UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549
                                
                            FORM 10-Q


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

          For the quarterly period ended March 31, 1998
                                
                               OR
                                
      [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934

           For the transition period from          to


                  Commission file number 0-9722
                                
                                
                          INTERGRAPH CORPORATION
     ------------------------------------------------------
     (Exact name of registrant as specified in its charter)
                                
      Delaware                                     63-0573222
-------------------------------      ------------------------------------
(State or other jurisdiction of      (I.R.S. Employer Identification No.)
incorporation or organization)

 Intergraph Corporation
  Huntsville, Alabama                              35894-0001
----------------------------------------           ----------
(Address of principal executive offices)           (Zip Code)

                            (205) 730-2000
                          ------------------
                          (Telephone Number)


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


   Common stock, par value  $.10 per share:  48,276,498 shares
                outstanding as of March 31, 1998



                                
                                
                                
                     INTERGRAPH CORPORATION
                           FORM 10-Q *
                         March 31, 1998
                                
                              INDEX



                                                        Page No.
                                                        --------
PART I.   FINANCIAL INFORMATION
          ---------------------

   Item 1.  Financial Statements
            --------------------        
                    
            Consolidated Balance Sheets at March 31, 1998
              and December 31, 1997                         2

            Consolidated Statements of Operations for 
              the quarters ended March 31,1998 and 1997     3

            Consolidated Statements of Cash Flows for 
              the quarters ended March 31,1998 and 1997     4

            Notes to Consolidated Financial Statements    5 - 8

   Item 2.  Management's Discussion and Analysis of Financial
            -------------------------------------------------
            Condition and Results of Operations           9 - 15
            -----------------------------------

PART II.  OTHER INFORMATION
          -----------------

   Item 1.  Legal Proceedings                               16
            -----------------

   Item 6.  Exhibits and Reports on Form 8-K                16
            --------------------------------

SIGNATURES                                                  17






*  Information contained in this Form 10-Q includes statements
that are forward looking as defined in Section 21-E of the
Securities Exchange Act of 1934.  Actual results may differ
materially from those projected in the forward looking
statements.  Information concerning factors that could cause
actual results to differ materially from those in the forward
looking statements is described in the Company's filings with
the Securities Exchange Commission, including its most recent
Annual Report on Form 10-K and this Form 10-Q.



PART I.   FINANCIAL INFORMATION
          ---------------------
                                
             INTERGRAPH CORPORATION AND SUBSIDIARIES
                   CONSOLIDATED BALANCE SHEETS
                           (Unaudited)

---------------------------------------------------------------------------
                                                 March 31,    December 31,
                                                   1998          1997
---------------------------------------------------------------------------
(In thousands except share and per share amounts)

Assets
  Cash and cash equivalents                      $ 96,104       $ 46,645
  Accounts receivable, net                        292,283        324,654
  Inventories                                     107,338        105,032
  Other current assets                             29,814         25,693
---------------------------------------------------------------------------
      Total current assets                        525,539        502,024

  Investments in affiliates                        13,959         14,776
  Other assets                                     67,302         53,566
  Property, plant, and equipment, net             143,636        150,623
---------------------------------------------------------------------------
      Total Assets                               $750,436       $720,989
===========================================================================

Liabilities and Shareholders' Equity
  Trade accounts payable                         $ 49,493       $ 60,945
  Accrued compensation                             49,267         48,330
  Other accrued expenses                           74,436         71,126
  Billings in excess of sales                      68,316         66,680
  Short-term debt and current maturities 
    of long-term debt                              36,035         50,409
---------------------------------------------------------------------------
      Total current liabilities                   277,547        297,490

  Deferred income taxes                               411            460
  Long-term debt                                   53,348         54,256
---------------------------------------------------------------------------
      Total liabilities                           331,306        352,206
---------------------------------------------------------------------------

  Shareholders' equity:
   Common stock, par value $.10 per share -
     100,000,000 shares authorized;
     57,361,362 shares issued                       5,736          5,736
   Additional paid-in capital                     225,680        226,362
   Retained earnings                              318,884        269,442
   Accumulated other comprehensive income -
      cumulative translation adjustment             1,234          1,090
---------------------------------------------------------------------------
                                                  551,534        502,630
   Less - cost of 9,084,864 treasury shares at
     March 31, 1998 and 9,183,845 treasury 
     shares at December 31, 1997                 (132,404)      (133,847)
---------------------------------------------------------------------------
      Total shareholders' equity                  419,130        368,783
---------------------------------------------------------------------------
      Total Liabilities and Shareholders' Equity $750,436       $720,989
===========================================================================

The accompanying notes are an integral part of these consolidated 
financial statements.
                                
                                
             INTERGRAPH CORPORATION AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS
                           (Unaudited)
                                
---------------------------------------------------------------------------
Quarter Ended March 31,                              1998          1997
---------------------------------------------------------------------------
(In thousands except per share amounts)

Revenues
 Systems                                         $168,383      $169,043
 Maintenance and services                          77,435        83,715
---------------------------------------------------------------------------
   Total revenues                                 245,818       252,758
---------------------------------------------------------------------------

Cost of revenues
 Systems                                          120,988       110,238
 Maintenance and services                          46,907        54,910
---------------------------------------------------------------------------
   Total cost of revenues                         167,895       165,148
---------------------------------------------------------------------------

   Gross profit                                    77,923        87,610

Product development                                23,700        25,959
Sales and marketing                                59,938        59,703
General and administrative                         26,534        25,057
Nonrecurring charges                               14,761         1,095
---------------------------------------------------------------------------

   Loss from operations                           (47,010)      (24,204)

Gain on sale of assets                            102,767           ---
Interest expense                                  ( 2,189)      ( 1,235)
Other income (expense) - net                      (   626)      (   850)
---------------------------------------------------------------------------

   Income (loss) before income taxes               52,942       (26,289)

Income tax expense                                  3,500           ---
---------------------------------------------------------------------------

   Net income (loss)                             $ 49,442      $(26,289)
===========================================================================

   Net income (loss) per share - basic           $   1.03      $(   .55)
                               - diluted         $   1.02      $(   .55)
===========================================================================

Weighted average shares outstanding - basic        48,219        47,758
                                    - diluted      48,335        47,758
===========================================================================

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


             INTERGRAPH CORPORATION AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Unaudited)

---------------------------------------------------------------------------
Quarter Ended March 31,                              1998          1997
---------------------------------------------------------------------------
(In thousands)

Cash Provided By (Used For):
Operating Activities:
  Net income (loss)                             $ 49,442       $(26,289)
  Adjustments to reconcile net income (loss) 
  to net cash provided by (used for) 
  operating activities:
   Depreciation and amortization                  13,964         15,962
   Gain on sale of assets                       (102,767)           ---
   Noncash portion of nonrecurring charges        13,978            ---
   Net changes in current assets and liabilities  20,373         12,515
---------------------------------------------------------------------------
   Net cash provided by (used for) 
   operating activities                         (  5,010)         2,188
---------------------------------------------------------------------------

Investing Activities:
  Purchases of property, plant, and equipment   (  3,668)       ( 4,995)
  Capitalized software development costs        (  2,465)       ( 2,111)
  Proceeds from sale of assets                   102,000            ---
  Purchase of Zydex software rights             ( 26,292)           ---
  Other                                              120        (   168)
---------------------------------------------------------------------------
   Net cash provided by (used for) 
   investing activities                           69,695        ( 7,274)
---------------------------------------------------------------------------

Financing Activities:
  Gross borrowings                                   ---         28,396
  Debt repayment                                ( 15,215)       (21,214)
  Proceeds of employee stock purchases and 
    exercise of stock options                        761            841
---------------------------------------------------------------------------
   Net cash provided by (used for) 
   financing activities                         ( 14,454)         8,023
---------------------------------------------------------------------------
Effect of exchange rate changes on cash         (    772)           970
---------------------------------------------------------------------------
Net increase in cash and cash equivalents         49,459          3,907
Cash and cash equivalents at beginning of period  46,645         50,674
---------------------------------------------------------------------------
Cash and cash equivalents at end of period      $ 96,104       $ 54,581
===========================================================================

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

             INTERGRAPH CORPORATION AND SUBSIDIARIES
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE  1: In  the opinion of management, the accompanying unaudited
         consolidated    financial    statements    contain    all
         adjustments   (consisting  of  normal  recurring   items)
         necessary  for  a  fair presentation of results  for  the
         interim periods presented.

         Certain   reclassifications  have  been   made   to   the
         previously    reported   consolidated    statements    of
         operations and cash flows for the quarter ended March 31,  
         1997  to  provide  comparability  with  the  current
         period presentation.

NOTE  2: Litigation.   As further described in the Company's  Form
         10-K  filing  for its year ended December 31,  1997,  the
         Company  has  risks  related to  certain  litigation,  in
         particular  that  with  Intel  Corporation  and   Bentley
         Systems,  Inc.  See Management's Discussion and  Analysis
         of  Financial Condition and Results of Operations in this
         Form  10-Q  for  a discussion of further developments  in
         first quarter 1998.

NOTE  3: Zydex.   On  January  15, 1998, the Company's  litigation
         with  Zydex, Inc. was settled, resulting in the Company's
         purchase  of  100%  of  the common  stock  of  Zydex  for
         $26,300,000  with  $16,000,000 paid  at  closing  of  the
         agreement  and  the remaining amount to  be  paid  in  15
         equal  monthly  installments,  including  interest.    In
         March,  the Company prepaid in full the remaining  amount
         payable  to  Zydex.  The former owner  of  Zydex  retains
         certain rights to use, but not sell or sublicense,  plant
         design  system application software ("PDS") for a  period
         of  15  years following the date of closing.  In addition
         to  the  purchase price of common stock, the Company  was
         required  to  pay additional royalties to  Zydex  in  the
         amount of $1,000,000 at closing of the agreement.   These
         royalties were included in the Company's 1997 results  of
         operations  and  therefore did not affect  first  quarter
         1998  results.  The first quarter cash payments to  Zydex
         were  funded  by  the  Company's primary  lender  and  by
         proceeds  from the sale of the Company's Solid  Edge  and
         Engineering   Modeling   System   product   lines.    See
         Management's   Discussion  and  Analysis   of   Financial
         Condition  and  Results of Operations in this  Form  10-Q
         for a discussion of the Company's liquidity.

         The  Company has capitalized the $26,300,000 cost of  the
         PDS  software  rights  and  is  amortizing  it  over  its
         estimated  useful  life  of  seven  years.   This   cost,
         approximately $25,400,000 at March 31, 1998, is  included
         in  "Other  assets"  in the March 31,  1998  consolidated
         balance sheet.

NOTE  4: Inventories  are stated at the lower of average  cost  or
         market and are summarized as follows:
       
         ---------------------------------------------------------
                                  March 31,        December 31,
                                    1998               1997
         ---------------------------------------------------------
         (In thousands)
       
         Raw materials           $ 29,180           $ 35,799
         Work-in-process           38,806             37,357
         Finished goods            19,564             11,760
         Service spares            19,788             20,116
         ---------------------------------------------------------
         Totals                  $107,338           $105,032
         =========================================================

NOTE  5: Property,  plant, and equipment - net includes allowances
         for  depreciation  of  $277,307,000 and  $289,775,000  at
         March 31, 1998 and December 31, 1997, respectively.

NOTE  6: In   first   quarter   1998,  the  Company   closed   its
         transaction with Electronic Data Systems Corporation  and
         its  Unigraphics Solutions, Inc. subsidiary, in which the
         Company   sold   the  assets  of  its  Solid   Edge   and
         Engineering   Modeling   System   product    lines    for
         $105,000,000  in cash.  The Company recorded  a  gain  on
         this  transaction  of  $102,767,000  ($2.13  per  share).
         This gain is included in "Gain on sale of assets" in  the
         consolidated  statement  of operations  for  the  quarter
         ended March 31, 1998.

NOTE  7: In  first  quarter  1998,  the  Company  reorganized  its
         European  operations to reflect the organization  of  the
         Company  into  four  distinct  operating  units  and   to
         further  align operating expense with revenue  levels  in
         that  region.   The  cost  of  this  reorganization   was
         approximately   $5,400,000,   primarily   for    employee
         severance  pay and related costs.  This cost is  included
         in  "Nonrecurring charges" in the consolidated  statement
         of  operations  for  the quarter ended  March  31,  1998.
         Approximately 70 positions were eliminated in  the  sales
         and  marketing, general and administrative, and pre-  and
         post-sales  support areas.  The cash  outlay  during  the
         quarter  related  to  this charge approximated  $800,000.
         The  remaining  costs are expected to be  paid  over  the
         remainder of the year and are included in "Other  accrued
         expenses"  in  the  March 31, 1998  consolidated  balance
         sheet.     The    Company    estimates    the    European
         reorganization   will  result  in   annual   savings   of
         approximately $5,200,000.

         The   remainder   of  first  quarter  1998   nonrecurring
         operating  charges  consists  of  write-offs  of  certain
         intangible assets, primarily capitalized business  system
         software, goodwill recorded on a prior acquisition  of  a
         domestic  subsidiary, and a noncompete agreement  with  a
         former  third party consultant.  Prior to the  write-off,
         amortization   of   these   intangibles   accounted   for
         approximately   $3,400,000  of   the   Company's   annual
         operating expenses.

NOTE  8: In  first  quarter 1997, the Company sold an unprofitable
         business  unit  to  a  third party and  discontinued  the
         operations of a second unprofitable business unit.   This
         second  business  unit was sold to a third  party  during
         second  quarter 1997.  The total loss on these sales  was
         $8,300,000,  of  which $7,200,000 ($.15  per  share)  had
         been  recorded as an asset revaluation in fourth  quarter
         1996.   The remaining loss of $1,100,000 ($.02 per share)
         is    included   in   "Nonrecurring   charges"   in   the
         consolidated  statement of operations for  first  quarter
         1997.  Revenues  and losses of these two  business  units
         totaled  $24,000,000 and $16,000,000,  respectively,  for
         the  full  year  1996.   Assets  of  the  business  units
         totaled  $14,000,000  at  December  31,  1996.   The  two
         business  units  did not have a material  effect  on  the
         Company's  results of operations for the period  in  1997
         prior to their disposal.

NOTE  9: Supplementary  cash  flow information  is  summarized  as
         follows:

         Changes  in  current assets and liabilities, net  of  the
         effects  of  business divestitures,  in  reconciling  net
         loss to net cash provided by operations are as follows:

         ---------------------------------------------------------
                            Cash Provided By (Used For) Operations
         Quarter Ended March 31,             1998           1997
         ---------------------------------------------------------
         (In thousands)

         (Increase) decrease in:
           Accounts receivable, net        $32,790        $22,514
           Inventories                     ( 1,835)        (4,503)
           Other current assets            (   656)        (1,758)
         Increase (decrease) in:
           Trade accounts payable          (11,353)        (1,755)
           Accrued  compensation and 
             other  accrued  expenses      (   373)        (  771)
           Billings in excess of sales       1,800         (1,212)
         ---------------------------------------------------------
         Net changes in current assets 
         and liabilities                   $20,373        $12,515
         =========================================================

         Investing  and  financing transactions in  first  quarter
         1997  that  did not require cash included the sale  of  a
         noncore  business unit of the Company in part  for  notes
         receivable and future royalties totaling $3,200,000,  and
         a  $3,590,000 unfavorable mark-to-market adjustment of an
         investment in an affiliated company.

NOTE 10: Basic income (loss) per share is computed by dividing
         net  income  (loss)  by the weighted  average  number  of
         common  shares  outstanding.  Diluted income  (loss)  per
         share  is computed by dividing net income (loss)  by  the
         weighted  average number of common and equivalent  common
         shares  outstanding.   Employee  stock  options  are  the
         Company's only common stock equivalent.

NOTE 11: Effective  January  1,  1998,  the  Company  adopted
         Statement  of  Financial Accounting  Standards  No.  130,
         Reporting    Comprehensive   Income.    This    Statement
         establishes standards for reporting comprehensive  income
         and  its  components.  Under this Statement, all nonowner
         changes  in equity during a period are to be reported  as
         a  component  of  comprehensive  income.   Such  nonowner
         equity   items   include  foreign  currency   translation
         adjustments,  minimum pension liability adjustments,  and
         unrealized  gains  and losses on certain  investments  in
         debt  and equity securities.  The Statement requires that
         the accumulated balance of other comprehensive income  be
         displayed   separately   from   retained   earnings   and
         additional paid in capital in the equity section  of  the
         Company's statement of financial position.

         During  the  first  quarters  of  1998  and  1997,  total
         comprehensive  income  (loss)  totaled  $49,586,000   and
         ($35,284,000), respectively.  Comprehensive income (loss)
         differs   from  net income (loss) due to foreign currency
         translation   adjustments  and,   for   1997   only,   an
         unrealized holding loss on securities of an affiliate.

NOTE 12: Effective  January  1,  1998,  the  Company  adopted
         American   Institute  of  Certified  Public   Accountants
         Statement    of    Position   97-2,   Software    Revenue
         Recognition.   The Statement requires each element  of  a
         software  sale  arrangement to be  separately  identified
         and  accounted  for based on the relative fair  value  of
         each  element.   Revenue  cannot  be  recognized  on  any
         element  of the sale arrangement if undelivered  elements
         are   essential   to  functionality  of   the   delivered
         elements.  The Statement replaces the previous method  of
         software  revenue recognition, under which a  distinction
         was  made  between  significant and  insignificant  post-
         shipment  obligations  for revenue recognition  purposes.
         Adoption  of  this  new  accounting  standard   did   not
         significantly  affect the Company's  first  quarter  1998
         results  of  operations  nor is it  expected  to  have  a
         significant  impact on results for the remainder  of  the
         year  since  the  Company's revenue recognition  policies
         have  historically  been in substantial  compliance  with
         the practices required by the new pronouncement.

NOTE 13: On April 3, 1998, the Company sold the assets of its
         printed   circuit   board   fabrication   facility    for
         $16,000,000  in  cash.  The gain on this  transaction  is
         estimated  at  $8,000,000, and will be  recorded  in  the
         second  quarter.   The Company has begun outsourcing  its
         printed  circuit  board needs, and does not  expect  this
         operational  change to materially impact its  results  of
         operations in the remainder of 1998.


             INTERGRAPH CORPORATION AND SUBSIDIARIES
             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS

SUMMARY
-------

Earnings.  In first quarter 1998, the Company earned net  income
of  $1.02  per share on revenues of $245.8 million, including  a
$102.8  million ($2.13 per share) gain on the sale of its  Solid
Edge  and Engineering Modeling System product lines and a  $14.8
million  ($.31  per  share)  charge for  nonrecurring  operating
expenses, primarily for employee termination costs and write-off
of  certain intangible assets.  The first quarter 1997 loss  was
$.55  per  share on revenues of $252.8 million.   Excluding  the
nonrecurring  expenses,  the  first  quarter  1998   loss   from
operations  was $.67 per share versus a loss of $.48  per  share
for  the  first  quarter of 1997.  This increased  loss  results
primarily  from  a  6.7 point decline in systems  gross  margin,
while  the Company's recent operating losses in general are  the
result of stagnant revenues and declining margins, both of which
are  primarily the result of the Company's ongoing dispute  with
Intel Corporation, and operating expenses that are too high  for
the  level  of  revenue being generated  by  the  Company.   The
Company's dispute with Intel is fully described in its Form 10-K
annual  report for the year ended December 31, 1997 and  updated
in this report.

Nonrecurring  Charges.   In  first  quarter  1998,  the  Company
reorganized  its European operations to reflect the organization
of the Company into four distinct operating units and to further
align operating expense with revenue levels in that region.  The
cost  of  this  reorganization was approximately  $5.4  million,
primarily  for employee severance pay and related  costs.   This
cost  is  included in "Nonrecurring charges" in the consolidated
statement  of operations for the quarter ended March  31,  1998.
Approximately  70  positions were eliminated in  the  sales  and
marketing,  general and administrative, and pre- and  post-sales
support  areas.  The cash outlay during the quarter  related  to
this  charge approximated $.8 million.  The remaining costs  are
expected  to  be  paid over the remainder of the  year  and  are
included  in  "Other  accrued expenses" in the  March  31,  1998
consolidated balance sheet.  The Company estimates the  European
reorganization  will result in annual savings  of  approximately
$5.2 million.

The  remainder  of  first  quarter 1998  nonrecurring  operating
charges  consists  of write-offs of certain  intangible  assets,
primarily   capitalized  business  system   software,   goodwill
recorded on a prior acquisition of a domestic subsidiary, and  a
noncompete  agreement  with  a former  third  party  consultant.
Prior  to  the  write-off,  amortization  of  these  intangibles
accounted for approximately $3.4 million of the Company's annual
operating expenses.

In first quarter 1997, the Company sold an unprofitable business
unit  to  a  third  party and discontinued the operations  of  a
second  unprofitable business unit.  This second  business  unit
was sold to a third party during second quarter 1997.  The total
loss  on  these  sales was $8.3 million, of which  $7.2  million
($.15  per  share) had been recorded as an asset revaluation  in
fourth  quarter 1996.  The remaining loss of $1.1 million  ($.02
per   share)  is  included  in  "Nonrecurring  charges"  in  the
consolidated  statement of operations for  first  quarter  1997.
Revenues  and  losses of these two business  units  totaled  $24
million  and $16 million, respectively, for the full year  1996.
Assets of the business units totaled $14 million at December 31,
1996.  The two business units did not have a material effect  on
the Company's results of operations for the period in 1997 prior
to their disposal.

Litigation.   As  further described in the Company's  Form  10-K
filing  for  its year ended December 31, 1997, the  Company  has
ongoing litigation, and its business is subject to certain risks
and  uncertainties.  Significant litigation developments  during
first quarter 1998 are discussed below.

Intel.   On  April  10, 1998, in response to Intergraph's  legal
action  filed  on  November 21, 1997, the U.S.  District  Court,
Northern   District  of  Alabama,  Northeastern  Division   (the
"Alabama  Court") ruled in favor of Intergraph and ordered  that
Intel,  the supplier of all the Company's microprocessor supply,
be  preliminarily enjoined from terminating Intergraph's  rights
as a strategic customer in current and future Intel programs, or
from  otherwise  taking any action adversely  affecting  Intel's
business relationship with Intergraph or Intergraph's ability to
design,  develop, produce, manufacture, market or sell  products
incorporating,  or  based upon, Intel products  or  information.
The  Court's ruling requires that Intel carry out business  with
Intergraph  under the same terms and conditions, with  the  same
rights,  privileges, and opportunities, as Intel makes available
to  Intergraph's competitors who are also strategic customers of
Intel.   In response to the Alabama Court's decision,  on  April
16,  1998,  Intel filed a Notice of Appeal in the United  States
Court  of  Appeals for the Federal Circuit.  The Court  has  not
entered a ruling on this request.

The  Company  has  other ongoing legal actions with  Intel,  and
Intel   has  filed  retaliatory  actions  against  the  Company.
Reference  should  be  made to the Company's  Form  10-K  annual
report  for  the  year ended December 31, 1997  for  a  complete
description  of  the background of and basis for these  actions,
and  for  a  description of the effects of this  dispute,  which
include lost revenues, uncertain supply, and legal expenses,  on
the operations of the Company in 1997 and continuing through the
first  quarter  of 1998.  The Company is vigorously  prosecuting
its positions and believes it will prevail in these matters, but
at  present is unable to predict the outcome of its dispute with
Intel.   The Company does expect, however, that adverse  effects
on  its  operations  will continue at least through  the  second
quarter of 1998.

Zydex.   On  January  15,  1998, the Company's  litigation  with
Zydex, Inc. was settled, resulting in the Company's purchase  of
100%  of  the common stock of Zydex for $26.3 million, with  $16
million  paid  at  closing of the agreement  and  the  remaining
amount  to  be paid in 15 equal monthly installments,  including
interest.   In March, the Company prepaid in full the  remaining
amount  payable  to Zydex.  The former owner  of  Zydex  retains
certain rights to use, but not sell or sublicense, plant  design
system  application software ("PDS") for a period  of  15  years
following  the  date of closing.  In addition  to  the  purchase
price  of  the  common stock, the Company was  required  to  pay
additional  royalties to Zydex in the amount of  $1  million  at
closing of the agreement.  These royalties were included in  the
Company's  1997  results of operations  and  therefore  did  not
affect  first  quarter  1998 results.  The  first  quarter  cash
payments  to  Zydex were funded by the Company's primary  lender
and  by  proceeds from the sale of the Company's Solid Edge  and
Engineering  Modeling System product lines.  See "Liquidity  and
Capital Resources" section below for discussion in the Company's
liquidity.

PDS is currently the Company's highest volume software offering.
Sales  of  PDS software and maintenance totaled $48 million  for
full  year 1997.  Total process and building solutions  industry
sales  were  $101  million  for full year  1997,  including  PDS
software  and  maintenance, horizontal products and maintenance,
and   training  and  consulting  revenues.   The   Company   has
capitalized  the  $26.3 million cost of the PDS software  rights
and  is  amortizing it over its estimated useful life  of  seven
years.  This cost is included in "Other assets" on the March 31,
1998  consolidated  balance sheet.   The  Company  believes  its
settlement with Zydex will improve its annual operating  results
by  an  estimated $5 million, derived primarily from savings  in
royalty costs paid to the former owner of Zydex.

Remainder  of  the Year.  The Company expects that the  industry
will  continue  to  be characterized by higher  performance  and
lower  priced  products, intense competition,  rapidly  changing
technologies,  shorter  product  cycles,  and  development   and
support  of  software  standards that result  in  less  specific
hardware  and software dependencies by customers.   The  Company
believes  that  its  operating system and hardware  architecture
strategies  are  the  correct choices,  that  the  industry  has
accepted  Windows  NT,  and  that Windows  NT  is  becoming  the
dominant  operating system in the majority of markets served  by
the  Company.  However, competing operating systems and products
are  available  in the market, and competitors  of  the  Company
offer  or  are adopting Windows NT and Intel as the systems  for
their  products.  Improvement in the Company's operating results
will  depend  on  its ability to accurately anticipate  customer
requirements  and  technological  trends  and  to  rapidly   and
continuously  develop  and  deliver new  hardware  and  software
products   that   are  competitively  priced,   offer   enhanced
performance,    and    meet    customers'    requirements    for
standardization and interoperability, and will further depend on
its  ability to successfully implement its strategic  direction.
To   achieve  and  maintain  profitability,  the  Company   must
substantially  increase sales volume and/or  further  align  its
operating  expenses with the level of  revenue and gross  margin
being generated.


ORDERS/REVENUES
---------------

Orders.  First quarter systems orders totaled $156.0 million,  a
decline   of  2%  from  first  quarter  1997.   Both  U.S.   and
international orders declined by 2%.  A 12% decline in  European
orders  due to strengthening of the U.S. dollar from  its  prior
year  level was only partially offset by increases in all  other
international regions, most notably Asia.  Order levels  in  all
regions  were  adversely  affected by the  previously  described
dispute with Intel.

Revenues.   Total  revenues for first quarter 1998  were  $245.8
million,  down approximately 3% from first quarter 1997.   Sales
outside  the  U.S.  represented 52% of total revenues  in  first
quarter  1998, down from 55% for first quarter 1997 and 53%  for
the  full  year 1997.  Strengthening of the U.S. dollar  in  the
Company's  international markets, particularly  Europe,  reduced
the  reported  level  of U.S. dollar revenues  for  the  period.
European  revenues were 31% of total revenues for first  quarter
1998,  compared to 35% for first quarter 1997 and  32%  for  the
full year 1997.

Systems.   Systems revenue for first quarter was $168.4 million,
flat  with  the  prior  year period.  Growth  in  the  Company's
hardware  business  did not materialize due to  effects  of  the
ongoing  litigation with Intel.  Resulting delays in new product
releases have resulted in lost sales for the Company as well  as
increased  discounting on available products, severely impacting
the  Company's systems revenues and margins.  U.S. revenues were
up  10%, due primarily to growth in the Company's Public  Safety
business.  During the second half of 1997 and the first  quarter
of    1998,   Public   Safety   secured   several   large   U.S.
installations,  resulting  in  a  significant  increase  in  the
subsidiary's   revenue  base.   Federal  government   and   U.S.
commercial  revenues  were  both up  slightly  from  prior  year
levels.   International systems revenues were down approximately
10%  from first quarter 1997.  European revenues were down  over
18%  due to strengthening of the U.S. dollar from the prior year
period  and  factors associated with the Intel lawsuit  and  the
sale of the Company's Solid Edge and Engineering Modeling System
product lines.

Hardware  revenues  for first quarter 1998 were  flat  with  the
prior year period.  Unit sales of workstations and servers  were
up  17%  from first quarter 1997, while workstation  and  server
revenues declined by 7% due to a 20% decline in the average  per
unit  selling price.  Price competition continues to  erode  per
unit  selling  prices, and volumes have been held  down  by  the
actions   of  Intel.   Sales  of  peripheral  hardware  products
increased  by  14% from the prior year period due  primarily  to
increased  storage device revenues and upgrades  to  Intel-based
hardware.   Software revenues declined 12% from the  prior  year
level,   due   primarily  to  declines   in   MicroStation   and
infrastructure products, partially offset by a 17%  increase  in
plant  design revenues.  Plant design is currently the Company's
highest  volume  software offering, representing  26%  of  total
software  sales  for the first quarter.  Sales of  Windows-based
software   represented  approximately  89%  of  total   software
revenues in the first quarter of 1998, up from approximately 80%
in the first quarter of 1997.

Maintenance  and  Services.  Maintenance  and  services  revenue
consists  of  revenues from maintenance of Company  systems  and
from   Company   provided  services,  primarily   training   and
consulting.   These forms of revenue totaled $77.4  million  for
first  quarter  1998, down 8% from the same prior  year  period.
Maintenance revenues totaled $53.3 million for the quarter, down
15%.  The trend in the industry toward lower priced products and
longer  warranty  periods  has resulted  in  reduced  levels  of
maintenance  revenue, and the Company believes this  trend  will
continue   in   the   future.    Services   revenue   represents
approximately 10% of total revenues and has increased  16%  from
the  same  prior  year period.  Growth in services  revenue  has
acted  to  partially offset the decline in maintenance  revenue.
The  Company  is  endeavoring  to  increase  revenues  from  its
services business.  Such revenues, however, produce lower  gross
margins than maintenance revenues.


GROSS MARGIN
------------

The  Company's  total gross margin was 31.7% for  first  quarter
1998, down 3 points from first quarter 1997 and 3.9 points  from
the full year 1997 level.

Systems  margin  was 28.1%, down 6.7 points from  first  quarter
1997  and  down  6.5 points from the full year  1997  level  due
primarily to unfavorable manufacturing variances resulting  from
sales  volume that was below Company expectations.  In addition,
systems  margins continue to be negatively impacted by a  higher
hardware  content  in the product mix and strengthening  of  the
U.S. dollar in international markets, primarily Europe.

In general, the Company's systems margin may be lowered by price
competition,  a  higher hardware content in the product  mix,  a
stronger  U.S. dollar in international markets, the  effects  of
technological changes on the value of existing inventories,  and
a  higher  mix  of  federal government  sales,  which  generally
produce  lower  margins than commercial sales.  Systems  margins
may  be  improved by higher software content in the  product,  a
weaker  dollar  in  international  markets,  a  higher  mix   of
international  systems  sales  to  total  systems   sales,   and
reductions in prices of component parts, which generally tend to
decline  over  time in the industry.  The Company is  unable  to
predict  the  effects that many of these factors may  have,  but
expects  continuing pressure on its systems margin due primarily
to industry price competition.

Maintenance  and  services margin for  first  quarter  1998  was
39.4%,  up 5 points from first quarter 1997 and 1.4 points  from
the  full  year  1997  level  due  to  a  decline  in  costs  of
maintenance   without  a  proportional  decline  in  maintenance
revenue.   The Company continues to closely monitor  maintenance
and  services  cost  and has taken certain  measures,  including
reductions in headcount, to align cost with the current  revenue
level.   The  Company believes that the trend  in  the  industry
toward  lower  priced products and longer warranty periods  will
continue  to reduce its maintenance revenue, which will pressure
maintenance   margin  in  the  absence  of  corresponding   cost
reductions.


OPERATING EXPENSES
------------------

Operating  expenses for first quarter 1998 were  flat  with  the
comparable  prior  year  period.  Total employee  headcount  has
declined 9% from that same period.  Product development  expense
declined  9% from first quarter 1997 due primarily to a  decline
in  labor  and related overhead expenses and in materials  cost.
Headcount in the product development area has declined  7%  from
the  prior  year  period.   General and  administrative  expense
increased  6%  from  the  prior year period  as  the  result  of
increased legal fees (see "Litigation" discussion preceding) and
provisions for bad debts.  Sales and marketing expense was  flat
with the prior year level.


NONOPERATING INCOME AND EXPENSE
-------------------------------

Interest  expense  was  $2.2 million  for  first  quarter  1998,
compared  to $1.2 million for first quarter 1997.  The Company's
average  outstanding  debt has increased in  comparison  to  the
first  quarter  of  1997 due primarily to borrowings  under  the
Company's   revolving  credit  facility  and  term  loan.    See
"Liquidity and Capital Resources" below for a discussion of  the
Company's current financing arrangements.

On  March  2,  1998,  the Company closed  its  transaction  with
Electronic   Data   Systems  Corporation  and  its   Unigraphics
Solutions, Inc. subsidiary, in which the Company sold the assets
of  its Solid Edge and Engineering Modeling System product lines
for  $105 million in cash.  The Company recorded a gain on  this
transaction of $102.8 million.  This gain is included  in  "Gain
on  sale  of assets" in the consolidated statement of operations
for  the  quarter ended March 31, 1998.  Full year 1997 revenues
and  operating loss for the product lines were $35.2 million and
$4.1  million, respectively.  The Company estimates the sale  of
this  business  will  result  in  an  improvement  in  its  1998
operating  results  of approximately $5 million,  excluding  the
impact of the gain on the sale.

"Other income (expense) - net" in the consolidated statements of
operations  consists  primarily  of  interest  income,   foreign
exchange  losses, equity in the earnings of investee  companies,
and   other  miscellaneous  items  of  nonoperating  income  and
expense.


IMPACT OF CURRENCY FLUCTUATIONS AND CURRENCY RISK MANAGEMENT
------------------------------------------------------------

Fluctuations  in  the value of the U.S. dollar in  international
markets  can have a significant impact on the Company's  results
of  operations.  For the first quarter of 1998 and the full year
1997,  approximately 52% of the Company's revenues were  derived
from  customers  outside  the United States,  primarily  through
subsidiary operations.  Most subsidiaries sell to customers  and
incur and pay operating expenses in local currency.  These local
currency  revenues and expenses are translated  to  dollars  for
U.S.  reporting purposes.  A stronger U.S. dollar will  decrease
the  level of reported U.S. dollar orders and revenues, decrease
the  dollar gross margin, and decrease reported dollar operating
expenses  of  the  international subsidiaries.   For  the  first
quarter  of  1998, the U.S. dollar strengthened on average  from
its  first  quarter 1997 level, which decreased reported  dollar
revenues, orders, and gross margin, but also decreased  reported
dollar  operating  expenses  in comparison  to  the  prior  year
period.   The Company estimates that this strengthening  of  the
U.S.  dollar  in  its international markets,  primarily  Europe,
adversely  affected its first quarter results of  operations  by
approximately  $.05 per share.  Such currency  effects  did  not
materially  affect the Company's results of operations  for  the
first quarter of 1997.

The  Company conducts business in all major markets  outside  of
the  U.S.,  but  the most significant of these  operations  with
respect  to  currency  risk  are located  in  Europe  and  Asia.
Primarily,  but not exclusively in these locations, the  Company
has  certain  currency  related asset  and  liability  exposures
against which certain measures, primarily hedging, are taken  to
reduce  currency  risk.  With respect to  these  exposures,  the
objective  of  the  Company  is  to  protect  against  financial
statement volatility arising from changes in exchange rates with
respect to amounts denominated for balance sheet purposes  in  a
currency other than the functional currency of the local entity.
The  Company  therefore enters into forward  exchange  contracts
related  to  certain balance sheet items, primarily intercompany
receivables,   payables,  and  formalized   intercompany   debt.
Periodic changes in the value of these contracts offset exchange
rate  related changes in the financial statement value of  these
balance  sheet  items.   These forward  exchange  contracts  are
purchased  with  maturities reflecting the  expected  settlement
dates  of  the  balance  sheet items  being  hedged,  which  are
generally less than three months, and only in amounts sufficient
to  offset possible significant currency rate related changes in
the   recorded  values  of  these  balance  sheet  items,  which
represent  a calculable exposure for the Company from period  to
period.  Since this risk is calculable, and these contracts  are
purchased  only  in  offsetting amounts, neither  the  contracts
themselves nor the exposed foreign currency denominated  balance
sheet  items  are  likely to have a significant  effect  on  the
Company's  financial  position or results  of  operations.   The
Company's   positions  in  these  derivatives  are  continuously
monitored  to ensure protection against the known balance  sheet
exposures described above.  By policy, the Company is prohibited
from  market  speculation  via forward  exchange  contracts  and
therefore  does not take currency positions exceeding its  known
financial statement exposures, and does not otherwise  trade  in
currencies.


INCOME TAXES
------------

The  Company  earned pretax income of  $52.9  million  in  first
quarter  1998  versus a pretax loss of $26.3  million  in  first
quarter  1997.   Income tax expense for the first  quarter  1998
results   primarily   from  taxes  on  individually   profitable
international  subsidiaries.  The sale of  the  Solid  Edge  and
Engineering  Modeling  System product lines  did  not  create  a
significant   tax  liability  for  the  Company   due   to   the
availability  of  net  operating loss  carryforwards  to  offset
current  year  earnings.  After consideration of the  sale,  the
Company has estimated net operating loss carryforwards for  U.S.
federal  purposes of $80 million and international carryforwards
of  approximately  $100 million.  The first  quarter  1997  loss
generated  minimal net financial statement tax benefit,  as  the
majority  of available tax benefits were offset by tax  expenses
in individually profitable international subsidiaries.


LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

At  March 31, 1998, cash totaled $96.1 million compared to $46.6
million  at  December 31, 1997.  Cash consumed by operations  in
first  quarter  1998  totaled $5.0  million,  compared  to  cash
generation of $2.2 million in first quarter 1997.

Net  cash  generated  from  investing activities  totaled  $69.7
million in first quarter 1998, compared to a use of $7.3 million
in  first quarter 1997.  First quarter 1998 investing activities
included $102 million in proceeds from the sale of the Company's
Solid  Edge  and Engineering Modeling System product  lines  and
$26.3  million for the purchase of Zydex software rights.   Also
included  in  investing activities were capital expenditures  of
$3.7 million ($5.0 million in first quarter 1997), primarily for
Intergraph  products  used in hardware and software  development
and  sales  and marketing activities.  The Company expects  that
capital  expenditures will require $20 to $25  million  for  the
full  year  1998,  primarily  for  these  same  purposes.    The
Company's  term  loan  and revolving credit  agreement  contains
certain  restrictions  on  the level of  the  Company's  capital
expenditures.

Net  cash  used  for financing activities totaled $14.5  million
versus  net  cash  generation of $8.0 million in  first  quarter
1997.   First quarter 1998 financing activities included  a  net
repayment of debt of $15.2 million compared with a net  addition
to short and long term debt of $7.2 million in the first quarter
of 1997.

Under  the Company's January 1997 four year fixed term loan  and
revolving  credit agreement, available borrowings are determined
by the amounts of eligible assets of the Company (the "borrowing
base"),   as  defined  in  the  agreement,  including   accounts
receivable, inventory, and property, plant, and equipment,  with
maximum  borrowings of $125 million.  The $25 million term  loan
portion  of the agreement is due at expiration of the agreement.
Borrowings are secured by a pledge of substantially all  of  the
Company's  assets  in  the U.S.  The rate  of  interest  on  all
borrowings  under  the agreement is the greater  of  7%  or  the
Norwest  Bank  Minnesota  National  Association  base  rate   of
interest  (8.5%  at March 31, 1998) plus .625%.   The  agreement
requires the Company to pay a facility fee at an annual rate  of
 .15%  of the maximum amount available under the credit line,  an
unused  credit line fee at an annual rate of .25% of the average
unused  portion  of  the revolving credit line,  and  a  monthly
agency  fee.   At  March  31, 1998, the Company had  outstanding
borrowings  of $39.2 million ($50 million at May 8,  1998),  $25
million  of  which  was  classified as long  term  debt  in  the
consolidated  balance  sheet, and an  additional  $46.9  million
($36.5 million at May 8, 1998) of the available credit line  was
allocated to support letters of credit issued by the Company and
the  Company's  forward exchange contracts.  As  of  these  same
dates,  the  borrowing base, representing the maximum  available
credit under the line, was $104 million.

The  term  loan and revolving credit agreement contains  certain
financial covenants of the Company, including minimum net worth,
minimum   current   ratio,  and  maximum   levels   of   capital
expenditures.   In addition, the agreement includes  restrictive
covenants  that  limit or prevent various business  transactions
(including   repurchases  of  the  Company's   stock,   dividend
payments,  mergers,  acquisitions of  or  investments  in  other
businesses,   and   disposal  of  assets  including   individual
businesses,  subsidiaries, and divisions) and limit  or  prevent
certain other business changes.

In  March of 1997, the Company entered into an agreement for the
sale  and  leaseback  of  one  of its  facilities.   The  amount
borrowed totals $8.4 million and is included in "Long term debt"
in  the  consolidated  balance sheets  at  March  31,  1998  and
December  31, 1997.  The borrowing will be repaid over a  period
of 20 years at an implicit rate of interest of 10.7%.

At  March 31, 1998, the Company had approximately $79 million in
debt  on  which interest is charged under various floating  rate
arrangements,  primarily  under its  four  year  term  loan  and
revolving  credit agreement, mortgages, and an  Australian  term
loan.  The Company is exposed to market risk of future increases
in  interest  rates on these loans, with the  exception  of  the
Australian term loan, on which the Company has entered  into  an
interest rate swap agreement.

The   Company  is  not  currently  generating  cash   from   its
operations,  and  believes  this condition  may  extend  through
second quarter 1998.  The Company further believes that cash  to
be  generated  from  operations in  the  second  half  of  1998,
together with cash received from the sale of its Solid Edge  and
Engineering  Modeling System product lines, cash  received  from
sale   of  its  printed  circuit  board  facility  (see  section
following), and cash available under its term loan and revolving
credit agreement will be adequate to meet cash requirements  for
the  remainder of 1998.  However, the Company in the  near  term
must  increase  sales  volume and further  align  its  operating
expenses  with the level of revenue being generated in order  to
adequately  fund  its  operations and build  its  cash  reserves
without  reliance on funds generated from the sale of long  term
assets and third party financing.


SUBSEQUENT EVENTS
-----------------

On  April  3,  1998, the Company sold the assets of its  printed
circuit board fabrication facility for $16 million in cash.  The
gain on this transaction is estimated at $8 million, and will be
recorded   in  the  second  quarter.   The  Company  has   begun
outsourcing its printed circuit board needs, and does not expect
this  operational  change to materially impact  its  results  of
operations in the remainder of 1998.



             INTERGRAPH CORPORATION AND SUBSIDIARIES


PART II.  OTHER INFORMATION
          -----------------
  Item 1:  Legal Proceedings

           On  April  10,  1998,  in response to Intergraph's  legal
           action  filed  on  November 21, 1997, the  U.S.  District
           Court,   Northern   District  of  Alabama,   Northeastern
           Division   (the  "Alabama  Court")  ruled  in  favor   of
           Intergraph  and ordered that Intel, the supplier  of  all
           the  Company's  microprocessor supply,  be  preliminarily
           enjoined  from  terminating  Intergraph's  rights  as   a
           strategic  customer in current and future Intel programs,
           or  from  otherwise taking any action adversely affecting
           Intel's   business   relationship  with   Intergraph   or
           Intergraph's   ability  to  design,   develop,   produce,
           manufacture,  market or sell products  incorporating,  or
           based  upon, Intel products or information.  The  Court's
           ruling  requires  that  Intel  carry  out  business  with
           Intergraph under the same terms and conditions, with  the
           same  rights,  privileges, and  opportunities,  as  Intel
           makes available to Intergraph's competitors who are  also
           strategic  customers  of  Intel.   In  response  to   the
           Alabama Court's decision, on April 16, 1998, Intel  filed
           a  Notice of Appeal in the United States Court of Appeals
           for  the  Federal Circuit.  The Court has not  entered  a
           ruling on this request.

           The  Company  has  other ongoing legal  actions  with
           Intel,  and  Intel has filed retaliatory actions  against
           the  Company.  Reference should be made to the  Company's
           Form  10-K annual report for the year ended December  31,
           1997 for a complete description of the background of  and
           basis  for  these actions, and for a description  of  the
           effects  of  this dispute, which include  lost  revenues,
           uncertain  supply, and legal expenses, on the  operations
           of  the Company in 1997 and continuing through the  first
           quarter  of  1998.  The Company is vigorously prosecuting
           its  positions  and  believes it will  prevail  in  these
           matters, but at present is unable to predict the  outcome
           of  its  dispute  with Intel.  The Company  does  expect,
           however,  that  adverse effects on  its  operations  will
           continue at least through the second quarter of 1998.


  Item 6:  Exhibits and Reports on Form 8-K

    (a)    Exhibit    10(a),    agreement   between    Intergraph
           Corporation  and  Green Mountain, Inc.,  dated  April  1,
           1998.  *(1)

           Exhibit 27, Financial Data Schedule

          *Denotes   management  contract  or  compensatory   plan,
           contract,  or  arrangement required to  be  filed  as  an
           exhibit to this Form 10-Q.

    (b)    Reports  on Form 8-K - on March 17, 1998, the  Company
           filed a Current Report on Form 8-K to report the sale  of
           the  assets  of  its Solid Edge and Engineering  Modeling
           System   product   lines,   as   further   described   in
           Management's   Discussion  and  Analysis   of   Financial
           Condition  and  Results of Operations in this  Form  10-Q
           quarterly report.


             INTERGRAPH CORPORATION AND SUBSIDIARIES
                           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.



                     INTERGRAPH CORPORATION
                     ----------------------
                          (Registrant)




By:   /s/ James W. Meadlock          By: /s/ John W. Wilhoite
      -------------------------          ------------------------------
      James W. Meadlock                  John W. Wilhoite
      Chairman of the Board and          Executive Vice President and
      Chief Executive Officer            Controller
                                         (Principal Accounting Officer)

Date: May 15, 1998                 Date: May 15, 1998