UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C.  20549

                               FORM 10-QSB

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

     For the quarterly period ended June 30, 1996
                                    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 0-16371

                            NAMSCO CORPORATION
          (Exact name of registrant as specified in its charter)

               Utah                             87-0430312
  (State or other jurisdiction of             (I.R.S. Employer  
incorporation or organization)              Identification No.)

         E. 122 Montgomery               
         SPOKANE, WA.                           99207   
(Address of principal executive offices)     (Zip code)

                            (509)  327-7784
                     (Registrant's telephone number,
                         including area code)

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     

As of July 31, 1996,  4,319,902 shares of common stock were
outstanding.

The total number of pages in this form 10-Q is  10  pages.


<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                                Form 10-QSB

                                   INDEX

          
                                                                  
                                                      Page Number

Part I.   Financial Information

   Item I.  Financial Statements

      Consolidated Balance Sheets 
      June 30, 1996 and December 31, 1995                         
                                                          3-4

      Consolidated Statements of Income
      for the three month and six month periods                   
      ended June 30, 1996 and 1995                                
                                                            5     
                                                                  
      Consolidated Statements of Stockholders'                    
      Equity December 31, 1995 and June 30, 1996                  
      Consolidated Statement of Cash Flows for the                
      six month periods ended June 30, 1996
      and 1995                                              7

      Notes to Financial Statements                         8

  Item II.  Management's Discussion and Analysis
      of Financial Condition and Results of
      Operations                                            8-10

Part II.
     Other Information and Signatures                       10-11 
                          
         
<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                                     
                        CONSOLIDATED BALANCE SHEETS


                                              June 30,December 31,
ASSETS                                       1996             1995 

Current assets:
   Cash                               $    17,249      $    75,279 
Accounts receivable                       705,003          441,529 
  Current portion of net investment
     in sales-type leases               2,439,204        3,287,954 
  Current portion of notes
     receivable-Tribute contracts          38,843          280,337 
  Inventories                           1,488,062        1,459,593 
  Prepaid expense and other             (158,316)          100,882 
                                       __________        _________ 
            
Total                                   4,530,045        5,645,574

Property and Equipment (net)
   Rental equipment                       547,047          964,454 
  Operating equipment and
     leasehold improvements             2,664,194        2,691,544 
                                         

Total                                   3,211,241       3,655,998

Other assets
  Non-current portion of net investment
     in sales-type leases              16,888,880       15,968,714 
  Non-current portion notes receivable-
     Tribute contracts                     21,332           83,857 
  Non-current portion of
     term contracts                        53,574          184,867 
  Notes and advance due from related
     parties                              412,375          424,375 
                                         

Total                                  17,376,161       16,661,813

Total Assets                          $25,117,447      $25,963,385





Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.

<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                         CONSOLIDATED BALANCE SHEETS
                               (Continued)


                                         June 30,      December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY         1996              1995 
       
Current liabilities:
   Accounts payable:
     Trade                              $1,539,824       $1,200,272 
  Reorganization costs                     133,757                
    Accrued expenses:
     Payroll & related taxes               282,086          457,251 
     Sales commissions                                       34,278 
     Interest                              324,185          174,388 
  Current maturities of 
     long-term debt                     16,555,921        9,889,035 
  Advance rental collections                 7,313           59,546 
                                         

    Total                               18,843,086       11,880,468

Liabilities due after one year:
  Maintenance on Tribute contracts          45,067           66,000 
  Long-term debt                         4,786,793       11,758,099 
  Advance collections on
    rental accounts                         31,379        1,439,345 
  Deferred income taxes                  1,127,145        1,439,345

    Total                                5,990,384       13,265,300

Commitments and contingencies         

Stockholders' Equity
   Common stock,$.007 par value;
    Authorized, 15,000,000 shares; issued 
       and outstanding, 4,319,902           30,240           30,240 
   Additional paid-in capital              201,269          201,269 
   Retained earnings                        52,468          586,108

   Total                                   283,977          817,617

Total Liabilities & Equity             $25,117,447      $25,963,385









Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.


<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                                     
                     CONSOLIDATED STATEMENTS OF INCOME

                            Three months ended   Six months ended
                                 June 30,             June 30,    
Revenues:                    1996      1995      1996      1995
  New music installations  $614,095 2,128,017 1,333,468 3,504,686 
  Renewal contracts         336,891   115,081   883,863   235,883 
  Tribute contracts         462,576   171,402   835,237   351,599 
  Direct sales and other    171,459   173,966   359,994   359,751 
  Finance                   609,728   529,167 1,147,475 1,060,251 
  Service                   119,005   134,291   254,095   263,645 
  Rental                    144,678   132,694   275,950   267,007 
        Total             2,458,432 3,382,511 5,090,082 6,042,822

Costs and Expenses: 
 Cost of sales              477,277   742,161   985,724 1,328,663 
 Selling, general and 
    administrative          918,373 1,090,334 1,920,353 2,204,988 
 Maintenance                209,979   229,867   484,930   463,362

      Total               1,605,629 2,062,362 3,391,007 3,997,013

Income from operations      852,803 1,320,149 1,699,075 2,045,809

Other expense:
  Interest                (627,320) (590,060)(1,284,967)(1,112,073) 
 Cancellation of sales- 
   type leases:
     Systems replaced with   
       CD equipment       (396,657) (914,772) (837,223) (1,200,594) 
   Removed systems        (248,694) (156,434) (422,724)   (335,266)

      Total            (1,272,671)(1,661,266)(2,544,914)(2,647,933)

Loss before income
  taxes                  (419,868)  (341,117)  (845,839)  (602,124)
Provision for income
   taxes                ( 167,400)  ( 26,700)  (312,200)  (115,400)

Net loss               $ (252,468)  (314,417)  (533,639)  (486,724)

Weighted average common
  shares outstanding     4,319,902  4,319,902  4,319,902  4,319,902


Loss per share of
  common stock             $ (.06)    $ (.07)  $  (.12)    $  (.11)


 

Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.



<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                                     
              CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY     
               December 31, 1995 and June 30, 1996

                              Common Stock      Additional
                                                 Paid-in  Retained 
                              Shares     Amount  Capital  Earnings 
                                        
BALANCE, December 31, 1995   4,319,902  $30,240  $201,267 $586,108 

Net loss for the six months
  ended June 30, 1996           -           -         -   (533,639)

BALANCE, June 30, 1996       4,319,902 $30,240 $201,267    $52,469






































                                                                  
Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.



<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                                     
                   CONSOLIDATED STATEMENTS OF CASH FLOWS


                                    Six Months Ended June 30,    
                                    1996                1995      
            
Net cash flow from operating
    activities                       (675,899)          (244,215)
 Cash flows from investing
  activities:
  Additions-rental equipment         (369,407)          (324,683)
   Additions-music and
   video libraries                      60,409           (72,444)
   Additions-operating equipment        16,699           (53,129) 

      Total                          (292,299)          (450,256)

Cash flows from financing activities:
  Proceeds from sale of contracts    3,884,663           1,553,581 
  Principal payments on funds received
    from sale of contracts           (798,268)           (312,436) 
 Proceeds from borrowing                20,120              19,065 
 Payments on contracts and
    prefiling obligations            (183,996) 
 Payments of long term debt        (3,248,089)           (569,398) 
    
    Total                            (325,570)             690,812 
 
Increase/(Decrease) in Cash           (58,030)             (3,659) 

Cash at beginning of period             75,279             130,185

Cash at end of period                  $17,249            $126,523 
 





















Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.

<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY

                       Note to Financial Statements

Note 1- Compliance with terms of Secured Credit Agreement 

The Company is in default under the terms of the credit agreement
with a "replacement secured lender". hereafter referred to as
lender.  As a result, the entire debt to the lender has been
classified as a current liability.  The default is related to non-
compliance with the provisions for maintaining positive cash flow,
timely payment of taxes and a limitation on capital expenditures. 
The lender has not waived the non-compliance.  The Company has made
all regularly scheduled payments to the lender.

Item II

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

Liquidity and Capital Resources

The Company's primary source of cash flow is from the collection of
monthly service fees on the 3,800 (approx) music playback systems,
1,700 (approx) music library agreements and 600 (approx) tribute
programs currently in place in funeral homes.  Customers have the
option of paying cash, financing or leasing new music
installations.  Lease and sale agreements are sold (discounted) to
a finance company to provide the funds to cover the costs
associated with installing new music playback systems and tribute
programs that are not paid in full at the time of the installation. 
The discounted amount realized from the sale of the agreement is
approximately the same as the cash sale price for the equipment.

The Company has secured financing from an additional financing
source to assure that it will have the financing to continue new
installations of its music systems and tribute programs. 
Indications are that other sources are available. 

During the first quarter of 1996, the Company initiated a plan to
pay down the secured lender.  Contracts classified under the "net
investment in sales type leases" were discounted to net present
value and the proceeds were paid direct to the lender in the amount
of $3,132,505 during the first and second quarters for a
significant reduction in the amount due the secured lender.


Results of Operations

Total revenues are $924,080 for the three months and $952,740 for
the six months ended June 30, 1996 or 16% less than total revenues
for the same period of the 1994.   A total of 69 new installations
were completed in the second quarter of 1996 compared with 202 for
the same period in 1995.  This resulted in an decrease of total
installations for the six months ended June 30, 1996 to 152 new
music systems compared with 336 systems for the same period of
1995. The decrease in revenues from new installations was partially
offset by an increase in revenues from renewal agreements and
increase in tribute sales.  A total of 60 renewal agreements were
completed in the first half of 1995 compared to the renewal of 52
renewals for the same period of 1994.  The expiring agreements that
are not renewed under term agreements represent customers that
continue to be billed as monthly rentals.  



The majority of the new CD music installations in the later part of
1994 and during the first six-months of 1995 were the new
"conversion" style cabinet that is less expensive to manufacture
and less costly to ship.  Cost of sales for the second quarter of
1996 is 30% compared to 34% for the same period of 1995 and 29% for
the six months ended June 30, 1996 compared with 40% for the same
period of 1995.

Selling, general and administrative costs increased to 37% of gross
sales for the second quarter ended June 30, 1996 compared to 32%
for the same period of the prior year and 38% for the six months
ended June 30, 1996 compared with 36% for the same period of 1995.
The increase in costs reflects an increase in sales expenses.  In
the first and second quarters of 1996, an increased effort was made
to upgrade existing tape installations by the addition of CD units
and thereby retain the customer base.

Maintenance costs decreased 9% in the second quarter ended June 30,
1996 compared to the same period of the prior year but increased 5%
in the six month period. This is primarily attributable to the
number of installations of CD units in 1995.

Interest expense increased in the second quarter of 1996 by $37,260
over the same period of the prior year and $172,094 for the six
months ended June 30, 1995 over the previous year reflecting the
increase in debt from the sale of contracts to a finance company. 
Also, the effective interest rate on funds from the finance company
is higher than the interest rate for debt that is being currently
reduced.

The book value of replaced systems is charged to other expense in
the period the replacement installation is made.  The book value
for equipment under lease includes the recorded residual value and
the present value of future payments that are cancelled at the time
of the replacement.  The value of rental equipment removed is the
undepreciated book value of the rental equipment.  

The book value of removed systems charged to operations is made up
of the same costs as replaced systems.  During the quarter ended
June 30, 1996, the number of tape playback systems removed
increased to 142 tape playback systems from 59 systems for the same
period of the prior year. Management believes that this increase in
removals was caused by a letter that had been sent out by the
secured lender to all funeral home accounts.

The effect of the above changes resulted in a increase in the net
loss during the quarter ended June 30, 1995 of $314,416 compared to
a net loss of $139,804  for the same period of the prior year and
a net loss of $486,724 for the six months ended June 30, 1995
compared to a net loss of $449,368 for the same period of the prior
year. 

Balance Sheet  

The net investment in sales-type leases increased $75,854 in the
first six months of 1996.  This reflects the addition of new lease
agreements at rates greater than the expiring or replaced lease
agreements.  More emphasis has been placed on writing lease
agreements with fewer orders for the outright purchase of the CD
playback equipment.  This has resulted in more leases of equipment
for new CD playback installations.  



The receivables from tribute contracts declined $237,558 in the
first six months of 1996.  The decline reflects the expiration of
tribute contracts in excess of new contracts added.   

Inventories decreased $35,964 during the six-months ended June 30,
1996 with more emphasis on control.  

Total term debt decreased $304,420 during the six-months ended June
30, 1996.  During this six month period the long term debt of the
secured lender was reduced by $3,248,089., along with $122,397
reduction in contracts payable.  The new borrowings represent the
proceeds from the sale of lease agreements to a finance company.


Part II.  Other Information

Item 3.  Defaults upon Senior Securities
          
The last "standstill period" instituted by the secured creditor as
provided in the Plan of Reorganization whereby no payments can be
made to the holders of Senior Convertible Debentures ended on
November 6, 1995, and some interest payments have been made through
June 30, 1996.  The Plan of Reorganization provides for "Event of
Default" and as of this date, unpaid interest on subordinated debt
and unpaid payments under plan to unsecured creditors and taxing
agencies also constitute an "Event of Default".
<PAGE>

                           Opinion of Management



The balance sheet as of June 30, 1996 and the related statements of
income, changes in stockholders' equity and cash flows for the
three month periods and six month periods ended June 30, 1996 and
1995 are unaudited.  In the opinion of Management, all adjustments
necessary for a fair presentation of such financial statements have
been included.  Such adjustments consisted only of normal recurring
items.  Interim results are not necessarily indicative of results
for a full year.  It is suggested that these financial statements
be read in conjunction with the financial statements and notes
thereto included in the Company's latest 10-KSB filing with the
SEC.  A copy of the form 10-KSB can be obtained by contacting the
corporate office and requesting a copy.



                                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.



Date  November 15, 1996                     /s/ Merrill P. Womach 
               
                             Merrill P. Womach
                             President and Chief Executive Officer 
                             Acting Secretary and Treasurer       
                             (Principal Executive Officer)