EXHIBIT 11.1
                           CTI Industries Corporation
                    Computation of Earnings (Loss) Per Share
                      And Equivalent Share of Common Stock
                 for the years ended October 31, 1996 and 1997


<TABLE>
<CAPTION>

                                                   Year Ended October 31, 1996    Year Ended October 31, 1997
                                                   ---------------------------    ---------------------------
                                                                    Fully                          Fully      
                                                      Primary      Diluted           Primary      Diluted
                                                     ----------   ----------        ----------   ----------
  Line                                                                         
  ----                                                                         
 AVERAGE SHARES OUTSTANDING                                                    
<S>                                                   <C>          <C>               <C>          <C>      
    1    Weighted average number                                               
            of shares of common stock                                          
            outstanding during the period             1,026,572    1,026,572           999,551      999,551
    2    Net additional shares assuming                                        
           stock options and warrants                                          
           exercised and proceeds used to                                      
           purchase treasury shares                     239,263      239,263           239,263      239,263
                                                     ----------   ----------        ----------   ----------
    3    Weighted average number of shares                                     
           and equivalent shares                                               
           of common stock outstanding                                         
           during the period                          1,265,835    1,265,835         1,238,814    1,238,814
                                                     ==========   ==========        ==========   ==========
                                                                               
                                                                               
 EARNINGS (LOSS)                                                               
                                                                               
    4    Net earnings (loss)                          ($183,040)   ($183,040)       $1,193,578   $1,139,578 
    5    Less dividends applicable to                                      
           convertible preferred stock                  (74,211)     (74,211)          (97,500)     (97,500)
                                                     ----------   ----------        ----------   ----------
    6    Amount for per share computation             ($257,251)   ($257,251)       $1,042,078   $1,042,078 
                                                     ==========   ==========        ==========   ==========
                                                                               
 PER SHARE AMOUNTS                                                             
                                                                               
         Loss applicable to common shares                                      
           (line 6 / line 3)                             ($0.20)      ($0.20)            $0.84        $0.84 
                                                     ==========   ==========        ==========   ==========
                                                   
</TABLE>


Earnings  (loss) per share is computed by dividing  net  earnings  (loss),  less
convertible preferred stock dividends,  by the weighted average number of shares
of common stock and common stock equivalents (common stock warrants) outstanding
during the period.