<PAGE>

                    U. S. SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                  FORM 10-QSB/A
                         AMENDMENT NO. 1 TO FORM 10-QSB

/X/   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934 For the quarterly period ended June 30, 1998

                                       OR

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

            For the transition period from __________to ____________

                          Commission file number 0-9899


                          MEDICAL GRAPHICS CORPORATION
        (Exact name of small business issuer as specified in its charter)

             MINNESOTA                                       41-1316712
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                           Identification No.)

             350 OAK GROVE PARKWAY, SAINT PAUL, MINNESOTA 55127-8599
                    (Address of principal executive offices)

       Registrant's telephone number, including area code: (651) 484-4874

Indicate by check mark whether the issuer (1) filed all reports required to 
be filed by Section 13 or 15(d) of the Exchange Act during the past 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 August 12, 1998, the Company had outstanding 5,056,975 shares of Common 
Stock, $.05 par value, and 444,445 shares of Class A Stock, $.05 par value. 
Each share of Class A Stock is convertible into 1.5 shares of Common Stock.

Transitional Small Business Disclosure Format: Yes      No  X
                                                   ---     ---

<PAGE>

                          PART I: FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                          MEDICAL GRAPHICS CORPORATION
                                 BALANCE SHEETS
                            (UNAUDITED IN THOUSANDS)

<TABLE>
<CAPTION>

                                                                               JUNE 30,
                                                                                 1998 
                                                                             (AS RESTATED           DECEMBER 31,
                                                                              SEE NOTE 6)              1997
                                                                         --------------------    ------------------
<S>                                                                      <C>                     <C>
ASSETS
   CURRENT ASSETS
     Cash and cash equivalents                                                       $    185              $    387
     Accounts receivable, net of allowance for doubtful
       accounts of $166 and $164                                                        4,252                 3,890
     Inventories:
       Purchased components and work in process                                         3,443                 3,164
       Finished goods                                                                   1,991                 1,636
                                                                         --------------------    ------------------
                                                                                        5,434                 4,800
     Prepaid expenses                                                                     323                   272
                                                                         --------------------    ------------------
       Total Current Assets                                                            10,194                 9,349
                                                                         --------------------    ------------------
   EQUIPMENT AND FIXTURES                                                               4,093                 4,072
     LESS ACCUMULATED DEPRECIATION                                                      3,411                 3,110
                                                                         --------------------    ------------------
                                                                                          682                   962
   SOFTWARE PRODUCTION COSTS, NET OF ACCUMULATED
     AMORTIZATION OF $1,023 AND $855                                                      613                   602
   OTHER ASSETS                                                                            10                    13
                                                                         --------------------    ------------------
                                                                                     $ 11,499              $ 10,926
                                                                         --------------------    ------------------
                                                                         --------------------    ------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
   CURRENT LIABILITIES
     Accounts payable                                                                $  2,816              $  2,261
     Accounts payable financed with vendors - current                                     924                 1,145
     Line of credit                                                                     2,584                 2,254
     Employee compensation                                                                653                   786
     Deferred service contract revenue                                                    899                   896
     Warranty reserve                                                                     374                   414
     Other liabilities and accrued expenses                                               595                   675
                                                                         --------------------    ------------------
       Total Current Liabilities                                                        8,845                 8,431
   COMMITMENTS AND CONTINGENCIES
   LONG-TERM ACCOUNTS PAYABLE FINANCED WITH VENDORS                                       397                   807
   SHAREHOLDERS' EQUITY
     Class A stock; liquidation preference of $3.375 per share                             22                    22
     Common stock                                                                         168                   148
     Additional paid-in capital                                                        15,346                13,727
     Retained deficit                                                                 (13,279)              (12,209)
                                                                         --------------------    ------------------
                                                                                        2,257                 1,688
                                                                         --------------------    ------------------
                                                                                     $ 11,499              $ 10,926
                                                                         --------------------    ------------------
                                                                         --------------------    ------------------
</TABLE>

See accompanying notes to financial statements.

                                       
<PAGE>

                          MEDICAL GRAPHICS CORPORATION
                             STATEMENT OF OPERATIONS
                                   (UNAUDITED)
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                            THREE MONTHS ENDED                         SIX MONTHS ENDED
                                                 JUNE 30,                                  JUNE 30.
                                    ----------------------------------   ------------------------------------------
                                          1998               1997                1998                   1997
                                                         (AS RESTATED        (AS RESTATED           (AS RESTATED
                                                          SEE NOTE 6)         SEE NOTE 6)            SEE NOTE 6)
                                    ---------------   ----------------   --------------------    ------------------
<S>                                 <C>               <C>                <C>                     <C>
REVENUES:
   Equipment sales                           $3,976             $3,773                $ 7,809               $ 7,396
   Service and supplies revenues              1,146              1,240                  2,383                 2,374
                                    ---------------   ----------------   --------------------    ------------------
     Total revenues                           5,122              5,013                 10,192                 9,770
COST OF REVENUES                              3,269              3,086                  6,253                 6,304
                                    ---------------   ----------------   --------------------    ------------------
   Gross margin                               1,853              1,927                  3,939                 3,466

OPERATING EXPENSES:
   Selling and marketing                      1,520              1,531                  2,929                 3,070
   General and administrative                   534                607                  1,027                 1,172
   Research and development                     449                537                    856                 1,059
   Nonrecurring charges                                             53                                        1,358
                                    ---------------   ----------------   --------------------    ------------------
                                              2,503              2,728                  4,812                 6,659
                                    ---------------   ----------------   --------------------    ------------------
LOSS FROM OPERATIONS                           (650)              (801)                  (873)               (3,193)

   Interest expense                            (100)               (63)                  (197)                 (148)
                                    ---------------   ----------------   --------------------    ------------------
LOSS BEFORE INCOME TAXES                       (750)              (864)                (1,070)               (3,341)
   Income tax benefit                             0                  0                      0                     0
                                    ---------------   ----------------   --------------------    ------------------
NET LOSS                                     $ (750)            $ (864)               $(1,070)              $(3,341)
                                    ---------------   ----------------   --------------------    ------------------
                                    ---------------   ----------------   --------------------    ------------------
NET LOSS PER WEIGHTED
     AVERAGE SHARE
   Basic                                     $(0.13)            $(0.19)               $ (0.19)              $ (0.80)
   Diluted                                   $(0.13)            $(0.19)               $ (0.19)              $ (0.80)
                                    ---------------   ----------------   --------------------    ------------------
                                    ---------------   ----------------   --------------------    ------------------
WEIGHTED AVERAGE SHARES
     OUTSTANDING
   Basic                                      5,708              4,496                  5,595                 4,175
   Diluted                                    5,708              4,496                  5,595                 4,175

</TABLE>
See accompanying notes to financial statements.


<PAGE>



                          MEDICAL GRAPHICS CORPORATION
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                       SIX MONTHS ENDED
                                                                                           JUNE 30,
                                                                                 1998                   1997
                                                                             (AS RESTATED           (AS RESTATED
                                                                              SEE NOTE 6)            SEE NOTE 6)
                                                                         --------------------    ------------------
<S>                                                                      <C>                     <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                                                           ($1,070)              ($3,341)
   Adjustments to reconcile net loss to net cash provided (used)
       in operating activities
     Issuance of common stock warrants                                                                         $608
     Depreciation                                                                         301                   286
     Amortization                                                                         168                   166
     Changes in operating assets and liabilities
       Accounts receivable                                                               (362)                  584
       Inventory                                                                         (634)                2,082
       Prepaid expenses and other assets                                                  (48)                  (49)
       Accounts payable and accrued expenses                                              121                  (257)
       Warranty reserve                                                                   (40)                  157
       Deferred service contract revenue                                                    3                   (89)
                                                                         --------------------    ------------------
         Net cash (used) provided in operating activities                              (1,561)                  147
                                                                         --------------------    ------------------
CASH FLOWS FROM INVESTING ACTIVITIES

   Software production costs                                                             (179)                 (141)
   Capital expenditures                                                                   (21)                  (86)
                                                                         --------------------    ------------------
         Net cash used in investing activities                                           (200)                 (227)
                                                                         --------------------    ------------------
CASH FLOWS FROM FINANCING ACTIVITIES
   Net borrowings (payments) on bank line of credit                                       330                (1,483)
   Payments on long-term accounts payable financed with vendors                          (410)                 (227)
   Net proceeds from issuances of common stock                                          1,639                 1,519
                                                                         --------------------    ------------------
         Net cash provided (used) by financing activities                               1,559                  (191)
                                                                         --------------------    ------------------
NET DECREASE IN CASH                                                                     (202)                 (271)
CASH AT BEGINNING OF PERIOD                                                               387                   545
                                                                         --------------------    ------------------
CASH AT END OF PERIOD                                                                    $185                  $274
                                                                         --------------------    ------------------
                                                                         --------------------    ------------------
</TABLE>

See accompanying notes to financial statements.


<PAGE>


                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 1998
                                   (Unaudited)

1. BASIS OF PRESENTATION

The accompanying financial statements have been prepared in accordance with 
generally accepted accounting principles for interim financial information 
and with the instructions to Form 10-QSB and Rule 10-01 of Regulation S-X. 
Accordingly, they do not include all of the information and notes required by 
generally accepted accounting principles for complete financial statements. 
In the opinion of management, all adjustments considered necessary for a fair 
presentation of results have been included.

The balance sheet at December 31, 1997 was derived from the audited financial 
statements as of that date. Operating results for the three and six month 
periods ended June 30, 1998 are not necessarily indicative of the results 
that may be expected for the year ended December 31, 1998. For further 
information, refer to the financial statements and notes thereto included in 
the Company's Annual Report on Form 10-KSB/A for the fiscal year ended 
December 31, 1997.

2. RECLASSIFICATIONS

Certain amounts in the Company's Form 10-QSB for the three and six month 
periods ended June 30, 1997 have been reclassified to conform to the 1998 
presentation. These reclassifications had no effect on net loss or 
shareholders' equity as previously reported.

3. NON-RECURRING EXPENSES

During the quarter ended March 31, 1997, the Company implemented certain cost 
control strategies which included the termination of certain employees and 
the renegotiation of the Company's bank line of credit. A total of $1,358,000 
in non-recurring expenses were recorded during the six months ended June 30, 
1997 related to severance, legal, consulting and accounting expenses.

4. AMENDMENT TO BANK LINE OF CREDIT

In March, 1998, the Company amended its line of credit agreement.

5. NEW ACCOUNTING PRONOUNCEMENTS

In June 1997, the Financial Accounting Standards Board issued Statement of 
Financial Accounting Standards (SFAS) No. 130, "Reporting Comprehensive 
Income", which was adopted by the Company beginning January 1, 1998. SFAS No. 
130 requires the disclosure of comprehensive income and its components in the 
general-purpose financial statements. The adoption by the Company of SFAS No. 
130 did not have a material effect on the Company's financial statements for 
the three months ended June 30, 1998 or 1997. Total comprehensive loss for 
the three months ended June 30, 1998 and 1997 was $(750,000) and $(864,000), 
respectively. Total comprehensive loss for the six months ended June 30, 1998 
and 1997 was $(1,070,000) and $(3,341,000), respectively.

Effective January 1, 1998, the Company adopted SFAS No. 131, "Disclosure 
about Segments on an Enterprise and Related Information". SFAS No. 131 
redefines how operating segments are determined and requires disclosures of 
certain financial and descriptive information about a Company's operating 
segments. This statement does not have a material impact on results reported 
in the financial statements.


<PAGE>

6.   RESTATEMENT

Subsequent to the issuance of the June 30, 1998 Quarterly Report on Form 
10-QSB the Company determined that inventory write-downs recorded in 1996 
were overstated and that certain restructuring charges recorded in 1996 and 
the six months ended June 30, 1997 were missclassified and/or recorded in the 
wrong period. As a result, the balance sheet at June 30, 1998 has been 
restated to increase inventory and the statements of operations for the three 
and six months ended June 30, 1998 and 1997 have been restated to properly 
classify charges previously recorded as restructuring, to record charges 
previously recorded in 1996 in the first quarter of 1997, and to eliminate the 
reversal of certain inventory provisions during the first quarter of 1998. 
The effects of these adjustments on the financial statements at June 30, 1998 
and for the three and six months ended June 30, 1998 and 1997 are as follows:

<TABLE>
<CAPTION>
                                                                                  THREE MONTHS ENDED JUNE 30
                                                                             -----------------------------------
                                                                                             1997
                                                                             -----------------------------------
                                                                             AS PREVIOUSLY               AS
                                                                               REPORTED               RESTATED
                                                                             --------------          -----------
<S>                                                                          <C>                     <C>
General and administrative                                                          $510                  $607
Non-recurring                                                                        150                    53

</TABLE>

<TABLE>
<CAPTION>
                                                                SIX MONTHS ENDED JUNE 30
                                    -------------------------------------------------------------------------------
                                                   1998                                      1997
                                    ----------------------------------   ------------------------------------------
                                           AS                                     AS
                                       PREVIOUSLY             AS              PREVIOUSLY                 AS
                                        REPORTED           RESTATED            REPORTED               RESTATED
                                    ----------------   ---------------   ------------------       ------------------
<S>                                 <C>                   <C>                 <C>                    <C>
Cost of goods sold                       $ 6,127            $ 6,253
Selling and marketing                      2,730              2,929
General and administrative                                                      $   884                $ 1,172
Non-recurring                                                                         0                  1,358
Restructuring charges                                                             1,496                      0
Net loss                                    (745)            (1,070)             (3,191)                (3,341)
Net income (loss) per share
  (basic and diluted)                      (0.13)             (0.19)              (0.76)                 (0.80)

<CAPTION>
                                            AS OF JUNE 30, 1998         
                                    ----------------------------------  
                                           AS                           
                                       PREVIOUSLY             AS        
                                        REPORTED           RESTATED     
                                    ----------------   ---------------  
<S>                                 <C>                   <C>           
Inventories                             $  5,199           $  5,434     
Retained deficit                         (13,514)           (13,279)    

</TABLE>

<PAGE>


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

FORWARD LOOKING STATEMENTS

Statements included in this Quarterly Report on Form 10-QSB that are not 
historical or current facts are "forward-looking statements" made pursuant to 
the safe harbor provision of the Private Securities Litigation Reform Act of 
1995 and are subject to certain risks and uncertainties that could cause 
actual results to differ materially. Among these risks and uncertainties are 
(i) the fact that the Company has incurred losses of $1,070,000 for the six 
months ended June 30, 1998, and losses of $5,112,000, $8,361,000 and 
$1,731,000 for the fiscal years ended December 31, 1997, 1996 and 1995, 
respectively; (ii) the ability of the Company's distributors to successfully 
market and sell the Company's product in markets outside the United States; 
(iii) the Company's ability to successfully market its product in the United 
States at a favorable margin considering significant price competition in the 
industry; (iv) the extent to which physicians and health plan administrators 
are motivated to use non-invasive diagnostic testing to detect early signs of 
disease; (v) the Company's ability to successfully upgrade its product 
software systems to a Windows-Registered Trademark- environment; and (vi) the 
Company's ability to develop future products which are technologically 
advanced and accepted by the marketplace. For a detailed description of these 
and other factors, see Management's Discussion and Analysis of Financial 
Condition or Plan of Operations, Forward-Looking Statements, Item 6, Part II, 
of 1997 Form 10-KSB/A.

RESULTS OF OPERATIONS

Subsequent to the issuance of the June 30, 1998 Quarterly Report on Form 
10-QSB the Company determined that inventory write-downs recorded in 1996 
were overstated and that certain restructuring charges recorded in 1996 and 
the six months ended June 30, 1997 were missclassified and/or recorded in the 
wrong period. As a result, the balance sheet on June 30, 1998 has been 
restated to increase inventory and the statements of operations for the three 
and six months ended June 30, 1998 and 1997 have been restated to properly 
classify charges previously recorded as restructuring, to record charges 
previously recorded 1996 in the first quarter of 1997, and to eliminate the 
reversal of certain inventory provisions during the first quarter of 1998. 
The effects of these adjustments on the financial statements at June 30, 1998 
and for the three and six months ended June 30, 1998 and 1997 are reflected in 
footnote 6 to the financial statements.

The Company recorded net losses of $750,000 and $864,000 for the three months 
ended June 30, 1998 and 1997, respectively. Included in the 1997 loss was 
$53,000 of non-recurring expenses. For the six months ended June 30, the 
Company recorded net losses of $1,070,000 and $3,341,000 for 1998 and 1997, 
respectively. The six month loss for 1997 included $1,358,000 of 
non-recurring expenses.

REVENUES

Revenues consist of equipment sales and service and supply revenues. 
Equipment sales reflect revenues from the Company's pulmonary function 
analysis systems, gas exchange testing systems and sleep diagnostic systems. 
Service and supply revenues reflect contract revenues from extended 
warranties, revenues from non-warranty service visits and sales of 
peripherals and supplies.

Second quarter revenues increased 2.2% to $5,122,000 in 1998 compared to 
$5,013,000 in 1997. Domestic revenue increased 28.7% to $3,444,000 in 1998 
compared to $2,675,000 in 1997. The increase in 1998 domestic revenue was 
primarily due to sales of sleep diagnostic systems, which were introduced in 
September, 1997. International revenue decreased 51.6% to $532,000 in 1998 
from $1,098,000 in 1997. The strong U. S. Dollar, aggressive competition in 
Europe and economic difficulties being experienced by Asian Pacific countries 
all contributed to a decline in international revenue. Service and supply 
revenue decreased 7.6% to $1,146,000 in 1998 from $1,240,000 in 1997 due to 
decreased supply revenue offset by increased non-warranty service revenues.

For the six months ended June 30, revenues increased 4.3% to $10,192,000 in 
1998 from $9,770,000 in 1997. Year to date domestic revenues increased 17.9% 
to $6,385,000 in 1998 from $5,414,000 in 1997 on the strength of sleep 
diagnostic systems which were introduced in September, 1997. Internationally, 
revenues decreased 28.2% to $1,424,000 in 1998 from $1,982,000 in 1997 due to 
a strong U. S. Dollar and aggressive European competition. Service and supply 
revenue is comparable to prior year with $2,383,000 for 1998 and $2,374,000 
for 1997.


<PAGE>



GROSS MARGIN

Gross margin percentage decreased to 36.2% of revenue for the three months 
ended June 30, 1998 from 38.4% in 1997. Increased average selling prices for 
pulmonary and gas exchange systems were offset by lower margins associated 
with sales of the Company's new sleep diagnostic systems.

For the six months ended June 30, gross margin percentage increased to 38.6% 
in 1998 from 35.5% in 1997. This year to date increase reflects the Company's 
ongoing efforts to decrease its costs of manufacturing through increased 
efficiencies and improved average pricing for the Company's traditional 
products, partially offset by lower margins related to the Company's new 
sleep diagnostic systems.

SELLING AND MARKETING

Selling and marketing expenses for the three months ended June 30, 1998 
decreased modestly by 0.7% to $1,520,000 in 1998 from $1,531,000 in 1997. 
Expenses associated with expanding the Company's domestic sales force have 
offset savings associated with the 1997 decision to sell its asthma business 
unit and reduce focus on the sports medicine market. Year to date selling and 
marketing expenses decreased 4.6% to $2,929,000 in 1998 from $3,070,000 in 
1997.

GENERAL AND ADMINISTRATIVE

General and administrative expenses decreased 12.0% to $534,000 in the second 
quarter of 1998 from $607,000 in 1997. The decrease is attributed to lower 
consulting expenses in 1998 than in 1997 when the Company began to implement 
its cost reduction strategies and lower allowances for doubtful accounts 
receivable. Year to date general and administrative expenses decreased 12.4% 
to $1,027,000 in 1998 from $1,172,000 in 1997.

RESEARCH AND DEVELOPMENT

Research and development expenses decreased 16.4% to $449,000 in the second 
quarter of 1998 from $537,000 in 1997. The decrease reflects the Company's 
1997 restructuring decision to use in-house software engineers rather than 
independent software contractors as part of the Company's transition of its 
product software to a Windows95-Registered Trademark- platform. Year to date, 
research and development expenses decreased 19.2% to $856,000 in 1998 from 
$1,059,000 in 1997.

NON-RECURRING EXPENSES

Non-recurring expenses of $53,000 and $1,358,000 for the three and six months 
ended June 30, 1997, respectively, included severance, legal, accounting and 
consulting expenses associated with the cost reduction strategies implemented 
during the first and second quarters of 1997.

LIQUIDITY AND FINANCIAL RESOURCES

At June 30, 1998, the Company had cash of $185,000 and working capital of 
$1,349,000. In addition, the Company had a balance outstanding under its bank 
line of credit of $2,584,000 and additional availability of $1,049,000.

During the six months ended June 30, 1998, the Company used $1,561,000 of 
cash in operating activities, primarily resulting from a net loss of 
$1,070,000 and increases of $362,000 in accounts receivable and $634,000 in 
inventory. The Company used $200,000 for investing activities, consisting of 
software production costs of $179,000 and capital expenditures of $21,000. 
The Company generated $1,559,000 

<PAGE>

from financing activities, primarily from $1,500,000 in proceeds from the 
private placement of its common stock and net borrowings of $330,000 under 
its line of credit, offset by a decrease of $410,000 in long-term accounts 
payable with vendors.

At June 30, 1997, the Company had cash of $274,000 and working capital of 
$1,860,000.

During the six months ended June 30, 1997, the Company generated $147,000 of 
cash from operating activities, primarily resulting from a loss of $3,341,000 
and a decrease of $257,000 in accounts payable and accrued expenses which 
were offset by noncash common stock warrant expense of $608,000 and 
depreciation and amortization expense of $452,000, in addition to a decrease 
of $2,082,000 in inventory, and $584,000 in accounts receivable. The Company 
used $227,000 for investing activities, consisting of capital expenditures of 
$86,000 and software production costs of $141,000. The Company expended 
$191,000 for financing activities, primarily as a result of a $3,400,000 
payoff of its former bank line of credit and a decrease of $227,000 in 
long-term accounts payable with vendors, partially offset by net proceeds of 
$1,519,000 from the private placement of its Class A Stock and net borrowings 
of $1,917,000 under its existing line of credit.

At June 30, 1998 the Company had no material commitments for capital 
expenditures.

The Company is currently negotiating with its bank to expand its existing 
line of credit. Management believes that it will be successful in expanding 
its line of credit and that cash generated from operations, together with 
cash and borrowings available under its expanded line of credit facility will 
be adequate to satisfy its liquidity and capital resource needs through 1998. 
If negotiations with its bank are not successful, the Company would explore 
raising cash from other sources.

<PAGE>

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

The Company is a defendant in various claims and litigation which are 
incidental to its business. Management is of the opinion that ultimate 
settlement of these matters will not have a material impact on its financial 
statements.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Company's Annual Meeting of Shareholders was held on May 13, 1998. The 
shareholders took the following actions:

(a)     The shareholders elected two directors to hold office until the annual
        meeting of shareholders held in the year 2001. The shareholders present
        in person or by proxy cast the following numbers of votes in connection
        with the election of directors, resulting in the election of all of the
        nominees:

<TABLE>
<CAPTION>
                                            Votes For          Votes Withheld
                                            ---------          --------------
<S>                                         <C>                <C> 
                  Glenn D. Taylor           3,092,534             115,075
                  John D. Wunsch            3,092,534             115,075
</TABLE>

(b)     The shareholders ratified and approved an amendment to the Company's
        1987 Stock Option Plan increasing the number of shares of Common Stock
        reserved for issuance under the Plan from 900,000 shares to 950,000
        shares. 1,674,977 votes were cast for the resolution, 347,698 votes were
        cast against the resolution and 16,280 votes abstained.

(c)     The shareholders ratified and approved an amendment to the Company's
        Non-Employee Director Compensation Plan increasing the number of shares
        of Common Stock reserved for issuance under the Plan from 250,000 to
        450,000 shares. 1,664,530 votes were cast for the resolution; 378,815
        votes were cast against the resolution; and 7,815 votes abstained.

(d)     The shareholders ratified and approved the election of Deloitte & Touche
        LLP as the Company's auditing firm for the fiscal year ending December
        31, 1998. 3,096,824 votes were cast for the resolution; 8,865 votes were
        cast against the resolution; and 3,920 votes abstained.

ITEM 5.  OTHER INFORMATION

The deadline for submission of shareholder proposals pursuant to Rule 14a-8 
under the Securities Exchange Act of 1934, as amended, for inclusion in the 
Company's proxy statement for its 1999 Annual Meeting of Shareholders is 
December 30, 1998. Additionally, if the Company receives notice of a 
shareholder proposal after February 28, 1998, such proposal will be 
considered untimely pursuant to Rules 14a-4 and 14a-5(e) and the persons 
named in proxies solicited by the Board of Directors of the Company for its 
1999 Annual Meeting of Shareholders may exercise discretionary voting power 
with respect to such proposal.

On August 3, 1998, the Company's Board of Directors elected Richard E. Jahnke 
as president, chief executive officer and a member of its Board of Directors, 
replacing Glenn D. Taylor who resigned.

<PAGE>

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)     Exhibits List

        Exhibit 27     Financial Data Schedule

(b)     Reports on Form 8-K

        There were no Reports on Form 8-K filed during the quarter ended June 
        30, 1998.

<PAGE>


SIGNATURES

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

Medical Graphics Corporation
-------------------------------
         (Registrant)

Date  April 15, 1999                   /s/ Richard E. Jahnke
     ---------------                   -----------------------------------------
                                       Richard E. Jahnke, President and Chief
                                       Executive Officer (Principal Executive
                                       Officer)

Date  April 15, 1999                   /s/ Dale H. Johnson
     ---------------                   -----------------------------------------
                                       Dale H. Johnson, Chief Financial Officer
                                       (Chief Accounting Officer)


                                INDEX TO EXHIBITS

<TABLE>
<CAPTION>
Exhibit
Number              Description
-----               -----------
<S>                 <C>

27                  Financial Data Schedule.

</TABLE>