FORM 10-QSB

                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549

                Quarterly Report Under Section 13 or 15(d)
                  of the Securities Exchange Act of 1934

For Quarter Ended:       March 31, 1999
Commission File Number:  0-4728


                    ARROW-MAGNOLIA INTERNATIONAL, INC.
(Exact name of small business issuer as specified in its charter)

                                   Texas
  (State or other jurisdiction of incorporation or organization)

                                75-0408335                        
                   (I.R.S. Employer Identification No.)

                   2646 Rodney Lane, Dallas, Texas 75229
                  (Address of principal executive offices)
                              (972) 247-7111
               (Issuer's telephone number, including area code)

Check whether the issuer (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 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.

                                X                        
                                Yes                   No

Number of common shares outstanding as of March 31, 1999:

              Common Stock, $0.10 par value, 2,962,090 shares
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                    ARROW-MAGNOLIA INTERNATIONAL, INC.
                              March 31, 1999

                             TABLE OF CONTENTS
 
                      PART I. FINANCIAL INFORMATION.


Item 1.   Financial Statements                              Page

     Arrow-Magnolia International, Inc. and Subsidiary      2
     Condensed Balance Sheets as of March 31, 1999 
     (unaudited) and December 31, 1998.

     Arrow-Magnolia International, Inc. and Subsidiary      3
     Condensed Statements of Income for the Three Months 
     Ended March 31, 1999 and 1998 (unaudited).
     
     Arrow-Magnolia International, Inc. and Subsidiary      4
     Condensed Statements of Cash Flows for the Three 
     Months Ended March 31, 1999 and 1998 (unaudited).

     Notes to Condensed Financial Statements (unaudited).   5

Item 2.   Management's Discussion and Analysis or           6
          Plan of Operation.



                       PART II.  OTHER INFORMATION.


Item 6.   Exhibits and Reports on Form 8-K                  7

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             ARROW-MAGNOLIA INTERNATIONAL, INC. AND SUBSIDIARY
                   CONDENSED BALANCE SHEETS (UNAUDITED)
                   MARCH 31, 1999 AND DECEMBER 31, 1998
<TABLE>
                                       March 31,     December 31,
            Assets                     1999              1998
                                   -------------  -------------  
                                   (unaudited)
<S>                                <C>            <C>
Current assets:
  Cash and cash equivalents        $2,714,777     $2,386,719     
  Short-term investments              300,000        300,000     

  Trade accounts receivable, less 
  allowance for doubtful accounts 
  of $419,872 in 1999 and $414,276 
  in 1998                           2,783,944      2,347,320     

  Inventories                         810,362        702,615
  Prepaid income taxes                      0         70,861     

  Deferred income taxes               146,203        144,300
  Other assets                         12,910         27,315
                                   ----------     ---------- 

     Total current assets          $6,768,196     $5,979,130 

Property and equipment, net           788,054        804,140 
Intangible assets, net                129,729        131,247 
Notes receivable                       40,000         40,000 
Deferred income taxes                  25,900         27,200 
Other assets, at cost                   2,700          2,700
                                   ----------     ----------

     Total assets                  $7,754,579     $6,984,417
                                   ==========     ========== 
     
     Liabilities and stockholders' equity

Current liabilities:
 Accounts payable                  $  672,369     $  491,447     

Accrued liabilities                   290,459        215,939     

Income taxes payable                  148,148         63,295 
                                   ----------     -----------

     Total current liabilities     $1,110,976     $  770,681 
                                   
Deferred compensation                 104,500        104,500 
                                   ----------     -----------

     Total liabilities             $1,215,476     $  875,181
                                   ----------     ----------- 
Stockholders' equity:
  Preferred stock - par value 
   $.10; authorized 500,000 
   shares; none issued             $        0     $        0     

 Common stock - par value $.10; 
   authorized 10,000,000 shares; 
   issued 2,962,090 shares in 1999
   and 2,958,990 shares in 1998       296,209        295,899     

 Additional paid-in capital         4,559,272      4,546,795     

 Retained earnings                  1,745,090      1,328,010 
 Less cost of 13,500 shares of 
 common stock in treasury             (61,468)       (61,468)
                                   ----------     ----------
     
     Total stockholders' equity    $6,539,103     $6,109,236 
                                   ----------     ----------

     Total liabilities and 
     stockholders' equity          $7,754,579     $6,984,417 
                                   ==========     ==========
</TABLE>

See accompanying notes to condensed financial statements.
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            ARROW-MAGNOLIA INTERNATIONAL, INC. AND SUBSIDIARY
                                    
               CONDENSED STATEMENTS OF INCOME (UNAUDITED)
           FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
                                                    
<TABLE>
                                   1999           1998  
                                   ----------     ----------     

                                   (Unaudited)    (Unaudited)
<S>                                <C>            <C>            

Net sales                          $3,496,046     3,630,199 
Cost of sales                       1,863,644     1,977,760 
                                                                 
     Gross profit                  $1,632,402     1,652,439 

General and administrative 
expenses                            1,020,006     1,004,890
                                   ----------     ----------     

                                                           
Income before other income 
(expense)                          $  612,396     $ 647,549 
                                   ----------     ----------

Other income (expense):
  Interest expense                 $        0     $ (14,523)
  Interest income                      25,369        17,351 
  Other income                          4,856             0 
                                   ----------     ----------     

     Total other income (expense)  $   30,225     $   2,828 

Income before income taxes         $  642,621     $  650,377 

Provision for income taxes:
   Current                         $  226,144     $  171,253 
   Deferred (benefit)                    (603)    $   62,608
                                   ----------     ---------- 
                                   $  225,541     $  233,861
                                   ----------     ---------- 

Net income                         $  417,080     $  416,516
                                   ==========     ========== 
Earnings per common share:
   Basic                           $     0.14     $     0.14
                                   ==========     ========== 

   Diluted                         $     0.12     $     0.12 
                                   ==========     ==========
</TABLE>
See accompanying notes to condensed financial statements.
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             ARROW-MAGNOLIA INTERNATIONAL, INC, AND SUBSIDIARY

              CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
            FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998

<TABLE>
                                                                  
                                   1999           1998  
                                   ----------     ----------     
                                   (Unaudited)    (Unaudited)
<S>                                <C>            <C>
Cash flows from operating activities:
  Net income                       $  417,080     $  416,516     

   Adjustments to reconcile net 
  earnings to net cash
  provided by operating activities:
     Depreciation and amortization     44,805         35,518     

     Deferred income taxes               (603)        62,608     

     Provision for doubtful accounts    88,982        82,931     

     Compensation expense from issuance 
     of stock options and warrants      12,787         7,720 

Changes in operating assets and 
liabilities:
  Receivables                        (525,606)      (486,109)
  Inventories                        (107,747)       (28,829)
  Prepaid income taxes                 70,861         24,262   
  Other assets                         14,405              0     

  Accounts payable                    180,922        175,820 
  Accrued liabilities                  74,520       (130,156)
  Income taxes payable                 84,853         93,154
                                   ----------     ----------     

     Net cash provided by operating 
     activities                    $  355,259     $  253,435 
                                   ----------     ----------

Cash flows from investing activities:
 Acquisition of property and 
 equipment                         $  (27,201)    $   (6,290)
                                   ----------     ----------     

                                                         
     Net cash (used) by investing 
     activities                    $  (27,201)    $   (6,290)
                                   ----------     ----------

Cash flows from financing activities:
  Repayments of note payable       $        0     $  (35,120)
  Proceeds from common stock 
  issuance                                  0          2,178
                                   ----------     ---------- 
     
     Net cash (used) by 
     financing activities          $        0     $  (32,942)
                                   ----------     ----------

Net increase in cash and cash 
equivalents                        $  328,058     $  214,203 

Cash and cash equivalents:
  Beginning of period               2,386,719      1,878,919 
                                   ----------     ----------
  End of period                    $2,714,777     $2,093,122 
                                   ==========     ==========
</TABLE>
               
See accompanying notes to condensed financial statements.
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            ARROW-MAGNOLIA INTERNATIONAL, INC. AND SUBSIDIARY
                                    
                 NOTES TO CONDENSED FINANCIAL STATEMENTS
                               (UNAUDITED)
                                    
(1)  Basis of Presentation
     ----------------------

     The quarterly financial information included herein is
unaudited; however, such information reflects all adjustments
(consisting solely of normal recurring adjustments) which are, in
the opinion of management, necessary for a fair statement of
results for the interim period.  Certain items in the 1998
condensed financial statements have been adjusted to reflect the
actual timing of certain transactions as described in the
Company's December 31, 1998, annual report on Form 10-KSB.

   
(2)  Earnings Per Share
     -------------------

     The Company adopted the provisions of Statement of Financial
Accounting Standards (SFAS) No. 128, Earnings Per Share, during
1997 and retroactively restated all per share amounts.  SFAS No.
128 reporting requirements replace primary and fully-diluted
earnings per share (EPS) with basic and diluted EPS.  Basic EPS
is calculated by dividing net income (available to common
stockholders) by the weighted average number of common shares
outstanding for the period.  Diluted EPS reflects the potential
dilution that could occur if securities or other contracts to
issue common stock were exercised or converted into common stock.

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Item 2. Management's Discussion and Analysis or Plan of
Operation.


Material Changes in Financial Condition.
-----------------------------------------

     The Company's working capital (total current assets less
total current liabilities), which was $5,208,449 as of December
31, 1998, increased to $5,657,220 as of March 31, 1999.   The
increase in working capital was primarily the result of growth in
cash as a result of continued profitability in the quarter and
increased trade accounts receivable resulting from additional
trade shows, partially offset by increased accounts payable
incurred in connection with setting up the golf course market
inventory. 

     The Company's cash flow from operations for the quarter
provided $355,259 as funds generated from earnings and management
of accounts payable exceeded cash used to fund increased accounts
receivable and inventories.  Funds were also utilized to acquire
property and equipment. The resulting increase in cash for the
quarter was $328,058.

     The Company will begin construction of an additional 30,000
square feet of warehouse space to its existing facilities in May,
1999 and should have more than adequate funds on hand to complete
this addition. The Company believes that its present financing is
also otherwise adequate for its capital needs for the foreseeable
future.
 
Material Changes in Results of Operations
-----------------------------------------

     Net sales for the quarter ended March 31, 1999 decreased
from $3,630,198 to $3,496,046, or 3.7%, from the same period of
the previous year. This decrease is primarily attributable to a
reorganization of the Company's sales force.

     Cost of sales as a percentage of net sales decreased to
53.3% of net sales for the quarter ended March 31, 1999 as
compared to 54.5% of net sales for the same period of 1998 as a
result of an increased emphasis focused on  higher profit margin
products and continued success at additional trade shows. As a
result of the decrease in net sales and slight margin
improvement, gross profit decreased by 1.2% from $1,652,439 to
$1,632,402 for the quarter ended March 31, 1999 versus the
comparable quarter of fiscal 1998.  

     Selling, general and administrative expenses increased by
1.5% for the comparable quarters as the Company implemented
measures to increase the Company's sales force and its
sales managers' team.  
  
     As a result of these factors, net earnings before income
taxes decreased to $642,621 from $650,377 for the corresponding
quarters of 1999 and 1998.  Net earnings increased nominally
for the comparable quarters, from $416,516 to $417,080.
     
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                        Part II.  OTHER INFORMATION


Item 6.   Exhibits and Reports.

     (a)  None

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                                 SIGNATURE

Pursuant to the requirement of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.


                                   ARROW-MAGNOLIA INTERNATIONAL,
                                   INC.



Date:  May 15, 1999                By:  /s/ Mark Kenner          

      -------------------             ---------------------------
                                       Mark Kenner, Vice Chairman
                                       and Chief Executive
                                      Officer
                                       




Date:   May 15, 1999               By:  /s/ Fred Kenner          

      -------------------            ----------------------------
                                      Fred Kenner, President
                                      and Chief Financial Officer