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

                             FORM 10-K

       [X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                 THE SECURITIES EXCHANGE ACT OF 1934

            For the fiscal year ended December 31, 1997

                                OR

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

                For the transition period from _____ to _____

                Commission file number 0-9722

                      INTERGRAPH CORPORATION
                      ----------------------
      (Exact name of registrant as specified in its charter)

               Delaware                                    63-0573222
     ------------------------------        -----------------------------------
     (State or other jurisdiction of       (I.R.S. Employer Identification No.)
      incorporation or organization)

              Intergraph Corporation
               Huntsville, Alabama                      35894-0001
     ----------------------------------------           ----------
     (Address of principal executive offices)           (Zip Code)

  Registrant's telephone number, including area code:  (205) 730-2000
                                                       --------------

  Securities registered pursuant to Section 12(b) of the Act: None

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

              Common Stock, par value $0.10 per share
              ---------------------------------------
                         (Title of Class)

   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 (or
for  such shorter period that the registrant was required to  file
such   reports),  and  (2)  has  been  subject  to   such   filing
requirements for the past 90 days. Yes  X   No __

   Indicate  by  check  mark if disclosure  of  delinquent  filers
pursuant  to  Item 405 of Regulation S-K is not contained  herein,
and  will not be contained, to the best of registrant's knowledge,
in  definitive  proxy  or information statements  incorporated  by
reference in Part III of this Form 10-K or any amendment  to  this
Form 10-K.  (   )

   As  of  January  31,  1998,  there were  48,220,459  shares  of
Intergraph  Corporation Common Stock $0.10 par value  outstanding.
The   aggregate  market  value  of  the  voting  stock   held   by
nonaffiliates  of  the  registrant  was approximately $400,159,000
based on the closing sale price  of  such  stock  as  reported  by
NASDAQ on January 31, 1998, assuming that all  shares beneficially
held  by  executive  officers  and  members  of  the  registrant's
Board of Directors are  shares  owned  by "affiliates,"  a  status
which each of the executive  officers  and  directors individually
disclaims.

                DOCUMENTS INCORPORATED BY REFERENCE

    Documents                                      Form 10-K Reference
    ---------                                      -------------------

    Portions of the Annual Report to
     Shareholders for the year ended
     December 31, 1997                             Part I, Part II, Part IV

    Portions of the Proxy Statement
     for the May 28, 1998 Annual
     Shareholders' Meeting                         Part III

==============================================================================

                              PART I


ITEM 1.   BUSINESS

Overview

   Intergraph Corporation (the "Company" or "Intergraph"), founded
in  1969,  is  a vendor of automated business solutions  including
hardware, software, consulting and support services for technical,
creative, and information technology (IT) professionals found in a
variety of industry sectors and government.

   Effective  for  1998  management and  reporting  purposes,  the
Company's  business  organization  is  comprised of Intergraph
Corporation,  the  parent  company  (also  referred  to  as
"Intergraph  Industry  Solutions"), Intergraph  Computer  Systems, Inc.,
Intergraph  Public  Safety, Inc., and VeriBest, Inc.   The  Company
believes that this business structure will  provide greater focus
and  provide  clear  accountability of  each  as  a business
enterprise.  Industry  Solutions   supplies   automated
business  solutions, including hardware, software, consulting  and
support  services,  to  three  primary  industries:   process  and
building, infrastructure (including transportation, utilities  and
state  and  local governments), and federal government.   Computer
Systems   supplies  high  performance  Windows  NT-based  graphics
workstations and personal computers (PCs), three dimensional  (3D)
graphics subsystems, servers, and other hardware products.  Public
Safety develops, markets, and implements systems for public safety
agencies.   VeriBest  serves  the  electronics  design  automation
market,  providing  software design tools, design  processes,  and
consulting services for developers of electronic systems.

   Intergraph offers  open,  industry  standard solutions, including
Microsoft   Corporation's   Windows-based software,  Intel Corporation's
microprocessor-based hardware,  and related  services to meet engineering,
design, modeling, analysis, mapping, IT, and creative computing needs.
The Company's products are  sold  through  direct and indirect channels
worldwide,  with United States and European revenues representing
approximately 77% of total revenues for 1997.

   Until  the mid 1990s, the unique demands of high end  technical
computing required tremendous processing and graphics capabilities
that  could  only  be  performed  using  reduced  instruction  set
computing  (RISC)  workstations for  the  UNIX  operating  system.
These    systems   cost   considerably   more   than   the   Intel
microprocessor/Windows-based PCs currently used  widely  for  word
processing, spreadsheets, and other less demanding applications.

   In  1992 the Company began evaluation of a transition from  its
own  Clipper  RISC microprocessor to the Intel microprocessor  and
from the UNIX operating system to Microsoft's Windows NT, a 32 bit
operating  system  powerful  enough  to  run  both  technical  and
business  applications on a less expensive hardware platform.   In
late   1992,  the  Company  concluded  that  systems  with   Intel
microprocessors and Windows operating systems would become capable
of  supporting  high  end  computing  and  other  enterprise  wide
computing   environments,  while  at  the  same  time  maintaining
interoperability with existing UNIX-based systems.   The  Company,
therefore,  chose  to  migrate  products  from  its  own   Clipper
microprocessor  to Intel's and from the UNIX operating  system  to
Windows  NT.  The effect of this decision has been to  expand  the
availability   of   the   Company's  workstations   and   software
applications   to   Windows-based   computing   environments   not
previously addressed by the Company, including the availability of
Intergraph  software applications operating across  a  variety  of
hardware  architectures of other vendors that use the  Windows  NT
operating system.  Prior to this decision, the Company's  software
applications   operated   principally   on   Intergraph   hardware
platforms.  The Company has continued to maintain products in  the
UNIX operating system environment, the foundation for its software
applications prior to Windows NT.

   At the end of 1994, the Company completed a two year development
effort  to port its technical software applications to the Windows
NT  operating  system, and to make Windows  NT  available  on  all
Intergraph workstations.  Sales of Windows-based software grew  to
represent  48% of software revenues in 1994, 70% in 1995,  78%  in
1996, and 87% in 1997.

   The Company ceased development of its microprocessor at the end
of  1993 and made a substantial investment in the redesign of  its
hardware  platform  for  utilization  of  Intel's  microprocessor.
Intergraph  chose to use only Intel microprocessors and  to  focus
its efforts and image creation toward its core capabilities, which
are very high performance computation and graphics.  This high end
market  place  in the Windows NT environment is only supported  by
Intel  products.   The  transition from its  proprietary  hardware
architecture  to that of Intel was substantially completed  during
1994.  Intel based systems grew to represent 74% of hardware  unit
sales  in  1994, 95% in 1995, and approximately 100% in  1996  and
1997.  See "Manufacturing and Sources of Supply" and Item 3, Legal
Proceedings following for discussion regarding litigation  between
the Company and Intel, and Management's Discussion and Analysis of
Financial  Condition and Results of Operations  contained  in  the
Company's  1997 annual report, portions of which are  incorporated
by  reference  in this Form 10-K annual report, for discussion  of
effects of the Intel dispute on operating results of the Company.

   Currently,  Intergraph markets and sells  a  complete  line  of
workstations  and servers based on Intel's Pentium,  Pentium  Pro,
and  Pentium  II  microprocessors and  the  Windows  NT  operating
system.   The Company's Intel/Windows-based solutions include  low
to   high   end   workstations,  servers,  software  applications,
peripherals,   and  consulting,  networking,  system    migration,
training, and maintenance and support services.  Depending on user
requirements, the Company's products and services can be  provided
as  point  solutions or as integrated solutions that  include  all
necessary hardware, software, and support services.

   The  Company  believes that its operating system  and  hardware
architecture strategies are the correct choices, that the industry
has  accepted  Windows NT, and that Windows  NT  is  becoming  the
dominant operating system in the majority of markets served by the
Company.   Competing operating systems and products are  available
in  the  market,  and  competitors of the  Company  offer  or  are
adopting  Windows NT and Intel as the systems for their  products.
Improvement in the Company's operating results will depend on  its
ability   to  accurately  anticipate  customer  requirements   and
technological trends and to rapidly and continuously  develop  and
deliver  new hardware and software products that are competitively
priced,   offer   enhanced  performance,   and   meet   customers'
requirements for standardization and interoperability.

   In   terms   of   broad   market   segments,   the   Company's
mapping/geographic   information  systems  (GIS),   architectural,
engineering   and  construction  (AEC),  and  mechanical   design,
engineering,  and manufacturing product applications  continue  to
dominate the Company's product mix at approximately  57%, 27%, and
14%,  respectively, of total systems sales in 1997 (52%, 27%,  and
13%, respectively, for 1996).

Business Entities

Intergraph Industry Solutions
-----------------------------

   Intergraph  Industry Solutions develops, markets, and  supports
total   solutions   which  offer  technical  professionals   open,
interdisciplinary  software  applications,  specialized   industry
specific  hardware,  consulting, and support  services.   Industry
Solutions provides business solutions to three primary industries:
process  and  building, infrastructure (including  transportation,
utilities,   and   state  and  local  government),   and   federal
government.

   The graphics software foundation for certain Industry Solutions'
software applications is MicroStation, graphics software owned  by
Bentley  Systems,  Inc.,  an Intergraph  affiliate.   MicroStation
provides  fundamental graphics element creation, maintenance,  and
display  functions for Industry Solutions' UNIX-  and  Intel-based
workstations.   See  Item  3,  Legal  Proceedings  following   and
Management's  Discussion and Analysis of Financial  Condition  and
Results  of  Operations  and  Note 12  of  Notes  to  Consolidated
Financial  Statements  contained  in  the  Company's  1997  annual
report,  portions of which are incorporated by reference  in  this
Form   10-K   annual  report,  for  discussion  of  the  Company's
arbitration  proceedings  and business relationship  with  Bentley
Systems, Inc.

   Process and Building.  Industry Solutions' plant design software
addresses  the  needs of process and power plant  design  efforts.
The  plant  design system product supports process flow  diagrams,
piping   and   instrumentation  diagrams,   instrumentation   data
management,     piping,     equipment,     heating/ventilation/air
conditioning, electrical, structural, and other design aspects  of
a   plant.   Three  dimensional  modeling  capabilities  are  also
provided.  The system performs interference checking and  provides
reports,  materials  lists, and drawings.   A  supporting  product
provides "walk throughs" of three dimensional plant models.

   Industry  Solutions'  architectural, facility  management,  and
engineering  product  line  automates  the  project   design   and
management  process.  With this software, users  can  develop  and
model  building  concepts,  produce  construction  documents,  and
manage space and assets in a finished facility.  The system serves
the  needs  of  architecture/engineering firms  and  corporate  or
governmental   facility   management   offices.    Included    are
capabilities  for  producing three dimensional  models  of  design
concepts, architectural drawings, reports, engineering plans,  and
construction  drawings.   Products  are  also  offered  for  space
planning,   facility   layout,   maintenance   management,   lease
management, and asset tracking.

   Engineering  software evaluates product designs for  functional
and  structural  integrity, predicting behavior under  service  or
test  conditions.   Finite element modeling and analysis  software
evaluates designs by simulating stresses encountered in end use.

   Infrastructure.  To help agencies strategically and efficiently
manage transportation networks, Industry Solutions' transportation
solutions  integrate  maps, photos, property records,  survey  and
engineering   data,  inspection  reports,  traffic   safety,   and
congestion   statistics.   Industry  Solutions'   mapping,   civil
engineering,  and  photogrammetry products provide  transportation
solutions  including  imaging, training, reprographics,  plotting,
and integration and professional services.

   The dominant mapping/GIS solution for transportation agencies is
Industry Solutions' GeoMedia and MGE, a high end software for base
map   analysis.   GeoMedia  offers  dynamic  segmentation   in   a
client/server  environment while accessing legacy data,  providing
open  access  to  spatial data and information,  and  distributing
spatial  data and information across the World Wide Web.  Industry
Solutions' ImageStation Z photogrammetric workstation, an  end-to-
end digital photogrammetry production system on Windows NT, offers
tools  for  aerotriangulation, mapping, automatic digital  terrain
model  collection, and orthophoto generation.  Industry Solutions'
InRoads    suite   of   civil   engineering   software   addresses
transportation   engineering,   site   design,   data   reduction,
coordinate  geometry, rail design, and water  resources.   InRoads
includes  Windows-based  standalone  applications,  as   well   as
software   that  can  be  used  simultaneously  for  AutoCAD   and
MicroStation.

   For state and local governments, Industry Solutions develops and
implements  mapping  & geographic information  systems  and  civil
engineering   solutions  for  land  records  and  mapping,   asset
management,    public   works,   public   safety,   transportation
engineering,   infrastructure  modeling,   planning,   and   other
functions.    Industry  Solutions'  mapping/GIS   solutions   help
governments  improve public service, respond more  efficiently  to
legislated  and  political  mandates,  implement  successful   GIS
systems  quickly,  and  reduce the total cost  of  GIS  ownership.
Industry  Solutions' civil engineering software helps  governments
design and analyze projects from site design to water resources to
transportation.   The  easy  to use  software  is  based  upon  an
enterprise wide data warehouse for collection and dissemination of
information  (including  GIS  data) to  all  participants  in  the
government organization.

   For  more  than  25  years, Industry Solutions'  Infrastructure
business unit has provided state of  the  art  software   to   the
telecommunications, electric, gas, pipeline, and water industries.
The  unit's  full spectrum solutions integrate geo-based  data
with  core information technology systems, giving a broad base  of
users access to spatial information.

   Environmental  and  natural  resource  management  applications
address  monitoring,  evaluating and  managing,  conservation  and
remediation of the environment.  Energy exploration and production
products  assist geoscientists in geological analysis  for  energy
exploration and production and mineral extraction.

   Industry  Solutions  also  provides  solutions  for  end-to-end
digital  map  and  chart  publishing,  digital  image  processing,
orthophoto production, and digital photogrammetry.

   Federal  Systems.   The Federal Systems business unit of Industry
Solutions markets and sells commercial off-the-shelf and specially
developed products and services to government agencies around  the
world.   Federal Systems' major offerings  include  mapping   and
information  systems  and integrated ship  design  and  production
software products.  Industry Solutions has been a top provider  of
computer graphics solutions to the U.S. government for a number of
years.

Intergraph Computer Systems
---------------------------
   On January 1, 1998, Intergraph Computer Systems began operating
as  an  independent  entity,  with  full  transition  to  be
completed by the end of 1998.  Intergraph plans to build  Computer
Systems  into  the leading supplier  of  high  performance,
Intel/Windows NT-based graphics workstations and PCs, servers, and
3D  graphics  subsystems.  As a separate company with  profit  and
loss  responsibility,  the  Company believes  Intergraph  Computer
Systems  is positioned to respond and grow quickly in its  rapidly
evolving target markets.

   Computer  Systems offers workstation products for  a  range  of
users.   The  TD  line of computer systems offers  Intel  Pentium,
Pentium  Pro,  and  Pentium  II microprocessors,  Windows  NT  and
Windows  95  operating systems, leading edge graphics,  and  other
industry  standard components.  TD personal computers are intended
for 2D design and drafting users, as well as office automation and
business  management tasks.  TD personal workstations are  for  3D
design,  engineering  analysis, image processing,  and  rendering.
TDZ  3D  graphics  workstations offer high end, industry  standard
graphics and computing power on price competitive Pentium II-based
systems  running Windows NT.  All computer systems offer  numerous
options  that permit customers to select systems that  meet  their
unique   needs,   including  a  selection  of  display   monitors,
upgradeable memory, and specialized peripherals.

   Computer  Systems  also  offers Intel/Windows-based  InterServe
symmetric multiprocessing servers for work groups, departments, or
an  entire  enterprise.  These systems come with fully  integrated
optical   disk   products,   backup  solutions,   and   networking
capabilities,  as  well  as with consultation,  installation,  and
other services to assure customer success.

   Other  systems  are  available for specialized  needs.  StudioZ
workstations are Pentium II/Windows NT-based systems for  creating
computer  generated images and digital betacam quality  video  for
the  entertainment and broadcast markets.  Intel/Windows  NT-based
web servers are solutions for establishing and managing customers'
sites  on  the  World Wide Web.  ExtremeZ 2D graphics workstations
are   Pentium   II-based  systems  for  prepress  and   publishing
professionals.   Industry  standard 3D graphics  accelerators  are
available,  including  RealiZm  II 3D  Graphics  with  DirectBurst
technology, a patented 3D graphics subsystem, Intense 3D Pro 1000,
an  original  professional OpenGL add-in card  that  is  based  on
RealiZm 3D graphics technology for Windows NT, and Intense 3D 100,
a  mainstream  graphics  accelerator  ideal  for  general  purpose
Windows 95/Windows NT PC productivity.

   Computer  Systems also offers large format production scanners,
imaging  systems  for  scanning and  plotting  images,  and  laser
imagesetters  for  electronic map publishing.  Additional  special
purpose  peripherals such as disk and tape drives,  printers,  and
other  devices  may be manufactured in house or sold  as  original
equipment from third parties.

Intergraph Public Safety
------------------------
   In  January  of 1997, Intergraph Public Safety became  a
subsidiary  corporation  wholly  owned  by  Intergraph.
Headquartered in Huntsville, Alabama with a staff of approximately
500  people worldwide, Public Safety is the only company providing
total  public  safety solutions on a global basis.  Public  Safety
solutions   include   computer  hardware  and  software   systems,
training, maintenance, customer support, and outsourcing services.
Public  Safety  develops,  markets and  implements  computer-based
systems  for public safety agencies such as emergency medical  and
rescue  units,  fire departments and law enforcement organizations
around the world.  The computer solutions offered by Public Safety
feature  its  proprietary technology and rely on  the  Windows  NT
operating    system,   Intel-based   workstations,   and    Oracle
Corporation's  relational data bases.  By  incorporating  industry
standard hardware and software with its products, Public Safety is
able  to  provide  customers with the best price  and  performance
features  available.  Public Safety is aggressively expanding  its
products  and  services  to  address  other  industries,  such  as
utilities, automobile club roadside assistance, airport  security,
campus security and military base security.

   The computer aided dispatch system is the foundation product for
Public   Safety.   This  product  fully  integrates   interactive,
intelligent  mapping  with dispatching,  records  management,  and
state   of   the   art   communications  capabilities.    Designed
specifically to support command and control operations, the system
is   composed  of  high  performance  graphics  workstations   and
software.   Records  management is enhanced  by  a  database  that
includes  geographic map information as well as address,  incident
history, and traffic pattern data.

   All  Public  Safety products are designed to participate  in  a
comprehensive, integrated public safety information  system.   The
Public  Safety  product  offering includes CAD  dispatch,  police,
fire,   and   emergency  management  systems,  records  management
systems,  jail  management systems, civil  process  and  mug  shot
systems,  mobile computer systems, integrated radio and  telephony
solutions,  interfaces  to alarm systems,  management  information
reporting  systems,  personnel  rostering  systems,  and  training
management  systems.   Public  Safety's  strategy  is  to  provide
products  representing  a  complete  solution  for  public  safety
agencies, with approximately 45 products currently offered.

VeriBest
--------
   In January 1996, VeriBest became a subsidiary corporation
wholly owned by Intergraph.  Formerly the Electronics division
of Intergraph, VeriBest employs approximately 300  people
worldwide  with  concentrations at its  headquarters  in  Boulder,
Colorado  and  development  centers  in  Huntsville,  Alabama  and
Mountain View, California.

   The first electronic design automation (EDA) company to port its
tools   to   Windows   NT   and   fully  support   computer-aided-
engineering/computer-aided-design/printed circuit board  tools  in
the   Intel/Windows  environment,  VeriBest  is  a   provider   of
electronic    system   design   solutions   to    the    computer,
telecommunications, automotive, industrial control,  and  consumer
industries.    Core   competencies  include   simulation,   signal
integrity, PCB implementation, and enterprise wide design  process
management.  This technology foundation leverages the  Windows  NT
platform,   the  fastest  growing  operating  system  within   the
mainstream EDA industry segment, and provides users with excellent
price  and  performance.  VeriBest has over 15,000 seats installed
worldwide.

   In  1997,  VeriBest  made  a strategic  decision  to  pursue  a
multichannel  distribution  strategy  that  leverages   its   core
technologies to create greater market access and market  awareness
through  the development of alternate channels such as  telesales,
original  equipment manufacturer (OEM), and value  added  reseller
relationships.  This effort resulted in the signing of  VeriBest's
first  multi-year  OEM  agreement to  resell  the  VeriBest  VHSIC
hardware   description   language  (VHDL)   simulator,   a   high-
performance, high-capacity VHDL simulation system for  application
specific integrated circuit, field programmable gate array (FPGA),
and board-level design.

   Also in 1997, to satisfy customer retooling needs driven by new
technologies and productivity requirements, VeriBest addressed two
of  the  fastest  growing segments of the semiconductor  industry:
the FPGA and signal integrity tools markets.

   The FPGA marketplace is growing at an estimated rate of 30% per
year.   To  meet  this demand, VeriBest teamed with  EDA  industry
leader  Synopsys to provide the synthesis component for  the  FPGA
DeskTop  Series.  Powered by Synopsys FPGA Express, VeriBest  FPGA
Synthesis  provides  the leading FPGA/complex  programmable  logic
device   synthesis   technology.   Advanced  architecture-specific
algorithms  and  state of the art simulation  technology,  coupled
with  knowledge of the target place and route tools, minimize time
to market and maximize performance results.

   To  address  the  rapidly emerging market for signal  integrity
tools,  VeriBest  introduced Signal Analyzer, Signal  Vision,  PCB
Planner and PCB Viewer, a tightly integrated, comprehensive design
solution  that  addresses  the process  of  designing  high  speed
systems.

Product Development

   The  Company  believes a strong commitment to  ongoing  product
development  is  critical to success in the  interactive  computer
graphics industry.

   Product  development expenditures include all costs related  to
designing new or improving existing hardware and software.  During
the  year ended December 31, 1997, the Company spent $98.1 million
(8.7% of revenues) for product development activities compared  to
$103.4  million  (9.4% of revenues) in 1996,  and  $111.6  million
(10.2%  of  revenues)  in 1995.  See Management's  Discussion  and
Analysis   of  Financial  Condition  and  Results  of   Operations
contained in the Company's 1997 annual report, portions  of  which
are incorporated by reference in this Form 10-K annual report, for
further  discussion  of  product development  expenses,  including
portions capitalized and their recoverability.

   The  industry  in which the Company competes  continues  to  be
characterized  by  rapid technological change,  which  results  in
shorter  product  cycles,  higher  performance  and  lower  priced
product offerings, intense price and performance competition,  and
development and support of software standards that result in  less
specific  hardware  and software dependencies by  customers.   The
Company  believes the life cycle of its products to be  less  than
two  years,  and  it  is therefore engaged in  continuous  product
development  activity.  The operating results of the  Company  and
others  in the industry will continue to depend on the ability  to
accurately  anticipate  customer  requirements  and  technological
trends  and  to rapidly and continuously develop and  deliver  new
hardware  and  software  products that are  competitively  priced,
offer  enhanced performance, and meet customers' requirements  for
standardization and interoperability.

Manufacturing and Sources of Supply

   Intergraph  Computer Systems is responsible for  the  Company's
manufacturing activities, which include the assembly  and  testing
of  components and subassemblies manufactured by the  Company  and
others.

   All of the Company's microprocessor needs are currently supplied
by  Intel Corporation. See Item 3, Legal Proceedings following and
Management's  Discussion and Analysis of Financial  Condition  and
Results  of  Operations  contained in the  Company's  1997  annual
report,  portions of which are incorporated by reference  in  this
Form  10-K  annual  report,  for a  discussion  of  the  Company's
litigation proceedings with Intel and its related effects  on  the
Company's microprocessor supply and results of operations.

   The  Company is not required to carry extraordinary amounts  of
inventory to meet customer demands or to ensure allotment of parts
from its suppliers.

Sales and Support

   Sales.  The Company's systems are sold through a combination of
direct   and  indirect  channels  in  approximately  65  countries
worldwide.   Direct channel sales, which provide the  majority  of
the  Company's  systems revenues, are generated by  the  Company's
direct  sales  force through sales offices in  over  40  countries
worldwide.  The efforts of the direct sales force are augmented by
sales  through indirect channels, including dealers,  value  added
resellers,  distributors, and system integrators.   Sales  through
indirect  channels  provided approximately 22%  of  total  Company
systems revenues in 1997 and 18% in 1996.

   Each  of  the Company's four major entities maintains  its  own
sales  force.  Intergraph Industry Solutions' selling efforts  are
organized along key industry lines (process and building,  federal
government,    and   infrastructure,   including   transportation,
utilities, and state and local governments) for its major  product
applications.   Industry  Solutions  believes  an  industry  focus
better enables it to meet the specialized needs of customers.   In
general,  the  direct  sales  forces  are  compensated  through  a
combination  of  base  salary and commission.   Sales  quotas  are
established  along  with certain incentives for  exceeding  quota.
Additional   specific  incentive  programs  may   be   established
periodically.

   Customer  Support.  The Company believes that a high  level  of
customer  support is important to the sale of interactive graphics
systems.   Customer  support  includes  preinstallation  guidance,
customer   training,  onsite  installation,  hardware   preventive
maintenance,  repair  service, software help  desk  and  technical
support   services   in  addition  to  consultative   professional
services.  The Company employs engineers and technical specialists
to   provide  customer  assistance,  maintenance,  and   training.
Maintenance  and  repair  of  systems  are  covered  by   standard
warranties  and  by  maintenance agreements to  which  most  users
subscribe.  The trend in the industry toward lower priced products
and  longer  warranty periods has resulted in  reduced  levels  of
maintenance  revenue for the Company.  The Company  believes  this
trend  will  continue in the future, though it  may  be  partially
offset by growth in the Company's professional services business.

International Operations

   International   markets,  particularly  Europe,   continue   in
importance to the industry and to the Company.  Sales outside  the
U.S.  represented approximately 53% of total revenues in 1997  and
55%  in  1996. European and Asia Pacific revenues represented  31%
and  12%,  respectively, of total revenues in 1997 (33%  and  13%,
respectively, in 1996).  The Company's operations are  subject  to
and  may  be adversely affected by a variety of risks inherent  in
doing  business  internationally, such as government  policies  or
restrictions, currency exchange fluctuations, and other factors.

   There are currently wholly-owned sales and support subsidiaries
of  the Company located in every major European country.  European
subsidiaries  are  supported by service and  technical  assistance
operations  located  in  The  Netherlands.   Outside  of   Europe,
Intergraph systems are sold and supported through a combination of
subsidiaries  and  distributorships.  At December  31,  1997,  the
Company had approximately 1,400 employees in Europe, 800 employees
in   the   Asia  Pacific  region,  and  600  employees  in   other
international locations.

   Fluctuations  in the value of the U.S. dollar in  international
markets can have a significant impact on the Company's results  of
operations.   The Company conducts business in all  major  markets
outside  the  U.S., but the most significant of  these  operations
with  respect  to  currency risk are located in Europe  and  Asia.
Local  currencies are the functional currencies for the  Company's
European subsidiaries.  The U.S. dollar is the functional currency
for all other international subsidiaries.  The Company has certain
currency  related  asset  and liability  exposures  against  which
certain  measures, primarily hedging, are taken to reduce currency
risk.   With  respect  to these exposures, the  objective  of  the
Company  is  to  protect  against financial  statement  volatility
arising  from  changes in exchange rates with respect  to  amounts
denominated  for balance sheet purposes in a currency  other  than
the   functional  currency  of  the  local  entity.   The  Company
therefore  enters  into  forward  exchange  contracts  related  to
certain  balance sheet items, primarily intercompany  receivables,
payables,  and formalized intercompany debt.  Periodic changes  in
the  value of these contracts offset exchange rate related changes
in  the  financial statement value of these balance  sheet  items.
Forward   exchange   contracts  are  purchased   with   maturities
reflecting  the expected settlement dates of these  balance  sheet
items  (generally  three  months or  less)  and  only  in  amounts
sufficient  to offset possible significant currency  rate  related
changes in the recorded values of these balance sheet items, which
represent  a  calculable exposure for the Company from  period  to
period.   Since  this risk is calculable and these  contracts  are
purchased  only  in  offsetting  amounts,  neither  the  contracts
themselves  nor  the exposed foreign currency denominated  balance
sheet  items  are  likely  to  have a significant  effect  on  the
Company's  financial  position  or  results  of  operations.   The
Company  does  not  generally hedge exposures related  to  foreign
currency  denominated assets and liabilities that are  not  of  an
intercompany   nature,  unless  a  significant   risk   has   been
identified.   It  is possible the Company could incur  significant
exchange  gains  or  losses in the case of  significant,  abnormal
fluctuations in a particular currency.  By policy, the Company  is
prohibited from market speculation via forward exchange  contracts
and therefore does not take currency positions exceeding its known
financial  statement exposures, and does not  otherwise  trade  in
currencies.

   The  Company  has  historically experienced  slower  collection
periods for its international accounts receivable than for similar
sales  to  customers  in  the  United  States.   The  Company   is
experiencing  slow collection periods throughout the  Middle  East
region,  particularly in Saudi Arabia.  Total accounts  receivable
from  Middle  Eastern customers was approximately $21  million  at
December 31, 1997 and 1996.

   See Management's Discussion and Analysis of Financial Condition
and  Results  of  Operations and Notes 1, 4, and 11  of  Notes  to
Consolidated Financial Statements contained in the Company's  1997
annual report, portions of which are incorporated by reference  in
this  Form  10-K  annual  report, for further  discussion  of  the
Company's international operations.

U.S. Government Business

   Total   revenue   from  the  United  States   government   was
approximately $177 million in 1997, $161 million in 1996, and $159
million  in 1995, approximately 15% of total revenue in all  three
years.   The Company sells to the U.S. government under long  term
contractual    arrangements,   primarily   indefinite    delivery,
indefinite quantity and cost plus award fee contracts, and through
commercial sales of products not covered by long term contracts.

   Approximately  42%  of  total federal government  revenues  are
earned  under  long  term  contracts.  The  Company  believes  its
relationship with the federal government to be good.  While it  is
fully  anticipated  that these contracts  will  remain  in  effect
through their expiration, the contracts are subject to termination
at  the  election  of the government.  Any loss of  a  significant
government contract would have an adverse impact on the results of
operations of the Company.

   The  Company  has  historically experienced  slower  collection
periods  for its U.S. government accounts receivable than for  its
commercial  customers.  At December 31, 1997, accounts  receivable
from the U.S. government was approximately $52.5 million.

Backlog

   An order is entered into backlog only when the Company receives
a firm purchase commitment from a customer.  The Company's backlog
of  unfilled systems orders at December 31, 1997 and 1996 was $169
million and $181 million, respectively.  Substantially all of  the
December  1997 backlog of orders is expected to be shipped  during
1998.

   The  Company  does not consider its business  to  be  seasonal,
though  typically fourth quarter orders and revenues exceed  those
of other quarters.

  The Company does not ordinarily provide return of merchandise or
extended payment terms to its customers.

Competition

   The  industry  in which the Company competes  continues  to  be
characterized  by price and performance competition.   To  compete
successfully,  the  Company  and  others  in  the  industry   must
accurately  anticipate  customer  requirements  and  technological
trends and rapidly and continuously develop products with enhanced
performance  that  can  be  offered at  competitive  prices.   The
Company,  along with other companies in the industry,  engages  in
the  practice  of  price discounting to meet competitive  industry
conditions.  Other important competitive factors include  quality,
reliability,   customer   service  and  support,   and   training.
Management  of the Company believes that competition  will  remain
intense, particularly in product pricing.

   Competition in the interactive computer graphics industry varies
among  the  different  product  application  areas.   The  Company
considers  its  principal competitors in the interactive  computer
graphics  market  to be IBM, Hewlett Packard Corporation,  Digital
Equipment  Corporation, Sun MicroSystems, Inc., Silicon  Graphics,
Inc.,  and Mentor Graphics, Inc.  In the low end graphics  market,
Intergraph competes with the software products of Autodesk,  Inc.,
Bentley Systems, Inc. (an approximately 50%-owned affiliate of the
Company), Softdesk, Inc., and several smaller companies.   In  the
hardware  market, Intergraph also competes with personal  computer
vendors,  such  as Compaq Computer Corporation and  Dell  Computer
Corporation.  The primary competitors of Intergraph Public  Safety
are  American  TriTech, PRC, Inc., Tiburon,  Inc.,  and  Printrack
International  Incorporated.  VeriBest's primary  competitors  are
Cadence Design Systems, Inc., Viewlogic Systems, Inc., and  Mentor
Graphics, Inc.  Several companies with greater financial resources
than  the Company, including IBM, Hewlett Packard, Sun, and Compaq
are active in the industry.

   The  Company provides point solutions and solutions  which  are
Windows   compliant  and  integrated  --  workstations,   servers,
peripherals,  and  software configured  by  the  Company  to  work
together and satisfy customers' requirements.  By delivering  such
integration, the Company believes it has an advantage  over  other
vendors  who  provide  only hardware or software,  leaving  system
integration  to  the customer.  In addition, the Company  believes
that  its experience and extensive worldwide customer service  and
support infrastructure represent a competitive advantage.

Environmental Affairs

   The  Company's manufacturing facilities are subject to numerous
laws   and   regulations  designed  to  protect  the  environment,
particularly from plant wastes and emissions.  In the  opinion  of
the  Company, compliance with these laws and regulations  has  not
had,  and  should  not  have, a material  effect  on  the  capital
expenditures, earnings, or competitive position of the Company.

Licenses, Copyrights, Trademarks, Patents, and Proprietary
Information

   The  Company  develops its own graphics, data  management,  and
applications   software   as  part  of  its   continuing   product
development   activities.   The  Company  has   standard   license
agreements with Microsoft Corporation for use and distribution  of
the Windows NT operating system and with UNIX Systems Laboratories
for  use  and  distribution  of the UNIX  operating  system.   The
license  agreements  are  perpetual  and  allow  the  Company   to
sublicense the operating systems software upon payment of required
sublicensing fees.  The Company also has an extensive program  for
the  licensing  of  third party application  and  general  utility
software for use on systems and workstations.

   The  Company has a non-exclusive license agreement with Bentley
Systems,  Inc. (Bentley), an approximately 50%-owned affiliate  of
the  Company,  under  which  the  Company  sells  MicroStation,  a
software  product developed and maintained by Bentley and utilized
in  many  of  the Company's software applications, via its  direct
sales  force,  and via its indirect sales channels if MicroStation
is  sold  with  other  Intergraph products.   See  Item  3,  Legal
Proceedings following and Management's Discussion and Analysis  of
Financial Condition and Results of Operations and Note 12 of Notes
to  Consolidated Financial Statements contained in  the  Company's
1997  annual  report,  portions  of  which  are  incorporated   by
reference  in this Form 10-K annual report, for further discussion
of the Company's affiliation with Bentley.

   The  Company owns and maintains a number of registered  patents
and   registered  and  unregistered  copyrights,  trademarks,  and
service marks.  The patents and copyrights held by the Company are
the  principal means by which the Company preserves  and  protects
the   intellectual  property  rights  embodied  in  the  Company's
hardware and software products.  Similarly, trademark rights  held
by  the  Company  are  used to preserve and protect  the  goodwill
represented   by   the  Company's  registered   and   unregistered
trademarks.

   As  industry standards proliferate, there is a possibility that
the  patents  of  others may become a significant  factor  in  the
Company's  business.   Personal  computer  technology  is   widely
available,   and   many  companies,  including   Intergraph,   are
attempting  to  develop patent positions concerning  technological
improvements related to personal computers and workstations.  With
the  possible exception of its ongoing litigation with  Intel  (in
which the Company expects to prevail), it does not appear that the
Company  will  be  prevented from using  the  patented  technology
necessary  to  compete successfully, since patented technology  is
typically available in the industry under royalty bearing licenses
or  patent  cross licenses, or the technology can be purchased  on
the  open  market.  Any increase in royalty payments  or  purchase
costs  would increase the Company's costs of manufacture, however,
and  it is possible that some key improvement necessary to compete
successfully  in  markets  served  by  the  Company  may  not   be
available.

   An  inability to retain significant third party license rights,
in  particular  the  Microsoft license, to protect  the  Company's
copyrights,   trademarks,  and  patents,  or  to  obtain   current
technical  information  or any required patent  rights  of  others
through  licensing  or  purchase, all of which  are  important  to
success  in  the  industry  in which the Company  competes,  could
significantly  reduce the Company's revenues and adversely  affect
its results of operations.

   Technology   significant  to  the  Company  is  sometimes  made
available in the form of proprietary information or trade  secrets
of others.  Prior to the dispute with Intel, Intel had made freely
available  technical information used by the  Company  to  design,
market  and support its products that use Intel components.   Such
information  is  claimed by Intel to be proprietary  and  is  made
available  by  Intel  only  under  nondisclosure  agreements.   At
present,  Intel  is  withholding such information,  attempting  to
cancel existing agreements and refusing to enter into new nondisclosure
agreements  with  the  Company.  Intel's  actions  are  the
subject   matter  of  current  litigation  (See  Item   3,   Legal
Proceedings, following), and the Company has applied to the  Court
for  relief in the short term, as well as at the conclusion of the
lawsuit.  Intel's actions are damaging the Company by slowing  the
introduction of new products using Intel components and preventing
proper  maintenance and support of  Company products  using  Intel
components.   The Company expects that relief will be  forthcoming
from the Court.  However, if relief is denied, the Company will be
materially affected and may be forced to alter its future business
plans  or to accept unfavorable terms from Intel in settlement  of
the lawsuit.

Risks and Uncertainties

   In  addition  to  those described above and in  Item  3,  Legal
Proceedings  following,  the Company has risks  and  uncertainties
related   to   its   business  and  operating  environment.    See
Management's  Discussion and Analysis of Financial  Condition  and
Results  of  Operations  and  Note  2  of  Notes  to  Consolidated
Financial  Statements  contained  in  the  Company's  1997  annual
report,  portions of which are incorporated by reference  in  this
Form 10-K annual report, for further discussion of these risks and
uncertainties.

Employees

   At  December  31,  1997,  the Company had  approximately  7,700
employees.   Of  these, approximately 2,800 were employed  outside
the  United  States.  The Company's employees are not  subject  to
collective  bargaining agreements, and there  have  been  no  work
stoppages  due to labor difficulties.  Management of  the  Company
believes its relations with employees to be good.


ITEM 2.   PROPERTIES

   The  Company's  corporate  offices  and  primary  manufacturing
facility  are  located in Huntsville, Alabama. Sales  and  support
facilities are maintained throughout the world.

   The  Company  owns  over  1,900,000 square  feet  of  space  in
Huntsville   that   is   utilized   for   manufacturing,   product
development, sales and administration.  The Huntsville  facilities
also  include  over  500 acres of unoccupied  land.   The  Company
maintains  subsidiary  company facilities and  sales  and  support
locations  in  major U.S. cities outside of Huntsville,  primarily
through operating leases.

   Outside the U.S., the Company owns approximately 450,000 square
feet  of  space,  primarily its Nijmegen distribution  center  and
European headquarters facility.  Sales and support facilities  are
leased in most major international locations.

   The  Company  considers its facilities to be adequate  for  the
immediate future.


ITEM 3.   LEGAL PROCEEDINGS

Intel Corporation
-----------------

   Intergraph  filed a legal action on November 17, 1997  in  U.S.
District  Court,  the  Northern District of Alabama,  Northeastern
Division, charging Intel Corporation, the supplier of all  of  the
Company's  microprocessor  needs,  with  anticompetitive  business
practices.   In  the  lawsuit, Intergraph alleges  that  Intel  is
attempting  to  coerce  the Company into  relinquishing  to  Intel
certain  computer  hardware patents through a series  of  wrongful
acts,   including  interference  with  business  and   contractual
relations, interference with technical assistance from third party
vendors, breach of contract, negligence, misappropriation of trade
secrets,  and fraud based upon Intel's failure to promptly  notify
the  Company  of  defects  in  Intel's  products  and  the  timely
correction  of such defects, and further alleging that  Intel  has
infringed  upon  the  Company's patents.   The  Company's  patents
define  the  architecture  of the cache memory  of  an  Intergraph
developed  microprocessor.  The Company believes this architecture
is  at  the core of Intel's entire Pentium line of microprocessors
and  systems.   On  December  3, 1997,  the  Company  amended  its
complaint  to  include a count charging Intel with  violations  of
federal   antitrust   laws.    Intergraph   asserts   claims   for
compensatory  and  treble damages resulting from Intel's  wrongful
conduct  and  infringing acts, and punitive damages in  an  amount
sufficient   to   punish  and  deter  Intel's  wrongful   conduct.
Additionally,  the  Company has requested that Intel  be  enjoined
from   continuing   the   alleged  wrongful   conduct   which   is
anticompetitive and/or violates federal antitrust laws, so  as  to
permit  Intergraph uninterrupted development and  sale  of  Intel-
based products.

   On November 21, 1997, the Company filed a motion in the Alabama
Court  to  enjoin Intel from disrupting or delaying its supply  of
products   and   product   information,  pending   resolution   of
Intergraph's legal action.  The Court has not entered a ruling  on
this motion.

   Intel filed a retaliatory legal action on November 17, 1997, in
the  U.S.  District  Court, the Northern District  of  California,
requesting,  among  other  things,  i)  that  the  Court   declare
Intergraph's  patents invalid and/or not infringed by  Intel,  ii)
that  Intergraph  be enjoined from making further assertions  that
Intel's  customers infringe Intergraph's patents  through  use  of
Intel's  microprocessors, iii) that the Court declare  that  Intel
has  no  obligation to disclose any of its trade secrets or  other
confidential  information to Intergraph, and iv)  that  the  Court
declare  that  Intel's decision to discontinue  the  provision  of
trade  secrets  and other confidential information  to  Intergraph
does  not  violate any doctrine of federal or state  statutory  or
common  law.  Intel filed a second legal action in the  California
Court  on  November 24, 1997, charging Intergraph with  breach  of
contract  related to wrongful retention of and failure  to  return
Intel  information supplied under  nondisclosure  agreements,  and
misappropriation of trade secrets as a result of the same.   Intel
asserts  claims for damages and awards of yet undetermined amounts
and  requests a preliminary and permanent injunction  under  which
Intergraph  would  return  and  make  no  further  use  of   Intel
confidential information.

   On December 8, 1997, the Alabama Court directed the Company and
Intel  to  file joint motions in the California cases to stay  the
two   legal   actions  brought  by  Intel,  pending  the   Court's
consideration of a motion to transfer and consolidate venue.   The
joint  motions were filed and stays were granted by the California
Court.   On  January  15, 1998, Intel filed a  motion  before  the
Alabama Court for a change in venue to California.  A decision  to
transfer venue has not been reached.

   The  Company  believes it was necessary to  take  legal  action
against Intel in order to defend its growing workstation business,
its   intellectual   property,  and   the   investments   of   its
shareholders.  The Company is vigorously prosecuting its positions
and  believes it will prevail in these matters, but at present  is
unable to predict an outcome.

Bentley Systems, Inc.
---------------------

  The Company is the owner of approximately 50% of the outstanding
stock  of Bentley Systems, Inc. (Bentley), the developer and owner
of  MicroStation,  a  software product utilized  in  many  of  the
Company's  software applications and for which the Company  serves
as  a  nonexclusive  distributor.  In December 1995,  the  Company
commenced  an  arbitration  proceeding against  Bentley  with  the
American   Arbitration  Association,  Philadelphia,  Pennsylvania,
alleging that Bentley inappropriately and without cause terminated
a  contractual  arrangement between Bentley and the  Company.   In
response,  Bentley  filed a counterclaim against  the  Company  in
January  1996  seeking significant damages as the  result  of  the
Company's  alleged failure to use best efforts  to  sell  software
support  services pursuant to terms of the contractual arrangement
terminated  by Bentley.  In May 1997, the Company received  notice
of  the adverse determination of this arbitration proceeding  with
Bentley.   The arbitrator's award against the Company was  in  the
amount  of $6.1 million.  In addition, the contractual arrangement
that  was  the  subject of this arbitration  has  been  terminated
effective with this award, and, as a result, the Company  will  no
longer  sell  the  related software support  services  under  this
agreement.   The  Company  and Bentley have  entered  into  a  new
agreement  which establishes single support services  between  the
two companies.

   In  a  second proceeding, Bentley commenced arbitration against
the  Company  with the American Arbitration Association,  Atlanta,
Georgia  in  March  1996,  alleging that  the  Company  failed  to
properly account for and pay to Bentley certain royalties  on  its
sales  of  Bentley  software  products,  and  seeking  significant
damages.   Hearings on this matter are in process and may continue
through  the  end  of the Company's third quarter  of  1998.   The
Company  denies  that  it  has breached  any  of  its  contractual
obligations to Bentley and is vigorously defending its position in
this proceeding, but at present is unable to predict an outcome.

Zydex, Inc.
-----------

   The  Company filed a legal action in August 1995, in  the  U.S.
district court of Alabama, Northeast Division, seeking to dissolve
and  wind up its business arrangement with Zydex, Inc. (Zydex),  a
company  with which it jointly developed its plant design software
application ("PDS"), and seeking an order allowing the Company  to
continue   the  business  of  that  arrangement  without   further
responsibility  or obligation to Zydex.  In November  1995,  Zydex
filed   a  counterclaim  against  the  Company  alleging  wrongful
dissolution  of  the business relationship and seeking  both  sole
ownership  of  PDS  and  significant  compensatory  and   punitive
damages.   In September 1997, the Court issued an order  resolving
the  disputed  issues  and requiring the parties  to  settle,  and
dismissed  the case.  In November 1997, a hearing was held  during
which   the  judge  ordered  both  parties  to  sign  the  closing
documents.   A closing of the final settlement agreement  occurred
on January 15, 1998.

  The final settlement included the purchase by Intergraph of 100%
of  the  common  stock of Zydex for $26,292,000, with  $15,979,000
paid  at closing of the agreement and the remaining amount payable
in   15  equal  monthly  installments,  including  interest.   The
deferred payment portion of the total purchase price is secured by
a  subordinate interest in the PDS intellectual property and by an
irrevocable  letter  of credit in favor of  the  former  owner  of
Zydex.   Interest on the unpaid amount accrues at a rate  1%  less
than  the rate charged by Intergraph's primary lender.  The former
owner of Zydex will retain certain rights to use, but not sell  or
sublicense,  PDS products for a period of 15 years  following  the
date  of closing.  In addition to the purchase price of the common
stock,  Intergraph  was  required to pay additional  royalties  to
Zydex in the amount of $1,027,000 at closing of the agreement.

   See Management's Discussion and Analysis of Financial Condition
and  Results of Operations contained in the company's 1997  annual
report,  portions of which are incorporated by reference  in  this
Form  10-K  annual report, for further discussion of the Company's
business  relationship  with  Intel and  Bentley  and  effects  of
litigation and arbitration proceedings on the Company's  financial
position and results of operations.


ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS

  None.


EXECUTIVE OFFICERS OF THE COMPANY

   Certain  information with respect to the executive officers  of
the  Company is set forth below.  Officers serve at the discretion
of the Board of Directors.

                                                                    Officer
Name                     Age              Position                   Since
----                     ---              --------                   -----

James W. Meadlock         64   Chairman of the Board and
                                Chief Executive Officer              1969
James F. Taylor Jr.       53   Executive Vice President and
                                Director, Intergraph Corporation,
                                and Chief Executive Officer,
                                Intergraph Public Safety, Inc.       1977
Robert E. Thurber         57   Executive Vice President and
                                Director                             1977
Lawrence F. Ayers Jr.     65   Executive Vice President              1987
Klaas Borgers             53   Executive Vice President              1994
Edward F. Boyle           49   Executive Vice President              1986
Penman R. Gilliam         60   Executive Vice President              1994
Richard H. Lussier        52   Executive Vice President              1996
Nancy B. Meadlock         59   Executive Vice President              1969
Wade C. Patterson         36   Executive Vice President,
                                Intergraph Corporation, and
                                Chief Executive Officer and
                                President, Intergraph Computer
                                Systems, Inc.                        1994
Stephen J. Phillips       56   Executive Vice President              1987
Charles E. Robertson Jr.  44   Chief Executive Officer and
                                President, VeriBest, Inc.            1992
William E. Salter         56   Executive Vice President              1984
K. David Stinson Jr.      44   Executive Vice President              1996
Edward A. Wilkinson       64   Executive Vice President              1987
Allan B. Wilson           49   Executive Vice President              1982
Manfred Wittler           57   Executive Vice President              1989


   James  W.  Meadlock, a founder of the Company,  has  served  as
Chairman  of the Board of Directors since the Company's  inception
in  1969 and is Chief Executive Officer.  Mr. Meadlock received  a
degree  in  electrical  engineering  from  North  Carolina   State
University  in  1956.   Mr. Meadlock and  Nancy  B.  Meadlock  are
husband and wife.

   James  F.  Taylor Jr. joined the Company in July 1969,  shortly
after  its formation, and is considered a founder.  He has  served
as  a  Director  since 1973.  Mr. Taylor was responsible  for  the
design and development of the Company's first commercial computer-
aided-design products and for many application specific  products.
Mr. Taylor was elected Vice President in 1977.  He is currently an
Executive  Vice  President  of  the Company  and  Chief  Executive
Officer  of  Intergraph Public Safety, Inc.  Mr.  Taylor  holds  a
bachelor's degree in mathematics.

  Robert E. Thurber, a founder of the Company, has been a Director
since  1972.  In June 1977, Mr. Thurber was elected Vice President
and is currently Executive Vice President and Chief Engineer.   He
is  responsible  for  development of  requirements  and  strategic
direction for application solutions.  Mr. Thurber holds a master's
degree in engineering.

  Lawrence F. Ayers Jr. joined the Company in September 1987 after
32  years  in  federal  government mapping  where  he  became  the
Civilian  Director of the Defense Mapping Agency.   He  served  as
Vice  President for International Federal Marketing until February
1993.   From  1993  to October 1995, he served as  Executive  Vice
President for the Utility and Mapping Sciences application  group.
At  present, he serves on the Intergraph Industry Solutions  staff
as  Executive Vice President.  Mr. Ayers holds a bachelor's degree
in   civil   engineering   and  a  master's   degree   in   public
administration.   Mr.  Ayers has served on a  number  of  national
policy  committees  for the National Academy of  Science  and  the
National   Academy   of  Public  Administration,   including   the
Transportation Research and Highway Research committees.

   Klaas Borgers joined the Company in 1991.  He was elected  Vice
President  in  1994 and has served as Executive Vice President  of
Intergraph  Corporation and Chief Operating Officer for Intergraph
Computer Systems since 1997.  A key person in the development  and
growth  of  Intergraph Computer Systems worldwide operations,  Mr.
Borgers  directs  the subsidiary's sales, services,  manufacturing
and distribution operations.

   Edward  F. Boyle joined the Company in June 1981 and  has  been
responsible for several of the Company's software products.  Prior
to  joining Intergraph, he spent nine years in the steel  industry
where  he developed graphic software applications.  He was elected
Vice  President in 1986 and became Vice President of  Intergraph's
utilities  business in May 1987.  From 1993 through  the  fall  of
1995,   he   was  Vice  President  for  the  Company's   solutions
engineering  business.   He was then given  charge  of  enterprise
support  systems, comprised of utilities products and professional
services.   He was elected Executive Vice President in  July  1996
and  is currently responsible for the infrastructure and utilities
business  for  Intergraph  Industry Solutions.   Dr.  Boyle  holds
bachelor and doctoral degrees in civil engineering.

   Penman R. Gilliam joined the Company in April 1994 as Executive
Vice  President responsible for federal programs.  Mr. Gilliam  is
the  manager  responsible for the federal mapping and  information
systems  organization and Intergraph's Midworld  operations.   Mr.
Gilliam  came to Intergraph from Hughes Aircraft Company where  he
was  Vice  President  of Hughes Communications  and  Data  Systems
Division.   From late 1987 through early 1993, Mr. Gilliam  served
as Deputy Director of the Defense Mapping Agency (DMA), the senior
civilian  responsible  for  overall  production,  operations,  and
research.  Mr. Gilliam also held a number of other positions  with
DMA,  including production management positions in St.  Louis  and
Washington  D.C.  and  a  program director's  position  for  DMA's
digital production system.  Mr. Gilliam holds a bachelor's  degree
in mathematics and geology.

   Richard H. Lussier joined the Company in 1979.  He was promoted
to  Vice  President  of Sales in 1981 and was  later  promoted  to
Executive  Vice  President of Worldwide Sales  and  Support.   Mr.
Lussier  left  Intergraph  in  1990 to  pursue  personal  business
interests.   He  rejoined the Company in 1996  as  Executive  Vice
President of U.S. Sales.  In addition, he is currently responsible
for InterCAP, a wholly owned Intergraph subsidiary, which develops
and  markets world-leading technical illustration software as well
as  WEB  enabling technology.  Mr. Lussier holds a master's degree
in business administration.

   Nancy  B.  Meadlock,  a founder of the  Company,  served  as  a
Director  from  1969  until May 1996, excluding  the  period  from
February 1970 to February 1972.  Mrs. Meadlock served as Secretary
for 10 years, was elected Vice President in 1979, and is currently
Executive Vice President.  She holds a master's degree in business
administration.  Mrs. Meadlock and James W. Meadlock are wife  and
husband.

   Wade  C.  Patterson  joined the Company in  1984  as  a  design
engineer  developing  UNIX  and  central  processing  unit   (CPU)
subsystems  for  Intergraph workstation products.   In  1992,  Mr.
Patterson  managed Windows NT workstation projects as the  Company
made the transition from reduced instruction set computing CPUs to
Intel   microprocessor-based  CPUs.   Mr.   Patterson   has   been
responsible for hardware development and marketing for  Intergraph
Computer Systems, Inc., the Company's hardware subsidiary, since August
1994.   He was elected Vice President at  that  same time  and is
currently an Executive Vice President of the  Company and  Chief
Executive Officer and President of Intergraph  Computer Systems,
Inc.   He  holds  a  bachelor's  degree  in  electrical engineering.

   Stephen  J.  Phillips joined the Company as Vice President  and
General  Counsel  in November 1987 when Intergraph  purchased  the
Advanced Processor Division of Fairchild Semiconductor, where  Mr.
Phillips  was  General Patent Counsel.  He was  elected  Executive
Vice  President  in August 1992.  Mr. Phillips  holds  a  master's
degree in electrical engineering and a juris doctor in law.

   Charles  E. Robertson Jr. joined the Company in 1992.   He  has
served as Chief Executive Officer and President of VeriBest,  Inc.
since  its  inception  in  January 1996.   Prior  to  his  current
position, Mr. Robertson held executive positions within Intergraph
and  at Mentor Graphics, Daisy Systems, and Cadnetix.  He holds  a
bachelor's degree in electrical engineering and computer science.

   William E. Salter joined the Company in April 1973.  Since that
time,  he  has  served  in  several managerial  positions  in  the
Company's  federal systems business and as Director  of  Marketing
Communications.  Dr. Salter was elected Vice President  in  August
1984  and is currently an Executive Vice President of the Company.
He holds a doctorate in electrical engineering.

   K.  David  Stinson Jr. joined the Company in  1996.   Prior  to
joining  the  Company,  Mr. Stinson acted  as  Vice  President  of
Engineering   and  Nuclear  Projects  for  the  Tennessee   Valley
Authority  (TVA), the nation's largest government  owned  electric
power  utility.   Before  joining TVA, he was  founder  and  Chief
Executive   Officer  of  Digital  Engineering,   responsible   for
developing  software  to assist with the operations,  maintenance,
and  environmental qualification of nuclear facilities  and  other
process  plants.  Mr. Stinson was elected Executive Vice President
in  1996,  responsible  for the process and building  business  of
Intergraph Industry Solutions.  He is a graduate of the  U.S.  Air
Force   Academy   and  holds  a  masters  degree   in   management
administration science.

   Edward  A. Wilkinson joined the Company in 1985 as Director  of
Government  Relations.  He was elected Vice President  of  Federal
Systems  in 1987 and Executive Vice President in 1994.   Prior  to
joining Intergraph, Mr. Wilkinson served for 34 years in the  U.S.
Navy, retiring with the rank of Rear Admiral.  He holds a master's
degree in mechanical engineering.

   Allan  B. Wilson joined the Company in 1980 and was responsible
for  the development of international operations outside of Europe
and  North America.  He was elected Vice President in May 1982 and
Executive  Vice  President  in  November  1982.   Mr.  Wilson   is
currently responsible for sales and support for the Company's Asia
Pacific  region.   He  holds bachelor's and  master's  degrees  in
electrical engineering.

   Manfred  Wittler joined the Company in 1989 as Vice  President.
In  1991, he was elected Executive Vice President and is currently
responsible  for sales and support for Europe, Canada,  and  Latin
America.   From  1983  through  1989,  Mr.  Wittler  held  several
positions  with  Data  General Corporation  in  Europe,  including
Division Vice President.  He holds a doctorate in engineering.


                              PART II


ITEM 5.   MARKET FOR THE COMPANY'S COMMON STOCK AND RELATED
          SHAREHOLDER MATTERS

   The  information appearing under "Dividend Policy"  and  "Price
Range  of  Common Stock" on page 47 of the Intergraph  Corporation
1997 annual report to shareholders is incorporated by reference in
this Form 10-K annual report.


ITEM 6.   SELECTED FINANCIAL DATA

   Selected financial data for the five years ended December 31,
1997, appearing under "Five Year Financial Summary" on the inside
front cover page of the Intergraph Corporation 1997 annual report
to shareholders are incorporated  by reference  in this Form 10-K
annual report.


ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS

  Management's Discussion and Analysis of Financial  Condition and
Results of Operations appearing on pages 14 to 26 of the
Intergraph Corporation 1997 annual report to shareholders is
incorporated by reference in this Form 10-K annual report.


ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

   The consolidated financial statements and report of independent
auditors appearing on pages 27 to 46 of the Intergraph Corporation
1997 annual report to shareholders are incorporated by reference
in this Form 10-K annual report.


ITEM 9.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
          ACCOUNTING AND FINANCIAL DISCLOSURE

  None.


                             PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY

   The  information  appearing under "Election of  Directors"  and
"Compliance with Section 16(a) of the Securities Exchange  Act  of
1934"  on pages 3 to 5 of the Intergraph Corporation  proxy
statement  relative  to the annual meeting of shareholders  to  be
held  May 28, 1998, is incorporated by reference in this Form 10-K
annual report.  Directors are elected for terms of one year at the
annual meeting of the Company's shareholders.

   Information relating to the executive officers of  the  Company
appearing under "Executive Officers of the Company" on pages 12 to
14 in this Form 10-K annual report is incorporated herein by
reference.


ITEM 11.  EXECUTIVE COMPENSATION

   The  information  appearing under "Executive  Compensation"  on
pages 5 to 11 of the Intergraph Corporation proxy statement
relative to the annual meeting of shareholders to be held May  28,
1998, is incorporated by reference in this Form 10-K annual
report.


ITEM  12.   SECURITY  OWNERSHIP OF CERTAIN BENEFICIAL  OWNERS  AND
            MANAGEMENT

   The information appearing under "Common Stock Outstanding and
Principal Shareholders" on pages 1 to 3 of the Intergraph
Corporation proxy statement relative to the annual meeting of
shareholders to be held May 28, 1998, is incorporated by reference
in this Form 10-K annual report.


ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

   The information appearing under "Certain  Relationships  and
Related Transactions" on page 5 of the Intergraph Corporation
proxy statement relative to the annual meeting of shareholders  to
be held May 28, 1998, is incorporated by reference in this Form 10-K
annual report.


                              PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULE, AND REPORTS  ON
          FORM 8-K

                                                                    Page in
                                                                    Annual
                                                                    Report *
                                                                    --------
(a)  1) The following consolidated financial statements of
        Intergraph Corporation and subsidiaries and the report
        of independent auditors thereon are incorporated
        by reference from the Intergraph Corporation 1997
        annual report to shareholders:

        Consolidated Balance Sheets at December 31, 1997 and 1996     27

        Consolidated Statements of Operations for the three years     28
         ended December 31, 1997

        Consolidated Statements of Cash Flows for the three years
         ended December 31, 1997                                      29

        Consolidated Statements of Shareholders' Equity for the
         three years ended December 31, 1997                          30

        Notes to Consolidated Financial Statements                  31 - 45

        Report of Independent Auditors                                46

     * Incorporated by reference from the indicated pages of the
        1997 annual report to shareholders.

                                                                    Page in
                                                                   Form 10-K
                                                                   ---------
  2) Financial Statement Schedule:

      Schedule II - Valuation and Qualifying Accounts and
       Reserves for the three years ended December 31, 1997            20


   All other schedules are omitted because they are not applicable
or the required information is shown in the financial statements
or notes thereto.

   Financial statements of 20%- to 50%-owned companies have been
omitted because the registrant's proportionate share of income
before income taxes of the companies is less than 20% of
consolidated loss before income taxes, and the investments in and
advances to the companies are less than 20% of consolidated total
assets.

  3) Exhibits

                                                                    Page in
     Number           Description                                  Form 10-K
     ------           -----------                                  ---------

      3(a)    Certificate of Incorporation, Bylaws, and
               Certificate of Merger. (1)

      3(b)    Amendment to Certificate of Incorporation. (2)

      3(c)    Restatement of Bylaws. (3)

      4       Shareholder Rights Plan, dated August 25, 1993. (4)

      10(a)*  Employment Contract of Manfred Wittler dated
               November 1, 1989 (5) and amendment dated
               February 18, 1998.

      10(b)*  Loan program for executive officers of the Company
               as amended, dated May 1, 1996. (6)

      10(c)   Loan and Security Agreement, by and between
               Intergraph Corporation and Foothill Capital
               Corporation, dated December 20, 1996 and amendments
               dated January 14, 1997 (6) and November 25, 1997.

      10(d)*  Intergraph Corporation 1997 Stock Option Plan. (6)

      10(e)*  Agreement between Intergraph Corporation and
               Green Mountain, Inc. dated April 1, 1997. (7)

      10(f)   Indemnification Agreement between Intergraph
               Corporation and each member of the Board of Directors
               of the Company dated June 3, 1997. (8)

      10(g)*  Employment Contract of Wade Patterson dated
               May 30, 1997. (8)

      10(h)*  Intergraph Corporation Nonemployee Director
               Stock Option Plan.

      10(i)   Amended and Restated First Mortgage and Security
               Agreement, by and between Intergraph Corporation
               and Foothill Capital Corporation, dated
               November 25, 1997.

      13      Portions of the Intergraph Corporation 1997 Annual
               Report to Shareholders incorporated by reference
               in this Form 10-K Annual Report

      21      Subsidiaries of the Company                               21

      23      Consent of Independent Auditors                           22

      27      Financial Data Schedule

     *  Denotes management contract or compensatory plan, contract, or
        arrangement required to be filed as an Exhibit to this Form 10-K

----------------

        (1) Incorporated by reference to exhibits filed with the Company's
            Quarterly Report on Form 10-Q for the quarter ended June 30,
            1984, under the Securities Exchange Act of 1934, File No. 0-9722.

        (2) Incorporated by reference to exhibits filed with the Company's
            Quarterly Report on Form 10-Q for the quarter ended March 31,
            1987, under the Securities Exchange Act of 1934, File No. 0-9722.

        (3) Incorporated by reference to exhibits filed with the Company's
            Quarterly Report on Form 10-Q for the quarter ended June 30,
            1993, under the Securities Exchange Act of 1934, File No. 0-9722.

        (4) Incorporated by reference to exhibits filed with the Company's
            Current Report on Form 8-K dated August 25, 1993, under the
            Securities Exchange Act of 1934, File No. 0-9722.

        (5) Incorporated by reference to exhibits filed with the Company's
            Annual Report on Form 10-K for the year ended December 31, 1992,
            under the Securities Exchange Act of 1934, File No. 0-9722.

        (6) Incorporated by reference to exhibits filed with the Company's
            Annual Report on Form 10-K for the year ended December 31, 1996,
            under the Securities Exchange Act of 1934, File No. 0-9722.

        (7) Incorporated by reference to exhibits filed with the Company's
            Quarterly Report on Form 10-Q for the quarter ended March 31,
            1997, under the Securities Exchange Act of 1934, File No. 0-9722.

        (8) Incorporated by reference to exhibits filed with the Company's
            Quarterly Report on Form 10-Q for the quarter ended June 30,
            1997, under the Securities Exchange Act of 1934, File No. 0-9722.

-----------------

(b) Reports on Form 8-K - on November 24, 1997, the Company filed a Current
    Report on Form 8-K which reported the filing of a lawsuit against Intel
    Corporation as described in Item 3, Legal Proceedings, of this Form 10-K
    annual report.

(c) Exhibits  -  the response to this portion of Item 14 is submitted as a
    separate section of this report.

(d) Financial statement schedules - the response to this portion of Item 14
    is submitted as a separate section of this report.

-----------------

Information contained in this Form 10-K annual report may  include
statements that are forward looking as defined in Section  21E  of
the  Securities Exchange Act of 1934.  Actual results could differ
materially from those projected in the forward-looking statements.
Additional information concerning factors that could cause  actual
results  to  differ materially from those in the  forward  looking
statements  is  contained  in  the  "Management's  Discussion  and
Analysis of Financial Condition and Results of Operations" section
of  the  Company's  1997  annual report,  portions  of  which  are
incorporated by reference in this Form 10-K annual report.

                            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.


                      INTERGRAPH CORPORATION

                     By /s/ James W. Meadlock    Date:   March 30, 1998
                        ---------------------
                         James W. Meadlock
                    Chief Executive Officer and
                       Chairman of the Board
                   (Principal Executive Officer)


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


                                                               Date

/s/ James W. Meadlock          Chief Executive Officer and     March 30, 1998
--------------------------     Chairman of the Board
   James W. Meadlock           (Principal Executive Officer)


/s/ James F. Taylor Jr.        Executive Vice President and    March 30, 1998
--------------------------     Director, Intergraph
   James F. Taylor Jr.         Corporation, and Chief
                               Executive Officer, Intergraph
                               Public Safety, Inc.


/s/ Robert E. Thurber          Executive Vice President and    March 30, 1998
--------------------------     Director
   Robert E. Thurber


/s/ Keith H. Schonrock Jr.     Director                        March 30, 1998
--------------------------
   Keith H. Schonrock Jr.


                               Director                        March 30, 1998
--------------------------
   Larry J. Laster


                               Director                        March 30, 1998
--------------------------
   Thomas J. Lee


                               Director                        March 30, 1998
--------------------------
   Sidney L. McDonald


/s/ John W. Wilhoite           Vice President and Controller   March 30, 1998
--------------------------    (Principal Accounting Officer)
   John W. Wihoite


                 INTERGRAPH CORPORATION AND SUBSIDIARIES

  SCHEDULE II ---- VALUATION AND QUALIFYING ACCOUNTS AND RESERVES



     Column A           Column B       Column C        Column D     Column E
-----------------      ----------     -----------     ----------   -------------
                                      Additions
                       Balance at     charged to
                       beginning      costs and                    Balance at
   Description         of period      expenses        Deductions   end of period
-----------------      ----------     -----------     ----------   -------------

Allowance for doubtful
 accounts deducted
 from accounts
 receivable in
 the balance
 sheet          1997  $16,703,000     2,844,000       5,059,000 (1)  $14,488,000
                1996  $20,399,000    (2,049,000) (3)  1,647,000 (1)  $16,703,000
                1995  $20,309,000     4,945,000       4,855,000 (1)  $20,399,000




Allowance for obsolete
 inventory deducted
 from inventories
 in the balance
 sheet          1997  $43,223,000    15,582,000      22,297,000 (2)  $36,508,000
                1996  $34,441,000    24,189,000      15,407,000 (2)  $43,223,000
                1995  $31,033,000    17,455,000      14,047,000 (2)  $34,441,000




(1) Uncollectible accounts written off, net of recoveries.

(2) Obsolete inventory reduced to net realizable value.

(3) The Company provides its allowance for doubtful accounts on a
    specific identification basis.  In 1996, significant improvement
    in collection prospects on several large accounts occurred,
    resulting in reversal of amounts previously provided in the
    allowance for doubtful accounts.