================================================================================
                               
                            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 June 30, 1997
                                  
                                 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: 47,963,570 shares
                   outstanding as of June 30, 1997


================================================================================
                                  
                                  
                       INTERGRAPH CORPORATION
                              FORM 10-Q
                            June 30, 1997
                                  
                                INDEX



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

  Item 1. Financial Statements
                    
                    
          Consolidated Balance Sheets at June 30, 1997 and            2         
             December 31, 1996

          Consolidated Statements of Operations for the quarters
             ended June 30, 1997 and 1996                             3

          Consolidated Statements of Operations for the six months
             ended June 30, 1997 and 1996                             4

          Consolidated Statements of Cash Flows for the six months
             ended June 30, 1997 and 1996                             5

          Notes to Consolidated Financial Statements                6 - 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 4. Submission of Matters to a Vote of Security Holders     16 - 17

   Item 6. Exhibits and Reports on Form 8-K                          17


SIGNATURES                                                           18



PART I.   FINANCIAL INFORMATION
                                  
               INTERGRAPH CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS
                             (Unaudited)
-------------------------------------------------------------------------------
                                          June 30,     December 31,
                                            1997           1996
-------------------------------------------------------------------------------
(In thousands except share and per share amounts)

Assets
  Cash and cash equivalents             $ 40,484         $ 50,674
  Accounts receivable, net               308,803          326,117
  Inventories                            104,534           89,411
  Other current assets                    38,428           37,718
-------------------------------------------------------------------------------
      Total current assets               492,249          503,920

  Investments in affiliates               15,853           19,102
  Other assets                            58,287           59,106
  Property, plant, and equipment, net    159,577          174,219
-------------------------------------------------------------------------------
      Total Assets                      $725,966         $756,347
===============================================================================

Liabilities and Shareholders' Equity
  Trade accounts payable                $ 57,420         $ 51,205
  Accrued compensation                    50,503           50,364
  Other accrued expenses                  70,380           72,798
  Billings in excess of sales             60,696           62,869
  Short-term debt and current
   maturities of long-term debt           27,857           35,880
-------------------------------------------------------------------------------
      Total current liabilities          266,856          273,116

  Deferred income taxes                    6,043            6,204
  Long-term debt                          54,157           29,764
-------------------------------------------------------------------------------
      Total liabilities                  327,056          309,084
-------------------------------------------------------------------------------

  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            227,618          229,675
   Retained earnings                     297,363          339,679
   Unrealized holding gain on 
    securities of affiliate                2,209            6,858
   Cumulative translation adjustment       2,950            6,049
-------------------------------------------------------------------------------
                                         535,876          587,997
   Less - cost of 9,397,792 treasury
    shares at June 30, 1997 and 
    9,656,295 treasury shares at
    December 31, 1996                   (136,966)        (140,734)
-------------------------------------------------------------------------------
      Total shareholders' equity         398,910          447,263
-------------------------------------------------------------------------------
      Total Liabilities and 
       Shareholders' Equity             $725,966         $756,347
===============================================================================

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



               INTERGRAPH CORPORATION AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Unaudited)
                                  
-------------------------------------------------------------------------------
Quarter Ended June 30,                          1997        1996
-------------------------------------------------------------------------------
(In thousands except per share amounts)

Revenues
 Systems                                    $199,883     $174,915
 Maintenance and services                     88,726       93,251
-------------------------------------------------------------------------------
   Total revenues                            288,609      268,166
-------------------------------------------------------------------------------

Cost of revenues
 Systems                                     127,500      112,973
 Maintenance and services                     51,994       53,823
-------------------------------------------------------------------------------
   Total cost of revenues                    179,494      166,796
-------------------------------------------------------------------------------

   Gross profit                              109,115      101,370

Product development                           25,171       25,914
Sales and marketing                           65,518       67,076
General and administrative                    25,753       23,129
-------------------------------------------------------------------------------

   Loss from operations                      ( 7,327)     (14,749)

Interest expense                             ( 1,612)     ( 1,182)
Arbitration award                            ( 6,126)         ---
Other income (expense) - net                 (   962)         752
-------------------------------------------------------------------------------

   Loss before income taxes                  (16,027)     (15,179)

Income taxes                                     ---          ---
-------------------------------------------------------------------------------

   Net loss                                 $(16,027)    $(15,179)
===============================================================================

   Net loss per share                       $(   .33)    $(   .32)
===============================================================================

Weighted average shares outstanding           47,888       46,922
===============================================================================

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



               INTERGRAPH CORPORATION AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Unaudited)
                                  
-------------------------------------------------------------------------------
Six Months Ended June 30,                       1997         1996
-------------------------------------------------------------------------------
(In thousands except per share amounts)

Revenues
 Systems                                    $368,926     $338,099
 Maintenance and services                    172,441      186,773
-------------------------------------------------------------------------------
   Total revenues                            541,367      524,872
-------------------------------------------------------------------------------

Cost of revenues
 Systems                                     237,738      218,481
 Maintenance and services                    106,904      109,620
-------------------------------------------------------------------------------
   Total cost of revenues                    344,642      328,101
-------------------------------------------------------------------------------

   Gross profit                              196,725      196,771

Product development                           51,130       51,249
Sales and marketing                          125,221      129,454
General and administrative                    50,810       47,554
Nonrecurring operating charge                  1,095          ---
-------------------------------------------------------------------------------

   Loss from operations                      (31,531)     (31,486)

Interest expense                             ( 2,847)     ( 2,405)
Arbitration award                            ( 6,126)         ---
Gain on sale of investment in affiliate          ---        9,373
Other income (expense) - net                 ( 1,812)       2,948
-------------------------------------------------------------------------------

   Loss before income taxes                  (42,316)     (21,570)

Income taxes                                     ---          ---
-------------------------------------------------------------------------------

   Net loss                                 $(42,316)    $(21,570)
===============================================================================

   Net loss per share                       $(   .88)    $(   .46)
===============================================================================

Weighted average shares outstanding           47,823       46,947
===============================================================================

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



               INTERGRAPH CORPORATION AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Unaudited)
-------------------------------------------------------------------------------
Six Months Ended June 30,                            1997          1996
-------------------------------------------------------------------------------
(In thousands)

Cash Provided By (Used For):
Operating Activities:
  Net loss                                       $(42,316)     $(21,570)
  Adjustments to reconcile net loss to net
  cash provided by (used for) operating 
  activities:
   Depreciation and amortization                   31,511        38,211
   Arbitration award                                6,126           ---
   Gain on sale of investment in affiliate            ---       ( 9,373)
   Net changes in current assets and liabilities  (12,117)      ( 2,026)
-------------------------------------------------------------------------------
   Net cash provided by (used for)
    operating activities                          (16,796)        5,242
-------------------------------------------------------------------------------

Investing Activities:
  Purchase of property, plant, and equipment      (11,679)      (17,092)
  Capitalized software development costs          ( 4,371)      ( 9,882)
  Proceeds from sale of division and 
   investment in affiliate                            891         9,761
  Other                                           ( 2,037)      (   652)
-------------------------------------------------------------------------------
   Net cash used for investing activities         (17,196)      (17,865)
-------------------------------------------------------------------------------

Financing Activities:
  Gross borrowings                                 36,565        10,197
  Debt repayment                                  (17,424)      (19,636)
  Proceeds of employee stock purchases
   and exercise of stock options                    1,620         2,066
-------------------------------------------------------------------------------
   Net cash provided by (used for) 
    financing activities                           20,761       ( 7,373)
-------------------------------------------------------------------------------
Effect of exchange rate changes on cash             3,041           670
-------------------------------------------------------------------------------
Net decrease in cash and cash equivalents         (10,190)      (19,326)
Cash and cash equivalents at beginning of period   50,674        56,407
-------------------------------------------------------------------------------
Cash and cash equivalents at end of period        $40,484       $37,081
===============================================================================

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 and six months ended June  30,  1996
        to   provide   comparability  with   the   current   period
        presentation.

NOTE 2: As further described in the Company's Form 10-K filing
        for  its year ended December 31, 1996, the Company has been
        party  to  certain arbitration proceedings  with  its  50%-
        owned   affiliate,  Bentley  Systems,   Inc.   (BSI),   the
        developer  and  owner of MicroStation, a  software  product
        utilized  in  many  of the Company's software  applications
        and   for  which  the  Company  serves  as  a  nonexclusive
        distributor.  In May 1997, the Company received  notice  of
        the  adverse  determination  of an  arbitration  proceeding
        with  BSI  in  which the Company had alleged that  BSI  had
        inappropriately and without cause terminated a  contractual
        arrangement with the Company, and in which BSI had filed  a
        counterclaim   against  the  Company  seeking   significant
        damages  as the result of the Company's alleged failure  to
        use   best   efforts  to  sell  software  support  services
        pursuant   to   terms   of   the  contractual   arrangement
        terminated  by  BSI.  The arbitrator's  award  against  the
        Company  was in the amount of $6,126,000 ($.13 per  share).
        This  charge  is  included in "Arbitration  award"  in  the
        consolidated statements of operations for the  quarter  and
        six  months ended June 30, 1997.  The cash position of  the
        Company  was not significantly adversely affected  by  this
        arbitration  award, as the Company has offset approximately
        $5,800,000  in  fees  otherwise owed  the  Company  by  BSI
        against   the   amount  awarded  BSI.   In  addition,   the
        contractual  arrangement  that  was  the  subject  of  this
        arbitration  has been terminated effective with  the  award
        and,  as  a  result, the Company will no  longer  sell  the
        related  software  support services under  this  agreement.
        The  Company  and  BSI have entered into  a  new  agreement
        which  establishes  a  single  support  services  agreement
        between  the  two  companies.  The  Company  believes  that
        neither  the  arbitration related change  in  BSI  software
        support services or its new agreement with BSI relative  to
        such  services will have a material impact on the Company's
        financial  position, results of operations, or  cash  flows
        in future periods.

        The  Company  has  one  other  arbitration  proceeding   in
        process  related  to  its business relationship  with  BSI.
        The  Company is vigorously defending its positions in  that
        proceeding,  but  at  present  is  unable  to  predict  its
        outcome.    Separately,   the  Company   has   engaged   an
        investment  banking  firm to value and sell  its  ownership
        interest   in   BSI.   See  "Management's  Discussion   and
        Analysis"  and  "Part  II.,  Item  1.,  Legal  Proceedings"
        included in this Form 10-Q and the Company's Form 10-K  for
        the  year  ended December 31, 1996 for further  details  of
        the Company's business relationship with BSI, its sales  of
        MicroStation, and the financial effects on the  Company  of
        changes in this business relationship.

        The  Company also has ongoing litigation with Zydex,  Inc.,
        a  company with which it jointly developed its plant design
        software  application, on which it is at present unable  to
        predict   an   outcome.   There  have  been   no   material
        developments  in this proceeding during the first  half  of
        1997.   See  the Company's Form 10-K filing  for  its  year
        ended  December  31,  1996 for further description  of  the
        Zydex matter.


NOTE 3: Inventories are stated at the lower of average cost or
        market and are summarized as follows:
       
       ------------------------------------------------------------------------
                                June 30,       December 31,
                                  1997             1996
       ------------------------------------------------------------------------
       (In thousands)
       
       Raw materials           $ 29,791         $ 26,601
       Work-in-process           37,556           24,008
       Finished goods            15,323           12,945
       Service spares            21,864           25,857
       ------------------------------------------------------------------------
       Totals                  $104,534         $ 89,411
       ========================================================================

NOTE 4: Property, plant,  and  equipment  -  net   includes
        allowances    for   depreciation   of   $290,241,000    and
        $307,536,000  at  June  30, 1997  and  December  31,  1996,
        respectively.

NOTE 5: In   first   quarter  1997,  the  Company   sold   an
        unprofitable  business unit to a third  party.   The  total
        loss  on the sale was $8,100,000, of which $7,000,000 ($.15
        per  share)  had  been recorded as an asset revaluation  in
        fourth  quarter  1996.  The remaining  loss  of  $1,100,000
        ($.02  per share) was recorded upon final determination  of
        the  loss  and  closure of the sale in first quarter  1997,
        and  is included in "Nonrecurring operating charge" in  the
        consolidated  statement of operations for  the  six  months
        ended   June   30,   1997.    In  addition,   the   Company
        discontinued   the  operations  of  a  second  unprofitable
        business  unit.   This business unit was sold  to  a  third
        party  during  the second quarter of 1997.   This  business
        closure  and  sale did not materially affect the  Company's
        results  of operations for the quarter or six months  ended
        June 30, 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.

NOTE 6: In  first  quarter 1996, the Company  sold  its  stock
        investment  in  an  affiliated  company  at   a   gain   of
        $9,373,000  ($.20  per share).  The  gain  is  included  in
        "Gain   on  sale  of  investment  in  affiliate"   in   the
        consolidated  statement of operations for  the  six  months
        ended June 30, 1996.

NOTE 7: 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
        Six Months Ended June 30,            1997           1996
        -----------------------------------------------------------------------
        (In thousands)
      
        (Increase) decrease in:
          Accounts receivable, net         $(   512)     $ 23,187
          Inventories                       (20,986)        8,718
          Other current assets              (   552)        3,196
        Increase (decrease) in:
          Trade accounts payable              7,231       (17,036)
          Accrued compensation and other
           accrued  expenses                  2,091       (11,079)
          Billings in excess of sales           611       ( 9,012)
        -----------------------------------------------------------------------
        Net changes in current assets 
         and liabilities                   $(12,117)     $( 2,026)
        =======================================================================

        Cash  payments  for  income taxes  totaled  $2,299,000  and
        $2,784,000  for  the six months ended  June  30,  1997  and
        1996,  respectively.   Cash payments  for  interest  during
        those    periods   totaled   $2,763,000   and   $2,286,000,
        respectively.

        Investing and financing transactions in the first  half  of
        1997  that  did not require cash included the sale  of  two
        noncore  business units of the Company in  part  for  notes
        receivable and future royalties totaling $3,950,000  and  a
        $4,649,000  unfavorable  mark-to-market  adjustment  of  an
        investment in an affiliated company.

        There  were no significant non-cash investing and financing
        transactions in the first half of 1996.
      
NOTE 8: Net loss per share is computed by dividing net loss by
        the  weighted  average  number  of  common  and  equivalent
        common shares outstanding.  Employee stock options are  the
        only  common  stock  equivalent and  are  included  in  the
        weighted  average number of common shares only if dilutive.
        Weighted  average  common  and  equivalent  common   shares
        outstanding  for  both the primary and fully  diluted  loss
        per  share  calculations for the quarters  ended  June  30,
        1997    and    1996   were   47,888,000   and   46,922,000,
        respectively.  For the six months ended June 30,  1997  and
        1996,  weighted average common and equivalent common shares
        outstanding were 47,823,000 and 46,947,000, respectively.

        In  February 1997, the Financial Accounting Standards Board
        issued  Statement  of  Financial Accounting  Standards  No.
        128,  Earnings  Per Share, which establishes standards  for
        computing  and  presenting  earnings  per  share  data  for
        publicly  held  entities.  The Statement is  effective  for
        fiscal   years  ending  after  December  15,  1997.    Upon
        adoption,  the  Statement  requires  restatement  of  prior
        periods'  earnings per share data.  The Company will  adopt
        this  Statement  for  its fiscal year ending  December  31,
        1997  and does not expect the adoption of this new standard
        to   materially  affect  previously  reported   or   future
        earnings per share data.



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

SUMMARY
-------

Earnings.  In the second quarter of 1997, the Company incurred a
net loss of $.33 per share on revenues of $288.6 million,
including a $6.1 million ($.13 per share) charge for an adverse
contract arbitration award to Bentley Systems, Inc. (BSI) (see
"Litigation" and "MicroStation" below.)  The second quarter 1996
loss was $.32 per share on  revenues of $268.2 million.  The
Company's loss from operations was $.15 per share for the second
quarter of 1997 as compared to $.31 per share for the second
quarter of 1996.  The improvement is the result of an 8% increase
in revenues.  For the first half of 1997, the Company lost $.88
per share on revenues of $541.4 million, including the $.13 per
share adverse contract arbitration award.  The first half 1996
loss totaled $.46 per share on revenues of $524.9 million,
including a $9.4 million ($.20 per share) gain on the sale of an
investment in an affiliated company.  The first half 1997 loss
from operations was $.66 per share versus a loss of $.67 per
share for the first half of 1996.  The Company's continuing
operating losses are the result of declining margins and
operating expenses that are too high for the level of revenue
being generated by the Company.

Disposition of Noncore Business Units.  In the first quarter of
1997, the Company sold an unprofitable business unit to a third
party.  The total loss on the sale was $8,100,000, of which
$7,000,000 ($.15 per  share) had been recorded as an asset
revaluation in fourth quarter 1996.  The remaining loss of
$1,100,000 ($.02 per share) was recorded upon final determination
of the loss and closure of the sale in first quarter 1997 and is
included in "Nonrecurring operating charge" in the consolidated
statement of operations for the six months ended June 30, 1997.
In addition, during the first quarter the Company discontinued
the operations of a second unprofitable business unit and sold
the unit to a third party during the second quarter of 1997.
This business closure and sale did not materially affect the
results of operations of the Company in the first half of 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.

Litigation.  As further described in the Company's Form 10-K
filing for its year ended December 31, 1996, the Company has been
party to certain arbitration proceedings with BSI, a 50%-owned
affiliate and the developer and owner of MicroStation, a software
product utilized in many of the Company's software applications
and for which the Company serves as a nonexclusive distributor.
In May 1997, the Company received notice of the adverse
determination of an arbitration proceeding with BSI in which the
Company had alleged that BSI had inappropriately and without
cause terminated a contractual arrangement with the Company, and
in which BSI had filed a counterclaim against the Company seeking
significant damages as the result of the Company's alleged
failure to use best efforts to sell software support services
pursuant to terms of the contractual arrangement terminated by
BSI.  The arbitrator's award against the Company was in the
amount of $6,126,000 ($.13 per share).  This charge is included
in "Arbitration award" in the consolidated statements of
operations for the quarter and six months ended June 30, 1997.
The cash position of the Company was not significantly adversely
affected by this arbitration award, as the Company has offset
approximately $5,800,000 in fees otherwise owed the Company by
BSI against the amount awarded BSI.  In addition, the contractual
arrangement that was the subject of this arbitration has been
terminated effective with the award and, as a result, the Company
will no longer sell the related software support services under
this agreement.  The Company and BSI have entered into a new
agreement which establishes a single support services agreement
between the two companies.  The Company believes that neither the
arbitration related change in BSI software support services or
its new agreement with BSI relative to such services will have a
material impact on the Company's financial position, results of
operations, or cash flows in future periods.

The Company has one other arbitration proceeding in process
related to its business relationship with BSI.  The Company is
vigorously defending its positions in that proceeding, but at
present is unable to predict its outcome.  Separately, the
Company has engaged an investment banking firm to value and sell
its ownership interest in BSI.  See "MicroStation" below, "Part
II., Item 1., Legal Proceedings" included in this Form 10-Q, and
the Company's Form 10-K for the year ended December 31, 1996 for
further details of the Company's business relationship with BSI,
its sales of MicroStation, and the financial effects on the
Company of changes in this business relationship.

The  Company  also  has ongoing litigation with  Zydex,  Inc.,  a
company with which it jointly developed its plant design software
application,  on  which it is at present  unable  to  predict  an
outcome.   There  have  been  no material  developments  in  this
proceeding during the first half of 1997.  See the Company's Form
10-K  filing  for  its year ended December 31, 1996  for  further
description of the Zydex matter.

Remainder of the Year.  Industry conditions and changes in
operating system and hardware architecture strategies (as more
fully described in the Company's Form 10-K filing for its year
ended December 31, 1996) resulted in a transition period for the
Company characterized by revenues that declined from 1992 through
1994, by restructuring charges in 1993 and 1995, and by annual
net losses from 1993 through 1995.  Although the Company
substantially completed its operating system and hardware
architecture transition in 1995, revenue to date associated with
resulting new product offerings has not met expectations, and
gross margin on product sales has continued to decline due
primarily  to price competition in the industry.  The Company
expects that industry trends toward 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 will continue in 1997 and
beyond.  The Company continues to believe that its operating
system and hardware architecture strategies are the correct
choices, that the industry is accepting Windows-NT, and that
Windows-NT will become the dominant operating system in markets
served by the Company.  However, acceptance of this system and
the Company's new products built around this system has been
slower than anticipated, and the timing of such acceptance is
unpredictable.  Competing operating systems and products are
available in the market, and several competitors of the Company
offer or are adopting Windows-NT as the operating system for
their products.  There can be no assurance that the Windows-NT
operating system will become dominant in markets served by the
Company or that the Company's product strategies will result in
restoration of profitability.  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.  To achieve and maintain profitability, the
Company must continue to increase sales volume and further align
its operating expenses with the level of revenue being generated.


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

Orders.  Second quarter and first half 1997 systems orders
totaled $217.5 million and $376.5 million, respectively, an
increase of approximately 17% and 14%, respectively, from the
same prior year periods.  U.S. systems orders were strong,
increasing 53% and 41%, respectively, from the second quarter and
first half 1996 levels due in part to a significant increase in
orders from the federal government.  Additionally, orders for the
Company's hardware products were strong, including orders for the
Company's graphics cards.  International systems orders declined
by 10% and 7%, respectively, from the second quarter and first
half 1996 levels due primarily to an orders decline in the Asia
Pacific region (first half 1996 Asia Pacific orders included four
unusually large individual orders).

New  Products.  During the first quarter of 1997, the Company
added a line of Intel/Windows-based personal workstations priced
to compete in the PC market.  The workstations have features and
performance required by professional users and provide 3D
graphics that the Company believes will be required by users in
the future.  In second quarter, the Company added twelve new
workstations in its TD and TDZ lines, including the first Windows-
NT-based workstations using dual Pentium II processors.  Also
introduced were two new InterServe servers, the ImageStation Z
digital photogrammatic workstation, and the first 28-inch, high
resolution, wide-format monitor.  The majority of these products
began shipping in the second quarter, with the remainder
scheduled for third quarter.  The Company does not expect that
introduction of these new products will adversely affect the carrying
value of its existing inventories.

The Company has introduced two new software products for shipment
in second quarter, Solid Edge 3.0 and GeoMedia 1.0, both based on
the Company's Jupiter technology.  Solid Edge 3.0 is a solid
modeling system for designing mechanical parts and assemblies.
The Company believes it removes the obstacles that once prevented
companies from using 3D solid modeling as a mainstream design
tool.  GeoMedia allows users to access data warehouses virtually
anywhere in the world and simultaneously perform analyses with
varying data types and formats.  The Company believes that these
products have been well accepted in the marketplace and that
sales of these products should increase during the remainder of
the year.

Revenues.  Total revenues for second quarter and first half 1997
were $288.6 million and $541.4 million, respectively, up 8% and
3%, respectively, from the comparable prior year periods.  Sales
outside the U.S. represented 52% of total revenues in the first
half of 1997, compared to approximately 55% for the first half
and full year 1996.  European revenues were 32% of total revenues
for the first half of 1997, down 2 points from the first half
1996 and unchanged from the full year 1996 levels.

Systems.  Systems revenue for the second quarter and first half
of 1997 was $199.9 million and $368.9 million, respectively, up
14% and 9%, respectively, from the same prior year periods.  U.S.
revenues were up 24% from second quarter 1996 and 15% from first
half 1996 levels (up 22% for the first half excluding the effect
of disposal of two unprofitable business units).  The factors
that affected U.S. order growth have similarly affected U.S.
revenue growth.  International systems revenues were up
approximately 4% from both the second quarter and first half 1996
levels.  European revenues increased by 11% and 7%, respectively,
from the second quarter and first half 1996 levels.  Other
international revenues declined by 3% and 1%, respectively, from
these same periods.

First half 1997 total hardware revenues increased 27% from the
prior year period.  Unit sales of workstations and servers were
up 69% (workstation and server average per unit selling price
declined 37%), while sales of peripheral hardware products
increased by 90% from the first half 1996 due primarily to sales
of graphics cards introduced during the third quarter of 1996.
Additionally, during second quarter the Company established a new
sales channel which allows customers to order select low end
hardware products via the Internet.  The volume produced through
this channel has been insignificant during the start-up phase;
however, the Company has increased its inventory of these
products in anticipation of a sales volume increase.  Software
revenues were relatively flat with the prior year level, despite
a 27% decline in MicroStation revenues (see further details
below).  Excluding MicroStation, software revenues increased 4%
from the first half 1996 level due primarily to an increase in
plant design and ship building software applications sales,
partially offset by declines in sales of infrastructure and
database software.  Sales of Windows-based software represented
approximately 80% of total software revenues in the first half of
1997, up from approximately 75% in the first half of 1996.

The Company is unable to predict the level of success of its
products in the marketplace; however, it expects systems revenue
levels to increase sequentially throughout the remainder of the
year through growth in core product sales and sales of new
hardware and software product offerings.

MicroStation.  Through the end of 1994, the Company had an
exclusive license agreement with BSI, a 50%-owned affiliate of
the Company, under which the Company distributed MicroStation, a
software product developed and maintained by BSI and utilized in
many of the Company's software applications.  As a result of
settlement of a dispute between the companies relative to the
exclusivity of the Company's distribution license, effective
January 1, 1995, the Company had a nonexclusive license to sell
MicroStation via its direct sales force and to sell MicroStation
via its indirect sales channels if MicroStation is sold with
other Intergraph products.  The Company's sales of MicroStation
have declined each year since the change in the license
agreement.  During the first half of 1997, the Company's sales of
MicroStation declined by approximately 27% from the same prior
year period.  The Company estimates that this decline increased
second quarter and first half 1997 net loss by approximately $4.3
million ($.09 per share) and $6.2 million ($.13 per share),
respectively.  The Company is unable to predict the level of
MicroStation sales that will occur in the future, but it is
possible such sales will be further reduced.

Maintenance and Services.  Maintenance and services revenue
consists of revenues from maintenance of Company systems and from
Company provided training, consulting, and other services.  These
forms of revenue totaled $88.7 million for the second quarter and
$172.4 million for the first half of 1997, down 5% and 8%,
respectively, from the comparable prior year periods.
Maintenance revenues for the first half of 1997 totaled $126.5
million, down 13% from the same prior year period.  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 8% of total first half
1997 revenues and has increased 11% 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 for the second quarter was
37.8%, flat with the second quarter of 1996.  For the first half
of 1997, total gross margin was 36.3%, down 1.2 points from the
first half of 1996 and .5 points from the full year 1996 level.

Systems margin for the second quarter was 36.2%, an increase of
 .8 points from the second quarter 1996 level.  First half 1997
margin was 35.6%, up slightly from both the first half and full
year 1996 levels.  Since the end of 1994, the Company's systems
margin has declined by approximately 4 points, due primarily to
price competition in the industry.

In general, the Company's systems margin 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.  Systems margin may be lowered by price competition, 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.  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 the second quarter and first
half of 1997 were 41.4% and 38.0% (38.8% for the full year 1996),
respectively, down .9 points and 3.3 points, respectively, from
the comparable prior year periods.  The Company's maintenance
revenue has declined at a faster rate than cost associated with
that form of revenue.  Additionally, services cost has increased
more rapidly than the associated revenue.  The Company continues
to closely monitor maintenance and services cost and has taken 
certain measures, including reductions in headcount, to more 
closely 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 the second quarter and first half of 1997
were flat with the comparable prior year periods.  Total employee
headcount has declined 8% from that same period.

Sales and marketing expense for the second quarter and first half
of 1997 declined 2% and 3%, respectively, from the same prior
year periods.  These declines from 1996 levels are due primarily
to the sale of the two unprofitable business units described
above and to strengthening of the U.S. dollar in international
markets, primarily Europe.  General and administrative expense
for the second quarter and first half of 1997 increased by 12%
and 7%, respectively, from the same prior year periods due to
increased legal expenses and provisions for U.S. and European bad
debts.  Product development expense for the second quarter and
first half of 1997 was relatively flat with the same prior year
periods, although headcount has been reduced significantly.
Expense savings achieved through headcount reductions have been
offset by a decline in new software product development expenses
qualifying for capitalization.


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

Interest expense was $1.6 million for the second quarter and $2.8
million for the first half of 1997 versus $1.2 million and $2.4
million, respectively, for the comparable prior year periods.
The Company's average outstanding debt has increased in
comparison to the same prior year periods; however, the Company's
rate of interest on the debt has declined approximately 2 points
due primarily to a change in lenders under the Company's primary
credit facility.  See "Liquidity and Capital Resources" below for
a discussion of the Company's current financing arrangements.

In the first quarter of 1996, the Company sold a stock investment
in an affiliated company, resulting in a gain of $9.4 million
($.20 per share).  The gain is included in "Gain on sale of
investment in affiliate" in the consolidated statement of
operations for the six months ended June 30, 1996.

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


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 half of 1997, approximately 52% (55%
for the full year 1996) 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 half 
of 1997, the U.S. dollar strengthened on average from its first
half 1996 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 currency effects increased the Company's loss for
the first half of 1997 by approximately $.09 per share.  Such 
currency effects did not materially impact the Company's results
of operations for the comparable prior year period.

The Company conducts business in all major markets outside the
U.S., but the most significant of these operations with respect
to currency risk are located in Europe (specifically Germany,
U.K., The Netherlands, France and Italy) and Australia.
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
primarily related to these balance sheet items (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.  Forward exchange contracts are purchased
with maturities reflecting the expected settlement dates of these
balance sheet items (generally three months or less), 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 such instruments and therefore does
not take currency positions exceeding its known financial
statement exposures, and does not otherwise trade in currencies.


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

The Company incurred a loss before income tax benefit of $42.3
million in the first half of 1997 versus $21.6 million in the
first half of 1996.  These losses generated minimal net financial
statement tax benefit, as the majority of available tax benefits
were offset by tax expenses in individual profitable
international subsidiaries.


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

At June 30, 1997, cash totaled $40.5 million compared to $50.7
million at December 31, 1996.  Net cash used in operations in the
first half of 1997 totaled $16.8 million compared to net
generation of $5.2 million in the first half of 1996.  An
inventory build-up in response to customer demand for faster
delivery of products and in anticipation of a volume increase in
sales of the Company's low end hardware products via its new
Internet sales channel has consumed approximately $15 million
since the beginning of the year.  The Company does not anticipate
a further build-up of inventory.

Net cash used for investing activities totaled $17.2 million in
the first half of 1997 versus $17.9 million in the first half of
1996.  Included in investing activities were capital expenditures
of $11.7 million ($17.1 million in the first half of 1996),
primarily for Intergraph products used in hardware and software
development and sales and marketing activities.  The Company
expects that capital expenditures will require $25 to $35 million
for the full year 1997, 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.  Other significant investing activities included
$4.4 million for capitalizable software development costs ($9.9
million in the first half of 1996).  Investing activities in the
first half of 1996 also  included $9.8 million in proceeds from
the sale of an investment in an affiliated company.

Net cash provided by financing activities in the first half of
1997 totaled $20.8 million versus a net use of cash of $7.4
million in the first half of 1996.  First half 1997 financing
activities included a $19.1 million net addition to short- and
long-term debt, compared with a net repayment of $9.4 million in
the first half of 1996.

In January 1997, the Company entered into a three 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 $100 million.  The term
loan portion of  the agreement is in the principal amount of $20
million, with principal 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 June 30, 1997) 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 June
30, 1997, the Company had outstanding borrowings of $28 million,
$20 million of which was classified as long-term debt in the
consolidated balance sheet, and an additional $35 million of the
available credit line was allocated to support letters of credit
issued by the Company.  As of this same date, the borrowing base
under the credit line was $100 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.  Based on the terms
of the agreement, the transaction has been accounted for as a
borrowing.   The amount borrowed totals $8.4 million and is
included in "Long-term debt" in the 1997 consolidated balance
sheet.  The borrowing will be repaid over a period of 20 years at
an implicit rate of interest of 10.7%.

At June 30, 1997, the Company had approximately $59 million in
debt on which interest is charged under various floating rate
arrangements, primarily under its three year term loan and
revolving credit agreement, an Australian term loan, and various
mortgages.  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 adequate cash to fund its
operations and build cash reserves, but believes that existing
cash balances, together with cash to be generated by operations
and cash available under its term loan and revolving credit
agreement will be adequate to meet cash requirements for the
remainder of 1997.


             INTERGRAPH CORPORATION AND SUBSIDIARIES

PART II.  OTHER INFORMATION

   Item 1: Legal Proceedings

           As  described in the Company's Form 10-K filing for its
           year  ended  December 31, 1996, the  Company  has  been
           party to certain arbitration proceedings with Bentley 
           Systems,  Inc.  (BSI), a 50%-owned affiliate and the
           developer   and  owner  of  MicroStation,  a   software
           product  utilized  in  many of the  Company's  software
           applications  and  for which the Company  serves  as  a
           nonexclusive  distributor.   In  December   1995,   the
           Company  commenced  an arbitration  proceeding  against
           BSI   with   the   American  Arbitration   Association,
           Philadelphia,   Pennsylvania,   alleging    that    BSI
           inappropriately   and  without   cause   terminated   a
           contractual  arrangement between BSI and  the  Company.
           In  response, BSI in January 1996, filed a counterclaim
           against the Company seeking significant damages as  the
           result  of  the Company's alleged failure to  use  best
           efforts to sell software support services pursuant   to
           terms  of  the  contractual arrangement  terminated  by
           BSI.   In May 1997, the Company received notice of  the
           adverse  determination of this arbitration  proceeding.
           The  arbitrator's award against the Company was in  the
           amount of $6,126,000 ($.13 per share).  This charge  is
           included  in  "Arbitration award" in  the  consolidated
           statements  of  operations  for  the  quarter  and  six
           months  ended June 30, 1997.  The cash position of  the
           Company  was  not significantly adversely  affected  by
           this  arbitration  award, as the  Company has  offset
           approximately  $5,800,000 in fees  otherwise  owed  the
           Company  by  BSI against the amount awarded BSI.
           In addition, the contractual arrangement  that
           was   the   subject  of  this  arbitration   has   been
           terminated effective with the award and, as  a  result,
           the  Company  will no longer sell the related  software
           support  services  under this agreement.   The  Company
           and  BSI  have  entered  into  a  new  agreement  which
           establishes   a   single  support  services   agreement
           between the two companies.  The Company believes  that 
           neither the arbitration related change in BSI software 
           support services or its new agreement with BSI relative 
           to such services will  have  a  material  impact  on   the
           Company's  financial position, results  of  operations,
           or cash flows in future periods.

   Item 4: Submission of Matters to a Vote of Security Holders

           Intergraph    Corporation's    Annual    Meeting     of
           Shareholders was held on May 15, 1997.  The results  of
           the meeting follow.

           (1) Seven  directors were elected  to  the  Board  of
               Directors  to serve for the ensuing year  and  until
               their  successors  are duly elected  and  qualified.
               All  nominees, with the exception of Thomas J.  Lee,
               were  serving  as Directors of the  Company  at  the
               time of their nomination.
                                                        Votes
                                            ---------------------------------
                                              For          Against/Withheld
                                           -----------    ------------------
               Roland E. Brown              41,490,232         1,350,554
               Larry J. Laster              41,562,031         1,278,755
               Thomas J. Lee                41,519,485         1,321,301
               James W. Meadlock            41,561,038         1,279,748
               Keith H. Schonrock,  Jr.     41,449,561         1,391,225
               James F. Taylor,  Jr.        41,550,136         1,290,650
               Robert E. Thurber            41,475,478         1,365,308

               Mr.  Brown resigned as Director of the Company  June
               25,   1997,  for  personal  reasons.   The   Company
               currently intends to replace Mr. Brown.

           (2) Ratification of the appointment by the  Board  of
               Directors  of  Ernst & Young LLP  as  the  Company's
               independent  auditors  for  the  current  year   was
               approved  by  a  vote  of  42,178,573  for,  558,528
               against, and 103,685 abstentions.

           (3) The  Intergraph  Corporation  1997  Stock  Option
               Plan  was  approved  by a vote  of  30,754,567  for,
               5,328,123    against,   369,782   abstentions    and
               6,388,314 broker non-votes.

   Item 6: Exhibits and Reports on Form 8-K

           (a) Exhibit 10 (a),  agreement  between   Intergraph
               Corporation and Green Mountain, Inc., 
               dated April 1, 1997.  *(1)

               Exhibit 10 (b), Indemnification Agreement  between
               Intergraph  Corporation and each member  of  the  Board
               of Directors of the Company dated June 3, 1997.

               Exhibit 10 (c),  Employment  Contract   of   Wade
               Patterson dated May 30, 1997.*

               Exhibit 27, Financial Data Schedule.

               * Denotes  management  contract  or  compensatory
               plan, contract, or arrangement.

               (1) Incorporated by reference to exhibit  filed  with
               the Company's Quarterly Report on Form 10-Q for the 
               quarter ended March 31, 1997, under the Securities 
               Exchange Act of 1934, File No. 0-9722.

           (b) There  were no reports on Form 8-K filed during the 
               quarter ended June 30, 1997.



             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/ Larry J. Laster             By:/s/ John W. Wilhoite
   ---------------------              ---------------------  
       Larry J. Laster                    John W. Wilhoite
       Executive Vice President,          Vice President and Controller
       Chief Financial Officer and        (Principal Accounting Officer)
       Director

Date:    August 13, 1997               Date: August 13, 1997