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                    SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C.  20549

                                 Form 10-Q

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

             FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1995

                      COMMISSION FILE NUMBER 0-13251

                      MEDICAL ACTION INDUSTRIES INC.
          (Exact name of registrant as specified in its charter)

           DELAWARE                                       11-2421849
(State or other jurisdiction of                        (I.R.S. Employer
incorporation or organization)                        Identification No.)

                 150 Motor Parkway, Hauppauge, New York 11788
                   (Address of Principal executive offices)

              Registrant's telephone number, including area code:
                                 (516)231-4600

          Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months and (2) has been subject to
such filing requirements for the past 90 days.

                         Yes   / /            No  /X/  

          Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of the latest practicable date.  8,119,789
shares of common stock as of October 31, 1995.

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                                 Form 10-Q

                                 CONTENTS


PART I  - FINANCIAL INFORMATION

          Consolidated Balance Sheets at September 30, 1995 (Unaudited) and 
          March 31, 1995

          Consolidated Statements of Operations for the Three and Six Months 
          ended September 30, 1995 and September 30, 1994 (Unaudited)

               
          Consolidated Statements of Cash Flows for the Six Months ended 
          September 30, 1995 and September 30, 1994 (Unaudited)

          Notes to Consolidated Financial Statements (Unaudited)

          Management's Discussion and Analysis of Results of Operations and 
          Financial Condition

PART II - OTHER INFORMATION

               
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                      MEDICAL ACTION INDUSTRIES INC.
                        Consolidated Balance Sheets
                          (dollars in thousands)

                                  ASSETS

                                           September 30     March 31
                                               1995           1995   
                                           ------------     --------
                                           (Unaudited)
CURRENT ASSETS:

Cash                                         $    68        $   545
Accounts Receivable, less allowance for
doubtful accounts of $111 at
September 30, 1995 and March 31, 1995          5,929          6,041

Inventories (Note 2)                          11,078          9,204
Prepaid expenses                                 308            332
Recoverable Income Taxes                          37             --
Other current assets                             262            260
                                             -------        -------
     TOTAL CURRENT ASSETS                    $17,682        $16,382  


Property and equipment at cost, less
accumulated depreciation of $3,851
at September 30, 1995 and $3,631 at
March 31, 1995                                 3,982          4,344    

OTHER ASSETS:

Investment in Joint Venture                      623            666  
Other Receivables, less current portion          185            321  
Goodwill, net of accumulated
 amortization of $151 at September 30,
 1995 and $85 at March 31, 1995                2,443          2,482  

Other assets                                      77            134
                                             -------        -------

     TOTAL ASSETS                            $24,992        $24,329
                                             =======        =======

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


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                      MEDICAL ACTION INDUSTRIES INC.
                        Consolidated Balance Sheets
                          (dollars in thousands)

                   LIABILITIES AND SHAREHOLDERS' EQUITY

                                             September 30,         March 31,
                                                 1995                 1995   
                                             -------------         ---------
                                              (Unaudited)
CURRENT LIABILITIES:

Accounts payable                               $   465             $  1,434
Accrued expenses, payroll and payroll taxes        781                  363
Current portion of capital lease obligations         9                   10
Notes payable to bank                            2,915                2,997
Current portion of long-term debt                1,681                  573
                                               -------             --------
     TOTAL CURRENT LIABILITIES                 $ 5,851             $  5,377

Deferred Income Taxes                              474                  414
Capital lease obligation, less
 current portion                                     22                   26
Long-term debt, less current
 portion (Note 5)                                6,935             $  7,303
                                               -------             --------
     TOTAL LIABILITIES                         $13,282             $ 13,120

SHAREHOLDERS' EQUITY:

Common stock 15,000,000 shares authorized,
 $.001 par value; issued and outstanding
 8,087,289 shares at September 30, 1995
 and 8,002,289 shares at March 31, 1995.             8                    8
Additional paid-in capital, net of
 deferred compensation of $474 at
 September 30, 1995 and $532                            
 at March 31, 1995.                              7,817                7,652
Retained earnings                                3,885                3,549
                                               -------             --------
     TOTAL SHAREHOLDERS' EQUITY                 11,710               11,209
                                                                         

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     $24,992             $ 24,329
                                               =======             ========

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

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                      MEDICAL ACTION INDUSTRIES INC.
                   Consolidated Statements of Operations
               (dollars in thousands except per share data)


                                            Three Months Ended
                                              September 30,
                                           1995           1994    
                                        -----------    -----------
                                        (Unaudited)    (Unaudited)

Net Sales                                 $9,865         $8,485

Cost of Sales                              7,806          7,063
                                          ------         ------
Gross Profit                              $2,059         $1,422

Selling, general and administrative
 expenses (Note 3)                         1,459          1,472
Interest expense                             245            172
Other expense                                  6              1
                                          ------         ------
Income (loss) before income taxes         $  349         $ (223)
Income tax (benefit)                         138           ( 78)
                                          ------         ------
Net Income (loss)                         $  211         $ (145)
                                          ======         ======
Net Income (loss) per share (Note 4)      $  .03         $ (.02)      
                                          ======         ======

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


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                      MEDICAL ACTION INDUSTRIES INC.
                   Consolidated Statements of Operations
               (dollars in thousands except per share data)



                                             Six Months Ended
                                               September 30,
                                           1995           1994    
                                        -----------    -----------
                                        (Unaudited)    (Unaudited)

Net Sales                                 $19,306        $16,445

Cost of Sales                              15,274         13,500
                                          -------        -------
Gross Profit                              $ 4,032        $ 2,945

Selling, general and administrative
 expenses                                   2,950          2,876
Interest expense                              484            286
Other expense                                  27              1  
                                          -------        -------
Income (loss) before income taxes         $   571         $ (218)          
Income taxes (benefit)                        235           ( 76)
                                          -------        -------
Net Income (loss)                         $   336         $ (142)
                                          =======        =======
Loss per share (Note 3)                   $   .04         $ (.02)          
                                          =======        =======

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

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               MEDICAL ACTION INDUSTRIES INC. AND SUBSIDIARY
                   Consolidated Statement of Cash Flows
                          (dollars in thousands)
                                                       Six Months Ended  
                                                         September 30, 
                                                     1995           1994   
                                                  -----------    -----------
                                                  (Unaudited)    (Unaudited)
OPERATING ACTIVITIES
 Net loss                                         $    336       $  (142) 
Adjustments to reconcile net income
 to net cash used in operating activities:
  Loss from sale of property and equipment              27            --
  Depreciation and amortization                        394           291
  Deferred income taxes                                 60            --   
  Deferred compensation                                 58            30   
  Changes in operating assets and liabilities:            
   Accounts receivable                                  96          (707)
   Inventories                                      (1,874)       (1,728)
   Prepaid expenses, other current           
    assets and other receivables                       158          (161)

   Other assets                                         57            56 
   Accounts payable                                   (981)         (464)
   Recoverable income taxes                           (  6)           -- 
   Accrued expenses, payroll and payroll taxes         429          (200)
                                                  --------       -------
NET CASH USED IN OPERATING ACTIVITIES               (1,246)       (3,025)

INVESTING ACTIVITIES
 Purchase of property and equipment                    (28)          (32)
 Proceeds from sale of property and equipment           78            --       
                                                  --------       -------
NET CASH PROVIDED BY (USED IN)
 OPERATING ACTIVITIES                                   50          (32)   
               
FINANCING ACTIVITIES
Proceeds from revolving line of credit 
  and long-term borrowings                           2,060         3,249
Principal payments on revolving line of
 credit, long-term debt, and capital
 lease obligations                                  (1,407)       (  290)
Proceeds from exercise of employee
 stock options                                          66            -- 
Purchase of common stock into treasury 
 and retired                                            --          (150)
Decrease in due from officer                            --           150
                                                  --------       -------
 NET CASH PROVIDED BY
  FINANCING ACTIVITIES                                 719         2,959   
                                                  --------       -------
DECREASE IN CASH                                      (477)          (98) 
Cash at beginning of year                              545           496  
                                                  --------       -------
Cash at end of period                             $     68       $   398  
                                                  ========       =======

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

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               MEDICAL ACTION INDUSTRIES INC. AND SUBSIDIARY
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                (Unaudited)


Note 1.   BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q for
quarterly reports under section 13 or 15(d) of the Securities Exchange Act of
1934.  Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial

statements.  In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included.  Operating results for the six month period ended September
30, 1995 are not necessarily indicative of the results that may be expected
for the year ended March 31, 1996.  For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's annual report for the year ended March 31, 1995.

Note 2.   INVENTORIES

Inventories, which are stated at the lower of cost (first-in, first-out) or
market, consist of the following:

                                     September 30,        March 31,        
                                         1995               1995   
                                     -------------        ---------
                                      (Unaudited)
                                        (in thousands of dollars)

Finished Goods                         $ 3,536            $ 3,548    
Work In Process                            253                  0
Raw Materials                            7,289              5,656
                                       -------            -------
     Total                             $11,078            $ 9,204


Note 3.   SIGNIFICANT EVENTS

On August 12, 1994, the Company acquired substantially all of the assets and
certain liabilities of QuanTech, Inc. ("QuanTech").  QuanTech's business
consisted of manufacturing and distribution of disposable surgical supplies
and a patented light handle cover used primarily in operating rooms of
hospitals and out-patient surgical centers in the United States.  The
purchase price consisted of the issuance of 453,408 shares of the Company's
common stock to the principal stockholders of QuanTech in addition to the
assumption of $1,941,000 of the fair value of net liabilities in excess of
assets acquired.  Further, if QuanTech's operations achieve certain gross
profit levels, as defined in the agreement, during any consecutive 12 month
period through July, 1996, the purchase price would be adjusted by the
issuance of up to another 250,000 shares of the Company's common stock.  The

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acquisition has been accounted for as a purchase and the operations of
QuanTech have been included in the Company's Statement of Operations since
the acquisition date.  The aggregate of the purchase price and the net
liabilities assumed totalling $2,594,000 is being amortized over twenty (20)
years ($151,000 as of September 30, 1995).  The adjustment to goodwill during
the six months ended September 30, 1995 resulted from changes to the
preliminary estimates of the fair value of net liabilities assumed in the
acquisition of QuanTech in August, 1994.

Note 4.   NET INCOME PER SHARE


The weighted average number of shares used in computing net income (loss) per
share was 8,243,278 and 8,167,283 for the three and six months ended
September 30, 1995 and 7,673,695 for the three and six months ended September
30, 1994, after considering the dilutive effect of the Company's outstanding
options which are considered common stock equivalents.

Note 5.   LONG TERM DEBT

On October 24, 1995, the Company signed an Amended and Restated Revolving
Credit Agreement with its existing bank.  The Agreement expires on September
30, 1998 and bears interest at prime plus 1/4%.  The Agreement provides for
total borrowings of up to $10,000,000 with a $4,000,000 sublimit for bankers
acceptances, which bear interest at 1-1/2% over the prevailing bankers
acceptance rate, and a $2,000,000 sublimit for letters of credit.  The loan
agreement is collateralized by all the assets of the Company and advances to
the Company are made in accordance with the borrowing base formula.


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


Results of Operations

Six months ended September 30, 1995 compared to six months ended September
30, 1994

Net sales for the six months ended September 30, 1995 increased 17% to
$19,306,000 from $16,445,000 for the six months ended September 30, 1994. 
The increase in net sales was attributable to sales generated from the
Company's QuanTech product line for the full six month period, which
increased approximately $1,272,000, as well as sales growth from the domestic
sale of laparotomy sponges.  Net sales of laparotomy sponges increased
approximately $1,867,000, or 25%, from the comparable period in fiscal 1995. 
This increase was partially offset by a decrease in the sale of gauze sponges
of approximately $231,000, or 16%, and operating room towels of approximately
$180,000, or 3%.

The Company presently obtains substantially all of its raw materials for
operating room towels from China.  These operating room towels are designated
as a textile, for which an export visa is required.  These export visas have
continued to adversely impact the availability and pricing of operating room
towels.  In anticipation that these conditions will continue during the
current fiscal year, the Company has accelerated its procurement of operating
room towels from China and, to a lesser extent, secured operating room towels
from sources outside of China.  Management believes that it has been able to
meet the Company's requirements of operating room towels for fiscal 1996.

Gross profit for the six months ended September 30, 1995 increased 37% to

$4,032,000 from $2,945,000 for the six months ended September 30, 1994. 
Gross profit as a percentage of net sales for the six months ended September
30, 1995 increased to 21% of net sales from 18% of net sales for the period
ended September 30, 1994.  The increase in gross profit dollars and
percentage was primarily attributable to the increase in net sales, improved
efficiencies at the Company's manufacturing facilities in North Carolina and
increased selling prices of operating room towels, which have been partially
off-set by increases in the cost of raw materials from China.

Selling, general and administrative expenses for the six months ended
September 30, 1995 increased 3% to $2,950,000 from $2,876,000 for the six
months ended September 30, 1994.  The increase in selling, general and
administrative expenses is directly attributable to the increase in net
sales.  As a percentage of net sales, selling, general and administrative
expenses decreased to 15.3% for the six months ended September 30, 1995 from
17.5% for the six months ended September 30, 1994 due to management's efforts
to control expenses and reduce administrative expenses.

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Interest expense for the six months ended September 30, 1995 increased 69% to
$484,000 from $286,000 for the six months ended September 30, 1994.  The
increase in interest expense was attributable to an increase in the prime
lending rate in addition to an increase in the average principal loan
balances outstanding during the six months ended September 30, 1995 as
compared to the six months ended September 30, 1994.  This increase in
principal loan balances was primarily attributable to the aforementioned
acquisition of QuanTech, Inc. and higher inventory levels of operating room
towels.

Net income for the six months ended September 30, 1995 increased to $336,000
from a net loss of $(142,000) for the six months ended September 30, 1994. 
The increase in net income is attributable to the aforementioned increase in
net sales and gross profits which were partially offset by an increase in
selling, general and administrative expenses, interest expense and a $27,000
loss of sale of property and equipment.

Three Months ended September 30, 1995 compared to three months ended
September 30, 1994.

Net sales for the three months ended September 30, 1995 increased 16% to
$9,865,000 from $8,485,000 for the three months ended September 30, 1994. 
The increase in net sales was attributable to a full quarter of sales
generated from the Company's QuanTech product line, which increased
approximately $481,000, as well as sales growth coming from the domestic sale
of laparotomy sponges.  Net sales of laparotomy sponges increased
approximately $1,187,000, or 32%, from the comparable period in fiscal 1995. 
This increase was partially offset by a decrease in the sale of operating
room towels of approximately $211,000, or 6%, and gauze sponges of
approximately $97,000, or 15%.

Gross profit for the three months ended September 30, 1995 increased 45% to

$2,059,000 from $1,422,000 for the three months ended September 30, 1994. 
Gross profit as a percentage of net sales for the period ended September 30,
1995 increased to 21% of net sales from 17% of net sales for the period ended
September 30, 1994.  The increase in gross profit dollars and percentage was
primarily attributable to the increase in net sales, improved efficiencies at
the Company's manufacturing facilities in North Carolina and increased
selling prices of operating room towels, which have been partially off-set by
increases in the cost of raw materials from China.

Selling, general and administrative expenses for the three months ended
September 30, 1995 decreased 1% to $1,459,000 from $1,472,000 for the three
months ended September 30, 1994.  As a percentage of net sales, selling,
general and administrative expenses decreased to 14.8% for the three months
ended September 30, 1995 from 17.3% for the three months ended September 30,
1994 due to management's efforts to control expenses and reduce
administrative expenses, offset by increased selling expenses of $65,000
attributable to increased net sales.

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Interest expense for the three months ended September 30, 1995 increased 42%
to $245,000 from $172,000 for the three months ended September 30, 1994.  The
increase in interest expense was attributable to an increase in the prime
lending rate in addition to an increase in the average principal loan
balances outstanding during the three months ended September 30, 1995 as
compared to the three months ended September 30, 1994.  This increase in
principal loan balances was primarily attributable to the aforementioned
acquisition of QuanTech, Inc. and higher inventory levels of operating room
towels.

Net income for the three months ended September 30, 1995 increased to
$211,000 from a net loss of $(145,000) for the three months ended September
30, 1994. The increase in net income is attributable to the aforementioned
increase in net sales and gross profits which were partially off-set by an
increase in interest expense.

Liquidity and Capital Resources

Current assets have increased $1,300,000 to $17,682,000 at September 30, 1995
from $16,382,000 at March 31, 1995.  The increase was primarily attributable
to a $1,874,000 increase in inventory.  The Company had working capital of
$11,831,000 with a current ratio of 3.02 at September 30, 1995 compared to
working capital of $11,005,000 with a current ratio of 3.05 on March 31,
1995.  Total bank borrowings outstanding were $11,531,000 with a debt to
equity ratio of .98 at September 30, 1995 as compared to $10,872,000 with a
debt to equity ratio of .97 at March 31, 1995.  The increase in total
borrowings outstanding and the decline in the Company's cash balance at
September 30, 1995 are primarily attributable to borrowings required to
support the increased levels of inventory necessary to meet the Company's
requirements of operating room towels for fiscal 1996.  On October 24, 1995
the Company signed an Amended and Restated Revolving Credit Agreement with
its existing bank.  The Agreement extended the credit period through
September 30, 1998 from September 30, 1996 and maintained the borrowing limit

of $10,000,000.  The new agreement bears interest at prime plus 1/4%, a
reduction of 1/4% from the previous agreement.


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               MEDICAL ACTION INDUSTRIES INC. AND SUBSIDIARY

                        PART II - OTHER INFORMATION

Item 1.   Legal Proceedings
     
          There are no material legal proceedings against the Company or
          in which any of this property is subject.

Item 2.   Changes in Securities

          None

Item 3.   Defaults upon Senior Securities

          None

Item 4.   Submission of Matters to a Vote of Security Holders

          A.   The Registrant held its Annual Meeting of Stockholders 
          on August 9, 1995.

          B.   Two Directors were elected at the Annual Meeting to
          serve until the Annual Meeting of Stockholders in 1998. 
          The names of these Directors and votes cast in favor of
          their election and shares withheld are as follows:

          Name                     Votes For      Votes Withheld
          ----                     ---------      --------------
          Bernard Wengrover        7,033,707          123,430
          Paul D. Meringola        7,033,707          123,430

          In addition to the election of Directors, the stockholders 
          approved a proposal to ratify the selection of Ernst & Young 
          as independent public auditors of the Company for the fiscal 
          year ending March 31, 1996; 7,101,872 shares voted in favor 
          of this proposal, 18,000 shares voted against and 37,265 
          shares abstained from voting.

Item 5.   Other Information

          None

Item 6.   (a)  Exhibits - Notice of Annual Meeting of Stockholders - 
               Proxy Statement


          (b)  Reports on Form 8-K

               None


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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                              MEDICAL ACTION INDUSTRIES INC.



Date: November 2, 1995        By: /s/ Richard G. Satin
      ------------------      --------------------------------
                              Richard G. Satin, Vice President
                              Principal Accounting Officer                 
                               
                                                            
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