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

/X/  Quarter report pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934 

     For the quarterly period ended September 30, 1995 or

/ /  Transition report pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934

     For the period from __________ to ___________

                  Commission file number 0-10541
                      _____________________

                  COMTEX SCIENTIFIC CORPORATION
      (Exact name of registrant as specified in its charter)

     New York                                13-3055012
     (State or other jurisdiction of         (I.R.S. Employer
     incorporation or organization)          Identification No.)

                        4900 Seminary Road
                            Suite 800
                   Alexandria, Virginia  22311
             (Address of principal executive offices)

        Registrant's Telephone number including area code
                          (703) 820-2000

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 / /

As of November 9, 1995, 7,854,667 shares of the Common Stock of
the registrant were outstanding.
                                <PAGE>


                  COMTEX SCIENTIFIC CORPORATION

                        TABLE OF CONTENTS



PART I         FINANCIAL INFORMATION                   PAGE NO.

     Item 1.   Condensed Financial Statements

               Balance Sheets at September 30, 1995
               and June 30, 1995                          1

               Statements of Operations for the Three
               Months ended September 30, 1995 and 1994   2

               Statements of Cash Flows for the Three
               Months ended September 30, 1995 and 1994   3

               Notes to Condensed Financial Statements  4 - 8

     Item 2.   Management's Discussion and Analysis of
               Financial Condition and Results of
               Operations                               9 - 13

PART II        Other Information                          14


SIGNATURES                                                15

                                   <PAGE>


<TABLE>
<CAPTION>
             COMTEX SCIENTIFIC CORPORATION
                    BALANCE SHEETS
       AT SEPTEMBER 30, 1995 AND JUNE 30, 1995

                                                        SEPT. 30,        JUNE 30,
 ASSETS                                                    1995            1995
                                                      --------------  --------------
                                                       (Unaudited)

 <S>                                                  <C>             <C>
 Current assets:
   Cash and cash equivalents                                 $14,681         $15,163
   Accounts Receivables Net Allowance of $66,622
     and $58,622 at September 30 and June 30, 1995,
     respectively                                            558,285         432,045
   Advances to MRI                                           623,448       1,071,392
   Prepaid Expenses and Other Current Assets                  18,082          12,821
                                                        ------------    ------------
   Total Current Assets                                    1,214,496       1,531,421
                                                        ------------    ------------
   Property and Equipment, Net                               314,362         301,406

   Other Assets:

     Unamortized License Fee, Net of Accumulated
       Amortization of $82,255 and $78,016 at
       September 30 and June 30, 1995, respectively            2,511           6,750
     Deposits                                                 12,137          12,137
                                                        ------------    ------------
   Total Other Assets                                         14,648          18,887
                                                        ------------    ------------
 TOTAL ASSETS                                             $1,543,506      $1,851,714
                                                          ==========      ==========
 LIABILITIES AND STOCKHOLDERS' DEFICIT
   Current Liabilities:
    Account Payable                                         $662,225        $491,419
    Accrued Expenses                                         182,164          89,984
    Current Portion of Long-Term Notes Payable               395,207         815,652
                                                        ------------    ------------

       Total Current Liabilities                           1,269,595       1,397,055
                                                        ------------    ------------
   Long-Term Notes Payable                                 1,069,080       1,074,930
                                                        ------------    ------------
 TOTAL LIABILITIES                                         2,338,675       2,471,985
                                                          ==========      ==========

                                   <PAGE>

 COMMITMENTS AND CONTINGENCIES
 STOCKHOLDERS' DEFICIT
   Common Stock, $0.01 Par Value 
     Shares Authorized: 10,000,000;
     Shares issued and outstanding: 7,854,667                 78,547          78,547
   Additional Paid-in Capital                              9,830,010       9,830,010
   Accumulated Deficit                                  (10,703,726)    (10,528,828)
                                                        ------------    ------------
       Total Stockholders' Deficit                         (795,169)       (620,271)
                                                        ------------    ------------
 TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT              $1,543,506      $1,851,714
                                                          ==========      ==========


           The accompaning "Notes to Financial Statements"
         are an intergral part of these financial statements
                     
                             Page 1
</TABLE>
                            <PAGE>
<TABLE>
<CAPTION>
                    COMTEX SCIENTIFIC CORPORATION
                       STATEMENTS OF OPERATIONS
         FOR THE THREE MONTHS ENDED SEPTEMBER 30,1995 AND 1994
                              (UNAUDITED)

                                                Three Months Ended
                                                  September 30,
                                                1995          1994
                                             -----------  -----------

 <S>                                         <C>          <C>
 Net Revenues 
   Business Information Services                $755,187     $751,134
                                             -----------  -----------
      Total Net Revenues                         755,187      751,134
                                             -----------  -----------
 COSTS AND EXPENSES
   Operations                                    493,441      323,060
   Product Development                            66,448       28,579
   Sales and Marketing                            92,214       68,993
   General and Administrative                    212,626      184,237
   Depreciation and Amortization                  37,552       41,758

                                             -----------  -----------
      Total Costs and Expenses                   902,281      646,627
                                             -----------  -----------

 INCOME (LOSS) FROM OPERATIONS                 (147,094)      104,507

 OTHER INCOME (EXPENSE)
   Interest Expense                             (26,000)     (26,000)
   Interest Income/Other                         (1,315)        2,872
                                             -----------  -----------
       Other Expense, Net                       (27,315)     (23,128)
                                             -----------  -----------


 INCOME (LOSS) FROM OPERATIONS BEFORE
   INCOME TAXES                                (174,409)       81,379
                                             -----------  -----------
 INCOME TAXES                                        489        1,111
                                             -----------  -----------
 NET INCOME (LOSS)                            ($174,898)      $80,268

 NET INCOME (LOSS) PER COMMON SHARE              ($0.02)        $0.01

 Weighted average number of common shares      7,854,667    7,854,667
 outstanding
                                                ========     ========

           The accompanying "Notes to Financial Statements" 
          are an integral part of these financial statements
                           (Unaudited)
                              -2-
</TABLE>                     <PAGE>

<TABLE>
<CAPTION>
                        COMTEX SCIENTIFIC CORPORATION
                           STATEMENTS OF CASH FLOWS
           FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
                                 (UNAUDITED)

                                                                Three Months Ended
                                                                   September 30,
                                                                   1995            1994
                                                          --------------  --------------
<S>                                                      <C>             <C>
 Cash Flow from Operating Activities:
   Net Income (Loss)                                          ($174,898)         $80,268
   Adjustments to reconcile net income (loss) to net
    cash provided by operating activities:
     Depreciation                                                 37,552          41,758
     Bad Debt Expense                                              8,000           9,996
     Loss on Disposition of Fixed Assets                           1,346               -
   Changes in Assets and Liabilities:
     Accounts Receivable                                       (134,240)        (41,873)
     Prepaid Expenses and Other Current Assets                   (5,261)        (13,263)
     Deposits                                                          -           (134)
     Accounts Payable                                            200,806          16,879

     Accrued Expenses                                             92,180        (49,776)
     Other Liabilities                                           (5,850)        (25,655)
                                                            ------------    ------------
  Net Cash provided by Operating Activities                       19,635          18,200

 Cash Flows from Investing Activities:
   Purchases of Property and Equipment                          (55,800)         (3,351)
   Proceeds from Disposition of Fixed Assets                       8,185               -
   Advances to MRI                                             (481,354)               -
   Repayments of Advances                                        929,298               -
                                                            ------------    ------------
  Net Cash used in Investing Activities                          400,329         (3,351)


 Cash Flows from Financing Activities:
   Notes Payable                                                     375           2,025
   Proceeds from Line of Credit                                  440,749               -
   Repayments against Line of Credit                           (861,569)               -
                                                            ------------    ------------
  Net Cash provided by Financing Activities                    (420,445)           2,025
                                                            ------------    ------------
 Net Increase (Decrease) in Cash and Cash Equivalents              (482)          16,874

 Cash and Cash Equivalents, Balance at Beginning of               15,163         356,099
 Period                                                     ------------    ------------

 Cash and Cash Equivalents, Balance at End of Period             $14,681        $372,973
                                                            ============    ============
                                <PAGE>
 
 Supplemental disclosure of cash flow information:
    Cash paid for interest                                            $0         $26,000
    Cash paid for income taxes                                      $489          $1,111

             The accompanying "Notes to Financial Statements"
            are an integral part of these financial statements 
                                 -3- 
</TABLE>                        <PAGE>

                    COMTEX SCIENTIFIC CORPORATION
                    NOTES TO FINANCIAL STATEMENTS

1.   Basis of Presentation

     The accompanying interim financial statements of Comtex
Scientific Corporation (the "Company" or "Comtex") are unaudited,
but in the opinion of management reflect all adjustments (consisting
only of normal recurring accruals) necessary for a fair presentation
of results for such periods.  The results of operations for any
interim period are not necessarily indicative of results for the
full year.  These financial statements should be read in conjunction
with the financial statements and notes thereto included in the
Company's Annual Report on Form 10-K for the fiscal year ended June
30, 1995 ("1995 Form 10-K"), filed with the Securities and Exchange
Commission.

     Income (loss) per common share is based upon the weighted
average number of shares outstanding during each quarter and common
stock equivalents, if dilutive.  The effect of outstanding common
stock equivalents on net income (loss) per common share is not
included because it would be antidilutive. 

       
2.   Reclassifications

     Certain amounts presented for the three months ended September
30, 1994, have been reclassified to conform to the presentation for
the three months ended September 30, 1995.

3.   Going Concern

     The accompanying financial statements have been prepared
assuming that Comtex will continue as a going concern.  The Company
has suffered recurring losses from operations and has a negative
shareholders' equity that raises substantial doubt about its ability
to continue as a going concern.  The accompanying financial
statements do not include any adjustments that might result should
the Company be unable to continue as a going concern.


4.   Telecommunications Industries, Inc./Micro Research Industries

     On May 16, 1995, the Company entered into an Asset Purchase
Agreement with Telecommunications Industries, Inc. ("TII") ("Asset
Purchase Agreement") to acquire certain assets and assume certain
liabilities of TII contingent upon the satisfaction of certain
conditions ("MRI Acquisition").  The assets to be acquired include
substantially all of the assets of TII's operating division, Micro
Research Industries ("MRI").  MRI's business consists of providing
sales, leasing and maintenance support of computer hardware and
software primarily to the U.S. House of Representatives.

                                    <PAGE>

     The MRI Acquisition is contingent upon the satisfaction of
certain conditions on or before December 31, 1995.  These conditions
include (a) the satisfactory examination of the MRI business and
assets by the Company, including the right to inspect and copy the
financial and corporate books and records of TII and such other data
and information as the Company may reasonably request, (b) the
receipt by the Company of UCC and lien searches or other evidence
reflecting a status of title to the assets satisfactory to the
Company, (c) the receipt of all requisite approvals and consents
from creditors of TII, governmental or regulatory authorities, and
any other third parties whose approval or consent is required, and
(d) compliance in all respects with all laws, rules and regulations
applicable to the transaction. 

     The Asset Purchase Agreement permits the Company, in the event
the conditions are not satisfied prior to December 31, 1995, to put
back to TII all or any portion of the TII assets acquired by the
Company pursuant to a certain Put Agreement ("Put Agreement") dated
May 16, 1995, between the Company and TII.  In the event the Company
exercises the put option, the Company will promptly transfer and
convey to TII the assets or portion thereof for which the put option
has been exercised.  Additionally, in the event (a) all conditions
are not satisfied on or before December 31, 1995, and (b) the
Company fails or elects not to exercise the put option on or before
February 16, 1996, (i) the Company will be deemed to have waived the
unsatisfied condition(s) and have no further right to exercise the
put option, and (ii) the principal amount outstanding from the
Company to Infotechnology, Inc. ("Infotech") will be reduced and
forgiven by Infotech by and to the extent of the amount paid by the
Company, at its sole option, in excess of the agreed consideration
in order to satisfy the unsatisfied condition(s) (see Note 5).

     The consideration for the TII assets includes (a) the
assumption by the Company of certain liabilities of TII, and (b) the
granting by the Company to C.W. Gilluly, the Company's Chairman and
Chief Executive Officer, and his wife, Marny Gilluly (the
"Gillulys") of options to acquire common stock of the Company. 

     If the MRI Acquisition is consummated, the Company will assume
all debts, liabilities or other obligations of TII specifically
related to the assets acquired.  The Company did not assume
liabilities related to (a) a note and other payables of TII owed to
Infotech in the aggregate amount of approximately $4,114,000, (b)
other TII liabilities which are not directly related to the MRI
business and which total approximately $490,000 and (c) certain
amounts payable from TII to the Federal Deposit Insurance
Corporation.   

     In anticipation of closing this transaction, and to preserve
the MRI assets,  the Company entered into an Operating Agreement
with TII effective as of February 17, 1995.  Pursuant to the
Operating Agreement, TII delegated to Comtex its full right and
authority to operate and manage its business.

                                    <PAGE>

     Since the acquisition is contingent upon the satisfaction of
certain conditions pursuant to the Put Agreement, the Company has
not included MRI's balance sheet or results of operations in its
financial statements.  If the MRI Acquisition is consummated, the
assets and liabilities included in the transaction will be recorded
at book value since the Company and TII are entities under the
common control of Infotech.

5.   Notes Payable

     On May 16, 1995, the Company and Infotech, signed the Amended
Infotech Note which carries an interest rate of 10% on the unpaid
principal balance and is due on July 1, 2002.  The Amended Infotech
Note is collateralized by a continuing collateral interest in all
receivables, all products of such receivables and the proceeds
thereof, all purchase orders, and all patents and technology now or
hereafter held or received by the Company.  

     In conjunction with the Amended Infotech Note, the Company and
Infotech entered into an Agreement dated May 16, 1995, whereby
Infotech agreed to reduce the outstanding principal of the Amended
Infotech Note based upon certain circumstances.  These circumstances
include payments made by Comtex in accordance with the MRI
Acquisition (see Note 4), losses incurred by MRI during a specified
period of time or any losses, liabilities or expenses incurred by
Comtex arising from any inaccuracy or breach of any representations
or warranties contained in the Asset Purchase Agreement.  The
principal of the Amended Infotech Note may be increased in the event
that the Gillulys utilize loans to the Company as consideration when
exercising certain options to purchase Comtex common stock owned by
Infotech and granted to the Gillulys.     

     Since the Asset Purchase Agreement consummating the MRI
Acquisition is contingent upon the satisfaction of certain
conditions pursuant to the Put Agreement, the note principal
adjustment amounts stipulated in the Agreement have not been
determined.  Thus, at September 30, 1995, the principal of the
Amended Infotech Note remains at $1,040,000.  The terms and
conditions, including the maturity date, of the Amended Infotech
Note are not contingent on any aspects of the MRI Acquisition or the
Put Agreement.

     On February 17, 1995, the Company entered into a $1 million
Contracts Financing Agreement with Princeton Capital Finance
Company, L.L.C. ("PrinCap").  The PrinCap Contracts Financing
Agreement provides for the financing of approved inventory, unbilled
accounts receivable and accounts receivable to support both the MRI
business and Comtex' operations.  Under the financing agreement,
PrinCap will finance approved inventory and unbilled accounts
receivable at an annualized interest rate of Prime plus 4% and
accounts receivable at an annualized interest rate of Prime plus 3%
based upon Prime as defined by The Wall Street Journal on the date
of borrowing.  At September 30, 1995, the Company owed PrinCap
approximately $370,000 plus accrued interest.

                                   <PAGE>

     Through September 30, 1995, all PrinCap proceeds had been
utilized for the financing of purchase orders and accounts
receivable to support the MRI business.  Accordingly, all such
borrowings from PrinCap by the Company have been for the benefit of
TII.   

     In order to obtain such financing, PrinCap required a corporate
guarantee from TII and a limited personal guarantee of up to $1
million from the Gillulys. To induce the Gillulys to personally
guarantee the financing, the Board approved the issuance directly to
the Gillulys of certain options to purchase common stock of the
Company pursuant to Stock Option Agreements between the Gillulys and
the Company dated May 16, 1995.  Additionally, as partial
consideration for the Gillulys' personal guarantee of the PrinCap
financing and to make certain loans to TII prior to the PrinCap
financing, Infotech and one of its wholly-owned subsidiaries,
granted to the Gillulys options to purchase common stock of the
Company owned by Infotech and that subsidiary pursuant to a Stock
Option Agreement dated May 16, 1995 (collectively the "Stock Option
Agreements").
 
     The number of shares of the Company's common stock subject to
the Stock Option Agreements ("Option Shares") was determined as of
August 21, 1995, pursuant to the formulae set forth in the Stock
Option Agreements.  The Gillulys received options to purchase
2,540,503 of the Company's shares held by Infotech.  In addition,
pursuant to the Stock Option Agreements, the Company issued
2,540,503 options to the Gillulys.  This issuance of 2,540,503
options along with the approval of 900,000 shares for a stock option
plan exceeds the Company's currently authorized shares by 1,295,170. 
The Company plans to seek shareholder approval to increase the
number of authorized shares at its Annual Meeting of Shareholders to
be held in December 1995.  For a more detailed description of the
Amended Infotech Note, the PrinCap Contracts Financing Agreement and
the Stock Option Agreements, see the 1995 Form 10-K.


6.   Related Parties

     On May 31, 1993, the Company relocated to Alexandria, Virginia,
sharing facilities with TII.  Comtex and TII also share accounting,
human resources, and technical employees, equipment, and office
supplies pursuant to a contract signed September 1, 1993.  Shared
employees are charged to the entity receiving benefit of the
employee's labor at the employee's hourly rate.  Facility rental and
office expenses are charged to the entity receiving the benefit or
service based upon actual cost.  Pursuant to the contract, the
Company incurred expenses of approximately $49,000 and $61,000 for
facility rental, staff and office expenses during the three months
ended September 30, 1995 and 1994, respectively.

                                     <PAGE>

     At September 30, 1995, the Company owed approximately $370,000
to PrinCap and reflected a corresponding accounts receivable from
MRI in this amount.  Advances from the Company to MRI have the same
interest rate as the Company incurs to PrinCap.  Additionally, as
September 30, 1995, the Company had a net accounts receivable from
MRI totalling approximately $253,000 which includes cash advances,
accrued PrinCap interest, payments of MRI accounts payable and
operating transactions.  At June 30, 1995, the Company had an
accounts receivable from MRI related to PrinCap financings of
approximately $792,000 and a net accounts receivable related to cash
advances, accrued PrinCap interest, payments of MRI accounts payable
and operating transactions of approximately $309,000.

                                     <PAGE>

Item 2.

               MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS

THE COMPANY

     The Company is in the business of integrating hundreds of real-
time news and information sources from around the world and
specializes in providing automated editorial processing and
repackaging of real-time news sources for information product
distributors and corporate end-users.  Comtex provides its customers
with information which consists of the development and delivery of
customized real-time and delayed-basis news wires.  Product content
includes late-breaking U.S. and international news and events,
world-wide economic news and indices, news and information on over
15,000 public and private companies, Securities and Exchange
Commission ("SEC") filings within 24 hours of release and up-to-the-
minute sports and entertainment news.  Real-time denotes the
electronic transmission of breaking news stories while events are
happening, or directly upon their completion, and before the
stories' placement in conventional print, radio and television
media. 


RESULTS OF OPERATIONS

COMPARISON OF THE THREE MONTHS ENDED SEPTEMBER 30, 1995, TO THE
THREE MONTHS ENDED SEPTEMBER 30, 1994

     During the three months ended September 30, 1995, the Company's
revenues were approximately $755,000, or approximately $4,000
greater than revenues for the three months ended September 30, 1994. 
This minimal increase in revenues reflects revenues from new
customers and royalties derived from the sale of Comtex' news to
information distributors who pay Comtex a royalty based upon usage,
offset by customer losses (including losses due to mergers of
businesses) and revenue decreases due to pricing and usage factors.  
 

     Operational expenses for the three months ended September 30,
1995 were approximately $902,000, representing a $255,000 (39%)
increase in operational expenses as compared with the three months
ended September 30, 1994.  The increase in operational expenses is
principally due to increased expenses for operations, product
development and general and administrative.  The increase in
operational expenses is primarily due to an increase in amounts paid
to information providers to enhance product breadth and
telecommunication costs.  The increase in expenses related to
information providers allows the Company to obtain additional
product content which improves its service to existing customers and
enhances the Company's ability to attract new customers.  Increased
telecommunications costs include approximately $31,000 of non-
recurring conversion costs and duplicative charges related to the

                                      <PAGE>

Company's upgrade in processing speed from 2,400 baud to 9,600 baud. 
Increases in product development represent expenses related to
enhancement and augmentation of the Company's CustomWire products
which were released in March 1995.  The increase in general and
administrative expenses relates to increases in personnel costs
associated with the Company's operations and to small increases in
legal and professional fees.  

     The Company incurred an operating loss of approximately
$147,000 during the quarter ended September 30, 1995 as compared
with an operating income for the quarter ended September 30, 1994 of
approximately $105,000. The Company recorded a net loss of
approximately $174,000 for the three months ended September 30, 1995
as compared with net income for the three months ended September 30,
1994 of approximately $80,000.  The decline in both operating income
and net income reflects increased expenses  predominately related to
information providers, telecommunications and product development as
discussed above. 



FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES 

     At September 30, 1995, the Company had a negative working
capital of approximately $55,000 as compared with working capital of
approximately $134,000 at June 30, 1995.  This decrease in working
capital is the result of operational losses. 

     The Company had cash and cash equivalents in the amount of
approximately $15,000 at September 30, 1995, which was consistent
with the cash equivalents position at June 30, 1995.   The Company's
operating activities generated approximately $20,000 of cash during
the quarter ended September 30, 1995.  Additionally, during the
quarter ended September 30, 1995, the Company advanced approximately
$481,000 to MRI, including approximately $441,000 of borrowings from
PrinCap.  During the quarter ended September 30, 1995, MRI repaid
the Company approximately $862,000 and advanced Comtex approximately
$96,000.  The balance outstanding from MRI at September 30, 1995 is
comprised of approximately $370,000 of PrinCap advances and
approximately $253,000 of unsecured cash advances and accounts
receivable.  
 
     Until the May 1995 restructuring, the Company had been in
default on 1986 notes aggregating $1,040,000 due to Infotech, the
majority owner of the Company.  On May 16, 1995, the Company and
Infotech entered into an Amended, Consolidated and Restated 10%
Senior Subordinated Amended Infotech Note ("Amended Infotech Note"). 
The Amended Infotech Note carries an interest rate of 10% on the
unpaid principal balance and is due on July 1, 2002.  

                                      <PAGE>

     In conjunction with the Amended Infotech Note, the Company and
Infotech entered into an Agreement dated May 16, 1995, whereby
Infotech agreed to reduce the outstanding principal of the Amended
Infotech Note based upon certain circumstances.  These circumstances
include payments made by Comtex in accordance with
the May 1995 agreement with Telecommunications Industries, Inc.
("TII") to acquire TII's Micro Research Industries ("MRI") division
("MRI Acquisition") (see Note 4 of Notes to the Financial
Statements), losses incurred by MRI during a specified period of
time or any losses, liabilities or expenses incurred by Comtex
arising from any inaccuracy or breach of any representations or
warranties contained in the Asset Purchase Agreement.  The principal
of the Amended Infotech Note may be increased in the event that C.W.
Gilluly, the Company's Chairman and Chief Executive Officer, and his
wife, Marny Gilluly (the "Gillulys") utilize loans to the Company as
consideration when exercising certain options to purchase Comtex
common stock owned by Infotech and granted to the Gillulys.     

     Since the Asset Purchase Agreement consummating the MRI
Acquisition is contingent upon the satisfaction of certain
conditions pursuant to the Put Agreement, the note principal
adjustment amounts stipulated in the Agreement have not been
determined.  Thus, at September 30, 1995, the principal of the
Amended Infotech Note remains at $1,040,000.  The terms and
conditions, including the maturity date, of the Amended Infotech
Note are not contingent on any aspects of the MRI Acquisition or the
Put Agreement.

     On February 17, 1995, the Company entered into a $1 million
Contracts Financing Agreement with Princeton Capital Finance
Company, L.L.C. ("PrinCap").  The PrinCap Contracts Financing
Agreement provides for the financing of approved inventory, unbilled
accounts receivable and accounts receivable to support both the MRI
business and Comtex' operations.  Under the financing agreement,
PrinCap will finance approved inventory and unbilled accounts
receivable at an annualized interest rate of Prime plus 4% and
accounts receivable at an annualized interest rate of Prime plus 3%
based upon Prime as defined by The Wall Street Journal on the date
of borrowing.  At September 30, 1995, the Company owed PrinCap
approximately $370,000 of principal plus accrued interest.  

     Through September 30, 1995, all PrinCap proceeds had been
utilized for the financing of purchase orders and accounts
receivable to support the MRI business.  Accordingly, all such
borrowings from PrinCap by the Company have been for the benefit of
TII.  Thus, at September 30, 1995, the Company had an accounts
receivable from MRI related to PrinCap financings of approximately
$370,000. 

                                      <PAGE>

     The Company's ability to utilize the PrinCap Contract Financing
Agreement is dependent upon the Company and/or MRI generating
sufficient orders and billings to utilize as a borrowing base.  No
assurance may be given that the Company and/or MRI will be able to
maintain this borrowing base.

     In order to obtain such financing, PrinCap required a corporate
guarantee from TII and a limited personal guarantee of up to $1
million from the Gillulys. To induce the Gillulys to personally
guarantee the financing, the Board approved the issuance directly to
the Gillulys of certain options to purchase common stock of the
Company pursuant to Stock Option Agreements between the Gillulys and
the Company dated May 16, 1995.  Additionally, as partial
consideration for the agreement by the Gillulys to personally
guarantee the PrinCap financing and to make certain loans to TII
prior to the PrinCap financing, Infotech and one of its wholly-owned
subsidiaries, granted to the Gillulys options to purchase common
stock of the Company owned by Infotech and that subsidiary pursuant
to a Stock Option Agreement dated May 16, 1995 (collectively the
"Stock Option Agreements").
 
     The number of shares of the Company's common stock subject to
the Stock Option Agreements ("Option Shares") was determined as of
August 21, 1995, pursuant to the formulae set forth in the Stock
Option Agreements.  The Gillulys received options to purchase
2,540,503 of the Company's shares held by Infotech.  In addition,
pursuant to the Stock Option Agreements, the Company issued
2,540,503 options to the Gillulys.  This issuance of 2,540,503
options along with the approval of 900,000 shares for a stock option
plan exceeds the Company's currently authorized shares by 1,295,170. 
The Company plans to seek shareholder approval to increase the
number of authorized shares at its Annual Meeting of Shareholders to
be held in December 1995.  For a more detailed description of the
Amended Infotech Note, the PrinCap Contracts Financing Agreement and
the Stock Option Agreements, see the 1995 Form 10-K.

     The Company has suffered recurring losses from operations and
has a net stockholders' deficit of approximately $795,000 at
September 30, 1995.  The Company's future capital resources and
liquidity will depend on the results of operations.  The company
relies on third party information providers for the news and
information which becomes its product content.  Interruption in or
the termination of service from a significant number of the
Company's information providers would affect the Company's ability
to offer products or maintain product quality.  Accordingly, the
failure or inability to restore or replace such interrupted or
terminated services could have a material adverse effect on
revenues.

                                      <PAGE>

     In fiscal years 1994 and 1995, the Company dedicated
substantial resources to upgrading its capabilities by implementing
an advanced data management methodology designed to streamline
reformatting, keywording and categorization of over 6,000 daily
stories currently processed on a real-time basis.  This process
increases the efficiency of the Company's operations and the
usefulness of the stories.  The algorithms employed by this data
management methodology gives the Company the ability to organize
news stories by the similarity of content to other documents.  The
Company also upgraded its telecommunications systems with a backbone
network running at a speed of 56kb, thus positioning the Company to
transmit increased volumes of stories and providing the future
capability of delivering multi-media products.   

     During March of fiscal year 1995, utilizing its data management
process, the Company has released a new product line, called
CustomWires, which offers customers the option of selecting any
combination of CustomWire products.  The CustomWires are topic-
defined newswire products that draw from every Comtex news source
items relevant to the topic of the relevant CustomWire.
Additionally, for customers who require news that focuses on topics
not highlighted in basic CustomWires, Comtex has the ability to
develop a unique CustomWire to meet the specific needs of certain
end-user markets.  

                                      <PAGE>


PART II - OTHER INFORMATION

Items 1-6 of Part II of Form 10-Q are not applicable. 

                                      <PAGE>

                             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.

                                   COMTEX SCIENTIFIC CORPORATION
                                           (Registrant)



     Dated:  November 14, 1995     By:  /s/ C.W. Gilluly        
                                       C.W. Gilluly
                                       Chairman of the Board and
                                       Chief Executive Officer



                                   By:  /s/ Thomas Wollman      
                                       Thomas Wollman
                                       Chief Financial Officer
                                       (Principal Financial and
                                        Accounting Officer)<PAGE>