SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, DC 20549

                                   FORM 10-QSB

                  Quarterly Report Pursuant to Section 13 or 15(d) 
                      of the Securities Exchange Act of 1934

For the quarterly period ending September 30, 1996

Commission File No.  0-24188

                                    JOTAN, INC.
(Exact name of small business issuer as specified in its charter.)

              Florida                              59-3181162
(State or other jurisdiction of              (IRS Employer Identification No.)
incorporation or organization)

118 W. Adams Street, Suite 900, Jacksonville, Florida               32202
(Address of principal executive offices)                          (Zip Code)

Issuer's telephone number, including area code:   (904) 355-2592


Check whether the issuer  (1) filed all reports required to be filed by 
Section 13 or 15 (d) of the Securities Exchanged act of 1934 during  the
past 12 months (or for such shorter period that the issuer was required to 
file such reports) and (2) has been subject to such filing requirements for 
the past 90 days.

                     Yes [ X ]   No [   ]   

State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 

   5,679,411 shares of common stock, $.01 par value, as of October 22, 1996.

<PAGE>

                                INDEX

                             Jotan, Inc.


Part I--Financial Information

     Item I -- Financial Statements (Unaudited)
         Condensed Consolidated Statements of Operations
         for the Nine Months and Quarter ended 
         September 30, 1996 and 1995........................................2

         Condensed Consolidated Balance Sheets at September 30, 1996
         and 1995.......................................................3 & 4

         Condensed Consolidated Statements of Cash Flows for the 
         Nine Months ended September 30, 1996 and 1995......................5

         Notes to Condensed Consolidated Financial Statements...............6


     Item II -- Management's Discussion and Analysis of 
                Financial Condition and Result of Operations.................6
  

Part II -- Other Information
		
    Item 6 - Exhibits and Reports on Form 8-K...............................10


Signature...................................................................11





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<TABLE>
                                 JOTAN, INC.
                 Condensed Consolidated Statements of Operations							
                                 (Unaudited)							
							
<CAPTION>
                      Three months ended Sept 30   Nine months ended Sept 30
                      __________________________   __________________________
                          1996	       	 1995            1996          1995
                      ____________  ____________   ____________  ____________
<S>                   <C>           <C>            <C>           <C>
Sales                 $  2,865,067  $  2,685,053   $  8,349,138  $  7,872,556
Cost of sales            2,078,858     2,110,927      6,237,573     6,161,217
                      ____________  ____________   ____________  ____________
Gross profit               786,209       574,126      2,111,565     1,711,339
							
Operating expenses         648,861       599,790      1,825,896     1,946,153
                      ____________  ____________   ____________  ____________
Operating income (loss)	   137,348   (    25,664)       285,669   (   234,814)
							
Other income                12,274        48,197         51,766       205,016
Interest expense      (     59,740)  (    62,180)   (   201,475)  (   169,898)
                      ____________  ____________   ____________  ____________
Income (loss) 
    before taxes            89,882   (    39,647)       135,960   (   199,696)
Income tax expense            -             -              -             -			
                      ------------  ------------   ------------  ------------
Net Income (Loss)     $     89,882  $(    39,647)  $    135,960  $(   199,696)
                      ============  ============   ============  ============

Net income (loss)
    per share            $   .01       $   (.01)      $   .02       $   (.04)
                       ===========   ===========    ===========   ===========
							
Weighted average number 							
of common and common							
equivalent shares 
outstanding              8,211,057     5,664,211      6,520,905     5,440,920
                       ===========   ===========    ===========   ===========

See accompanying notes.							
</TABLE>



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<PAGE>
<TABLE>
                                    JOTAN, INC.
                       Condensed Consolidated Balance Sheets							
                                    (Unaudited)							
							
<CAPTION>
                                                     September 30
                                                1996              1995
                                            ____________      ____________
<S>                                         <C>               <C>                
Assets							
Current assets:
     Cash and cash equivalent               $  1,379,254      $     81,837
     Trade receivables (net)                   1,242,764         1,006,590
     Inventory                                 1,123,161         1,266,812
     Other current assets                        291,964            88,928 
                                            ____________       ___________
Total current assets                           4,037,143         2,444,167 
							
Property and equipment							
     Land                                        110,000           110,000 
     Buildings                                   465,000           465,000 
     Leasehold improvements                       36,105            33,954 
     Vehicles                                    279,472           294,283 
     Furniture, fixtures and equipment           347,750           332,447
                                            ____________      ____________ 
     Total property and equipment              1,238,327         1,235,684 
     Less accumulated depreciation          (    377,463)     (    250,904)
                                            ____________      ____________
Net property and equipment                       860,864           984,780 
                                            ____________      ____________					
Other assets                                     396,215           135,716 
                                            ____________      ____________
Total assets                                $  5,294,222      $  3,564,663
                                            ============      ============

</TABLE>



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<PAGE> 	
<TABLE>
                                   JOTAN, INC.
                      Condensed Consolidated Balance Sheets
                                  (Unaudited)						
<CAPTION> 							
Liabilities and stockholders' equity							
<S>                                         <C>                 <C>
Current liabilities:							
     Trade payables                         $  1,321,941      $    990,986
     Accrued expenses                             46,849            35,927
     Current maturities of notes payable         119,748           660,065
                                            ____________      ____________
Total current liabilities                      1,488,538         1,686,978
							
Long-term debt:							
     Notes payable, less current maturities      519,291           518,404 
     Line of credit                            1,295,960         1,004,898 
                                            ____________      ____________
                                               1,815,251         1,523,302 
Stockholders' equity							
     Preferred stock							
        Authorized shares - 10,000,000
        Issued and outstanding shares - 
        1,265,823 in 1996 and -0- in 
        1995                                     12,658               -
     Voting common stock, $.01 par value:
        Authorized shares - 40,000,000
        Issued and outstanding shares - 
        5,679,411 in 1996 and 5,664,211 
        in 1995                                  56,794             56,642
     Additional paid-in capital               3,963,983          2,149,077 
     Retained earnings (deficit)             (2,043,002)        (1,851,336)
                                           ____________       ____________
Total stockholders' equity                    1,990,433            354,383 
                                           ____________       ____________
Total liabilities and stockholders' equity $  5,294,222       $  3,564,663
                                           ============       ============
							

See accompanying notes.							
</TABLE>



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<PAGE>
<TABLE>
                               JOTAN, INC.
               Condensed Consolidated Statements of Cash Flows									
                               (Unaudited)									
									
<CAPTION>                                    Nine months ended September 30
                                                1996                1995						
                                           _____________        ____________
<S>                                        <C>                  <C>
Cash flows from operating activities									
Net income (loss)                          $     135,960        $(   199,696)
Adjustments to reconcile net income 
  (loss) to net cash provided by  
  (used in) operating activities:									
     Depreciation and amortization expense       117,624              99,997
     Loss on disposal of property and equipment	    -                 23,211
     Stock compensation expense	                   7,550                -
     Changes in operating assets 
       and liabilities:									
          Trade receivables                 (    286,338)            215,105
          Inventory                              138,776       (      34,198)
          Other assets                      (     81,674)             76,837
          Trade payables                         112,921       (   1,004,805)
          Accrued expenses                  (     12,013)      (     141,485)
                                            ____________        ____________
Net cash provided by (used in)
    operating activities                         132,806       (     965,034)
                                            ____________        ____________
			
Cash flows from investing activities			
Increase in other assets                   (     350,961)      (     142,984)
Purchase of property and equipment         (      31,559)      (      31,005)
                                            ____________        ____________
Net cash flows used in 
     investing activities                  (     382,520)      (     173,989)
                                            ____________        ____________
			
Cash flows from financing activities			
Proceeds from line of credit borrowings	         188,582           1,175,738
Repayments of amounts advanced from
     Total Supply Systems, Inc.            (     353,749)      (     260,491)
Payments on long-term debt                 (      55,262)      (     176,635)
Proceeds from note receivable                       -                 64,191
Proceeds from issuance of common stock,
     net of issuance costs                          -                402,000
Proceeds from issuance of preferred stock,
     net of issuance costs                     1,827,626                -
                                            ____________        ____________
Net cash provided by financing activities      1,607,197           1,204,803
                                            ____________        ____________
                          
Net increase in cash and cash equivalents      1,357,483              65,780
Cash and cash equivalents 
     at beginning of period                       21,771              16,057
                                            ____________        ____________
Cash and cash equivalents 
     at end of period                        $ 1,379,254       $      81,837
                                            ============        ============
			
See accompanying notes.			
</TABLE>



                                   -5-
<PAGE>														
                                  Jotan, Inc.
              Notes to Condensed Consolidated Financial Statements
                                 (Unaudited)

1. The Business and Basis of Presentation

Description of Business

Jotan, Inc. (the "Company") is a distributor of packaging and shipping supplies
located in the southeastern United States. The Company sells primarily to 
manufacturers and provides Just On Time As Needed delivery service for its 
products.

Basis of Presentation

The accompanying financial statements are unaudited and, in the opinion of 
management reflect all the adjustments that are necessary for a fair 
presentation of the financial position and results of operations for the 
periods presented. All of such adjustments are of a normal and recurring 
nature. The results of operations for the periods presented are not necessarily
indicative of the results to be expected for the entire year.

The financial statements at September 30, 1996 and September 30, 1995 reflect  
the combined accounts of the Company and its subsidiaries. Certain information
and footnote disclosure normally included in the financial statements prepared
in accordance with generally accepted accounting principles have been condensed
or omitted.


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

Sales increased to $8,349,138 for the nine months ended September 30, 1996 from
$7,872,556 for the nine months ended September 30, 1995 or an increase of 6.1%.
Sales for the third quarter of 1996 increased 6.7% when compared to the third 
quarter of 1995. The increase in sales resulted from new business at the 
Company's four existing distribution centers, which more than offset the impact
of the closure of the Chattanooga distribution center during the third quarter 
of 1995 and the decline in corrugated prices that occured during the first six 
months of 1996.

The Company's existing distribution centers experienced comparible sales 
increases of 23.2% in the first nine months of 1996. Unfortunately, the 
Company's sales were impacted unfavorably by declining corrugated prices. While
sales at existing distribution centers increased 23.2%, manufactured square 
feet of product sold increased by 39.8% compared to the same period in 1995. 
Overall the sales numbers reflect strong demand for the Company's services 
during 1996.




                                   -6-
<PAGE>
Cost of sales increased to $6,237,573 or 74.7% of sales for the nine months 
ended September 30, 1996 from $6,161,217 or 78.3% for the nine months ended 
September 30, 1995. Cost of sales for the third quarter of 1996 declined to 
$2,078,858 or 72.6% of sales from $2,110,927 or 78.6% of sales for the third 
quarter of 1995. The improvement in profit margins reflects the Company's 
ability to purchase product more efficiently as a result of the overall 
improved financial condition of the Company.

Operating expenses declined to $1,825,896 for the first nine months of 1996 
from $1,946,153 for the same period in 1995, a 6.2% decrease. Several factors
contributed to the year to date decrease in operating expenses including the 
closure of the Chattanooga distribution center, reduced payroll costs, and the
impact of the Company's cost cutting program. Expenses for the quarter ended 
September 30, 1996 were up $49,071 compared to the same period in 1995, which 
resulted prmiarily from increased costs related to higher delivery expenses, 
insurance and other miscellaneous expenses.

As a result of the foregoing factors, the Company had operating income of 
$285,669 for the nine months ended September 30, 1996 compared to an operating 
loss of $234,814 for the nine months ended September 30, 1995. This represents 
a $520,483 improvement in results from operations for the comparable nine month
period. For the three months ended September 30, 1996, the company had 
operating income of $137,348 compared to an operating loss of $25,664 for the 
three months ended September 30, 1995, an improvement of $163,012.

Other income declined to $51,766 for the nine months ended September 30, 1996, 
from $205,016 for the nine months ended September 30, 1995. This decline 
reflects the fact that during 1995 the Company settled certain payables at
a substantial discount. Interest expense increased to $201,475 for the nine 
months ended September 30, 1996 from $169,898 for the nine months ended 
September 30, 1995. This increase reflected the impact of increased borrowings 
under the long term debt agreement with the CIT Financial Group during the 
first six months of 1996. For the quarter ending September 30, 1996, interest 
expense declined $2,440 from the same quarter in 1995, reflecting the impact of
the Company's improving financial condition.




                                   -7-
<PAGE>
As a result of the foregoing factors, the Company had net income of $135,960 
for the nine months ended September 30, 1996 and net income of $89,882 for the
quarter ended September 30,1996. This represents an improvement of $335,656
when compared to the first nine months of 1995 and an improvement of $129,529 
when compared to the quarter ended September 30, 1995. These results also 
reflect a third straight profitable quarter, a first in the Company's short 
history. 


3. Liquidity and Capital Resources

Jotan, Inc. held its annual meeting of stockholders on May 14, 1996, at which 
shareholders authorized the change in the Company's state of incorporation 
through the merger of Jotan, Inc., an Idaho corporation ("Jotan-Idaho") into 
Jotan, Inc., a Florida corporation and wholly owned subsidiary of Jotan-Idaho 
("Reincorporation Merger"). The Reincorporation Merger was completed on 
May 16, 1996.

This change in capital structure allowed the Company to arrange for the sale of
a preferred class of stock. On May 16, 1996, Jotan, Inc. (the "Company") signed
an agreement to sell up to $6,000,000 in Series A Preferred Stock to an 
affiliate of Fairview Capital L.L.C., a Raleigh, N.C. based private investment 
company. The initial funding closed May 16, 1996, and provided the Company 
$2,000,000 through the sale of 1,265,823 shares of Series A Convertible 
Preferred Stock to F-Jotan, L.L.C., the Fairview affialte. Under the terms of 
the Series A Convertible Preferred Stock Purchase Agreement, the Company may 
sell an additional $4,000,000 of Series A Convertible Preferred Stock to the 
investors subject to certain conditions set forth in the Series A Convertible
Preferred Stock Purchase Agreement. The Series A Convertible Preferred Stock 
carries an 8% annual dividend, which is payable in additional shares of 
preferred stock, representing approximately 28% of the Company's outstanding 
shares on a fully diluted basis.




                                   -8-
<PAGE>
The completion of this transaction coupled with the agreement already in place 
with CIT Financial provides the liquidity needed to fund the future short term 
expansion plans of the Company. In addition, during the third quarter of 1996 
the Company completed the repayment of the subordinated debenture to Total 
Supply Systems, Inc.. The completion of this repayment will have a significant
favorable impact on the Company's future cash flow.  

On July 10, 1996 the Board of Directors approved grants under the Long Term
Incentive Stock Option program which was approved by the shareholders on 
May 14, 1996. Grants totaling the equivalent of 278,750 shares were issued at a
grant price of $1.00 per share. These grants contain vesting rights over a four
year period. The first 25% of these grants will vest on July 10, 1997.


                                   -9-  
<PAGE>

Part II--Other Information

      Item 6--Exhibits and Reports on Form 8-K

               a) Exhibit 11 Statement Re: Computation of Per Share Earnings

                               Three months ended            Nine months ended
                                 September 30                  September 30

                               1996	        1995          1996         1995
                           __________   __________    __________   __________
Average shares 
outstanding                 5,679,411    5,664,211     5,675,829    5,440,920

Net effect of
common stock 
equivalant                  2,531,646       -0-          845,076       -0- 
                           __________   __________    __________   __________

Totals                      8,211,057    5,664,211     6,520,905    5,440,920

Net Income                 $   89,882   $ ( 39,647)   $  135,960   $ (199,696)

Per Share amount             	$   .01    $  (.01)      $    .02      $  (.04)






                                  -10-
<PAGE>

                               JOTAN, INC.
                               SIGNATURES

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


                                         Jotan, Inc.

      
                                         By: ____________________________ 
                                             Shea Ralph, President



                                         By: _____________________________
                                             David Freedman, Vice President 
                                             and Chief Financial Officer


October 22, 1996



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