discussion and Analysis of Financial
              Condition and Results of Operations                       14 - 18




              PART II - OTHER INFORMATION

              Item 1. Legal Proceedings                                 19

              Item 2. Changes in Securities                             19

              Item 3. Defaults Upon Senior Securities                   19

              Item 4. Submission of Matters to a Vote of 
                      Security Holders                                  19

              Item 5. Other Information                                 19

              Item 6. Exhibits and Reports on Form 8-K                  19

              Signatures                                                20


                                       2
<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                    as of June 30, 1998 and December 31, 1997
                        (in thousands, except share data)

<TABLE>
<CAPTION>

                                               June 30,       December 31,
                              ASSETS            1998              1997
                                                ----              ----
                                              (Unaudited)

<S>                                            <C>              <C>     
CURRENT ASSETS:
  Cash and cash equivalents                    $  2,390         $    778
  Accounts receivable, net of allowance 
    for doubtful accounts of $340 and
    $252 in 1998 and 1997,  respectively          8,810           11,718
  Installment receivables                         7,918            6,148
  Advances to  officers                             862            1,070
  Prepaid expenses and other current assets       6,241            1,987
                                               --------         --------         
                                                 26,221           21,701

INSTALLMENT RECEIVABLES, due after one year       7,948            6,480
PROPERTY AND EQUIPMENT, net                       2,380            2,069
SOFTWARE COSTS, net                               6,760            3,730
EXCESS OF COST OVER FAIR VALUE OF 
  NET ASSETS ACQUIRED, net of accumulated 
  amortization  of $2,902  and $2,477 in 
  1998 and 1997, respectively                     9,943            4,611
OTHER ASSETS                                      1,010              707
                                               --------         --------         
                                               $ 54,262         $ 39,298
                                               ========         ========         

                      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable and accrued expenses       $   6,525         $  7,225
  Convertible debenture                           2,000             -
  Short term bank loan                              500             -
  Current portion of long- term debt                671            1,291
  Deferred installment revenue                    6,923            5,506
  Deferred maintenance revenue                    5,598            6,267
                                               --------         --------         
                                                 22,217           20,289

DEFERRED INSTALLMENT REVENUE, earned 
  after one year                                  7,918            7,122
DEFERRED MAINTENANCE REVENUE, earned 
  after one year                                  1,547              825
LONG-TERM DEBT, net of current portion            1,584            1,395
                                               --------         --------         
  Total liabilities                              33,266           29,631
                                               --------         --------         
MINORITY INTEREST                                   408             -
                                               --------         --------         
COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
  Common stock, $.0001 par value; 
  150,000,000 authorized; 17,056,159 
  shares in 1998 and 12,744,751 shares 
  in 1997 issued and outstanding                      2                1
Additional paid-in capital                      104,726           91,641
Accumulated deficit                             (83,899)         (81,741)
Foreign currency translation                        (61)             (54)
Unrealized loss on marketable securities           (180)            (180)
                                               --------         --------         
Total shareholders' equity                       20,588            9,667
                                               --------         --------         
                                               $ 54,262         $ 39,298
                                               ========         ========         
            See Notes to Condensed Consolidated Financial Statements.
</TABLE>

                                       3
<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
                                   (Unaudited)
                   For the Three and Six Months Ended June 30,
                      (in thousands, except per share data)

<TABLE>
<CAPTION>
                                                Three Months Ended   Six Months Ended
                                                     June 30,            June 30,
                                                  1998       1997     1998        1997
                                                  ----       ----     ----        ----   
<S>                                            <C>        <C>       <C>        <C>     
REVENUE:
  Software licenses                            $  6,275   $  4,389  $ 10,372   $  7,033
  Maintenance                                     2,625      2,458     5,176      4,829
  Professional services                           2,586        575     3,562      1,412
                                               --------   --------  --------   --------          
                                                 11,486      7,422    19,110     13,274

COSTS AND EXPENSES:
  Cost of revenue - software licenses               205        129       698        161
  Cost of revenue - maintenance                   2,235      2,218     4,266      3,486
  Cost of revenue - professional services         2,023        521     3,212      1,604
  Research and development                          785      1,067     1,539      1,651
  Sales and marketing                             7,527      4,073    11,693      7,077
  General and administrative                      2,736      2,941     4,689      4,706
  Amortization and depreciation                     672        527     1,239      1,078
  Unusual charges                                   -          850        -         850
                                               --------   --------  --------   --------          
                                                 16,183     12,326    27,336     20,613
                                               --------   --------  --------   --------          
LOSS FROM OPERATIONS                             (4,697)    (4,904)   (8,226)    (7,339)

OTHER INCOME/(EXPENSE):
  Gain on partial disposition of subsidiary       6,627         -      6,627        -
  Interest expense                                 (536)        -       (559)       -
  Interest charge pertaining to the discount on
       convertible debentures                        -        (880)        -       (880)
                                               --------   --------  --------   --------          
NET INCOME (LOSS)                                 1,394     (5,784)  ( 2,158)    (8,219)
                                               --------   --------  --------   --------          
OTHER COMPREHENSIVE INCOME:
   Foreign currency translation adjustments         (15)         -        (7)        -

COMPREHENSIVE INCOME (LOSS)                    $  1,379   $ (5,784) $ (2,165)  $ (8,219)
                                               ========   ========  ========   ======== 
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE  $   0.09   $  (0.57) $  (0.15)  $  (0.81)
                                               ========   ========  ========   ======== 
BASIC WEIGHTED AVERAGE COMMON SHARES 
   OUTSTANDING                                   14,990     10,140    14,066     10,151
                                               ========   ========  ========   ======== 

DILUTED WEIGHTED AVERAGE COMMON SHARES 
   OUTSTANDING                                   15,948     10,140    14,066     10,151
                                               ========   ========  ========   ======== 

            See Notes to Condensed Consolidated Financial Statements.
</TABLE>

                                       4
<PAGE>
                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                        For the Six Months Ended June 30,
                                 (in thousands)

<TABLE>
<CAPTION>
                                                       1998           1997
                                                       ----           ----
<S>                                                   <C>            <C> 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

Cash flows from operating activities
  Net loss                                             $ (2,158)     $ (8,219)

Adjustments to reconcile net loss to
 net cash used in operating activities
  Depreciation and amortization:
    Software costs                                         416            298
    Property and equipment                                 557            421
    Excess of cost over fair value of net assets 
      acquired                                             425            362
    Other                                                    2             3
    Gain on partial disposition of subsidiary           (6,627)            -
    Provision for doubtful accounts                        239           162
    Common stock and options issued for services         2,704         1,796
    Softworks common stock exchanged for services          525           -
    Non-cash unusual charges                                -            500
    Non-cash interest charge for discount on 
     convertible debt                                       -            880

    Changes in operating assets and liabilities
     Accounts receivable                                  899         (2,597)
     Installment accounts receivable, due after 
       one year                                        (1,468)        (1,227)
     Inventories                                            -             10
     Prepaid expenses and other current assets           (104)          (326)
     Other assets                                        (305)            81
     Accounts payable and accrued expenses               (645)         1,149
     Deferred revenue                                   2,266          2,502
                                                       ------         ------
        Net cash used in operating activities          (3,274)        (4,205)
                                                       ------         ------
Cash flows from investing activities
     Capital expenditures                                (868)          (823)
     Additional consideration for Softworks 
       acquisition                                       (452)          (311)
     Software development and technology purchases       (746)          (420)
     Advances to officers, net                            208           (155)
                                                       ------         ------
        Net cash used in investing activities          (1,858)        (1,709)
                                                       ------         ------

Cash flows from financing activities
     Net proceeds from sales of common stock 
        and options                                     4,682          4,005
     Proceeds from issuance of convertible debt 
        (net of issuance costs)                         1,925             -
     Proceeds from bank loan                              500             -
     Net repayments of long-term debt                    (356)          (259)
                                                       ------         ------
        Net cash provided by financing activities       6,751          3,746
                                                       ------         ------
Effect of exchange rate changes on cash and 
  cash equivalents                                         (7)             -
                                                       ------         ------
Net increase (decrease) in cash and cash equivalents    1,612         (2,168)

Cash and cash equivalents, beginning of period            778          5,675
                                                       ------         ------
Cash and cash equivalents, end of period              $ 2,390        $ 3,507
                                                       ======         ======
</TABLE>
            See Notes to Condensed Consolidated Financial Statements.
 
                                      5
<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

            For the Three and Six Months Ended June 30, 1998 and 1997

1.  INTERIM FINANCIAL INFORMATION

The condensed  consolidated balance sheet as of June 30, 1998, and the condensed
consolidated  statements of  operations  and cash flows for the six months ended
June 30, 1998, and 1997, have been prepared by the Company without audit.  These
interim financial statements include all adjustments,  consisting only of normal
recurring accruals, which management considers necessary for a fair presentation
of the financial statements for the above periods. The results of operations for
the three months ended June 30, 1998, are not necessarily  indicative of results
that may be expected for any other interim  periods or for the full year.  These
condensed  consolidated  financial statements should be read in conjunction with
the  consolidated  financial  statements  and notes  thereto  for the year ended
December 31, 1997.  The  accounting  policies  used in preparing  the  condensed
consolidated  financial  statements are consistent  with those  described in the
December 31, 1997, consolidated financial statements, except for recently issued
accounting  pronouncements  as described in Notes 6 and 7, and 9 which describes
the consolidation policy with respect to minority interest.

2.  BASIS OF PRESENTATION

Computer Concepts Corp. and subsidiaries (the "Company") design, develop, market
and support  information  delivery software  products,  including  end-user data
access tools for use in personal  computer and  client/server  environments  and
systems management software products for corporate  mainframe data centers.  The
Company has recently  entered  into the  technology  infrastructure  service and
construction business,  referred to as "professional  services".  For a fee, the
Company  assists  in the  design,  construction  and  installation  of  building
technology  systems.  The  Company's  professional  services  organization  also
provides systems  management  services,  including  training,  implementation of
software,  and staff  augmentation.  Additionally,  effective June 30,1998,  the
Company  completed an  acquisition  of software and related  sales and marketing
rights which is designed to provide non computer  literate owners (e.g. parents)
the ability to identify threats as well as  objectionable  material which may be
viewed by users of the  computer on the internet  (e.g.  children) . See Note 8.
The  Company's  principal  market is the  United  States.  Overseas  revenue  is
principally generated from European subsidiaries and distributors.

While the Company has  reported  net income of  $1,394,000  for the three months
ended June 30, 1998,  it has incurred a  consolidated  loss from  operations  of
$4,697,000  for the same period and a net loss of $2,158,000  for the six months
ended  June 30,  1998.  As a result  of the  partial  disposition  of one of its
subsidiaries,  SOFTWORKS,  Inc.,  ("SOFTWORKS") the Company recognized a gain of
approximately  $6,627,000 during the three month period ended June 30, 1998 (See
Note  9).  Further,  the  Company  has  incurred   consolidated  net  losses  of
$12,385,000,  $18,953,000 and $18,365,000 for the years December 31, 1997, 1996,
1995, respectively.  For the six month period ended June 30, 1998, net cash used
in  operating  activities  was  $3,274,000,  reflecting  the  above  net loss in
addition to various  non-cash  items  aggregating  $1,759,000  less a net change
(cash provided by) operating  assets and liabilities of $643,000.  The Company's
cash  requirements  were  primarily  financed  through the sale of common stock,
exercises  of  stock  options,  proceeds  from  the  issuance  of a  convertible
debenture and a short term bank loan.

                                       6
<PAGE>


                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)
            For the Three and Six Months Ended June 30, 1998 and 1997

  2.  BASIS OF PRESENTATION   (continued)

The Company does not maintain a comprehensive credit facility with any financial
institution,  although the Company is actively  seeking to obtain a secured line
of credit and has successfully obtained a short term bank loan of $500,000.  The
Company has  continued  to incur  significant  expenditures  with respect to the
development and marketing of its d.b.Express  technology  without generating any
significant  revenue.  As a result of  continued  operating  losses,  the use of
significant  cash in operations and the lack of sufficient  funds to execute its
business  plan,  there is  substantial  doubt  about the  Company's  ability  to
continue as a going concern.  No adjustments  have been made with respect to the
consolidated  financial statements to record the results of the ultimate outcome
of this uncertainty.

Management's plans to remain a going concern require additional  financing until
such time as the Company  achieves  positive cash flows from operations  through
the continued growth of its subsidiary,  SOFTWORKS,  the successful exploitation
of the Company's  d.b.Express  technology as well as its newly acquired software
product  (See  Note 8).  The  Company's  current  source  of  operating  revenue
continues  to be  primarily  derived  from  SOFTWORKS.  The Company has incurred
significant  losses  (both  cash  and  non-cash  expenses)  as a  result  of the
development   and  marketing  of  the  d.b.Express   technology.   Nevertheless,
management believes that its proprietary  d.b.Express technology has significant
potential in several areas and solves certain significant business issues in the
telecommunications  and  internet  related  markets.  In  order to  realize  the
potential of this technology,  the Company is vigorously  continuing its efforts
to enter  into  sales  or  license  agreements  of its  d.b.Express  technology.
Management  believes that the successful  exploitation  of both the  d.b.Express
technology,as  well as the newly acquired software product and related marketing
rights, as well as the continued growth of SOFTWORKS, will eventually enable the
Company to achieve positive cash flows from operations and reduce its dependency
on  cash  flows  from  financing  activities.  In  January,  1998,  the  Company
consummated   the  sale  of   approximately   $1,978,000  (net  of  expenses  of
approximately  $162,000) of restricted  common stock.  In May, 1998, the Company
obtained approximately  $1,925,000 (net of fees and commissions of approximately
$75,000) from the sale of a  convertible  debenture.  The  debenture  would have
matured on August 28, 1998.  In August,  1998,  prior to  maturity,  the Company
repaid  the  debenture  plus  interest  aggregating   approximately  $2,460,000.
Although the Company has increased  its cash by  approximately  $20,000,000,  in
August,  1998, through the sale of 3,200,000 shares of its SOFTWORKS  subsidiary
(See Note 9),  until  such time as  sufficient  cash  flows are  generated  from
operations,  additional financing will be necessary.  There can be no assurances
that  the  Company  will be  able  to  obtain  sufficient  financing  or will be
successful in achieving  positive cash flows from operations in order to execute
its business plan.

                                        7


<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

            For the Three and Six Months Ended June 30, 1998 and 1997

3.   SHAREHOLDERS' EQUITY

a.  Common Stock Split

On March 18, 1998, the Board of Directors declared a reverse split at a ratio of
1 for 10 shares with a record date of March 27,  1998 and an  effective  date of
March 30,1998.  Par value and authorized  shares remain unchanged at $0.0001 and
150,000,000  shares  respectively.  All  references to numbers of shares and per
share data have been restated for 1997 so as to reflect the reverse stock split

b.  Sale of Common Stock

In January,  1998, the Company  consummated the sale of restricted stock under a
private  placement to accredited  United States  investors  under  Regulation D.
Proceeds  from this sale  totaled  $1,978,000,  net of  commissions  and fees of
approximately  $162,000.  A total  of  496,232  shares  were  sold at a price of
$4.3125 per share.  The  closing bid price of the  Company's  common  stock,  as
stated on the NASDAQ Small Cap Market did not exceed an average of $5.28 for any
five consecutive  trading days during the thirty days immediately  following the
effective date of the Registration  Statement  (effective  February 6, 1998, see
Note 4).  Accordingly,  under the terms of this transaction,  the Company issued
approximately 280,000 additional shares in April, 1998.

Additionally,  during the six months ended June 30, 1998,  796,000  options were
exercised  at prices  ranging  from $0.10 to $5.00.  Proceeds  raised from these
exercises aggregated approximately $2,703,000.

c.  Transactions with consultants

During  October,  1997, the Company issued 114,765  restricted  shares of common
stock to HPS America,  Inc. ("HPS") for settlement of product  development costs
of  approximately  $600,000 owed to HPS and its  affiliates.  These shares had a
valuation  guarantee based on the Company's stock price during the first 30 days
immediately following the effective date of a registration statement (January 6,
1998).  The shares were sold at a value less than the guaranteed  amount and the
Company settled the shortfall with a cash payment of  approximately  $170,000 in
the first quarter of 1998.

d.  Stock option compensation

During the three month period ended June 30, 1998, the Company issued  1,628,900
stock options to several officers, key employees,  including those at SOFTWORKS,
and  consultants.  The options  range in exercise  price from $4.00 to $6.00 and
vest  December 31, 1998,  but are subject to  forfeiture  should the Company not
achieve  profitability  of at least  $5,000,000 for the year ending December 31,
1998.  Additionally,  in lieu of cash  compensation,  the Company issued 895,000
stock options to several  consultants for which the Company  recorded a non-cash
charge to earnings of approximately $1,469,000.  The Company, through the advise
of its compensation committee,  issued 1,209,148 options to several officers and
key  employees  of both  the  Company  and its  then  wholly  owned  subsidiary,
SOFTWORKS,  which have an  exercise  price of  $4.00and  are fully  vested.  All
options expire  December 31, 2000. A Form S-8 filed on May 15, 1998,  registered
approximately 779,000 of the underlying shares of the Company's common stock.

                                       8

<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

            For the Three and Six Months Ended June 30, 1998 and 1997


4.  COMMITMENTS AND CONTINGENCIES

a. Contingent Consideration

In connection with the 1993 acquisition of SOFTWORKS, the Company is required to
make additional  payments to two of SOFTWORKS' former  shareholders,  based upon
certain  product  revenues for the years 1995 through  1998,  up to a maximum of
$1,000,000 each, for an aggregate maximum of $2,000,000.  Through June 30, 1998,
the  Company  has  incurred  an  aggregate  liability  of  $2,000,000  (of which
approximately $1,778,000 has been paid) to the non-employee former shareholders,
which has been  treated  as  additional  consideration  in  connection  with the
acquisition,  and,  accordingly,  included  in the  excess of cost over the fair
value of net assets  acquired,  as these  individuals  did not  continue  in the
employment of the Company subsequent to the acquisition.

b. Registration Statements / Restricted Securities

During December, 1997, the Company filed three registration  statements:  (i) an
amended registration  statement on Form S-1 (No. 33-97560,  effective January 6,
1998) which amended a registration  statement  that was originally  effective on
August  9,  1996,  (ii) a  registration  statement  on Form S-8 (No.  333-42795,
effective upon filing, December 19, 1997), and (iii) a registration statement on
Form S-1 (No.  333-42919,  effective  January 6, 1998).  The primary  purpose of
these  registration  statements was to register  outstanding  restricted  common
stock and shares issuable upon exercise of outstanding options.

On January 22, 1998,  the Company filed another  registration  statement on Form
S-1 ( No.  333-44683,  effective  February 6, 1998). The primary purpose of this
registration  statement was to register shares issued in January, 1998, pursuant
to a private placement (See Note 3).

On May 15, 1998 the Company  filed a  registration  statement  on Form S-8 ( No.
333-52875 ) for 779,148 options and 122,500 shares of the Company's common stock
which was  effective  upon  filing.  The  primary  purpose of this  registration
statement was to register  shares issued to certain  consultants and non-officer
employees.

Other than the restricted shares issued for the acquisition  referred to in Note
8, and the recently issued options discussed in Note 3, substantially all of the
Company's  outstanding  common stock (including shares issuable upon exercise of
outstanding  options)  have been either  registered or are qualified for sale in
the market pursuant to Rule 144 of the Securities Act of 1933, as amended.

c. Legal Matters

In July, 1995, the Company and certain officers received  notification that they
have been named as defendants in a class action claim in regard to announcements
and  statements  regarding  the Company's  business and  products.  Although the
Company continues to deny any wrongdoing,  in an effort to avoid further expense
and  resolve  the  uncertainty  of  litigation,   in  July,  1997,  the  Company
tentatively  agreed to a Stipulation  and Agreement of Settlement  ("Stipulation
Agreement") of this class action.  In February,  1998, the Court entered a final
order  approving the terms of the Stipulation  Agreement.  The Company agreed to
deliver $500,000 of its common stock, and in April,  1998, the Company delivered
119,850  shares.  Further,  the  Company  and its  insurance  carrier  each paid
$350,000,  totaling $700,000.  Based upon the Stipulation Agreement, the Company
recorded an $850,000  Unusual  Charge to earnings in the quarter  ended June 30,
1997.

                                       9

<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

            For the Three and Six Months Ended June 30, 1998 and 1997

4.   COMMITMENTS AND CONTINGENCIES (continued)

In March,  1995, an action was  originally  commenced  against the Company and a
number of defendants.  In early 1997,  after a change in counsel,  the plaintiff
amended the  complaint  for a second  time,  now naming as  defendants  only the
Company and three of its officers.  The second  amended  complaint  alleges that
certain  third  parties,  unrelated  to the  Company,  transferred  certificates
representing  1,000,000  shares of the Company's  common stock to the plaintiff.
The  complaint  further  alleges that such shares were  endorsed in blank by the
third  parties  and  became  bearer  securities  which  were  negotiated  to the
plaintiff by physical  delivery.  The certificates had not been legally acquired
from the Company  and the  certificates  were  reported  to the  Securities  and
Exchange  Commission  by the  Company  as  stolen  certificates.  Plaintiff  has
requested  validation of the transfer of the certificates and is seeking damages
of an unspecified  amount,  consisting of alleged  diminution in market value of
the subject shares from 1994 through the date of any judgment in the plaintiff's
favor.  Discovery was  substantially  completed in January,  1998, and, unless a
summary  judgment is granted to one side or the other,  this case is expected to
go to  trial  later  in 1998.  The  Company  and its  counsel  believe  that the
Company's position regarding the claim has substantial factual and legal support
and are  vigorously  defending  the  matter.  However,  the Company is unable to
predict the ultimate outcome of this claim and, accordingly, no adjustments have
been made in the consolidated  financial  statements for any potential losses or
potential issuance of common stock.

In 1995, Fletcher Capital Corp. filed a claim against the Company, its president
and several unrelated  parties,  regarding a claim for an unspecified  amount of
commissions  in the form of  options  from the  Company  and cash from the other
parties. This matter was settled in February,  1997, with the issuance of 36,000
options  exercisable  at $3.50 per share,  $126,000  paid with 25,200  shares of
common stock (issued January, 1998) and cash payments totaling $31,000.


d. Software distribution agreement

In  July,  1997,  the  Company  acquired  from  Cognizant  Technology  Solutions
Corporation ("CTS") rights to technology ( the "Technology") that compliment the
Company's  existing  Year  2000  product  solutions.  Pursuant  to the  software
distribution  agreement,  in exchange for the Technology  rights, the Company is
required  to pay CTS a  royalty  on sales of the  Technology  at  defined  rates
subject to minimum  annual  royalties of;  $100,000,  $900,000,  $1,400,000  and
$400,000 for the years 1997 through 2000.  An asset,  equal to the present value
of the minimum  royalties,  of  $2,160,000  has been  recorded as purchased  and
acquired  software  technologies for resale and is being amortized over the five
year term of the  agreement.  The  payment  obligation  is recorded as long term
debt.

                                       10

<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

            For the Three and Six Months Ended June 30, 1998 and 1997

4.   COMMITMENTS AND CONTINGENCIES (continued)

e. Employment agreements

The  Company  recently  entered  into  six new  employment  agreements  with key
SOFTWORKS employees.  The agreements terminate at various times through December
31, 2002. Five of the agreements automatically renew for one year periods unless
SOFTWORKS or the employee notify the other party ninety days prior to the end of
any renewal term.  The last agreement is "at-will".  One agreement  provides for
the issuance of a $500,000 full recourse loan,  interest  bearing at the rate of
approximately  6.0% per  annum,  unsecured,  and  payable on  December  1, 2000,
subject to certain acceleration provisions.  As of this filing this loan has not
yet been issued.  The six employment  agreements provide for an aggregate annual
base compensation of $809,000. All are eligible for incentive bonuses subject to
SOFTWORKS achieving various net income levels.

5.  RECLASSIFICATIONS

Certain reclassifications have been made to the condensed consolidated financial
statements  shown for the prior year in order to have it conform to the  current
year's classifications.


6.  RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Statement of Position 97-2,  Software Revenue  Recognition,  ("SOP"),  which was
issued to provide further  guidance on applying  generally  accepted  accounting
principles to software  transactions,  became effective for transactions entered
into  beginning  in 1998.  The SOP did not require any changes to the  Company's
method for the accounting of software  transactions  and therefore had no impact
on the Company's financial statements for the period ended June 30, 1998.


7.  REPORTING OF COMPREHENSIVE INCOME

In January,  1998,  the Company began  accounting  for  comprehensive  income in
accordance with Statement of Financial  Accounting Standards No. 130 - Reporting
Comprehensive  Income.  Accordingly,   the  Company  displayed  other  items  of
comprehensive income in the accompanying  Condensed  Consolidated  Statements of
Operations and Comprehensive Income.

                                       11

                                       
<PAGE>
                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

            For the Three and Six Months Ended June 30, 1998 and 1997

8.  ASSET ACQUISITION

On June 30, 1998, pursuant to an Asset Purchase and Sale Agreement,  the Company
acquired  certain  software and related sales and marketing rights from Internet
Tracking & Security  Ventures  ("ITSV") in  exchange  for  1,900,000  restricted
shares of the  Company's  common  stock and  1,000,000 of  restricted  shares of
common stock of the  Company's  then wholly  owned  subsidiary,  SOFTWORKS.  The
acquired  software program is designed to inform non computer  literate parents,
guardians and alike,  exactly what materials,  or possible threats to the safety
and well being their  children or others have been  accessing over the internet,
such as objectionable web sites, text, pictures,  screens, electronic mail, etc.
The  Agreement  also includes the rights to the use of Richard "Bo" Dietl's name
in  conjunction  with the promotion and  endorsement  of the software as well as
appearances  by Mr.  Dietl in support of the  software in regional  and national
marketing  campaigns.  No  revenue  from  the  sale of this  software  has  been
generated to date.  The Company  intends to release the product during the third
quarter, 1998.

The  acquisition  has been valued at an aggregate of  $12,210,000  determined as
follows:  1,900,000  restricted  shares  of the  Company  have  been  valued  at
$5,700,000 and the 1,000,000  restricted  shares of SOFTWORKS' common stock have
been value at  $6,510,000  (based upon the  ultimate net proceeds to the selling
shareholders in SOFTWORKS' initial public offering which became effective August
4, 1998 (See Note 9).

The  $12,210,000  purchase  price has been  allocated  to the fair  value of the
assets  acquired  at June  30,  1998  based  upon a  written  valuation  from an
independent investment banking firm. Accordingly,  $2,700,000 has been allocated
to "Software costs"; $4,150,000 has been recorded as "Prepaid expenses and other
current  assets";  and $5,360,000 has been recorded as "Excess of cost over fair
value of net assets  acquired".  The software costs will be amortized  using the
greater of the ratio of current revenue to the total  projected  revenue for the
software  or the  straight  line method  using a useful  life of 30 months.  The
prepaid expenses will be expensed as related services are performed, (including,
but not limited to, appearances, promotion and endorsement) which is expected to
occur over the next 12 months.  The excess of cost over fair value of net assets
acquired,  which  primarily  relate  to the use of the name "Bo  Dietl"  will be
amortized using the straight line method over 36 months.

9. GAIN ON PARTIAL DISPOSITION OF SUBSIDIARY

Prior to June 30, 1998,  SOFTWORKS was a wholly owned  subsidiary of the Company
with 14,083,000 shares of common stock outstanding. As part of the consideration
for the assets  acquired  from ITSV (see Note 8), on June 30, 1998,  the Company
exchanged  1,000,000  restricted  shares of SOFTWORKS common stock. Also on June
30, 1998, the Company  exchanged  100,000  restricted shares of SOFTWORKS common

                                       12

<PAGE>
                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)
            For the Three and Six Months Ended June 30, 1998 and 1997

9. GAIN ON PARTIAL DISPOSITION OF SUBSIDIARY (Continued)

stock to a member of its Internet  Strategy  Committee,  (who now also serves as
Chairman of the Board of SOFTWORKS) for services rendered through June 30, 1998,
resulting in a charge to  operations of $525,000.  On August 4, 1998,  SOFTWORKS
completed a public  offering of 4,200,000  shares of its common stock at a price
of $7.00 per share (less  underwriting  fees and commissions of $0.49 per share)
as follows:  1,700,000 shares of common stock were sold by SOFTWORKS;  1,000,000
shares were sold by ITSV and  1,500,000  shares were sold by the  Company.  As a
result of these transactions,  the Company's ownership interest in SOFTWORKS was
reduced to 92.2% on June 30, 1998, and subsequently  further reduced to 71.9% on
August 4, 1998.  Additionally,  in the third quarter of 1998, options to acquire
4,310,000  restricted  shares of SOFTWORKS common stock have been granted to the
Company and SOFTWORKS officers, key employees and consultants,  of which 986,500
options,  which vested upon the public offering date, are currently  exercisable
(into restricted  shares of SOFTWORKS common stock).  The balance vest, ranging
from  December 31, 1998,  through  December  31, 2002;  and could vest  earlier,
should  SOFTWORKS  achieve  certain  financial   thresholds.   All  options  are
exercisable at the initial public offering price of $7.00 per share.

During the quarter ended June 30, 1998, the Company recognized a $6,627,000 gain
on the sale of the 1,100,000 shares of SOFTWORKS' common stock, representing the
difference  between the fair value of the SOFTWORKS common stock exchanged,  and
the related adjusted carrying value of the Company's investment in SOFTWORKS. In
the third  quarter of 1998,  the Company will  recognize an  additional  gain in
accordance with Staff  Accounting  Bulletins 51 and 84, to reflect the reduction
of ownership interest in SOFTWORKS from 92.2% to 71.9%.

In conjunction with the SOFTWORKS  public  offering,  shares of SOFTWORKS common
stock owned by the Company have been placed in a voting trust.  The voting power
of the trust is held by three trustees who are members of the Board of Directors
of  SOFTWORKS.  One trustee is the C.E.O.  and  President  of the  Company.  The
remaining  two trustees are  SOFTWORKS  directors  who do not have a significant
financial  interest in the Company,  one of which is the Chairman of  SOFTWORKS.
The  agreement  provides  that  upon a change in  either  of the  remaining  two
trustees,  the  non-Company  stockholders  have control of the  selection of the
successor  director/trustee.  This  agreement  remains  in effect as long as the
Company continues to own at least 25% of SOFTWORKS.

For financial  reporting  purposes,  the assets,  liabilities  and operations of
SOFTWORKS will continue to be included in the Company's  consolidated  financial
statements.  The public's interest in SOFTWORKS is reflected in the consolidated
balance sheet and results of operations as minority interest.

                                       13
<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

            For the Three and Six Months Ended June 30, 1998 and 1997

BUSINESS DESCRIPTION

Computer Concepts Corp. and subsidiaries (the "Company") design, develop, market
and support  information  delivery software  products,  including  end-user data
access tools for use in personal  computer and  client/server  environments  and
systems management software products for corporate  mainframe data centers.  The
Company has recently  entered  into the  technology  infrastructure  service and
construction business,  referred to as "professional  services".  For a fee, the
Company  assists  in the  design,  construction  and  installation  of  building
technology  systems.  The  Company's  professional  services  organization  also
provides systems  management  services,  including  training,  implementation of
software,  and staff  augmentation.  Additionally,  effective June 30,1998,  the
Company  completed an  acquisition  of software and related  sales and marketing
rights which is designed to provide non-computer  literate owners (e.g. parents)
the ability to identify threats as well as  objectionable  material which may be
viewed by users of the  computer on the internet  (e.g.  children) . See Note 8.
The  Company's  principal  market is the  United  States.  Overseas  revenue  is
principally generated from European subsidiaries and distributors.

The  Company  currently  consists  of three  operating  units or product  lines:
d.b.Express , SOFTWORKSs,  and the recently formed  professional  services unit.
With the consummation of the acquisition of the software  technology and related
sales and marketing  rights  effective  June 30, 1998,  the Company has grown to
four units. d.b.Express provides businesses with a simple, fast, low-cost method
of finding,  organizing,  analyzing and using information contained in databases
through a visually-based proprietary software tool. Softworks,  provides systems
management software products that optimize mainframe system performance,  reduce
hardware expenditures,  and enhance the reliability and availability of the data
processing  environment.  During 1997, the Company  commenced  operations of the
professional  services  unit.  To  spearhead  the unit,  the Company  employs an
individual,  formerly with I.B.M., having expertise in this field and intends to
capitalize on his experience and competency in order to create a unique,  single
management  infrastructure  to support an  extensive  selection  of services and
vendors.  The  professional  services  unit will offer  solutions,  support  and
strategies  to  solve  various   business  crises  in  such  areas  as:  network
determinations,   help  desk  applications,   wiring/cabling,  LAN  connections,
moves/adds/changes,  and  project  management.  It can  also  provide  training,
implementation of software, and staff augmentation. Additionally, this unit will
oversee new  installations as well as offering  on-site  component  repair.  The
newly  acquired  software is designed to provide  non-computer  literate  owners
(e.g. parents) the ability to identify threats as well as objectionable material
which may be viewed by users of the  computer on the internet  (e.g.  children).
The method of revenue  recognition will be dependent upon the type and manner of
service provided.
                                       14
<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

            For the Three and Six Months Ended June 30, 1998 and 1997

RESULTS OF OPERATIONS

Three and Six Months Ended June 30, 1998 Compared With June 30, 1997

Total  revenue for the quarter  ended June 30,  1998,  $11,486,000,  reflects an
increase of  $4,064,000  when  compared to  $7,422,000  for the same period last
year.  When  comparing  the six months  ended June 30,  1998,  to 1997,  revenue
increased  $5,836,000 from $13,274,000 to $19,110,000.  Significant factors
contributing  to the growth  include,  increases of $1,886,000 and $3,339,000 of
software license revenue for the three and six month periods ended June 30, 1998
as compared to the same period in the prior year.  Significant  factors for this
growth include the introduction of new products and or enhancements at Softworks
as well as an expanded sales force.  Additionally,  revenue generated during the
three  months  ended  June  30,  1998,  from  professional   services  increased
$2,011,000 to $2,586,000  when compared to $575,000,  for the three months ended
June 30, 1997. While there can be no assurances,  the Company believes that this
revenue growth should continue due in part to its planned enhanced product line,
expansion into additional  markets,  and an increased  sales force.  

The cost of  revenue -  software  licenses,  as a percent  of  software  license
revenue  increased  slightly  from 2.9% for the quarter  ended June 30, 1997, to
3.3% for the quarter ended June 30, 1998. Cost of revenue - maintenance, for the
three month  period  ended June 30, 1998,  as a percent of  maintenance  revenue
decreased slightly,  5.1 percentage points to 85.12% from 90.2% when compared to
the  three  months  ended  June  30,  1997.  This  improvement  is  attributable
reductions  in  payroll  and  related  costs.  Cost of  revenue  -  professional
services,  as a percent  of  professional  services  revenue,  improved  by 11.9
percentage points when comparing the quarters ended June 30, 1997 - (90.1%) with
1998 - (78.2%).  The  increase  in  dollars  in cost of  revenue -  professional
services is consistent with the increase in its revenue.

Research and  development  costs for the three month period ended June 30, 1998,
decreased  approximately  $282,000 over the same period last year, and decreased
$112,000 to $1,539,000 for the six months ended June 30, 1998,  from  $1,651,000
for the prior  year six month  period,  primarily  as a result of the  Company's
having   significantly   completed   the  initial   phase  of  the   d.b.Express
telecommunications  technology.

Sales and marketing  expenses  increased by  $3,454,000  to $7,527,000  from the
second  quarter  of the  prior  year  amount of  $4,073,000.  The  increase  was
primarily  due to costs at  SOFTWORKS  rising  $1,341,000,  over the three month
period  of  the  prior  year.  These  additional   expenditures   incurred  were
attributable  to  the  marketing  of  the  Year  2000  suite  of  products,  the
SavanTechnology  line and additional location and employee costs for new offices
both in the  U.S.  as well as  overseas.  Additionally,  costs  associated  with
d.b.Express increased from the prior year by $2,205,000, due principally in part
to an expanded  sales and marketing  force,as well as non-cash  stock options to
several consultants.  (See Note 3) The above referenced increases were offset by
a decrease of $92,000,  associated  with the sale of Maplinx.  For the six month
period ended June 30, 1998,  expenses  increased when compared to the six months
ended June 30, 1997 by  $4,616,000,  primarily due to factors  mentioned  above.
While,  as a percentage of total  revenue,  sales and  marketing has risen,  the
Company  believes the increases are necessary in order to maintain,  and in some
instances gain market presence.

                                       15
<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
       FINANCIAL CONDITION AND RESULTS OF OPERATIONS For the Three and Six
                       Months Ended June 30, 1998 and 1997


RESULTS OF OPERATIONS (Continued)

Three and Six Months Ended June 30, 1998 Compared With June 30, 1997 (Continued)

General and administrative  costs decreased $205,000 to $2,736,000 for the three
months  ended June 30,  1998,  when  compared to the three months ended June 30,
1997 of  $2,941,000,and  $17,000 for the six months  ended June  30,1998.  Major
factors  contributing  to the  change  include  a  reduction  in  the  Company's
corporate  overhead  which was  partially  offset  by  increases  to  SOFTWORKS'
overhead.

Amortization and depreciation  increased by $145,000 from $527,000 for the three
months  ended June 30,  1997,  to $672,000  for the three  months ended June 30,
1998.  This increase is due to primarily to increases in purchased  software and
goodwill (See Note 4).

Gain on partial disposition of subsidiary - see Note 8.

Interest  expenses  incurred during the quarter ended June 30, 1998, of $536,000
consist  primarily of charges relating to the convertible  debenture,  which was
repaid  in  August,  1998,  and  imputed  interest  charges  resulting  from the
calculation  of the present  value of minimum  annual  royalties  for  purchased
technologies for resale. (See Notes 4 and 2).

                                       16

<PAGE>
                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
       FINANCIAL CONDITION AND RESULTS OF OPERATIONS For the Three and Six
                       Months Ended June 30, 1998 and 1997


FINANCIAL CONDITION AND LIQUIDITY

While the Company has  reported  net income of  $1,394,000  for the three months
ended June 30, 1998,  it has incurred a  consolidated  loss from  operations  of
$4,697,000  for the same period and a net loss of $2,158,000  for the six months
ended  June 30,  1998.  As a result  of the  partial  disposition  of one of its
subsidiaries,  SOFTWORKS,  Inc.,  ("SOFTWORKS") the Company recognized a gain of
approximately  $6,627,000 during the three month period ended June 30, 1998 (See
Note  9).  Further,  the  Company  has  incurred   consolidated  net  losses  of
$12,385,000,  $18,953,000 and $18,365,000 for the years December 31, 1997, 1996,
1995, respectively.  For the six month period ended June 30, 1998, net cash used
in  operating  activities  was  $3,274,000,  reflecting  the  above  net loss in
addition to various  non-cash  items  aggregating  $1,759,000  less a net change
(cash provided by) operating  assets and liabilities of $643,000.  The Company's
cash  requirements  were  primarily  financed  through the sale of common stock,
exercises  of  stock  options,  proceeds  from  the  issuance  of a  convertible
debenture and a short term bank loan.

The Company does not maintain a comprehensive credit facility with any financial
institution,  although the Company is actively  seeking to obtain a secured line
of credit and has successfully obtained a short term bank loan of $500,000.  The
Company has  continued  to incur  significant  expenditures  with respect to the
development and marketing of its d.b.Express  technology  without generating any
significant  revenue.  As a result of  continued  operating  losses,  the use of
significant  cash in operations and the lack of sufficient  funds to execute its
business  plan,  there is  substantial  doubt  about the  Company's  ability  to
continue as a going concern.  No adjustments  have been made with respect to the
consolidated  financial statements to record the results of the ultimate outcome
of this uncertainty.

Management's plans to remain a going concern require additional  financing until
such time as the Company  achieves  positive cash flows from operations  through
the continued growth of its subsidiary,  SOFTWORKS,  the successful exploitation
of the Company's  d.b.Express  technology as well as its newly acquired software
product (See  Note  8). The  Company's  current  source  of  operating  revenue
continues  to be  primarily  derived  from  SOFTWORKS.  The Company has incurred
significant  losses  (both  cash  and  non-cash  expenses)  as a  result  of the
development   and  marketing  of  the  d.b.Express   technology.   Nevertheless,
management believes that its proprietary  d.b.Express technology has significant
potential in several areas and solves certain significant business issues in the
telecommunications  and  internet  related  markets.  In  order to  realize  the
potential of this technology,  the Company is vigorously  continuing its efforts
to enter  into  sales  or  license  agreements  of its  d.b.Express  technology.
Management  believes that the successful  exploitation  of both the  d.b.Express
technology, as well as the newly acquired software product and related marketing
rights, as well as the continued growth of SOFTWORKS, will eventually enable the
Company to achieve positive cash flows from operations and reduce its dependency
on  cash  flows  from  financing  activities.  In  January,  1998,  the  Company
consummated   the  sale  of   approximately   $1,978,000  (net  of  expenses  of
approximately  $162,000) of restricted  common stock.  In May, 1998, the Company
obtained approximately  $1,925,000 (net of fees and commissions of approximately
$75,000) from the sale of a  convertible  debenture.  The  debenture  would have
matured on August 28, 1998.  In August,  1998,  prior to  maturity,  the Company
repaid  the  debenture  plus  interest  aggregating   approximately  $2,460,000.
Although the Company has increased  its cash by  approximately  $20,000,000,  in
August, 1998, through the sale of 3,200,000 shares of its SOFTWORKS subsidiary

                                       17

                                       
<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
       FINANCIAL CONDITION AND RESULTS OF OPERATIONS For the Three and Six
                       Months Ended June 30, 1998 and 1997

FINANCIAL CONDITION AND LIQUIDITY (Continued)

(See Note 9),  until  such time as  sufficient  cash  flows are  generated  from
operations,  additional financing will be necessary.  There can be no assurances
that  the  Company  will be  able  to  obtain  sufficient  financing  or will be
successful in achieving  positive cash flows from operations in order to execute
its business plan.

Safe Harbor Statement 

Certain  information  contained in this annual  quarterly  report,  particularly
information  regarding  future  economic  performance  and  finances,  plans and
objectives  of  management,  is  forward-looking.  In  some  cases,  information
regarding  certain  important  factors that could cause actual results to differ
materially from any such forward-  looking  statement  appear together with such
statement.  The following  factors,  in addition to other  possible  factors not
listed,  could  affect the  Company's  actual  results and cause such results to
differ  materially from those  expressed in  forward-looking  statements.  These
factors include competition within the computer software industry, which remains
extremely intense, both domestically and internationally,  with many competitors
pursuing price discounting;  changes in economic conditions;  the development of
new  technologies  and/or  changes in operating  systems which could obsolete or
diminish the value of existing  technologies  and  products;  personnel  related
costs; legal claims; risks inherent to rolling out new software and new software
technologies;  the  inability to maintain  financial  resources to carry out the
Company's  current  business plan in regard to the d.b.Express  technology;  the
potential cash and non-cash costs of raising  additional capital or the possible
failure to raise necessary capital;  changes in accounting principles applicable
to the Company's activities and other factors set forth in the Company's filings
with the Securities and Exchange Commission.


                                       18

                                       
<PAGE>

                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
                           PART II - OTHER INFORMATION

            For the Three and Six Months Ended June 30, 1998 and 1997


Item 1.  Legal Proceedings
   See Note 4 to the condensed consolidated financial statements.

Item 2.  Changes in Securities
   Not applicable.

Item 3.  Defaults Upon Senior Securities
   Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders
   Not applicable.

Item 5.  Other Information
   Not applicable.

Item 6.  Exhibits and Reports on Form 8-K
   Report on Form 8-K dated June 15, 1998 covering Item 2 - Acquisition of 
   Assets and Item 7 - Financial Statements and Exhibits.

                                      19
<PAGE>


                    COMPUTER CONCEPTS CORP. AND SUBSIDIARIES
                           PART II - OTHER INFORMATION

            For the Three and Six Months Ended June 30, 1998 and 1997



                                   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.

COMPUTER CONCEPTS CORP.


/s/ Daniel DelGiorno, Jr.
Daniel DelGiorno Jr.         President, C.E.O. Treasurer,       August 19, 1998
                             Director


/s/ George Aronson
George Aronson               Chief Financial Officer            August 19, 1998