UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C.  20549
                                
                                
                            FORM 10-Q
                                
         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934
          For The Quarterly Period Ended June 30, 1998
                               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 0-29048
                                
                   ACCENT COLOR SCIENCES, INC.
     (Exact name of registrant as specified in its charter)
         Connecticut                         06-1380314
(State or other jurisdiction of           (I.R.S. Employer
incorporation or organization)          Identification No.)
                                
800 Connecticut Boulevard, East Hartford, Connecticut       06108
         (Address of principal executive office)  (Zip Code)
Registrant's telephone number, including area code:(860) 610-4000

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/ /
                                
The number of shares outstanding of the registrant's common stock
               as of July 28, 1998 was 12,450,404.
                                
                                
                                
                   ACCENT COLOR SCIENCES, INC.
                                
                            FORM 10-Q
          For The Quarterly Period Ended June 30, 1998
                              INDEX
Part I.  Financial Information

Item 1. Financial Statements                                           3
Item 2. Management's Discussion and Analysis of Financial Condition
        and Results of Operations                                     10

Part II.  Other Information

Item 1. Legal Proceedings                                             14
Item 2. Changes in Securities and Use of Proceeds                     14
Item 3. Defaults Upon Senior Securities                               14
Item 4. Submission of Matters to a Vote of Security Holders           14
Item 5. Other Information                                             14
Item 6. Exhibits and Reports on Form 8-K                              14

Signatures                                                            15

<TABLE>
<CAPTION>

                       ACCENT COLOR SCIENCES, INC.
                      (a development stage company)
                        CONDENSED BALANCE SHEETS
                                
                                
                                                        
                                      June 30,    December 31,
                                        1998          1997
                                     (unaudited)  
<S>                                 <C>         <C>
Assets                                            
Current assets:                                   
     Cash and cash equivalents       $ 1,430,487  $4,005,563
     Accounts receivable                 678,523     439,934
     Inventories (Note 3)              5,916,350   4,611,216
     Prepaid expenses and other                   
     assets                              193,216     323,306
                                                  
          Total current assets         8,218,576   9,380,019
                                                  
Fixed assets, net                      2,509,156   2,974,422
Other assets, net                         70,237      52,698
                                                  
          Total assets               $10,797,969 $12,407,139
                                                  
Liabilities and Shareholders'                     
Equity
Current liabilities:                              
     Obligations under capital                    
      leases                             64,559      61,360
     Accounts payable                 1,022,837     859,693
     Accrued expenses                   593,020   1,041,383
     Customer advances and deposits           -      85,600
     Deferred revenue                 3,280,600   2,496,000
                                                  
          Total current liabilities   4,961,016   4,544,036
                                                  
Obligation under capital leases          56,725      91,937
Other long-term liabilities             575,019     501,644
                                                  
          Total non-current
          liabilities                   631,744     593,581
                                                  
Shareholders' equity:                             
Preferred stock,no par value              
  500,000 shares authorized,
  4,100 and 0 share issued and                    
  outstanding (Note 4)                3,572,495          -

Common stock, no par value,                  
  35,000,000 and 25,000,000
  shares authorized,                        
  12,198,836 and 11,989,855
  shares issued and outstanding      45,507,801  45,114,633
Deficit accumulated during the               
  development stage                 (43,875,087) (37,845,111)
                                     
                                                  
Total shareholders'                     
equity                               5,205,209   7,269,522
                                                  
Total liabilities and                   
shareholders' equity                $10,797,969 $12,407,139
                                                                              
</TABLE>
                                
 The accompanying notes are an integral part of these financial statements.   

<TABLE>
<CAPTION>
                       ACCENT COLOR SCIENCES, INC.
                      (a development stage company)
              CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
                                                                              For the period
                                                                              from inception
                                                                              (May 21, 1993)
                      Three months ended June 30,    Six months ended June 30,   through
                            1998          1997          1998         1997      June 30, 1998
<S>                  <C>            <C>           <C>           <C>           <C>
Revenue                  $421,517      $546,407     $1,338,250    $ 546,407    $ 2,915,758
Costs and expenses:                                                            
    Costs of production  1,149,207     1,594,218     2,777,255    2,528,436     11,446,439
    Research and                                                               
development              1,049,155     2,237,589     2,528,102    4,366,039     22,121,227
    Marketing, general                                                         
and administrative       1,210,130     1,332,448     2,119,472    2,490,217     12,422,265
                                                                               
                                                                               
                         3,408,492     5,164,255     7,424,829    9,384,692     45,989,931
                                                                                
Other (income) expense:                                                         
     Interest expense        7,310        72,001        15,093      141,699      1,011,473
     Interest income      (39,681)      (159,858)     (71,696)     (353,968)     (783,862)
                                                                               
                                                                                
                          (32,371)       (87,857)     (56,603)     (212,269)       227,611
                                                                               
Net loss before                                                                
extraordinary item     (2,954,604)    (4,529,991)  (6,029,976)   (8,626,016)  (43,301,784)
                                                                                
Extraordinary item:
Loss on early
extinguishment of debt,
net of income taxes of                                                         
nil                          -             -             -            -          (573,303)
                                                                               
Net loss             $(2,954,604)   $(4,529,991)  $(6,029,976)  $(8,626,016) $(43,875,087)
                                                                                
Imputed dividend on                                                             
preferred stock (Note 4)     -             -         (920,000)        -          (920,000)
                                                                                
Net loss applicable to                                                          
common stock         $(2,954,604)   $(4,529,991)  $(6,949,976)  $(8,626,016) $(44,795,087)
                                                                                
Net loss (basic &                                                               
diluted) per common                                               
share (Note 2)        $     (.24)   $      (.45)   $     (.57)  $     (.85)
                                                                                
Weighted average common                                                         
shares outstanding
(Note 2)               12,198,836     10,139,775    12,096,580   10,139,775    

</TABLE>
                                                                                
The accompanying notes are an integral part of these financial statements.    

<TABLE>
<CAPTION>
                       ACCENT COLOR SCIENCES, INC.
                      (a development stage company)
              CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                                                
                                                        
                                                         
                              Six months ended June 30,   For the period from  
                                                         incecption (May 21,1993)
                                                               through
                                   1998           1997      June 30, 1998
<S>                           <C>            <C>            <C>
Cash flows from operating                                   
activities:
Net loss before imputed                                   
dividend                      $ (6,029,976)  $ (8,626,016)  $(43,875,087)
Adjustments to reconcile                                  
net loss to net cash used in
operating activities:                                   
  Depreciation and                                      
  amortization                     578,690        510,560      2,795,720
  Write-off of deferred                                 
  offering costs                        -              -          47,264
  Expense related to                                    
  stock and options granted             -              -         363,630
  Debenture issued for                                  
  services                              -              -          50,000
  Loss on disposal of                                   
  fixed assets                      13,453         11,460        116,982
  Conversion of accrued                                 
  interest  to common stock             -              -         231,147
  Extraordinary loss on                                 
  extinguishment of debt                -              -         573,303
Changes in assets and                                     
liabilities:
  Accounts receivable             (238,589)      (186,298)     (678,523)
  Inventories                   (1,305,134)      (744,023)   (5,916,350)
  Prepaid expenses and                                  
  other assets                     130,090         (7,921)     (193,216)
  Accounts payable and                                  
  accrued expenses                (285,219)      (694,085)     1,438,336
  Customer advances and                                 
  deposits                         (85,600)      (376,640)            -
  Deferred revenue                 784,600        458,000      3,280,600
  Other long-term                                       
  liabilities                       73,375        289,683        575,019
                                                            
Net cash used in                                      
operating activities            (6,364,310)    (9,365,280)   (41,191,175)
                                                            
Cash flows from investing                                   
activities:
  Proceeds from sale of fixed                               
  assets                                -              -           5,524
  Purchases of fixed assets      (126,592)     (1,010,724)    (4,548,839)
  Cost of patents                 (17,825)        (19,553)       (72,591)
                                                            
Net cash used in                                     
investing activities             (144,417)     (1,030,277)    (4,615,906)
                                                            
Cash flows from financing                                   
activities:
  Payment of capital lease                                  
  obligations                     (32,012)        (38,513)      (173,110)
  Net proceeds from issuance                                
  of debentures                         -               -      4,839,101
  Proceeds from issuance of             -               -        318,113
  warrants
  Net proceeds from issuance                                
  of common stock                       -               -     38,407,134
  Proceeds from exercise of                                 
  options & warrants                44,625              -      2,523,172
  Net proceeds from issuance                                
  of preferred
  stock through offerings                                 
  and conversion of debt         3,921,038              -      5,351,672
  Increase in long term debt            -               -      2,223,750
  Repayment of debentures               -               -     (6,205,000)
  Deferred offering costs               -               -        (47,264)

Net cash provided by
(used in) financing                                         
activities                      3,933,651         (38,513)    47,237,568
                                                            
Net increase                                         
(decrease) in cash and cash                                 
equivalents                   (2,575,076)     (10,434,070)     1,430,487
                                                            
Cash and cash                                      
equivalents at beginning of                                 
period                         4,005,563       20,288,535             -
                                                            
Cash and cash                                      
equivalents at end of period  $1,430,487       $9,854,465     $1,430,487

</TABLE>

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

<TABLE>
<CAPTION>

                           ACCENT COLOR SCIENCES, INC.
                          (a development stage company)
             CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
  
                                                                   Deficit Accumulated
                                                                       During the
                      Common Stock            Preferred Stock          Development
                    Shares       Amount      Shares      Amount          Stage       Total
<S>               <C>        <C>             <C>       <C>           <C>        <C>                 
Proceeds from
sale                   3,900       $21,800      -      $     -        $     -       $21,800
Net loss                   -             -      -            -         (45,398)     (45,398)
                                                                               
December 31, 1993      3,900        21,800      -            -         (45,398)     (23,598)
                                                                               
Stock split        1,751,100             -      -            -              -             -
Conversion of     
 debentures                -             -  74,360     371,804              -       371,804
Proceeds from     
 sale                      -             - 160,000     643,770              -       643,770
Conversion of                                                                  
promissory notes      42,000        50,000       -           -              -        50,000
Reclassification           -       (20,500)      -           -              -       (20,500)
Shares issued for 
services                   -            -   15,000      75,000              -        75,000
Net loss                   -            -        -           -      (1,153,533)  (1,153,533)
                                                                               
December 31, 1994  1,797,000       51,300  249,360   1,090,574      (1,198,931)     (57,057)
                                                                               
Proceeds from     
 sale                      -            -   75,000     340,060              -       340,060
Exercise of       
 warrants            297,840      694,960        -           -              -       694,960
Options granted                                                                
to service
 Provider                  -       18,400        -           -              -        18,400
Warrants issued   
 with debt                 -       56,631        -           -              -        56,631
Net loss                   -            -        -           -      (4,216,955)   (4,216,955)
                                                                               
December 31, 1995  2,094,840      821,291  324,360   1,430,634      (5,415,886)   (3,163,961)
                                                                               
Warrants issued   
 with debt                 -      138,032        -          -               -       138,032
Proceeds from      
 sale              2,625,000    9,460,044        -          -               -     9,460,044
Warrants issued  
 with debt                 -      123,450        -          -               -       123,450
Proceeds from                                                                  
 initial public
 offering          3,450,000   24,409,464        -          -               -    24,409,464
Conversion of                                                                  
 Series III
 debentures          607,626    2,116,575        -          -               -     2,116,575
Conversion of                                                                  
 Preferred
 stock             1,362,309    1,430,634 (324,360) (1,430,634)             -             -
Net loss                   -            -         -         -     (13,738,661)  (13,738,661)
                
December 31, 1996 10,139,775   38,499,490         -         -     (19,154,547)   19,344,943
                                                                               
Exercise of
 options              92,250      465,067         -         -               -       465,067
Exercise of       
 warrants            394,091    1,445,000         -         -               -     1,445,000
Shares issued in                                                               
 connection with   
 the Xerox
 agreement            50,000     218,750          -         -               -       218,750
Proceeds from     
 sale              1,313,739   4,486,326          -         -               -     4,486,326
Net loss                   -           -          -         -     (18,690,564)  (18,690,564)
                                                                              
December 31, 1997 11,989,855  45,114,633          -         -     (37,845,111)    7,269,522
                                                                               
Proceeds from 
 sale                      -           -      4,500  3,921,038              -     3,921,038
Exercise of       
 options              37,500      44,625          -         -               -        44,625         
Conversion of                                                                  
 Series B          
 Preferred
 Stock               171,481     348,543      (400)  (348,543)              -             -
Net loss before                                                               
imputed dividend          -           -           -         -      (6,029,976)   (6,029,976)
                                                                               
June 30, 1998     12,198,836 $45,507,801      4,100 $3,572,495   $(43,875,087)   $ 5,205,209
(unaudited)                                                          

</TABLE>
                                
 The accompanying notes are an integral part of these financial statements.    


1.   Interim Condensed Financial Statements
In   the   opinion   of  the  Company,  the  accompanying   unaudited
condensed    financial    statements   contain    all    adjustments,
consisting  only  of  normal  recurring  adjustments,  necessary   to
present  fairly its financial position as of June 30,  1998  and  the
results  of  operations  and cash flows  for  the  six  months  ended
June  30,  1998  and  1997  and the period from  inception  (May  21,
1993)  through  June 30, 1998.  The December 31, 1997  balance  sheet
has  been  derived  from the Company's audited  financial  statements
at  that  date.  These interim condensed financial statements  should
be  read  in  conjunction with Management's Discussion  and  Analysis
and  financial  statements included in the  Company's  Annual  Report
on Form 10-K for the year ended December 31, 1997.
The  results  of operations for the six months ended  June  30,  1998
are  not  necessarily indicative of the results to  be  expected  for
the full year.

2. Summary of Significant Accounting Policies
Significant  accounting  policies  followed  in  the  preparation  of
these financial statements are as follows:

Use of Estimates
The   preparation   of  financial  statements  in   conformity   with
generally  accepted  accounting  principles  requires  management  to
make  estimates  and  assumptions that affect  the  reported  amounts
of  assets  and liabilities and disclosure of contingent  assets  and
liabilities  at  the  date  of  the  financial  statements  and   the
reported  amounts  of  revenues  and expenses  during  the  reporting
period.  Actual results could differ from those estimates.

Revenue Recognition
Revenue   is   generally   recognized  upon  product   shipment   and
customer   acceptance.    The   Company  has   established   warranty
policies  that,  under  specific  conditions,  enable  customers   to
return   products.    The   Company   establishes   liabilities   for
estimated   returns   and  allowances  at   the   time   of   revenue
recognition.    Until  such  time  that  the  Company  has   adequate
information  to  estimate  future  returns,  revenue  resulting  from
Truecolor  Systems  is  deferred  until  the  end  of  the   warranty
period.

Net Loss Per Common Share
In  the  fourth  quarter of 1997, the Company  adopted  Statement  of
Financial  Accounting Standards No. 128, "Earnings  per  Share,"  for
all  periods  presented.  Basic earnings per share  computations  are
determined   based   on  the  weighted  average  number   of   shares
outstanding  during  the  period. The  effect  of  the  exercise  and
conversion   of   all   securities,  including  stock   options   and
warrants  would  be  antidilutive and thus is  not  included  in  the
diluted earnings per share calculation.

3.   Inventories
Inventories consist of the following:
                                   June 30,   December 31,
                                    1998        1997
                                             
  Raw materials and components   $2,108,647  $1,590,386
  Work-in-process                   225,884     403,585
  Finished goods                  3,581,819   2,617,245
                                             
                                 $5,916,350  $4,611,216



4. Shareholders' Equity
On  January  13,  1998  the Company completed  a  private  equity
financing providing net proceeds to the Company of $3.9  million.
In connection with the financing, the Company issued 4,500 shares
of  Series B Convertible Preferred Stock at a price of $1,000 per
share  and warrants to purchase the Company's common stock.   The
warrants  issued  are exercisable into 300,000 shares  of  common
stock  with an exercise price of $2.75 and an expiration date  of
January 9, 2003.  Additionally, warrants exercisable into 115,385
shares  of  common stock with an exercise price of $2.50  and  an
expiration  date of January 9, 2003 were issued to the  placement
agent for services provided.  In connection with the sale of  the
units,  the Company agreed to register the common stock  issuable
upon  the conversion of the Series B Convertible Preferred  Stock
and the execution of the warrants.

The  Series B Convertible Preferred Stock ("Series B Stock"),  no
par value per share, is convertible into such number of shares of
common  stock  as  is  determined by dividing  the  stated  value
($1,000)  of  each  share of Series B Stock  (as  such  value  is
increased  by  an  annual  premium of 6%)  by  the  then  current
conversion  price  of  the Series B Stock (which  is  determined,
generally,  by  reference to 85% of the average  of  the  closing
market  price  of  the common stock during the  five  consecutive
trading  days  immediately preceding the date  of  determination)
subject  to certain restrictions and adjustments.  The  Series  B
Stock  has  voting rights as defined in the Company's Certificate
of  Incorporation,  bears no dividends and  ranks  prior  to  the
Company's Common Stock and Series A Preferred Stock. In the event
of  any voluntary or involuntary liquidation of the Company,  the
Series  B  holders shall be entitled to a liquidation  preference
equal  to the stated value of the stock plus the accrued  premium
through  the  date  of final distribution.   Upon  occurrence  of
specific  events,  as defined in the agreement,  the  holder  may
redeem the Series B Stock for cash or shares at the option of the
Company.  The Company also has optional redemption rights.

The  Company  has reserved 6,300,000 shares of common  stock  for
issuance pursuant to the conversion of the Series B Stock.   This
number  of  shares represents an estimate based on  200%  of  the
number  of  common  shares  that would have  been  issuable  upon
conversion with an exercise price of $1.875 per share (4,800,000)
and  1,500,000 shares issuable under the terms of the Certificate
of Designation in the event of certain failures by the Company to
comply  with  various provisions thereof.  The actual  number  of
shares issuable upon conversion could be materially less or  more
than  such  estimated number depending on factors that cannot  be
predicted  by  the Company.  The number of shares  issuable  upon
conversion  is  dependent on (a) the market price of  the  common
stock at the time of the conversion and (b) the Company's ability
to  maintain its NASDAQ listing.  In addition, 415,385 shares  of
common stock, subject to adjustments in accordance with the terms
of  each  warrant,  were reserved for issuance  pursuant  to  the
exercise of the warrants described above.

The  terms of conversion of the Series B Stock issued in  January
1998  afforded  the  holders a conversion price  lower  than  the
market  price  of the common stock at the time of issuance.   The
difference  between  the conversion price and  market  price  was
treated  as  an  imputed  (non-cash)  dividend  for  purposes  of
calculating net loss per common share, although no assets of  the
Company  were  expended.  The imputed dividend  is  approximately
$920,000 and has the effect of increasing the net loss per common
share  by $.08 per share for the six months ended June 30,  1998.
The  imputed dividend will be given no other accounting treatment
in  the 1998 financial statements of the Company and beyond.   As
of June 30, 1998, 400 shares of Series B Stock had been converted
into  171,481  shares  of common stock at an  average  conversion
price of $2.36 per share.

Depending  on  the number of shares of Series B  Stock  converted
into  common  shares  and  the timing of  such  conversions,  the
transactions may result in further Section 382 annual limitations
of net operating loss carryforwards.

5. Restructuring
In  May  1998,  the  Company completed  a  restructuring  of  its
personnel  consistent  with its efforts to  focus  on  sales  and
market  development and further reduce spending.   In  connection
with  this  realignment,  the  Company  eliminated  32  full-time
positions  and  recorded a charge of approximately  $300,000  for
employee  severance. Of the total reduction,  approximately  50%,
was  in  the  area of operations, 34% in research and development
and  16%  in marketing, general and administrative.   As of  June
30,  1998,  accrued severance costs, to be paid through  December
31,  1998,  totaled  $134,000 and remained on the  Balance  Sheet
under accrued expenses.

6. Subsequent Events
On  July 21, 1998, the Company entered into a loan agreement with
International Business Machines Corporation ("IBM") that provides
for  a commitment of $2.5 million at a fixed interest rate of 10%
per  year.   Interest payments are due quarterly with  the  first
payment  due  on  October 1, 1998.  The loan is due  in  full  on
December  31,  2000 and is secured by the assets and intellectual
property  of  the  Company.  As part of the loan  agreement,  the
Company issued a warrant to IBM that provided for the purchase of
500,000 shares of common stock at an exercise price of $2.50  per
share.  The warrant expires on July 21, 2003.

Item 2.  Management's Discussion and Analysis of Financial

Condition and Results of Operations

Results of Operations

Quarter Ended June 30, 1998 compared to Quarter Ended June 30,
1997.
System Shipments.  A total of eleven systems were shipped in the
quarter ended June 30, 1998 compared to three systems in the
quarter ended June 30, 1997.  Shipments for the second quarter of
1998 included eight Truecolor System upgrades and three new
systems.  These systems were recorded as deferred revenue in
accordance with the revenue recognition policy of the Company.
Backlog of Truecolor Systems as of June 30, 1998, consisted of
forty-two systems totaling $4,465,000 all of which are scheduled
for shipment over the next twelve months.  This includes 33 new
systems and 9 upgrades totaling $3,852,000 and $613,000,
respectively.

Revenue Recognized.  The Company currently sells its Truecolor
System with a 90-day warranty.  Until such time that the Company
has adequate history to estimate future warranty costs, revenue
resulting from the shipment of Truecolor Systems will be deferred
until the end of the warranty period.  The Company expects to
obtain a sufficient amount of history to estimate future warranty
costs by the end of the fourth quarter of 1998, which will then
allow the Company to recognize revenue on Truecolor Systems upon
shipment.  Revenue recognition on consumables and spare parts
occurs upon shipment.

System sales were $194,000 for the quarter ended June 30, 1998
compared to none for the quarter ended June 30, 1997.  Sales for
the second quarter of 1998 consisted of revenue recognized on
three systems of which two were Truecolor System upgrades.  As of
June 30, 1998, there were 36 systems, totaling $3,300,000, in
deferred revenue yet to be recognized as revenue by the Company.

Consumables and spare parts sales were $227,000 for the quarter
ended June 30, 1998 compared to $546,000 for the quarter ended
June 30, 1997.  Sales of consumables and spare parts were higher
in the second quarter of 1997 compared to the second quarter of
1998 due to our OEM customers filling their sales channels for
the initial introduction of the Truecolor System.  Similarly, the
Company experienced higher sales of consumables and spare parts
in the first quarter of 1998 as a result of the introduction of
the enhanced wide-head version of the Truecolor System.

Costs of Production.  Costs of production decreased 27.9% from
$1,594,000 for the quarter ended June 30, 1997 to $1,149,000 for
the quarter ended June 30, 1998.  This decrease was primarily
attributed to (i) a decrease in sales of consumables and spare
parts in the second quarter of 1998 compared to the second
quarter of 1997, (ii) less manufacturing overhead payroll costs
due to the reduction in personnel, and (iii) less operating costs
incurred.  These items were partially offset by an increase in
system cost of sales totaling approximately $200,000 due to the
sale of three systems in the second quarter of 1998 compared to
none in the second quarter of 1997.

Research and Development Expenses.  Research and development
expenses decreased 53.1% from $2,238,000 for the quarter ended
June 30, 1997 to $1,049,000 for the quarter ended June 30, 1998
as the Company directed its efforts toward production, sales and
market development with a less significant emphasis on research
and development.  The decrease in research and development
expenses was primarily attributed to four major factors: (i) a
reduction in payroll related costs as a result of the Company's
reduction of its personnel during 1998, (ii) the Company's
completion of payments to Spectra, Inc. ("Spectra") to maintain
exclusivity rights in 1997, (iii) a reduction in design and
development costs paid to Spectra associated with the development
of the ink jet printheads for the enhanced wide-head version of
the Truecolor System, and (iv) a decrease in materials and
prototype supplies procured for research and development.

Marketing, General and Administrative Expenses.  Marketing,
general and administrative expenses decreased 9.2% from
$1,332,000 for the quarter ended June 30, 1997 to $1,210,000 for
the quarter ended June 30, 1998.  This decrease was primarily due
to a reduction in professional fees and other administrative
expenses.  Marketing costs, however, increased by approximately
$85,000, which primarily encompassed costs incurred for trade
shows, travel and consultants to support the increased sales and
marketing efforts planned for 1998.

Interest  Expense  and Other (Income) Expense.  Interest  expense
decreased 90.3% from $72,000 for the quarter ended June 30,  1997
to $7,000 for the quarter ended June 30, 1998.  This decrease was
primarily  attributed  to  the elimination  of  interest  expense
resulting  from the final payment of outstanding debt with  Xerox
Corporation  in  the  second  half  of  1997.   Interest   income
decreased 75.0% from $160,000 for the quarter ended June 30, 1997
to $40,000 for the quarter ended June 30, 1998.  This decrease in
interest  income  was  attributed to a  greater  amount  of  cash
available  for  investment  in the  second  quarter  of  1997  as
compared  to  the second quarter of 1998, primarily  due  to  the
Company's initial public offering in December 1996.

Six Months Ended June 30, 1998 compared to Six Months Ended June
30, 1997.
System Shipments. A total of sixteen systems were shipped in the
six months ended June 30, 1998 compared to four systems in the
six months ended June 30, 1997.  Shipments for the first six
months of 1998 included eight Truecolor System upgrades and eight
new systems.  These systems were recorded as deferred revenue in
accordance with the revenue recognition policy of the Company.

Revenue Recognized.  System sales were $687,000 for the six
months ended June 30, 1998 compared to none for the six months
ended June 30, 1997.  Sales for the first six months of 1998
consisted of revenue recognized on eight systems, of which two
were Truecolor System upgrades.

Consumables and spare parts sales were $651,000 for the six
months ended June 30, 1998 compared to $546,000 for the six
months ended June 30, 1997.  This increase in sales of
consumables and spare parts was attributed to our OEM customers
filling their sales channels for the introduction of the new
enhanced wide-head Truecolor System during the first quarter of
1998 in addition to the continued increase in system shipments to
customers in the second quarter of 1998.

Costs of Production.  Costs of production increased 9.8% from
$2,528,000 for the six months ended June 30, 1997 to $2,777,000
for the six months ended June 30, 1998.  This increase was
primarily attributed to the sale of eight systems in the first
six months of 1998 compared to none in the first six months of
1997.  This was partially offset by a reduction in manufacturing
overhead payroll and related costs during the first six months of
1998.

Research and Development Expenses.  Research and development
expenses decreased 42.1% from $4,366,000 for the six months ended
June 30, 1997 to $2,528,000 for the six months ended June 30,
1998 as the Company directed its efforts toward production, sales
and market development with a less significant emphasis on
research and development.  The decrease in research and
development expenses was primarily attributed to four major
factors: (i) a reduction in payroll related costs as a result of
the Company's reduction of its personnel during 1998, (ii) the
Company's completion of payments to Spectra to maintain
exclusivity rights in 1997, (iii) a reduction in design and
development costs paid to Spectra related to the development of
the ink jet printheads for the enhanced wide-head version of the
Truecolor System, and (iv) a decrease in materials and prototype
supplies procured for research and development.

Marketing, General and Administrative Expenses.  Marketing,
general and administrative expenses decreased 14.9% from
$2,490,000 for the six months ended June 30, 1997 to $2,119,000
for the six months ended June 30, 1998.  This decrease was
primarily due to a reduction in payroll and other related costs
as a result of the Company's realignment of its resources and a
reduction in costs incurred for professional services.  Marketing
costs, however, increased by approximately $146,000, which
encompassed costs incurred for trade shows, travel and
consultants to support the increased sales and marketing efforts
planned for 1998.

Interest  Expense  and Other (Income) Expense.  Interest  expense
decreased 89.4% from $142,000 for the six months ended  June  30,
1997  to  $15,000 for the six months ended June 30,  1998.   This
decrease  was primarily attributed to the elimination of interest
expense resulting from the final payment of outstanding debt with
Xerox  Corporation in the second half of 1997.   Interest  income
decreased 79.7% from $354,000 for the six months ended  June  30,
1997  to  $72,000 for the six months ended June 30,  1998.   This
decrease in interest income was attributed to a greater amount of
cash available for investment in the first six months of 1997  as
compared  to the first six months of 1998, primarily due  to  the
Company's initial public offering in December 1996.

Liquidity and Capital Resources
The  Company's  need  for funding has increased  from  period  to
period  as  it  has  increased its marketing and  sales  efforts,
continued  its  research  and  development  activities  for   the
enhancement  of  Truecolor Systems and  increased  production  of
Truecolor  Systems.   To  date,  the  Company  has  financed  its
operations  through  customer payments, borrowings  and  sale  of
equity securities.

Through June 30, 1998, the Company had received $6.6 million from
the  delivery of Truecolor Systems to customers, net proceeds  of
$7.8 million from borrowings and the sale of debt securities, net
proceeds of $2.5 million from the exercise of warrants and  stock
options and net proceeds of $43.4 million from the sale of equity
securities.  Of the net equity proceeds, $24.4 million was raised
in the Company's initial public offering in December 1996 and the
balance of $19.0 million was raised through the private placement
of equity securities.

As  of  June 30, 1998, the Company's primary source of  liquidity
was cash and cash equivalents totaling $1.4 million.

Operating  activities consumed $6.4 million in  cash  during  the
first  six  months of 1998 compared to $9.4 million in the  first
six months of 1997.  This decrease was primarily attributed to  a
decrease  in the net loss of the Company, a reduction in  prepaid
expenses,  less  cash  utilized in  the  payment  of  outstanding
liabilities  and an increase in deferred revenue  due  to  system
shipments.    This  was  partially  offset  by  an  increase   in
inventories and a decrease in other long-term liabilities.

Capital expenditures decreased 88.4% from $1.0 million for the
six months ended June 30, 1997 to $127 thousand for the six
months ended June 30, 1998.  This decrease was primarily
attributed to leasehold improvements made in the first quarter of
1997 to occupy the second floor of the facility currently leased
by the Company and purchases of manufacturing and test equipment
throughout the first six months of 1997 to support the Company's
development and manufacturing efforts.  The Company's planned
capital expenditures for the remainder of 1998 are approximately
$450,000 and are primarily to support the value engineering and
manufacturing capabilities of the Company.

In  May  1998,  the  Company completed  a  restructuring  of  its
resources  consistent  with its efforts to  focus  on  sales  and
market  development and further reduce spending.   In  connection
with  this  realignment,  the  Company  eliminated  32  full-time
positions  and  recorded a charge of approximately  $300,000  for
employee  severance.  Of the total reduction, approximately  50%,
was  in  the  area of operations, 34% in research and development
and 16% in marketing, general and administrative.  As of June 30,
1998,  accrued severance costs, to be paid through  December  31,
1998,  totaled $134,000 and remained on the Balance  Sheet  under
accrued expenses.

On  July 21, 1998, the Company entered into a loan agreement with
International Business Machines Corporation ("IBM") that provides
for  a  commitment of $2,500,000 at a fixed interest rate of  10%
per  year.   Interest payments are due quarterly with  the  first
payment  due  on  October 1, 1998.  The loan is due  in  full  on
December  31,  2000 and is secured by the assets and intellectual
property  of  the  Company.  As part of the loan  agreement,  the
Company issued a warrant to IBM that provided for the purchase of
500,000 shares of common stock at an exercise price of $2.50  per
share, expiring on July 21, 2003.  The value of the warrant  will
be  allocated to common stock with an equivalent discount on  the
note, which will be amortized over the life of the note resulting
in a non-cash charge to interest expense.

Based  on the current operating plan of the Company, the  primary
requirements for cash through the remainder of 1998  will  be  to
fund  operating  losses, increased marketing and  sales  efforts,
commercial  production of the enhanced Truecolor System  and  the
further  development  and enhancement of the Company's  products.
The Company's currently planned research and development activity
is focused on developing higher resolution ink jet printing.

Under  the current operating plan, the Company believes that  its
existing  cash resources and the funds obtained through the  loan
agreement  with IBM will be sufficient for the financing  of  its
operations and capital expenditures through the fourth quarter of
1998.  In the event the Company is unsuccessful in achieving  its
operating  plan,  the Company would expect to  reduce  costs  and
capital  acquisitions in order to fund cash requirements  through
the  end  of  1998.  The Company is continuing to review  various
financing strategies, both debt and equity, that would enable  it
to  fund operations in 1999.  The Company is a development  stage
company  and  it  is  expected that  quarterly  net  losses  will
continue through at least the fourth quarter of 1998.


Year 2000
The Company continues to assess its exposure related to the
impact of the Year 2000 date issue.  The Year 2000 date issue
arises from the fact that many computer programs use only two
digits to identify a year in a date field.  The Company's
products and key financial operational systems are being reviewed
and, where required, plans have been developed to ensure that the
Company's products and computer systems continue to function
properly.  Management does not expect these costs will have a
material adverse impact on the Company's financial position,
results of operations or cash flows.  However, the Company could
be adversely impacted by the Year 2000 date issue if suppliers,
customers and other businesses do not address this issue
successfully.  Management continues to assess these risks in
order to reduce the impact on the Company.


Forward-Looking Statements
The foregoing statements and analysis contain forward-looking
statements and information including information with respect to
the Company's plans and strategy for its business.  Such forward-
looking statements are made pursuant to the "safe harbor"
provisions of Section 21E of the Securities Exchange Act of 1934,
as amended, which were enacted as part of the Private Securities
Litigation Reform Act of 1995.  Forward-looking statements
contained in the foregoing analysis include marketing, revenue
and expenditure expectations, and other strategies and
anticipated events. Without limiting the foregoing, the words
"believes", "anticipates", "plans", "expects" and similar
expressions are intended to identify forward-looking statements.
There are a number of important factors that could cause actual
events or the Company's actual results to differ materially from
those indicated by such forward-looking statements.  These
factors include, without limitation, (i) the level of customer
acceptance of the Company's products; (ii) the ability of the
Company to raise capital sufficient to support its business plan;
(iii) the dependence of the Company on third party suppliers for
certain key technology elements; (iv) the dependence of the
Company on third party marketing, distribution and support,
including the control by the Company's OEM customers over the
timing of the introduction of its products and the need for the
Company to complete and satisfy extensive testing requirements of
its products on a timely basis; and (v) the potential
fluctuations in the Company's quarterly results of operations.
Further information on factors that could cause actual results to
differ from those anticipated is detailed in the Company's Annual
Report on Form 10-K for 1997 as filed with the Securities and
Exchange Commission.  Any forward-looking information contained
herein should be considered in light of these factors.
Part II.  Other Information

Item 1.  Legal Proceedings

The Company is not a party to any material legal proceedings.

Item 2.  Changes in Securities and Use of Proceeds

None.

Item 3.  Defaults Upon Senior Securities

None.

Item 4.  Submission of Matters to a Vote of Security Holders
On   May  9,  1998,  the  Company  held  its  annual  meeting  of
shareholders.   At  the  meeting, Joseph T.  Brophy  and  Richard
Hodgson  were  reelected to continue their  service  as  class  2
directors of the Company and Charles E. Buchheit was reelected to
continue service as a class 1 director of the Company.  The votes
cast  for  each  director were as follows:   10,384,716  for  the
reelection  of Mr. Brophy with 377,461 votes withheld; 10,586,016
for  the  reelection of Mr. Hodgson with 176,161 votes  withheld;
and  10,586,316 for the reelection of Mr. Buchheit  with  175,861
withheld.  In addition, the following matters were voted upon and
approved at the annual meeting of shareholders:

1.)   5,203,433 votes were cast for the ratification of the  sale
  and issuance of 4,500 shares of the Company's Series B Preferred
  Stock and the issuance of Common Stock issuable upon conversion
  of or otherwise pursuant to the terms of the Series B Stock with
  386,739  votes  cast  against, 1,274,977 votes  abstaining  and
  3,897,028 broker nonvotes.

2.)   9,682,015 votes were cast for the approval of an  amendment
  to  the  Company's  Restated Certificate of Incorporation  with
  432,851 votes cast against and 647,311 votes abstaining.

3.)   10,310,061 votes were cast for the approval of an amendment
  to  the Company's 1995 Stock Incentive Plan with 421,169  votes
  cast against and 30,947 votes abstaining.

4.)     10,406,554   votes   cast   for   the   ratification   of
  PricewaterhouseCoopers LLP as its independent public accountants
  with 341,776 votes cast against and 13,847 votes abstaining.

Item 5.  Other Information
On July 21, 1998, the Company entered into a loan agreement with
IBM that provides for a commitment of $2,500,000 at a fixed
interest rate of 10% per year.  Interest payments are due
quarterly with the first payment due on October 1, 1998.  The
loan is due in full on December 31, 2000 and is secured by the
assets and intellectual property of the Company.  As part of the
loan agreement, the Company issued a warrant to IBM that provided
for the purchase of 500,000 shares of common stock at an exercise
price of $2.50 per share.  The warrant expires on July 21, 2003.

Item 6.  Exhibits and Reports on Form 8-K
(a)  Exhibits
Exhibit  10.1  - Employee Agreement dated April 15, 1998  between
Charles E. Buchheit and the Company.
Exhibit 27 - Financial data schedule

(b)  Reports filed on Form 8-K
On  April  15, 1998, the Company filed a report on  Form  8-K  in
which  it  reported that the Board of Directors of  Accent  Color
Sciences,  Inc. elected Charles E. Buchheit to succeed Norman  L.
Milliard as President and Chief Executive Officer of the  Company
effective May 8, 1998.  As of that date Mr. Milliard assumed  the
roles  of  Vice  Chairman  and Chief Technology  Officer  of  the
Company.


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.

                                   ACCENT COLOR SCIENCES, INC.
   
   
   Dated     August 12, 1998       By: /s/ Charles E. Buchheit
                                       Charles E. Buchheit
                                       President and Chief
                                       Executive Officer
      
                                   By: /s/ Patrick J. Pedonti
                                       Patrick J. Pedonti
                                       Vice President and Chief
                                       Financial Officer
                                       (Principal Financial and
                                       Accounting Officer)