UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Form 10-QSB

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

                 FOR THE FISCAL QUARTER ENDED	DECEMBER 31, 1997

                     Commission File Number             0-8164

                           MICRO-MEDIA SOLUTIONS, INC.
                FORMERLY MOUNTAIN STATES RESOURCES CORPORATION
               (Exact name of registrant as specified in charter)

	UTAH	                                              87-0280886
State or other jurisdiction of	                        (IRS Employer I.D. No.)
Incorporation or organization

501 Waller St., Austin, Texas	                                78702
(Address of principal executive offices)

Issuer's telephone number, including area code	(512) 476-6925

Securities registered pursuant to section 12(b) of the Act:

Title of each class                 Name of each exchange on which registered
	None	                                               N/A

Securities registered pursuant to section 12(g) of the Act:

Title of each class			Name of each exchange on which registered
Common Stock, 						None
Par Value  $.10
	
Check 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 report(s),
 and (2) has been subject to such filing requirements for the past 90 days.  
(1)  Yes  (  ) No  (X)    (2)  Yes (X)  No  (  )

Number of shares of common stock outstanding at December 31, 1997:  10,764,733




Part I: Financial Information Item 1: Financial Statements

Index to Financial Statements

                                        					 
					    Page

Balance Sheets                                3
	
Statements of Operation                       5

Statements of Stockholders' Equity            6	

Statements of Cash Flows                      7
	
Notes to Financial Statement                  8


                          MICRO-MEDIA SOLUTIONS, INC.
                FORMERLY MOUNTAIN STATES RESOURCES CORPORATION
                          Consolidated Balance Sheets

ASSETS







                                            
                                            December 31        March 31    
                                              1997               1997       
                                           (unaudited)        (audited)    
Current Assets
   
     Cash and Cash Equivalents          $     19,696             6,840
     Accounts Receivable - Trade             576,852         1,383,207
     Inventory                               346,521           181,060
     Other Receivables - Advances            159,905           127,971
          Total Current Assets             1,102,974         1,699,078


Property, Plant and
     Equipment (at cost) - Net               691,881           723,783

Other Assets
     Goodwill                                707,521           751,329
     Deposits                                 15,000            17,430
     Long Term Notes Receivable              434,796           476,914
          Total Other Assets               1,157,317         1,245,673
 
Total Assets                           $   2,952,172         3,668,534
















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

                          MICRO-MEDIA SOLUTIONS, INC.
                FORMERLY MOUNTAIN STATES RESOURCES CORPORATION
                          Consolidated Balance Sheets
                      LIABILITIES AND STOCKHOLDERS EQUITY


                                          December 31        March 31
                                             1997               1997
                                          (unaudited)         (audited)

Current Liabilities
     Payroll Taxes Payable             $       2,054     $      51,637
     Accounts Payable - Trade                651,712           869,198 
     Bank Line of Credit                     204,765           724,890 
     Other Accrued Expenses                   24,000           203,971
     Current Portion - Obligation 
                 Under Capital Leases         52,921            52,921
     Current Portion - Long Term Debt        160,060           160,060
          Total Current Liabilities        1,095,512         2,062,677

Long Term Notes
     Notes Payable                           403,840           495,882
     Obligations Under Capital 
       Leases for Equipment                   70,078           153,975
     Senior Convertible Notes                371,000
     Other Long Term Liabilities             685,450            25,000 
          Total Long Term Notes            1,530,368           674,857

Stockholders Equity
   Preferred Stock, Series B, $5.30 
     stated value; Authorized 
     10,000,000 shares 420,000
     issued & outstanding                    840,000               - 
   Common Stock at $.10 par value;
     Authorized 50,000,000 common shares
     10,764,733 issued & outstanding       1,076,473         1,076,473 
   Additional paid-in capital              6,986,652         5,600,652 
   Accumulated Deficit                    (8,576,833)       (5,746,125)

          Total Stockholders Equity          326,292           931,000 

TOTAL LIABILITIES AND STOCKHOLDERS
                               EQUITY    $ 2,952,172     $   3,668,534 










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

                          MICRO-MEDIA SOLUTIONS, INC.
                FORMERLY MOUNTAIN STATES RESOURCES CORPORATION
                     Consolidated Statements of Operation
                                  (UNAUDITED)


                             For the Nine Months      For the Three Months
                             Ended December 31      Ended December 31
                             1997          1996      1997         1996

Net Revenues             $2,050,746   $3,861,502      $720,261   $1,111,109 

Cost of Goods Sold        1,643,949    2,734,380       582,621      738,203 

Gross Margin                406,797    1,127,122       137,640      372,906 

Selling, General 
and Administrative        2,573,293    1,330,097       686,953      429,999 

Operating (Loss)         (2,166,496)    (202,975)     (549,313)     (57,093)

Other Income (Expense)     (664,212)     (33,385)     (515,271)      66,508

Net Income/(Loss)       $(2,830,708)   $(236,360)  $(1,064,584)    $  9,415

Earnings Per Share:
 On Common Stock and 
 Common Equivalent 
   Shares                     (.220)       (.019)        (.083)        .001

 On a Fully Diluted 
 Shares Basis                 (.184)       (.016)        (.069)        .001





















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

                          MICRO-MEDIA SOLUTIONS, INC.
                FORMERLY MOUNTAIN STATES RESOURCES CORPORATION
               Consolidated Statements of Stockholders' Equity
                 For the Year Ended March 31, 1997 (Audited) 
             and Nine Months Ended December 31, 1997 (Unaudited)
<TABLE>
           
 

   
<C>                     <S>
 ..                      Preferred Stock       Common Stock      Additional   Accumulated     Treasury 
                        Shares     Amount    Shares    Amount     Paid In     Deficit        Stock    Total
                                                                  <S>
                                                                  Capital
                        <S>                 <C>       <C>         <S>    <C>  <S>    <C>     <S>  <C> <S>  <C>
                        ______     ______   _________ ________    ________    _________      _______  _______

Balance
<C>   <C> <C>           <C>       <C>        <C>      <C>          <C>         <C>          <C>      <C>
March 31, 1996          39,473    $78,946    418,733  $  41,873    $4,801,107  $(5,546,995) $(1,000) $(626,069)


Common stock
Issued in exchange 
for preferred shares 
at approximately 
$3.95 per share        (39,473)   (78,946)    20,000      2,000        76,946          -         -        -

Common stock 
issued for services 

under S-8                -          -        500,000     50,000           -            -         -      50,000

Common stock 
issued for debt 
of approximately 
$17,58 per share         -          -        516,000     51,600       722,599         -          -      774,199

Common stock 
issued for 
acquisition of 
Micro-Media 
Solutions, Inc.          -          -      9,310,000    931,000                                         931,000

Cancellation of 
Treasury Stock                                                                                 1,000      1,000

Net Loss for the 
year ended 
March 31, 1997           -          -          -          -              -        (199,130)       -    (199,130)

Balance
March 31, 1997           -          -     10,764,733  1,076,473     5,600,652   (5,746,125)       -     931,000


Series B, $5.30
Stated Value
Preferred Stock
Issued in Private 
Placement              420,000    840,000                           1,386,000                           2,226,000

Net loss for 
the Nine months 
ended December 
31, 1997                 -          -          -             -         -        (2,830,708)        -   (2,830,708)

Balance 
<S>      <C> <C>       <C>       <C>      <C>        <C>           <C>         <C>                 <S><C> <C>
December 31, 1997      420,000   $840,000 10,764,733 $1,076,473    $6,986,652  $(8,576,833)$       -  $   326,292
</TABLE>











































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

                          MICRO-MEDIA SOLUTIONS, INC. 
                FORMERLY MOUNTAIN STATES RESOURCES CORPORATION
                     Consolidated Statements of Cash Flow
                    For the Nine Months Ended December 31
                              (UNAUDITED)
                          
                                           1997                1996 
Cash Flows from Operating 
                   Activities:
     Net Income (Loss)               $ (2,830,708)     $   (236,360)
     Adjustments to reconcile 
        net loss to net cash,
        provided by operating 
        activities:
          Amortization and 
          Depreciation expense            148,587            86,096
          Change in accounts 
                    receivable            806,355          (224,423)
          Change in inventory            (165,461)          270,519 
          Change in accounts payable     (217,486)          120,429
          Change in accrued and 
                    other liabilities    (229,554)           24,795
     Net Cash Provided by (Used by)
                Operating Activities   (2,488,267)           41,056

Cash Flows from Investment Activities:
          Investment in property 
                    & equipment           (72,877)         (367,270)
          Change in other assets           12,614          (428,082)   
     Net Cash Provided by (Used by)
                Investing Activities      (60,263)         (795,352)
   

Cash Flows from Financing Activities:
          Net change in Line of Credit   (520,125)          275,000
          Increase of long term debt      253,958           493,037 
          Increase in Other long term 
Liabilities             685,450              -
          Change in capital lease 
                  obligations             (83,897)             -
          Proceeds from issuance of
Preferred Stock       2,226,000              -
     Net Cash Provided by (Used by) 
                Financing Activities    2,561,386           768,037

     Net Increase (Decrease) in Cash       12,856            13,741

Cash at Beginning of Period                 6,840             9,104
Cash at End of Period                  $   19,696       $    22,845






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

                       MICRO-MEDIA SOLUTIONS, INC.
              FORMERLY MOUNTAIN STATES RESOURCES CORPORATION
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                            December 31, 1997
                               (unaudited)

NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation:
  The accompanying unaudited interim financial statements have been prepared
in accordance with generally accepted accounting principals and the rules of
the Securities and Exchange Commission (the SEC), and should be read in 
conjunction with the audited financial statements and notes thereto contained 
in the Company's latest annual Report filed with the SEC on Form 10-KSB.  
In the opinion of management, all adjustments consisting of normal recurring 
adjustments, necessary for the fair presentation of financial position and 
results of operations for the interim periods presented have been reflected 
herein.  The results of operation are not necessarily indicative of the 
results to be expected for the full year.  Notes to the financial statements 
which would substantially duplicate the disclosure contained in the audited 
financial statements for the year ended March 31, 1997, as reported in the 
Form 10-KSB have been omitted.

Nature of Business and Organization
  MICRO-MEDIA SOLUTIONS, INC. formerly MOUNTAIN STATES RESOURCES CORPORATION 
(MSRC), (the "Company") was organized under the laws of the State of Utah on 
April 15, 1969.  On June 23, 1997 MSRC entered into a reverse merger 
Agreement (the "Merger") and plan of reorganization with the shareholders of
Micro-Media Solutions, Inc. in which MSRC acquired 100% of the common stock 
of MSI. As part of the Merger, MSRC changed its name to Micro-Media 
Solutions, Inc. (MSI) on September 29, 1997.  The name change was approved by
the stockholders. The transaction was accounted for as a purchase.

  MSI is an Austin, Texas technology corporation formed to provide computer 
hardware, software programming, system support, maintenance, media 
duplication, and kitting to the public and private sectors.  MSI is a 
minority owned business and is HUB certified to do business with state and 
corporate clients.

  MSI is a business solutions technology integrator with infrastructure design 
and implementation services.  MSI's computer networking services includes 
system integration and local and wide-area networks.

Principles of Consolidation
  The consolidated financial statements for 1997 and 1996 include the accounts 
and transactions of MSRC and MSI.  All significant inter-company accounts and 
transactions have been eliminated in the accompanying consolidated financial 
statements.  MSRC, however, did not have any material balance sheet accounts 
or account balances, with the exception of a net operating loss of 
approximately $5.7 million.  MSRC, a development stage company, began 
operations in April 15, 1969 as a mining, mineral extraction and oil and gas
exploration company. MSRC discontinued its operations in 1993 and became a 
development stage company as described in the Statement of Financial 
Accounting Standards #7.  Since then, MSRC had actively sought new business 
opportunities.  The significant account balances were those of MSI's.          

                        MICRO-MEDIA SOLUTIONS, INC.
              FORMERLY MOUNTAIN STATES RESOURCES CORPORATION
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           December 31, 1997
                               (Continued)


Cash and Cash Equivalents
  The Company considers all highly liquid investments purchased with an 
original maturity of three months or less to be cash equivalents.

Loss/Earnings Per Common Share Calculation
  The loss/earnings on Common and Common Equivalent shares is computed on 
the basis of the weighted average number of Common shares and Common 
Equivalent shares outstanding during the period (12,895,845 shares). 
The Preferred Series B stock which is initially convertible into 10 Common 
Shares is included in this calculation. The weighted average number of common 
shares does not include 300,000 shares of common stock that is subject 
to transfer between holders. The Company may be obligated to issue additional
shares equivalent in amount in the future if agreement is not reached 
regarding the transfer of such shares. The weighted average number of common
shares does not include 70,000 shares of Series B Stock and 10,268 Common 
shares to be issued to the holders of the Senior Convertible Debt effective 
December 31, 1997. The computation for Fully Diluted Basis Loss/Earnings 
Per Share is calculated using the weighted average number of Common and 
Common Equivalent shares and assumed conversion of Common Stock Warrants 
issued to holders of the Preferred Series B Stock (except for 420,000 
warrants to be issued to the holders of the Senior Convertible Debt 
effective December 31, 1997) (15,415,845 shares). All historical per 
share data has been restated to reflect stock splits and the effect 
of the merger transaction of Micro-Media Solutions, Inc.  

Use of Estimates and Certain Concentrations 
  Management of the Company has made a number of estimates and assumptions 
relating to the valuation and reporting of assets and liabilities and the 
disclosure of contingent assets and liabilities to prepare these consolidated 
financial statements in conformity with generally accepted accounting 
principles.  Although actual results could differ from those estimates, 
Management believes its estimates are reasonable. Certain components, 
subassemblies and software included in the Company's computer systems are 
obtained from sole suppliers or a limited number of suppliers.  The Company 
relies, to a certain extent, upon its suppliers' abilities to enhance 
existing products in a timely and cost-effective manner, to develop new 
products to meet changing customer needs and to respond to emerging 
standards and other technological developments in the computer industry. 

  The Company's reliance on a limited number of suppliers involves several 
risks, including the possibility of shortages and/or increases in costs of 
components and subassemblies, and the risk of reduced control over delivery 
schedules.

  The Company has a large number of customers on which it performs ongoing 
credit evaluations and generally does not require collateral from its 
customers.  Historically, the Company has not experienced significant losses 
related to receivables from individual customers or groups of customers in 
any particular industry of geographic area. 

                        MICRO-MEDIA SOLUTIONS, INC.
             FORMERLY MOUNTAIN STATES RESOURCES CORPORATION
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           December 31, 1997
                              (Continued)



Goodwill
On June 23, 1997, Micro-Media Solutions, Inc. (MSI) merged with Mountain 
States Resource Corporation (MSRC).  Pursuant to the terms of the Merger, 
MSRC issued approximately 9,310,000 shares of its common stock in exchange 
for all of the outstanding shares of MSI.  The name of the surviving 
corporation was changed to MSI.  The Merger resulted in a change of control 
and was accounted for as a purchase.  A new basis of accounting was 
established for the assets and liabilities and reflects the allocation on 
the basis of their fair values.  Goodwill of approximately $751,000 was 
recorded to the extent the purchase price exceeded the fair value of the 
identifiable net assets.  Goodwill is being amortized on a straight line 
basis over ten years.


NOTE 2.  SHORT-TERM BORROWINGS.

The Company has two outstanding promissory notes in the total amount of $200,000
payable to a third party. These notes bear interest at a rate of 20% per anum. 
The Company has refused to make payment on theses notes due to a number of 
disputes among the Company, the third party, and a former consultant to the 
Company. The third party filed suit against the Company to enforce the notes. 
The Company filed an answer and denies liability. The Company also filed a 
separate lawsuit against both the third party and the former consultant in 
connection with the global dispute among the parties. The Company intends to 
defend vigorously the third party's claim under the notes and to pursue 
vigorously its own claims against the third party and the former consultant.

The Company had a secured credit agreement with Bank One providing for 
borrowings of up to $725,000, based on the amount of the Company's eligible 
receivables.  As of December 31, 1997 the Company owed $205,000 on the line 
of credit. Under the agreement, the Company is subject to
certain financial and other covenants including certain financial ratios.
 
The credit agreement matured on August 18, 1997 and Bank One notified the 
Company that they would not renew the credit line. The Company has working 
agreements with two other banking institutions.  

NOTE 3.  CAPITAL TRANSACTIONS

On November 18, 1997, the Company received gross proceeds of $2,120,000 from the
Private Placement (Phase I) of 400,000 shares of Series B, 5% Cumulative 
Convertible Non-Voting Preferred Stock, Stated value $5.30 per share. The 
Company issued 20,000 shares of the Series B Preferred Stock as agreed for 
payment of commission fees of the Private Placement (Phase I). Each share of 
Preferred B stock is initially convertible into ten shares of the Company's 
Common Stock. Each Preferred B share was issued six Class A Warrants exercisable
for a two year period beginning January 31 1998. The exercise price for each 
warrant is $1.50 per share and will entitle the holder to one share of the 
Company's Common Stock. Total expenses of the Private Placement including 
broker fees,commissions, and legal and accounting expenses totaled $408,000.
 
                       MICRO-MEDIA SOLUTIONS, INC.
             FORMERLY MOUNTAIN STATES RESOURCES CORPORATION
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           December 31, 1997
                              (Continued)



The Company received $371,000 in October 1997 from two individuals under 
Senior Convertible Debt (the "Senior Convertible Debt") secured by common
stock. 

NOTE 4.  SUBSEQUENT EVENTS

On February 4, 1998, the Company received $1,000,000 completing the Private
Placement (Phase II) of 94,340 shares of Series C, 6% Cumulative Convertible 
Non-Voting Preferred Stock for a purchase price of 10.60 per share. The 
Company issued 4,717 shares of Series C, 6% Cumulative Convertible Non-Voting 
Preferred Stock as agreed for payment of commission fees of the Private 
Placement (Phase II). Each share of Preferred C stock is initially convertible
into ten shares of the Company's Common Stock. Total expense of the Private 
Placement including broker fees, commissions, and legal and accounting fees 
totaled $180,000. 

The holders of the Senior Convertible Debt have requested conversion of the 
debt into 420,000 Class A Warrants and 70,000 shares of Series B, 5% Cumulative 
Convertible Non-Voting Preferred Stock, Stated value $5.30 per share. The 
Class A Warrants will be exercisable at a price of $0.795 per share. Accrued 
interest on the Senior Convertible Debt will be paid through the issuance of 
10,286 shares of Common Stock. The Company is in the process of fulfilling the 
request to be effective December 31, 1997. 


On February 5, 1998, the Company arranged for a line of credit in the amount
of $750,000 from Compass Bank.  This credit facility is secured by deposits
at Compass Bank. An additional line of credit in the amount of $500,000 is 
being requested and will be secured by receivables.

NOTE 5.  CONTINGENCIES AND LEGAL MATTERS

MSI is engaged in various litigation and has a number of unresolved claims
pending.  While the amounts claimed are not material and the ultimate
liability in respect to such litigation and claims cannot be determined at
this time, MSI is of the opinion that such liability is not to be of material
importance in relation to its accounts.

NOTE 6.  GOING CONCERN

As shown in the accompanying consolidated financial statements, the Company 
has incurred a net loss in the current quarter of $1,065,000 and as of that 
date, the Company's current assets exceeded its current liabilities by 
$7,000.  At December 31, 1997, the Company owes accounts payable with 
dates due in excess of ninety (90)days. These factors create an uncertainty 
about the Company's ability to continue as a going concern. The ability
                       MICRO-MEDIA SOLUTIONS, INC.
             FORMERLY MOUNTAIN STATES RESOURCES CORPORATION
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           December 31, 1997
                              (Continued)


of the Company to continue as a going concern is dependent on the Company's 
attaining additional financing to fund the expenses related to operations and
capital improvements. The Company received a net $2,189,000 from capital 
transactions during the quarter ending December 31, 1997. An additional net 
$870,000 has been received in the first quarter of 1998. The Company has 
signed a letter of intent for up to an additional $ 5,000,000 under a debt 
instrument to be receive no later than April 30, 1998.  In addition, the 

Company plans a secondary offering during fiscal calendar 1998. The financial
statements do not include any adjustments that might be necessary if the 
Company is unable to continue as a gong concern.


  Part I: Financial Information Item 2: Management's Discussion and analysis
            of financial condition and results of operations.

               CAUTIONARY STATEMENT REGARDING FACTORS THAT 
                       MAY AFFECT FUTURE RESULTS

This Quarterly Report contains forward-looking statements, within the 
meaning of the Private Securities Litigation Reform Act of 1995, with respect 
to the financial condition, results of operations and business of Micro-Media 
Solutions, Inc., and its subsidiary ("Company", or "Registrant").  Such 
statements are subject to certain risks and uncertainties that could cause 
actual results to differ materially and adversely from those set forth in 
the forward-looking statements, including without limitation the availability 
of financial resources adequate to the Company's short-,medium- and long-term 
needs, the Company's dependence on the timely development, pre-production 
qualification, manufacture, introduction and customer acceptance of new 
higher-speed, higher-margin products, the ability of the Company to 
successfully implement its strategy of diversifying into the system service 
business, the various effects on revenue, margins, inventories and operation
expenses of repositioning the Company's product lines and overall business,
the effects of building and maintaining product inventories, product returns 
and credit risks with customers, the Company's dependence on distributors and 
resellers for certain product sales to end-users, the impact on revenue, 
margins and inventories of rapidly changing technology, competition, downward 
pricing pressures and allocations of product among different distribution 
channels, the effects of routine price degradation over time in each of the 
Company's product lines, varying customer demand for the Company's products,
supply and manufacturing constraints and costs, the Company's dependence on 
outside suppliers for components  and certain manufacturing services, changes 
in plans, programs or expenses for research, development, sales or marketing, 
the Company's ability to build and maintain adequate staff infrastructures in 
the areas of product development, sales and marketing, finance, accounting 
and administration, supplier disputes, customer warranty claims, general 
economic conditions, and the other risks and uncertainties described from
time to time in the Company's public announcements and SEC filings, including
without limitation the Company's Forms 8-k, 10-QSB, and 10-KSB respectably.
The Company cautions that the foregoing list of important factors is not 
exclusive. The Company does not undertake to update any written or oral 
forward-looking statement that may be made from time to time by or on behalf of
the Company.

The information contained in this Quarterly Report is not a complete description
of the Company's business or the risk associated with an investment in the 
Company. More complete discussions can be found in the Company's Annual Report
on Form 10-KSB for the fiscal year ended March 31, 1997.

GENERAL

The Company is considered a leading computer networking service provider to
commercial and government markets. Revenue is recognized by the Company when
services are performed. Research and development costs are charged to expenses
as incurred. Among the principal costs to market and sell the Company's
products are advertising and promotion costs, sales, salaries and commissions,
and general and administrative expenses.


RESULTS OF OPERATIONS
 
Three Months Ended December 31, 1997 Compared to Three Months Ended 
December 31, 1996

Net sales for the 1997 fiscal Second Quarter were $789,451 versus $1,273,489
for the 1996 fiscal Second Quarter. A decrease of 38 percent. The decrease 
is primarily due to increase in focus toward service contracts instead of 
hardware sales.

Cost of sales was $596,594 in the 1997 fiscal Second Quarter Versus $1,007,752
in the 1996 fiscal Second Quarter, a decrease of 41 percent. The decrease was 
the result of greater service sales effected in 1997 requiring less inventory
cost.

The decrease in inventory at December 31, 1997 includes a decrease in work in
process for a Texas independent school district contract that was completed 
December 1997.

The Company's gross margin in the 1997 Third Quarter was 24% versus 21% in
the 1996 fiscal Third Quarter, an increase of 3 percent. This increase was
due to the higher service sales resulting in higher margins.

Selling general and administrative expenses increased to $687,821 in the 1997
fiscal Third Quarter from $471,851 in the 1996 fiscal Third Quarter, and
increase to 46 percent. This increase is primarily due to additional
management personnel salaries.

Nine Months Ended December 31, 1997 Compared to Nine Months Ended December
31, 1996.

Net sales for the 1997 Nine months ended December 31, 1997 were $2,019,235
versus $2,750,393 for the Nine months ended December 31, 1996. A decrease of
27 percent. The decrease is primarily due to the increased focus toward service
contracts instead of hardware sales.

Cost of sales was $1,648,922 in the Nine months ended December 31, 1997 versus
$1,996,177 in the Nine months ended December 31, 1996, a decrease of 17 percent.
The decrease was the result of greater service sales effected in 1997.

The Company's gross margin in the Nine months ended December 31, 1997 was
18% versus 27% in the Nine months ended December 31, 1996, a decrease of
9 percent. This decrease was due to lower revenues.



Selling general and administrative expenses increased to $1,327,349 in the
Nine months ended December 31, 1997 from $900,098 in the Nine months ended
December 31, 1996, an increase of 47 percent. This increase is primarily due
to additional management personnel and time expended by the Company on 
proposals for new contracts.


LIQUIDITY AND CAPITAL RESOURCES

At December 31, 1997, the Company had a working capital of $7,462 compared
to working capital deficit of $363,599 at December 31, 1996. This increase 
in the Company's working capital was primarily due to decrease in borrowings
and payables.

The Company received $3,282,450 in proceeds from outsiders in the form of
a private placement, bridge financing and issuing senior convertible debt 
during the three months ended December 31, 1997. Additional funding of
$870,000 was received through February 4, 1998.

The company has financed its operations primarily through borrowings. As of
December 31, 1997, the Company's sources of internal financing were limited.
It is not expected that internal sources of liquidity will improve until net
cash is provided by operating activities which is expected in early 1998,
and until such time, the company will rely upon external sources for liquidity.

The Company has signed a letter of intent with an investment banking firm for
a debt offering of $3 to $5 million beginning on or before April 30, 1998.


                          PART II: Other Information

Item 2: Changes in Securities

On November 17, 1997, the Company completed the private placement (Phase I)
(The "private Placement") of 420,000 shares of Series B Preferred Stock, 
Stated Value $5.30 per share (the "Series B Preferred Stock"), all to 
"accredited Investors" as that term is defined in rule 501(a) of Regulation D 
Promulgated under the Securities Act of 1933, as amended.

On February 4, 1998, the Company completed the private placement of 99,057 
Shares of Series C, 6% Cumulative Convertible Non-Voting Preferred Stock,
all to "accredited investors" as that term is defined in rule 501(a) of 
Regulation D promulgated under the Securities Act of 1933, as amended.

The Company plans to use the proceeds from the sale of the Shares for working
capital, repayment of indebtedness and hiring of new personnel for recently
received new contracts. Based upon those contracts in place at December 31,
1997 and the successful completion of the private placement-funding, revenues
for fiscal year 1999 should exceed $15,000,000.

The company is obligated to issue up to 1,500,000 shares of common stock to
employees and consultants.

Item 4: Submission of matters to a vote of the security holders

On September 26,1997, a special meeting of the security holders of the Company
was held to change the name of the company to Micro-Media Solutions, Inc.


Item 5: Other Matters

On June 11, 1997, the Company's board of directors replaced Jones & Jensen,
Salt Lake City, Utah as its principal accountant with Salazar & Associates,
Austin, Texas.

The report of Jones and Jensen on the Company's financial statements for the 
last two fiscal years did not contain an adverse opinion or a disclaimer of 
opinion, nor was such opinion qualified or modified as to certainty, audit 
scope, or accounting principles.  During the Company's two most recent fiscal 
years and subsequent interim periods preceding the replacement of Jones & 
Jensen, the Company had no disagreements with Jones & Jensen on any matter 
of accounting principles or practices, financial statement disclosure, or 
auditing scope or procedure. During the Company's two most recent fiscal 
years and subsequent interim periods preceding the retention of Salazar & 
Associates, neither the Company nor anyone on the Company's behalf, consulted 
Salazar & Associates regarding any matter.

In January 1998, the Company's management made arrangements to replaced 
Salazar & Associates, Austin, Texas, as its principal accountant with 
Ernst & Young LLP, Austin, Texas. The retention of Ernst & Young, LLP 
as principal auditors will be ratified at the next meeting of the Board 
of Directors.

The report of Salazar & Associates on the Company's financial statements for
the fiscal year ended March 31, 1997 did not contain an adverse opinion or a
disclaimer of opinion, nor was such opinion qualified or modified as to 
certainty, audit scope, or accounting principles.  During the Company's most
recent fiscal year and subsequent interim periods preceding the replacement 
of Salazar & Associates, the Company had no disagreements with Salazar & 
Associates on any matter of accounting principles or practices, financial 
statement disclosure, or auditing scope or procedure. During the Company's 
most recent fiscal year and subsequent interim periods preceding the 
retention of Ernst & Young, neither the Company nor anyone on the Company's
behalf, consulted Salazar & Associates regarding any matter. 

The Company has retained the firm of Novokov, Davidson & Flynn, Dallas, 
Texas as corporate legal counsel to represent the Company in all matters 
except for items relating to the private placement. The firm of Vial, 
Hamilton, Koch & Knox represents the Company in the private placement.

The Company is now listed on Standard & Poor's Market Access Service 
as of December 1997 which prominently displays the investment merit of over
the counter (OTC) bulletin board companies in some of the most widely 
distributed information vehicles in the financial and investment communities. 



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The Board of Directors at its February meeting will be adding two new 
members to the board as required by the private placement agreement. 

Ernesto M Chavarria, President of ITBR, Inc. has 25 years experience 
in international business development.   

Blandida Cardenas, Associate Professor at LBJ Institute, University 
of Texas, Former Commissioner of United States Commission of Civil 
Rights and Former Director Of Office of Minorities in Higher Education.

The Company has entered into Employment agreements with its senior executive
officers for a period ending on March 31, 2001 subject to two(2) one year 
extensions.  These agreements grant the executives stock options to purchase 
an aggregate of 150,000 shares at a price ranging from $1.50 to $2.25 per share.
These agreements also included specific bonus plans based on performance, 
revenues and common stock value.



SIGNATURES

	Pursuant to the requirements of Section 13 or 15(d) 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.





Date________________        By ___________________________________________
                                          Jose G. Chavez, President


Pursuant to the requirements of the Securities Exchange Act of 1934, this 
report has been signed below by the following persons on behalf of this 
Registrant and in the capacities and on the dates indicated.

Signature                      Capacity                    Date


Jose G. Chavez           Chairman of the Board of        
                          Directors and President

Mitchell Kettrick        Vice-President and Director     


Stephen Hoelscher, CPA           Comptroller             

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