U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549


                                   FORM 10-QSB


                  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended September 30, 1996.




                             DIGITAL DICTATION, INC.



                      Incorporated in the State of Delaware

                            8230 Old Courthouse Road
                             Vienna, Virginia, 22182

                           Telephone : (703) 848-2830
                  I.R.S. Employer Identification No. 52-1451022

                         Commission file number 0-27052








Check  whether the Issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Exchange Act during the preceding 12 months, and (2) has been
subject to such filing requirements for the past 90 days.

                                              YES   [x]       NO   [x]


The number of shares  outstanding of the Issuer's $.01 par value Common Stock as
of November 14, 1996 was 6,257,480.



                                        1

<PAGE>





                         PART I - FINANCIAL INFORMATION




ITEM 1.  FINANCIAL STATEMENTS


Index to unaudited condensed financial statements presented on pages 3 to 9:


     Condensed balance sheets as of September 30, 1996 and December 31, 1995

     Condensed  statements  of income  for the three- and  nine-month  periods
     ended September 30, 1996 and 1995

     Condensed  statements of cash flows for the nine months ended September 30,
     1996 and 1995

     Notes to condensed financial statements

                                        2

<PAGE>



                             DIGITAL DICTATION, INC.
                            CONDENSED BALANCE SHEETS
                                   (Unaudited)


                                                   September 30, December 31,
                  ASSETS                                1996         1995
                                                     ----------   ----------

Current assets
    Cash and cash equivalents                        $  104,998   $   32,534
    Accounts receivable                               1,033,054      714,206
    Employee receivables                                  5,458       23,024
    Prepaid expenses and other                           32,989       24,580
                                                     ----------   ----------
        Total current assets                          1,176,499      794,344

Property and equipment, net                             816,785      845,629
                                                     ----------   ----------

        Total assets                                 $1,993,284   $1,639,973
                                                     ==========   ==========


    LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
    Borrowings under line of credit                  $  133,242   $  264,747
    Accounts payable                                    150,711      212,343
    Accrued payroll and payroll taxes                   302,848      129,100
    Due to stockholder                                   13,795
    Dividends payable                                                 44,791
    Current portion of long-term debt                     5,785       56,390
    Current portion of capital lease obligations         30,920       68,798
    Current income taxes payable                         15,000
    Current deferred income taxes                       324,000      152,000
                                                     ----------   ----------
        Total current liabilities                       976,301      928,169

Long-term debt, non current portion                       8,666

Capital lease obligations, non current portion           33,917       57,064

Non current deferred income taxes                        56,000       50,000

Stockholders' equity
    Common stock, par value $.01 per share,
     20,000,000 shares authorized, 6,257,480 shares
     issued and outstanding                              62,575       62,575
    Additional paid-in capital                          571,496      571,496
    Retained earnings (deficit)                         284,329      (29,331)
                                                     ----------   ----------
        Total stockholders' equity                      918,400      604,740

Commitments - Note 10
                                                     ----------   ----------

        Total liabilities and stockholders' equity   $1,993,284   $1,639,973
                                                     ==========   ==========

            See accompanying notes to condensed financial statements.

                                        3

<PAGE>



                             DIGITAL DICTATION, INC.
                         CONDENSED STATEMENTS OF INCOME
                                   (Unaudited)



                               Three months ended          Nine months ended
                                  September 30,               September 30,

                                1996          1995          1996        1995
                            ----------    ----------    ----------   ----------

Revenues                    $1,825,326    $1,271,187    $5,074,387   $3,677,272

Cost of services             1,158,935       837,057     3,298,657    2,441,580
                            ----------    ----------    ----------   ----------

Gross profit                   666,391       434,130     1,775,730    1,235,692

General and administrative
  expenses                     470,672       298,480     1,237,947      865,462
                            ----------    ----------    ----------   ----------

Operating income               195,719       135,650       537,783      370,230

Other income (expense)
  Interest and other income         19           230           116        1,688
  Interest expense              (9,853)       (5,782)      (31,239)     (16,266)
                            ----------    ----------    ----------   ----------

Income before income taxes     185,885       130,098       506,660      355,652

Provision for income taxes      71,000                     193,000
                            ----------    ----------    ----------   ----------
    Net income              $  114,885    $  130,098    $  313,660   $  355,652
                            ==========    ==========    ==========   ==========



Net income per share              $.02                        $.05
                                  ====                        ====

Weighted average shares
   outstanding               6,257,480                   6,257,480
                             =========                   =========



Pro forma data:

  Net income, as reported                $  130,098                  $  355,652
  Pro forma provision for income taxes       58,000                     141,000
                                         ----------                  ----------

  Pro forma net income                   $   72,098                  $  214,652
                                         ==========                  ==========


    Pro forma net income per share             $.01                        $.03
                                               ====                        ====

    Weighted average shares outstanding   6,257,480                   6,257,480
                                          =========                   =========

            See accompanying notes to condensed financial statements.

                                        4

<PAGE>



                             DIGITAL DICTATION, INC.
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)



                                                          Nine months ended
                                                            September 30,
                                                        1996           1995
                                                     ---------      ---------

Cash flows from operating activities

  Net income                                         $ 313,660      $ 355,652
  Charges to operations not affecting cash:
    Depreciation and amortization                      206,650        163,064
    Deferred income tax provision                      178,000
  Changes in operating assets and liabilities:
    Accounts receivable                               (318,848)       (36,007)
    Employee receivables                                17,566          9,001
    Prepaid expenses and other                          (8,409)       (15,621)
    Accounts payable                                   (61,632)       107,159
    Accrued payroll and payroll taxes                  173,748         36,404
    Current income taxes payable                        15,000
                                                     ---------      ---------

      Net cash provided by operating activities        515,735        619,652
                                                     ---------      ---------

Cash flows from investing activities

  Additions to property and equipment                 (177,806)      (279,857)
                                                     ---------      ---------

      Net cash used by investing activities           (177,806)      (279,857)
                                                     ---------      ---------

Cash flows from financing activities

  Net (decrease) increase in borrowings
    under line of credit                              (131,505)        64,093
  Proceeds from advance from stockholder                36,035
  Dividends paid on earnings prior to
    recapitalization                                   (44,791)      (232,003)
  Merger costs charged to paid-in capital                             (29,583)
  Reduction of balance due to stockholder              (22,240)
  Reduction of long-term debt                          (41,939)       (42,070)
  Reduction of capital lease obligations               (61,025)       (62,909)
                                                     ---------      ---------

      Net cash used by financing activities           (265,465)      (302,472)
                                                     ---------      ---------

Increase in cash                                        72,464         37,323

Cash and cash equivalents

  Beginning of period                                   32,534          1,722
                                                     ---------      ---------

  End of period                                      $ 104,998      $  39,045
                                                     =========      =========

            See accompanying notes to condensed financial statements.

                                        5

<PAGE>



                             DIGITAL DICTATION, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1 - The Company

       Digital Dictation,  Inc. (the "Company" or "DDI") provides  transcription
services for various  medical  facilities.  The Company is  incorporated  in the
State of Delaware  and  commenced  operations  during  1989.  In June,  1995 Mr.
Richard  D.  Cameron,  now the  President  and Chief  Executive  Officer of DDI,
acquired  all of the  issued  and  outstanding  shares  of  common  stock of the
Company.  In connection  therewith,  Mr. Cameron  obtained a loan from Proactive
Partners,  L.P., a California limited partnership  ("Proactive"),  pursuant to a
Note Purchase  Agreement and Promissory Note. The terms of the Note provided for
payment through the transfer to Proactive of 50% of Mr.  Cameron's shares of DDI
in connection with a merger of DDI with and into a public shell company.

       On  October  10,  1995,  the  Company  was  acquired  by  SonoChem,  Inc,
("SonoChem")  an  inactive  public   corporation,   in  a  non-taxable   reverse
acquisition  pursuant to Section 368(a) of the Internal Revenue Code of 1986 and
Plan of Merger dated September 15, 1995.  SonoChem acquired all of the Company's
issued and outstanding  shares of common stock in exchange for 5,944,606  shares
of SonoChem's  $.01 par value common stock.  As a result of this  issuance,  the
previous  holders of the  Company's  common stock now hold 95% of the issued and
outstanding  shares of SonoChem.  Concurrent with this  transaction,  SonoChem's
name was changed to Digital Dictation, Inc.

       For financial reporting purposes,  this transaction has been treated as a
recapitalization of the Company, with the Company in the position of acquirer in
a reverse acquisition.  The historical financial statements prior to October 10,
1995 are those of the Company.  Pro forma financial statements for prior periods
are not presented  because a business  combination did not occur;  however,  pro
forma  presentation  of income tax expense for prior periods has been made.  The
recapitalization  of the Company's  authorized,  issued and  outstanding  common
stock  has  been  given  retroactive   effect  in  the  accompanying   financial
statements.


Note 2 - Presentation of Financial Statements

       The  accompanying  unaudited  condensed  financial  statements  have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-QSB and Item 310(b)
of Regulation S-B. Accordingly, these financial statements do not include all of
the  information  and  footnotes  required  by  generally  accepted   accounting
principles for complete financial statements. In the opinion of management,  all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair  presentation  have been  included.  Operating  results  for the three- and
nine-month  periods ended September 30, 1996 are not  necessarily  indicative of
the results  that may be expected for the year ending  December  31,  1996.  For
further  information,  reference is made to the financial  statements  and notes
thereto  included  in the  Company's  Annual  Report on Form 10-KSB for the year
ended December 31, 1995.


Note 3 - Property and Equipment

                                             September 30,     December 31,
                                                  1996             1995
                                             -----------       -----------

  Dictation and other equipment              $ 1,647,411       $ 1,479,526
  Furniture and fixtures                          67,671            65,860
  Leasehold improvements                          48,154            44,343
  Automobile                                      23,400            23,400
  Software                                        50,193            45,894
                                             -----------       -----------

                                               1,836,829         1,659,023

  Accumulated depreciation and amortization   (1,020,044)         (813,394)
                                             -----------       -----------

                                             $   816,785       $   845,629
                                             ===========       ===========

                                        6

<PAGE>




Note 4 - Due to Stockholder

       During May 1996 Mr. Cameron repaid,  on behalf of the Company,  unsecured
installment  notes totalling $36,035 (See Note 6.) The balance due of $13,795 at
September 30, 1996 is payable to Mr. Cameron in  installments  through  December
1996 with  interest  at 10% per annum.  This  repayment  schedule is on the same
terms as the original notes.


Note 5 - Borrowings under Line of Credit

       The Company has a $450,000  line of credit  available  from Merrill Lynch
Business Financial Services,  Inc. through June 30, 1997.  Borrowings under this
line of credit at September 30, 1996  amounted to $133,242.  Interest is payable
at prime plus one per cent per annum (9.2% at September 30,  1996).  The line of
credit is secured by all assets of the Company.

       Borrowings  under  this line of credit are  solely  for  working  capital
purposes. The related loan and security agreement requires the Company to submit
annual  reviewed  financial  statements  within  120 days  after the end of each
fiscal year, and unaudited interim financial statements within 45 days after the
end of each fiscal  quarter.  The Company is in compliance  with these reporting
covenants.


Note 6 - Long-term Debt

                                               September 30,     December 31,
                                                   1996             1995
                                               -----------       -----------


  Automobile installment loan, 10% interest,
     due December 1998                         $    14,451
  Unsecured installment notes, 10% interest,
     due December 1996, prepaid in May 1996
     (See Note 4)                                                $    56,390
                                               -----------       -----------

                                                    14,451            56,390

  Less current portion                              (5,785)          (56,390)
                                               -----------       -----------

                                               $     8,666       $    -
                                               ===========       ===========


Note 7 - Capital Leases

       The Company leases various equipment under long-term contracts.  Property
and  equipment  includes  the  following  amounts  for  leases  that  have  been
capitalized:

                                               September 30,     December 31,
                                                   1996             1995
                                               -----------       -----------

  Dictation and other equipment                $   198,564       $   464,303
  Allowance for depreciation                      (156,555)         (277,085)
                                               -----------       -----------

                                               $    42,009       $   187,218
                                               ===========       ===========



                                        7

<PAGE>



Note 8 - Income Taxes and Changes in Tax Status

       As a result of the reverse  acquisition  described  in Note 1, on October
10, 1995 the Company's  income tax status changed.  Effective  October 10, 1995,
the Company is required to pay income taxes on its earnings,  including deferred
taxes  existing at the time that the S  corporation  status was  terminated.  At
December 31, 1995, the Company had net operating loss carryforwards, expiring in
2010,  aggregating  approximately  $73,000  available to offset  future  taxable
income.

       For periods  through  October 9, 1995,  profits and losses of the Company
are  reported  in the  individual  income tax returns of the  stockholder  under
provisions of Subchapter S of the Internal Revenue Code. Periodic  distributions
have been made to the Company's former stockholder,  part of which represent the
estimated  income  tax  liability  on the S  corporation  earnings  which is the
responsibility of the individual stockholder.

       The  unaudited  pro  forma  adjustment  to  reflect  income  taxes in the
accompanying  statement of income is for information  purposes only and has been
calculated  based on the  estimated  effective  tax rate for 1995,  assuming the
Company had been subject to corporate income taxes.


Note 9 - Stock Option Plan

       In March 1996 the Board of Directors  authorized the  establishment  of a
non-qualified stock option plan for its full-time employees and consultants (the
"Employee  Plan") and reserved  800,000 shares of the Company's common stock for
issuance upon the exercise of options granted under this plan. The Employee Plan
incorporated  options  for the  purchase  of  525,000  shares of  common  stock,
exercisable at $.76 per share,  previously  granted to five  employees.  In June
1996 options for the purchase of an aggregate of 40,000  shares of common stock,
exercisable  at $1.00 per share,  were granted to two  consultants.  All options
granted  to date  under  the  Employee  Plan  vest at the rate of 25% per  year,
beginning one year after the date of grant,  and have a term of ten years. As of
September  30,  1996,  no  portion  of  these  outstanding  options  had  become
exercisable.  On October 15, 1996 options were granted to nine employees for the
purchase of an aggregate of 4,745 shares of common stock,  exercisable  at $1.00
per share.

       Also in March 1996 the Board of Directors authorized the establishment of
a  non-qualified  stock option plan for its directors (the "Director  Plan") and
reserved  500,000  shares of the  Company's  common stock for issuance  upon the
exercise of options granted under this plan. Initial grants were made of options
to  purchase  75,000  shares  of  common  stock  to each of the  Company's  four
directors.  These options vest at the rate of one-third  per year  beginning one
year after the date of grant, have an exercise price of $.76 per share, and have
a term of ten years.


Note 10 - Commitments

       Future  minimum lease  payments  under  capital  leases for equipment and
non-cancelable operating leases for office space, equipment and an automobile as
of September 30, 1996 are as follows:

   Year ending                          Capital       Operating
  September 30,                          Leases        Leases          Total
  ------------                         ---------      ---------      ----------
      1997                             $  37,913      $  92,395      $ 130,308
      1998                                34,458         94,016        128,474
      1999                                               82,576         82,576
                                       ---------      ---------      ---------

  Total minimum lease payments            72,371      $ 268,987      $ 341,358
                                                      =========      =========

  Amount representing interest            (7,534)
                                       ---------

  Present value of net minimum
    lease payments (including
    $30,920 classified as current)     $  64,837
                                       =========


                                        8

<PAGE>




       Rent expense under  operating  leases for the nine months ended September
30, 1996 and 1995 totalled $41,939 and $36,629, respectively.


Note 11 - Employee Benefits

       The Company  recently  established a 401(k) plan for its employees.  This
plan is funded  jointly by employee and employer  contributions.  Employees  are
allowed to contribute up to 15% of their salary subject to an overall limitation
and the Company  matches the amount  contributed by employees,  limited to 5% of
the employee's salary.  Employer  contributions to this plan for the nine months
ended September 30, 1996 totaled $650.

                                        9

<PAGE>



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


                           Description of the Business

       Digital  Dictation,  Inc.  ("DDI"  or  the  "Company")  provides  medical
transcription  services  to  institutional  health  care  providers,   including
hospitals,  health  maintenance  organizations  (HMO's),  and emergency medicine
facilities  located in various  parts of the  country.  The  Company's  business
involves  the  transcription  of medical  reports  which have been  dictated  by
physicians and other medical  professionals,  into computer readable form and/or
hard copy. The Company's emphasis is on the management and control of the entire
dictation and transcription process for its clients.

       Management believes that DDI is one of the few firms in its industry that
has successfully created a centralized,  automated transcription service able to
serve a  national  client  base  from a single  location.  DDI has  developed  a
proprietary  in-hospital  transcription  processing system that provides totally
automated processing of all incoming  transcriptions  through an electronic link
with the  Company's  centralized  processing  system in its Virginia  Operations
Center in Vienna,  Virginia.  The  Company  utilizes  high  caliber  independent
medical  transcriptionists  ("IMT's"),  working from their homes  throughout the
country, who are connected to the Virginia Operations Center via computer modem.

       The Company presently serves twenty-six major hospitals, six of which are
located in the Washington,  D.C.  metropolitan  area, five in Virginia,  four in
Pennsylvania,  four in  California,  two in New Jersey and Ohio, and one each in
Illinois,  Maryland and  Michigan.  These client  hospitals  include St.  John's
Regional  Medical  Center in Oxnard,  California,  Michael  Reese  Hospital  and
Medical Center in Chicago,  Illinois,  St. Francis Medical Center in Pittsburgh,
Pennsylvania,  Riverside  Hospital in Toledo,  Ohio,  the National Naval Medical
Center in Bethesda, Maryland, and the Arlington Hospital in Arlington, Virginia.

       Management  has  evaluated  opportunities  to expand the Company  through
acquisitions,  to expand its service offerings to include overflow transcription
services, to diversify its client base to serve physicians' offices, and to sell
or license its  technology to other  companies.  Management  strongly  believes,
however,  that the growth and profitability of the Company can best be optimized
by  continuing  to focus on DDI's core  business  and resist the  temptation  to
diversify into other areas.

       The Company is prepared to launch a major marketing  offensive,  aimed at
exposing and  educating  potential  clients to the benefits that can be realized
from a  technology-based,  quality-focused  company.  This  marketing  plan will
capitalize  on the  Company's  excellent  reputation  in the  industry  and will
utilize the willingness of existing  clients to testify as to the Company's high
level of service. The Company recently hired one regional manager in California,
and expects to hire additional  regional  managers in other parts of the country
during the next two years, to provide new business development and locally based
client support.


                         Employees and Transcriptionists

       As of September 30, 1996, the Company had fifteen full-time employees and
one  part-time  employee  in  its  principal   executive  offices  and  Virginia
Operations  Center,  in addition to the Regional  Marketing Manager in the Santa
Barbara,  California  office.  DDI  also has  arrangements  with  more  than 190
home-based  transcriptionists  who are either CMT-certified or in the process of
becoming certified.  Transcriptionists  work from their homes, setting their own
hours any time during the day or night. The transcriptionists are paid bi-weekly
in accordance with the amount of  transcription  they produce,  as opposed to an
hourly  rate.  The  Company  has   subcontract   agreements   with  all  of  the
transcriptionists  which specify the quality and delivery  requirements  and set
forth the method and rate for payment.


                                       10

<PAGE>




             Discussion of Operating Results and Financial Condition

       The Company has reported  average annual growth in revenues over the past
five  fiscal  years of 34%.  DDI  focuses on securing  long-term  contracts  for
full-service  (outsourced) medical  transcription  services rather than overflow
services from medical institutions. As a result, each client contract produces a
fairly consistent stream of revenue paid on a weekly basis.

       Total  revenue  from  all  contracts   each  week  (the  "run  rate")  is
management's key indicator of current financial performance.  The acquisition of
a new client results in an immediate  positive impact on the weekly run rate, as
revenue is increased by the full weekly amount of the new contract.  At the same
time,  the Company has been able to maintain  its existing  client  base.  Since
January 1, 1990,  the Company has added  twenty-two  new clients to its original
base of five,  while  losing  only  one  client,  an  emergency  facility  whose
transcription needs were taken over by its parent hospital.

       Annual revenues for the preceding five fiscal years were as follows:


                              For the year ended December 31,

                  1995         1994         1993         1992         1991
               ----------   ----------   ----------   ----------   ----------

  Revenues     $5,057,585   $3,838,076   $2,745,897   $2,354,043   $1,602,748


       The  Company's  record of adding new clients while  maintaining  existing
client loyalty has resulted in a stable and generally predictable annual revenue
growth rate.  As DDI continues to expand its market  nationally  and exploit its
technology and client support, management anticipates the ability to continue to
increase annual revenue in line with historic  trends,  although there can be no
assurances that such annual revenue growth rates will be sustained.

       Revenues of $1,825,326 for the third quarter of 1996 were 44% higher than
the revenues of $1,271,187  for the third quarter of 1995  primarily as a result
of additional hospitals being taken on as clients,  without any reduction in the
existing client base. For the first nine months of 1996,  revenues of $5,074,387
were 38% higher  than the  revenues of  $3,667,272  for the first nine months of
1995. As of September 30, 1995,  the Company was providing  services to nineteen
health  care  institutions,  while  currently,  DDI  is  providing  services  to
twenty-six  health  care  institutions.  The weekly  run rate was  approximately
$145,000 as of September 30, 1996 as compared to approximately $100,000 as of as
of September  30, 1995.  Management  now estimates  annual  revenues for 1996 in
excess of $6.9 million.

       Cost  of  services,  which  includes  all  costs  related  to the  IMT's,
telephone and associated equipment  depreciation,  represented 63.5% of revenues
in the third  quarter of 1996 as compared to 65.8% in the third quarter of 1995.
The  reduction in cost of services as a percentage  of revenues is  attributable
primarily to a reduction in  telecommunications  costs. At the beginning of this
year the Company  undertook an aggressive  program to reduce  telecommunications
costs by  decentralizing  certain  operations  and, as a result of that program,
costs of services have been reduced.

       General and administrative ("G&A") expenses consist primarily of salaries
and  benefits  of all  technical,  marketing,  operations  and  client  support,
administrative  and  executive   personnel,   occupancy  costs,   marketing  and
promotional costs, and other administrative expenses. G&A expenses were 25.8% of
revenues  in the third  quarter of 1996  versus  23.5% of  revenues in the third
quarter of 1995. G&A expenses  increased as a percentage of revenues relative to
1995  primarily  because  of  higher  recruiting  expenses  associated  with the
acquisition of additional transcription staff and systems personnel.

       Income taxes for periods prior to the October 10, 1995 Merger (see Note 1
to the accompanying  condensed financial  statements) were the responsibility of
the  stockholders  of the Company  under the  provisions  of Subchapter S of the
Internal Revenue Code.  Following the Merger, the Company's S corporation status
was  terminated,  and the  Company is now  required  to pay income  taxes on its
earnings,  including  deferred taxes existing at the time that the S corporation
status was terminated.

                                       11

<PAGE>



       At  September  30,  1996,  the  Company  held  cash  and  equivalents  of
approximately   $105,000,   along  with  trade   receivables  of   approximately
$1,033,000.  As necessary to meet temporary cash flow shortages, the Company may
draw upon a $450,000  line of credit which  remains  available  through June 30,
1997. Borrowings against the line of credit totalled  approximately  $133,000 as
of September 30, 1996.

       Given that the Company is expected to grow at a rate in excess of its net
profit  margin,  it is likely that the  Company  will need to secure a source of
additional  funding to finance such growth.  The Company is considering  seeking
additional equity capital as a potential source of funding.  Management believes
that  projected  increases in revenues will be sufficient to fund the associated
increases in operating costs of the Company.



                           PART II - OTHER INFORMATION



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits:

   2.1     Amended and Restated Certificate of Incorporation of SonoChem, Inc.
            (now known as Digital Dictation, Inc.) (1)
   2.2     Amended and Restated Bylaws of Digital Dictation, Inc. (f/k/a
            SonoChem, Inc.)(1)
   3       Specimen Certificate for Shares of DDI Common Stock(1)
   5       Digital Dictation, Inc. Shareholders' Agreement(1)
  12       Agreement and Plan of Merger By and Among Digital Dictation, Inc.,
            SonoChem, Inc. and Principal SonoChem Stockholders(1)

     (1)  Filed  previously  with  the  Company's   Registration   Statement
          #0-27052  on Form 10-SB  filed with the  Securities  and  Exchange
          Commission on October 23, 1995.


(b)      Reports on Form 8-K:       None.




                                   SIGNATURES


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


                                  DIGITAL DICTATION, INC.
                                  (Registrant)



                                        Richard D. Cameron
                               ---------------------------------
                         by:   Richard D. Cameron
                               Chief Executive Officer


November 14, 1996

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