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:       September 30, 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 September 30, 1999:

            Common Stock, $0.10 par value, 3,262,066 shares
<PAGE>
                    ARROW-MAGNOLIA INTERNATIONAL, INC.
                               September 30, 1999

                             TABLE OF CONTENTS

                      PART I. FINANCIAL INFORMATION.


Item 1.   Financial Statements                              Page

     Arrow-Magnolia International, Inc.                     3
     Condensed Balance Sheets as of September 30, 1999
     (unaudited) and December 31, 1998.

     Arrow-Magnolia International, Inc.                     4
     Condensed Statements of Income for the Three and
     Nine Month Periods Ended September 30, 1999 and 1998
     (unaudited).

     Arrow-Magnolia International, Inc.                     5
     Condensed Statements of Cash Flows for the Nine
     Month Periods Ended September 30, 1999 and 1998
     (unaudited).

     Notes to Condensed Financial Statements (unaudited).   6

Item 2.   Management's Discussion and Analysis or           7
          Plan of Operation.



                       PART II.  OTHER INFORMATION.

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

<PAGE>
                  	   ARROW-MAGNOLIA INTERNATIONAL, INC.
                      		  CONDENSED BALANCE SHEETS
                    SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
<TABLE>
                                   September 30,	December 31,
            Assets                  1999             1998
                                   -----------	-----------
                                   (Unaudited)
<S>                                <C>            <C>
Current assets:
  Cash and cash equivalents        $2,653,166   	$2,386,719
  Short-term investments              300,000       300,000
  Trade accounts receivable,
    less allowance for doubtful
    accounts of $383,119 in 1999
    and $414,276 in 1998            3,037,136     2,347,320
  Inventories                         910,196       702,615
  Prepaid income taxes                      0        70,861
  Deferred income taxes               161,307       144,300
  Other assets                          8,325        27,315
                                   ----------    ----------
     Total current assets          $7,070,130   	$5,979,130

Property and equipment, cost        1,847,757     1,702,527
Accumulated depreciation           (1,005,809)     (898,387)

Intangible assets, net                126,694   	   131,247
Notes receivable                       40,000        40,000
Deferred income taxes                       0        27,200
Other assets, at cost                   2,700         2,700
                                     --------    ----------

     Total assets                  $8,081,472   	$6,984,417
                                   ==========    ==========

     Liabilities and stockholders' equity
     ------------------------------------
Current liabilities:
  Accounts payable                  $  574,984   $  491,447
  Accrued liabilities                  258,392   	   215,939
  Income taxes payable                  27,977       63,295
                                    ----------    ----------
     Total current liabilities      $  861,353   $  770,681

Deferred income taxes                    7,900            0
Deferred compensation                  104,500      104,500
                                    ----------    ----------
     Total liabilities              $  973,753   $  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 3,262,066 shares in
  1999 and 2,958,990 shares in 1998    326,206      295,899
Additional paid-in capital           5,607,214    4,546,795
Retained earnings                    1,235,767    1,328,010
Less cost of 13,500 shares of
 common stock in treasury              (61,468)     (61,468)
                                     ----------   ----------
     Total stockholders' equity     $7,107,719   	$6,109,236
                                     ----------   ----------
     Total liabilities and
     stockholders' equity           $8,081,472   	$6,984,417
                                     ==========   ==========

See accompanying notes to condensed financial statements.
<PAGE>
                		  ARROW-MAGNOLIA INTERNATIONAL, INC.

                  	   CONDENSED STATEMENTS OF INCOME
                    FOR THE NINE AND THREE MONTH PERIODS
                      ENDED SEPTEMBER 30, 1999 AND 1998

</TABLE>
<TABLE>
                              Nine months         Three months
                           ended September 30   ended September 30
                           ------------------   ------------------
                              1999      1998      1999      1998
                              ----      ----      ----      ---
                    (Unaudited)(Unaudited)(Unaudited) (Unaudited)
<S>                           <C>       <C>       <C>       <C>
Net sales           $10,898,296 $10,879,241 $3,768,493 $3,449,703
Cost of sales         6,159,982   6,059,912  2,188,470  2,014,044
                     ----------  ---------- ---------- ----------
     Gross profit    $4,738,314  $4,819,329 $1,580,023 $1,435,659

General and admini-
  strative expenses   3,299,105   3,166,287  1,132,279  1,057,840

                     ----------   ---------  ---------  ---------
Income before other
  income (expense)   $1,439,209  $1,653,042 $  447,744 $  377,819
                     ----------  ---------- ---------- ----------
Other income (expense):
   Interest expense  $        0  $  (39,900)$        0 $  (11,353)
   Interest income       79,442           0     27,750          0
   Other income           4,856      72,636          0     20,082
                     ----------   ---------  ---------  ---------
     Total other income
     (expense)           84,298      32,736     27,750      8,729
                      ----------  ---------  ---------  ---------
Income before income
   taxes             $1,523,507  $1,685,778 $  475,494 $  386,548
Provision for income
   taxes:
   Current              527,072     576,978    164,837    132,814
   Deferred (benefit)    18,093      14,378      4,671     (5,344)

                      ---------- ---------- ---------- ----------
                        545,165     591,356    169,508    127,470
                      ---------- ---------- ---------- ----------
     Net income         978,342   1,094,422    305,986    259,078
                      ========== ========== ========== ==========
Earnings per common share:
   Basic             $     0.30 $      0.34 $     0.09 $     0.08
                     ==========  ========== ========== ==========
   Diluted           $     0.27 $      0.30 $     0.08 $     0.07
                     ==========  ========== ========== ==========
Weighted average common
   shares outstanding:
   Basic              3,244,695   3,251,353  3,247,020  3,254,662
                     ==========  ========== ========== ==========
   Diluted            3,657,060   3,689,772  3,655,932  3,693,610
                     ==========  ========== ========== ==========

</TABLE>
See accompanying notes to condensed financial statements.
<PAGE>
                 	ARROW-MAGNOLIA INTERNATIONAL, INC.
                 	CONDENSED STATEMENTS OF CASH FLOWS
         FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998


   <TABLE>
                                             1999      1998

                                             ----      ----
                                        (Unaudited)(Unaudited)
<S>                                          <C>       <C>
Cash flows from operating activities:
  Net income                            $  978,342  $1,094,422
  Adjustments to reconcile net
     earnings to net cash
     provided by operating activities:
   Depreciation and amortization           137,234     116,553
   Deferred income taxes                    18,093      14,378
   Provision for doubtful accounts         277,534           0
   Compensation expense from issuance
      of stock options and warrants         12,787      36,886

   Changes in operating assets and
      liabilities:
     Receivables                          (967,350)    (59,416)
     Inventories                          (207,581)   (100,136)
     Prepaid income taxes                   70,861           0
     Other assets                           18,990        (953)
     Accounts payable                       83,537     111,933
     Accrued liabilities                    42,453      11,946
     Income taxes payable                  (29,820)    (30,439)
                                        ----------  ----------
          Net cash provided by
          operating activities             435,080   1,195,174
                                        ----------  ----------
Cash flows from investing activities:
   Purchase of short-term investments     (300,000)   (100,000)
   Proceeds from maturities of
     short-term investments                300,000     100,000
   Acquisition of property and equipment  (170,489)   (148,872)
                                        ----------  ----------
          Net cash (used) by investing
           activities                     (170,489)   (148,872)
                                        ----------  ----------
Cash flows from financing activities:
   Repayments of note payable                 (540)          0
   Repayments of long-term debt                  0    (101,361)
   Proceeds from issuance of common stock    2,396       2,579
   Acquisitions of treasury stock                0     (11,201)
                                        ----------  ----------
          Net cash provided(used) by
           financing activities              1,856    (109,983)
                                        ----------  ----------
Net increase in cash and cash equivalents $266,447  $  936,319

Cash and cash equivalents:
  Beginning of period                    2,386,719   1,878,919
                                        ----------  ----------
  End of period                         $2,653,166  $2,815,238
                                        ==========  ==========
</TABLE>
See accompanying notes to condensed financial statements.
<PAGE>

ARROW-MAGNOLIA INTERNATIONAL, INC.

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. On May 27, 1999, the Company declared a 10%
common stock dividend for the shareholders of record as of July 15, 1999.
Both basic and diluted EPS have been restated for all periods presented for
the effects of the common stock dividend.


<PAGE>


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
$6,208,777 as of September 30, 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
intensive sales force recruitment and resultant sales, partially offset by
increased accounts payable incurred in connection with setting up golf course
market inventory.

	The Company's cash flow from operating activities for the nine months
provided $435,080 as funds generated from earnings, management of accounts
payable and reduction of the provision for doubtful accounts exceeded cash
used to fund increased accounts receivable and inventories. A total of
$170,489 was also utilized to acquire property and equipment, primarily
related to the construction of additional warehouse space. The resulting
increase in cash for the quarter was $266,447.

	The Company began 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 nine months ended September 30, 1999 increased to
$10,898,296 from $10,879,241, or less than 1.0%, from the same period of
1998 and to $3,768,493 from $3,449,703, or 9.2%, in the third quarter of
1999 as compared to the corresponding period of 1998.  The Company began to
see the benefits during the third quarter of the sales force realignment
conducted during prior quarters.  That realignment caused the results for
the first two fiscal quarters to lag behind historical results for the prior
year.

	Cost of sales as a percentage of net sales increased modestly to 56.5% of
net sales for the nine months ended September 30, 1999 as compared to 55.7%
of net sales for the same period of 1998. For the third quarters of 1999 and
1998, cost of goods sold was 58.1% and 58.4%, respectively.  Cost of goods
sold has increased as a result of increased cost of raw materials and
equipment.

	As a result, gross profit fell by 1.7% to $4,738,314 from $4,819,329 for
the nine months ended September 30, 1999 versus the comparable period of
fiscal 1998, but increased by 10.1% to $1,580,023 from $1,435,659 for the
third quarters of 1999 and 1998, respectively.  Gross profit improved during
the third quarter as a result of increasing sales.

 	General and administrative expenses increased by 4.1% and 7.0% for the
comparable nine month and three month periods, respectively.  These
increases reflect expenses associated with new sales managers and hiring of
additional sales personnel.

<PAGE>

	As a result of these factors, net income fell for the comparable nine
months periods to $978,342 from $1,094,422, or 10.6%, but increased for the
comparable third quarters of 1999 and 1998 to $305,986 from $259,078, or
18.1%.


Part II.  OTHER INFORMATION

Item 6.   Exhibits and Reports.

     (a)  None

<PAGE>




                                 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:  November 10, 1999            By:   /s/ Mark Kenner
     -------------------------          -------------------------
                                        Mark Kenner, Vice
                                        Chairman and Chief
                                        Executive Officer


Date:  November 10, 1999             By:  /s/ Fred Kenner
     -------------------------          -------------------------
                                        Fred Kenner, President
                                        and Chief Financial
                                        Officer


<PAGE>