U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB

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

For the quarterly period ended                February 28, 1998
                              --------------------------------------------------
       [ ] TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT

For the transition period from                    to
                              --------------------  ----------------------------

                        Commission File Number 000-21623

                             OBIE MEDIA CORPORATION
       -----------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)

            OREGON                                               93-0966515
-------------------------------                              -------------------
(State or other jurisdiction of                              (IRS Employer
incorporation or organization)                               Identification No.)


                   4211 West 11th Ave., Eugene, Oregon 97402
                   -----------------------------------------
                    (Address of principal executive offices)

     541-686-8400                                          FAX 541-345-4339
--------------------------------------------------------------------------------
                           (Issuer's telephone number)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act  during  the past 12 months  (or 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 [ ].

     As of April 3, 1998,  3,855,484  shares of the  issuer's  common stock were
outstanding.

     This  report  contains  7 pages.  The only  exhibit is the  Financial  Data
Schedule.
<PAGE>
<TABLE>
<CAPTION>
                             OBIE MEDIA CORPORATION

                           Consolidated Balance Sheets


                                     ASSETS
                                                              February 28,              November 30,
                                                                  1998                      1997   
                                                              ------------              ------------
<S>                                                           <C>                       <C>
Current assets:                                                (Unaudited)

 Cash                                                         $        -                $        -
 Accounts receivable, net                                        2,464,728                 2,878,360
 Prepaid expenses and other current assets                       1,081,435                   790,234
 Deferred tax assets                                             1,105,240                 1,105,240
                                                              ------------              ------------

         Total current assets                                    4,651,403                 4,773,834

Property and equipment, net                                      9,415,858                 9,264,855
Other assets                                                       247,276                   245,733
                                                              ------------              ------------

         Total assets                                         $ 14,314,537              $ 14,284,422
                                                              ============              ============


                      LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:

 Checks outstanding in excess of cash deposits                     207,570              $    173,611
 Current portion of long-term debt                                 905,260                   859,323
 Line of credit                                                    846,327                   742,864
 Accounts and note payable                                         863,973                   403,449
 Accrued expenses                                                1,193,234                 1,166,883
 Deferred revenue                                                  827,450                   781,204
                                                              ------------              ------------

         Total current liabilities                               4,843,814                 4,127,334

Deferred tax liabilities                                           732,168                   630,551

Long-term debt, less current portion                             5,376,858                 5,695,219
                                                              ------------              ------------

         Total liabilities                                      10,952,840                10,453,104
                                                              ------------              ------------
Minority interest in subsidiary                                     39,186                    35,424
                                                              ------------              ------------

Shareholders' equity:

Preferred stock, without par value, 10,000,000 shares
     authorized, no shares issued and outstanding                      -                        -

Common stock, without par value; 20,000,000 shares
     authorized, 3,855,484 shares issued and outstanding         6,173,967                 6,173,967

Accumulated deficit                                             (2,851,456)               (2,378,073)
                                                              ------------              ------------

         Total shareholders' equity                              3,322,511                 3,795,894
                                                              ------------              ------------

         Total liabilities and shareholders' equity           $ 14,314,537              $ 14,284,422
                                                              ============              ============
</TABLE>

See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
                             OBIE MEDIA CORPORATION
                        Consolidated Statements of Income




                                                         Three Months Ended
                                                February 28,              February 28,

                                                    1998                      1997
                                               ---------------------------------------
                                                            (Unaudited)
<S>                                            <C>                       <C>
Revenues:

   Outdoor advertising                         $  1,344,935              $  1,264,614
   Transit advertising                            2,824,912                 1,472,891
                                               -------------             -------------

         Gross  revenues                          4,169,847                  2,737,505

   Less- Agency commissions                        (350,485)                  (212,151)
                                               --------------            ---------------

         Net revenues                             3,819,362                  2,525,354

Operating expenses:

   Direct advertising expenses                    2,497,963                  1,557,148
   General and administrative                       688,366                    476,573
   Start-up costs                                    18,240                        -
   Depreciation and amortization                    177,439                    158,279
                                               --------------            ---------------

         Operating income                           437,354                    333,354

Interest expense                                    166,178                    153,867
Minority interest in subsidiary                       3,762                      7,513
                                               --------------            ---------------

         Income before income taxes                 267,414                    171,974

Provision for income taxes                          101,617                     65,783

         Net income                            $    165,797              $     106,191
                                               ==============            ===============


Shares used in per-share calculations             3,915,796                  3,863,645
Net earnings per share                         $      0 .04              $        0.03


</TABLE>


See accompanying notes



<PAGE>
<TABLE>
<CAPTION>
                             OBIE MEDIA CORPORATION
                      Consolidated Statements of Cash Flows



                                                                           Three Months Ended
                                                                 February 28,              February 28,
               
                                                                     1998                      1997
                                                                 ---------------------------------------
                                                                               (Unaudited)
<S>                                                              <C>                    <C>
Cash flows from operating activities:

     Net income                                                  $      165,797         $      106,191

     Adjustments to reconcile net income to net cash
      provided by operating activities:

     Depreciation and amortization                                      177,439                158,279

     Changes in operating assets and liabilities                         61,388               (225,976)
                                                                 ----------------       ----------------

Net cash provided by operating activities                               404,624                 38,494
                                                                 ----------------       ----------------
Cash flows from investing activities:

   Capital expenditures                                                (269,622)              (393,090)
                                                                 ----------------       ----------------

         Net cash used in investing activities                         (269,622)              (393,090)
                                                                 ----------------       ----------------

Cash flows from financing activities:
   Payments on long-term debt                                          (272,424)              (133,815)
   Borrowings on line of credit net of repayments                       103,463                    -
   Other financing activities                                            33,959                 13,471
                                                                 ----------------       ----------------

         Net cash provided by (used in) financing activities           (135,002)              (120,344)
                                                                 ----------------       ----------------

Net increase (decrease) in cash                                             -                 (474,940)
Cash , beginning of year                                                    -                  474,940
                                                                 ----------------       ----------------

Cash, end of quarter                                             $          -           $           -
                                                                 ================       ================



Supplemental disclosures of cash flow information

   Interest capitalized                                          $        2,704         $         1,000
   Cash paid for interest                                                37,862                 128,722
   Cash paid for taxes                                                      -                       -
   Note payable issued to acquire outdoor advertising structures        698,000                     -


</TABLE>


See accompanying notes


<PAGE>
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.  Basis of Presentation

The interim  financial  statements have been prepared by Obie Media  Corporation
(the "Company")  without audit. In the opinion of management,  the  accompanying
unaudited  financial  statements  contain all  adjustments  necessary to present
fairly the  financial  position of the Company as of February 28, 1998,  and the
results of  operations  and cash flows of the Company for the three months ended
February 28, 1998 and 1997.  The  condensed  consolidated  financial  statements
include the  accounts of the Company  and its  subsidiary,  and all  significant
intercompany accounts and transactions have been eliminated in consolidation.

Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been  condensed  or omitted as permitted  by rules and  regulations  of the
Securities  and  Exchange  Commission.  The  organization  and  business  of the
Company,  accounting  policies followed by the Company and other information are
contained in the notes to the Company's  financial  statements  filed as part of
the Company's  November 30, 1997 Form 10-KSB.  This  quarterly  report should be
read in conjunction with such annual report.


2.  Long Term Borrowings

The  Company's  Term  Loan  Agreement   contains  certain  covenants   including
maintenance  of a cash flow coverage.  The Company was in compliance  with these
covenants at February 28, 1998.


3.  Earnings Per Share

Earnings per common share is computed on the weighted  average  number of common
shares outstanding during the periods after consideration of the dilutive effect
of stock options.  All share and per share information has been adjusted to give
retroactive effect to an 11 for 10 stock split effective in November 1997.
<TABLE>
<CAPTION>
                                                       February 28, 1998         February 28, 1997
<S>                                                        <C>                       <C>      
Issued  and outstanding shares (weighted average)          3,855,484                 3,855,484
Dilutive effect of stock options                              60,312                     8,164
                                                           ---------                 ---------
                                                           3,915,796                 3,863,645
                                                           =========                 =========
</TABLE>

4.    Newly Issued Financial Accounting Pronouncements

In February 1997, the Financial  Accounting  Standards Board issued Statement of
Financial  Accounting  Standards  ("SFAS") No. 128,  "Earnings  Per Share." This
standard revises the disclosure  requirements of earnings per share,  simplifies
the  computation  of  earnings  per share and  increases  the  comparability  of
earnings per share on an  international  basis. The Company adopted SFAS No. 128
in the period  ended  February  28,  1998.  The earnings per share under the new
standard do not differ from those calculated under the previous standard.

<PAGE>
5.    Related Party Transaction

In December, 1997,  the Company exercised its option to purchase several outdoor
advertising  structures  from an  affiliated  partnership.  The  structures  had
previously  been leased by the Company.  The  purchase  price was  $698,000.  In
accordance with generally accepted accounting  principles,  the Company recorded
only the book value carried on the books of the  affiliated  partnership  at the
date of purchase.  The difference between the net book value of these assets and
the purchase price has been recorded as an addition to accumulated deficit.

MANAGEMENT'S DISCUSSION & ANALYSIS

The following discussion of the financial condition and results of operations of
the  Company  should  be read in  conjunction  with the  consolidated  financial
statements  included  elsewhere in this Form 10-QSB.  The  following  discussion
contains   certain   forward-looking   statements   that   involve   risks   and
uncertainties.  The Company's  actual results could differ  materially  from the
forward-looking  statements.  Factors  that could  cause or  contribute  to such
differences  include the following:  a decline in the demand for  advertising in
the areas where the Company  conducts its business;  a deterioration of business
conditions  generally  in such areas;  slower than  expected  acceptance  of the
Company's unique display  products;  competitive  factors,  including  increased
competition  and  price  pressures;  changes  in  regulatory  or other  external
factors;  and  other  factors  listed  from  time to time in the  Company's  SEC
reports,  including  but not limited to, its "Risk  Factors"  discussion  in the
Registration  Statement it filed in connection  with its initial public offering
(the "IPO").

New Transit Contracts

On April 6, 1998,  the Company  entered  into a contract to provide  advertising
services to Capital Metropolitan  Transportation  Authority (Austin), in Austin,
Texas. Austin operates approximately 300 vehicles. The contract is for two years
with two additional  one year options at the  discretion of Austin.  The Company
agreed to pay Austin  $1.4  million  over the 4 year  period or 53% of net space
revenue, whichever is greater.

Results of operations
(all dollars in $000 except per share amounts)

Revenues increased 52% from $2,738 for the three-month period ended February 28,
1997, to $4,170 for the three-month period ended February 28, 1998 due primarily
to the  addition of new transit  markets and  additionally  to higher  rates and
increased  occupancy  in existing  markets.  Gross  transit  revenues  increased
approximately  92% from  $1,473 in the first  quarter of 1997,  to $2,825 in the
comparable period in 1998, while gross outdoor advertising revenues increased 6%
from $1,265 in 1997 to $1,345 in 1998. Agency discounts  increased 65% from $212
to $350 in the  first  quarter  of 1997 and  1998,  respectively,  reflecting  a
greater proportion of agency business, particularly in new markets.

Direct  advertising  expenses  increased  60% to $2,498 for the first quarter of
1998, from $1,557 in the comparable  period in 1997,  primarily due to increased
revenues.  Direct  advertising  expenses  rose as a  percentage  of net  revenue
primarily  due to the  faster  growth of  transit  advertising  which has higher
occupancy costs as a percentage of net sales than outdoor advertising.

General  and  administrative  (G&A)  costs  increased  44% to $688 in the  first
quarter of 1998 from $477 in the comparable period in 1997.  Increased G&A costs
are  primarily  due to  increased  payroll and other costs  attributable  to the
Company's  growth.  G&A costs  decreased as a percentage  of revenues  primarily
because  corporate costs did not need to be added  proportionate  to revenue for
the new markets.

Interest expense  increased 8% from $154 for the three months ended February 28,
1997,  to $166 for the  comparable  period in 1998,  primarily  due to increased
borrowings to support the growth of the Company.

For the reasons set out above,  income before income taxes rose 55% from $172 in
the first  quarter of 1997,  to $267 in the  comparable  period in 1998.  Income
taxes and net income also rose 55% for the reasons outlined above.



<PAGE>
Liquidity and Capital Resources

The  Company's  working  capital  deficit was $193 at  February  28,  1998.  The
decrease in working capital resulted  primarily from the purchase of assets from
a related party as explained  above. In addition there were seasonal  reductions
in working capital items.

Net cash  provided by  operating  activities  was $405.  The first  quarter is a
seasonally slow time of the year.  During this time,  most operating  assets and
liabilities decline from their year end balances.

The net cash used in  investing  activities,  primarily  investments  in outdoor
advertising leases and structures, was $270.

The Company's net cash used by financing  activities was $135,  primarily due to
payments on long-term debt.

At February 28, 1998, the Company had  outstanding  borrowings of  approximately
$7,128 all but $846 of which were pursuant to long-term credit  agreements.  The
Company  also  maintains a $2,000  operating  line of credit.  The line  carries
interest at the Prime rate of the lender.  As of February 28,  1998,  there were
$846 in borrowings on this line of credit, and the Company's available borrowing
capacity, based on collateralized accounts was $1,673.

The Company  believes that cash generated from  operations and borrowings  under
its credit  agreements  will be sufficient to finance the Company's  operations,
including anticipated capital expenditures, through fiscal 1998.

Seasonality

The  Company's  transit  advertising  revenues  have  exhibited  some  degree of
seasonality.  Typically,  the Company experiences its lowest revenues during the
first  quarter of each year.  The  Company  expects  this trend to  continue.  A
reduction  in revenues in any quarter is likely to result in a  period-to-period
decline in operating performance and net income.


















<PAGE>
Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits
     (27)          Financial Data Schedule


(b) No reports on Form 8-K were filed by the Company  during the  quarter  ended
February 28, 1998.



Signature

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                                Obie Media Corporation


Date    April 14, 1998          By: /s/ James W. Callahan
     -----------------             ----------------------
                                   James W. Callahan
                                   Chief Financial Officer

                                   Signing on behalf of the registrant and
                                   as principal financial and accounting officer