SECURITIES AND EXCHANGE COMMISSION

                           Washington, D.C.  20549

                                  Form 10-QSB

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

For Quarter Ended July 31, 1998             Commission File No. 2-98314-W

                        MEDICAL ADVISORY SYSTEMS, INC.
           (Exact name of registrant as specified in its charter)

              Delaware                               52-1233960
    (State of other Jurisdiction of       (I.R.S. Employer Identification No.)
     incorporated or organization)


8050 Southern Maryland Boulevard, Owings, Maryland                      20736
(Address of principal executive offices)                             (Zip Code)

Registrant's telephone number, including area code: (301) 855-8070

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 the number of shares outstanding of each of the issuer's classes of 
common stock, as of the latest practicable date.

          3,885,878 shares of Common Stock ($0.005 par value per share)
                       outstanding at January 31, 1998



                                    INDEX

                       MEDICAL ADVISORY SYSTEMS, INC.

PART I. FINANCIAL INFORMATION

Item 1.   Consolidated Financial Statements (Unaudited)
	
          Balance Sheet - July 31, 1998 and October 31, 1997

          Statement of Operations - Nine months ended July 31, 1998 and 1997

          Statement of Cash Flow - Nine months ended July 31, 1998 and 1997
	
          Notes of Condensed Financial Statements:  July 31, 1998

Item 2.  Management's Discussion and Analysis of Financial Condition and 
         Results of Operations.

PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings
Item 2.  Changes in Securities
Item 3.  Defaults from Senior Securities
Item 4.  Submission of Matters to a Vote of Security Holders
Item 5.  Other Information
Item 6.  Reports on Form 8-K and Exhibits.

SIGNATURES



                       MEDICAL ADVISORY SYSTEMS, INC.
                        CONSOLIDATED BALANCE SHEET



                                                     July 31       October 31
                                                       1998           1997
                                                 -----------------------------
                                                           UNAUDITED
                                                            (NOTE-A)
                                                           
ASSETS
 
  CURRENT ASSETS
    Cash                                          $   927,013      $   729,609 
    Receivables, net                                  522,970        1,044,612 
    Inventory - Pharmaceuticals                        23,262           22,205 
    Prepaid expenses and other                          9,100           14,012 
    Current deferred tax asset                         41,830           41,830 
                                                  -----------      -----------

       TOTAL CURRENT ASSETS                         1,524,175        1,852,268 

  PROPERTY AND EQUIPMENT, NET                       1,018,536          966,537 

  OTHER ASSETS
    Investments                                       393,100          364,969 
    Deferred assets                                   346,860          346,860 

       TOTAL OTHER ASSETS                             739,960          711,829 
                                                  -----------      -----------

              TOTAL ASSETS                        $ 3,282,671      $ 3,530,634 
                                                  ===========      ===========


   The accompanying notes are an integral part of these financial statements



                       MEDICAL ADVISORY SYSTEMS, INC.
                   CONSOLIDATED BALANCE SHEET - CONTINUED
             
                                                                          
                                                     July 31       October 31
                                                       1998           1997
                                                 -----------------------------
                                                           UNAUDITED
                                                            (NOTE-A)

LIABILITIES AND SHAREHOLDER'S EQUITY

  CURRENT LIABILITIES

    Current Maturities LT Debt                    $     2,089      $   501,903 
    Accounts payable & accrued expenses               313,717          600,314 
    Deferred income                                   332,800          367,172 
                                                  -----------      -----------

        TOTAL CURRENT LIABILITIES                     648,606        1,469,389 

  Long-term liabilities to Banks and Others           504,809          131,819 
                                                  -----------      -----------

        TOTAL LIABILITIES                         $ 1,153,415      $ 1,601,208 
                                                  -----------      -----------

JOINT VENTURER'S INTEREST                              31,080           28,476 

SHAREHOLDER'S EQUITY
  Common Stock, $0.005 per value -
    Authorized:  10,000,000 shares
    Issued:  3,885,878 shares                          19,430           19,415 
  Convertible Preferred Stock, $1.75 par value
    Authorized:  1,000,000 shares
    Issued:  none
  Additional capital                                3,824,763        3,824,778 
  Accumulated deficit                              (1,702,434)      (1,899,660)
  Treasury Stock at Cost - 65,940                     (43,583)         (43,583)
                                                  -----------      -----------

        NET SHAREHOLDERS EQUITY                   $ 2,098,176      $ 1,900,950 
                                                  -----------      -----------

TOTAL LIABILITIES AND EQUITY                      $ 3,282,671      $ 3,530,634 
                                                  ===========      ===========



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



                         MEDICAL ADVISORY SYSTEMS, INC.
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                  (UNAUDITED)


                                     Three Months             Nine Months
                                      Ended July 31           Ended July 31
                                     1998        1997         1998       1997
                                 ----------------------  ----------------------
Revenues:
   Maritime Program Services     $  204,790  $  196,577  $  598,021  $  568,594 
   Assistance Services              246,993     287,064     789,807     799,430 
   Pharmaceutical Sales             120,921     145,839     375,823     339,211 
   Training Services                 18,435      48,300      83,259     130,752 
   Med. Clinic Program                2,190                   2,190 
   Option Revenue                    66,149                 132,299 
   Other Income                                              62,532 
   Interest Income                   13,044      11,562      45,624      33,214 
                                 ----------------------    --------------------

   Total Revenue                    672,522     689,342   2,089,555   1,871,201 
                                 ----------------------    --------------------

Cost and Expenses:
   Pharmaceutical Cost of Good   $   53,196  $   78,177  $  190,827  $  171,190 
   Medical Professional Services     73,380      73,849     233,891     235,349 
   Cost of Med. Clinic Services       7,904                   7,904 
   Cost of Training Services          6,590      11,322      19,472      27,145 
   Salaries and Wages               246,359     181,393     726,052     568,594 
   Other selling, general and
     Administrative expenses        256,575     176,112     660,190     525,833 
   Depreciation and Amortization     25,405      16,294      74,216      44,340 
   Interest expense (income) net      3,232      10,204      13,803      22,904 
                                 ----------------------    --------------------

   Total costs and expenses         672,641     547,351   1,926,355   1,595,355 

   Profit (loss) before joint
        venturer's interest           (119)     141,991     163,200     275,846 


   Joint venturer's interest        34,890      (30,903)     34,025     (78,210)

   
   Net Profit                  $    34,771  $   111,088  $  197,225  $  197,636 
                               ========================  ======================

   Earnings per share                $0.01        $0.03       $0.05       $0.05

Outstanding shares used to
calculate earnings per share     3,885,878    3,885,878   3,885,878   3,885,878 





                      MEDICAL ADVISORY SYSTEMS, INC.
                  CONSOLIDATED STATEMENT OF CASH FLOWS
                              (UNAUDITED)


                                                     Nine Months Ended July 31
                                                       1998            1997
                                                     -------------------------
Cash flows from operating activities:
   Net earnings from period                           $  197,225   $  197,636 
   Adjustment to reconcile net earnings
     to net cash provided by operating activities:
     Depreciation and amortization                        74,216       44,340 
     Equity interest in joint venture income (losses)    (34,025)      78,210 
    (Increase) decrease in:
        Accounts Receivable                              521,642     (189,266)
        Inventory - Pharmaceuticals                       (1,057)      (2,373)
        Prepaid expenses and other                         4,912      (23,906)
     Increase (decrease) in:
        Accounts payable and accrued expenses           (286,599)     (72,604)
        Deferred income                                  (34,372)     106,721 

   Net cash provided by (used for)
                  operating activities                $  441,942   $  138,758 


   Cash flows from investing activities:
     Purchase of Invesment Securities                      8,499 
     Capital Expenditures                               (126,213)    (224,037)
                                                      ------------------------

   Net cash provided by (used in)
                 investing activities                   (117,714)    (224,037)

   Cash Flows from financing activities
      Repayment of loans to banks and
                      related parties                   (126,824)      (7,538)
                                                      ------------------------

  Net cash provided by (used in) financing activities   (126,824)      (7,538)

  Net increase (decrease) in cash                        197,404      (92,817)
                                                      
  Cash at beginning of period                            729,609      717,678 
                                                      ------------------------

  Cash at end of the period                           $  927,013   $  624,861 
                                                      ========================






                         MEDICAL ADVISORY SYSTEMS, INC.

                 NOTES OF CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
                                                         

NOTE A - Summary of Accounting Policies
	
The accompanying unaudited condensed financial statements 
have been prepared in accordance with the instructions to form 
10-QSB, and therefore, do not include all information necessary 
for a fair presentation of financial position, results of operations 
and cash flows in conformity with generally accepted 
accounting principles.

In the opinion of management, all adjustments (consisting of 
only normal recurring accruals) considered necessary for a fair 
presentation have been included.  Operating results for the nine 
month period ended July 31, 1998 are not necessarily indicative 
of the results that may be expected for the year ended October 
31, 1998.  The unaudited condensed consolidated financial 
statements should be read in conjunction with the consolidated 
financial statements and footnotes thereto included in the 
Company's annual report on Form 10-KSB for the year ended 
October 31, 1997.




                      MEDICAL ADVISORY SYSTEMS, INC.

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


        Total revenues for the Company were $2,089,555 for the first nine 
months of  FY 1998 compared to $1,871,201 for the same period in FY 
1997, an increase of 11.6%.  Total General and Administrative expenses 
increased from $1,161,671 for the first nine months of FY 1997 to 
$1,474,261 for the same period in 1998.  The Company's consolidated net 
income for the first nine months remained unchanged when compared to 
the same period of FY 1997.  Increases in revenue are primarily due to 
Option Revenue of $132,299 recognized in FY 1998 (see "Subsidiary 
Option and Restructuring Agreement" below) and gains recognized on the 
sale of the Company's stock in Wastemasters, Inc., which had previously 
been written down in F.Y.1996. 

	The Company had $789,807 in revenues from sales of assistance 
services during the first nine months of FY 1998, a 1.2% decrease 
compared to $799,430 reported for the same period in FY 1997.   

	Revenues from maritime program services were $598,021 for the 
first nine months of  FY 1998 compared to $568,594 for the same period in 
FY 1997, a 5.2% increase.   This increase is the result of the stabilization in 
the size of the U.S. merchant marine fleet along with expanded marketing 
efforts.  

	Revenues from pharmaceutical sales were $375,823 for the 
first nine months of FY 1998 compared to revenues of $339,211 for 
the same period of FY 1997 an increase of 10.8%.  The increase is 
attributed to the offering of an expanded product line resulting in an 
increased client base, as well as a cyclical upturn in purchasing by 
existing clients.

        The Company's training programs provided revenues of $83,259 
for the first nine months of FY 1998, compared to training revenues of  
$130,752 in the first nine months of FY 1997 a decrease of 36.3%.  The 
completion of a multi year training program for a major client during the 
beginning of this fiscal year has resulted in the loss of revenues during the 
nine month period.  During the first nine months of FY 1998 many of the 
Company's clients delayed enrollment in training sessions due to the 
introduction of new International Maritime Organization (IMO) training 
standards.  The Company has modified its training program to incorporate 
the new standards and received US Coast Guard approval of its new 
curriculum in July of 1998.  

        During the quarter the Company opened an outpatient medical 
clinic at its headquarters building in Owings, MD.


Subsidiary Option and Restructuring Agreement

During the first quarter of FY 1998, the Company entered 
into an agreement with SACNAS International (SACNAS), the 
50% shareholder of ASA.  The agreement grants SACNAS an 
option to purchase 100% of the Company's shares in ASA for 
$2,000,000 during the period January 1, 1998 through December 
31, 1999.  At the time SACNAS exercises its option, SACNAS 
shall tender to the Company the 305,378 shares of the Company 
shares that SACNAS owns.  The Company's shares shall be sold by 
SACNAS to the Company for $122,151 and the proceeds shall be 
used to offset the $2,000,000 purchase of the Company's ASA 
shares.  The Company has the option to retain 8% of total ASA 
shares while allowing SACNAS to retain their 305,378 Company 
shares.  If the Company exercises this option, the SACNAS option 
to purchase the remaining ASA shares shall be reduced to 
$1,680,000.

Provided SACNAS has not exercised the option agreement, 
beginning January 1, 1998, and at the end of each quarter, 
SACNAS shall forgive 12.5%, or $62,500, of the $500,000 
unsecured loan to the Company along with interest accrued to that 
date.  Any principal loan amount forgiven shall be credited to the 
option price.

If SACNAS does not elect to exercise the option agreement during 
the term provided, the remaining principal balance of the $500,000 loan not 
forgiven plus any accrued interest, shall be forgiven in its entirety.  During 
the quarter the Company wrote down 1/8th of the outstanding $500,000 
loan and accumulated interest.

The Company is continuing to consolidate ASA financial results 
during the option period.   





MEDICAL ADVISORY SYSTEMS, INC.

PART II - OTHER INFORMATION

Item I.  Legal Proceedings

	None.

Item 2.  Changes in Securities

	None.

Item 3.  Defaults from Senior Securities

	None.

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

	Not applicable.

Item 5.  Other Information

	None.

Item 6.  Exhibits and Reports on Form 8-K

	(a)  Exhibits.  None
	(b)  Reports on Form 8-K.  None





MEDICAL ADVISORY SYSTEMS, INC.

SIGNATURES

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


                                               MEDICAL ADVISORY SYSTEMS, INC.
                                                      (Registrant)



Date: September 14, 1998                   ___________________________________
                                                 Thomas M. Hall, M.D. M.I.M.
                                                   Chief Executive Officer