SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C.  20549
  
                                Form 10-Q
  
  (Mark One)
  [X]  Quarterly report pursuant to Section 13 or 15(d) of the Securities
       Exchange Act of 1934 for the Quarterly period ended January 31, 1999.
  
  [ ]  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: 0-16787
  
  
                       INTERNATIONAL YOGURT COMPANY
          (Exact name of registrant as specified in its charter)
  
  
            Oregon                                         91-0989395     
    
  (State or other jurisdiction of                        (I.R.S. Employer
  incorporation or organization)                       Identification 
Number)
  
  
  5858 N.E. 87th Avenue 
    Portland, Oregon                                          97220
  (Address of Principal                                     (Zip Code)
     Executive Office)
  
                              (503) 256-3754  
           (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
       
  The number of shares outstanding of the registrant's common stock, as of
the latest practicable date is:
  
                       Class:  Common stock outstanding at 
                     January 31, 1999:   2,316,593  shares
  
  
  
  
  
  
  
  
                         INTERNATIONAL YOGURT COMPANY

                                   CONTENTS
  
  
           Page
PART I     FINANCIAL INFORMATION:
  
   Item 1.  Financial Statements                                 3 - 7

      Balance Sheet as of January 31, 1999,                      3
      (unaudited) and October 31, 1998

      Statements of Income for the                               4
      Three Months  ended January 31, 1999 and 1998
      (all unaudited)

      Statements of Cash Flows for the                           5
      Three Months ended January 31, 1999 and 1998
      (all unaudited)

      Notes to Financial Statements                              6-7

   Item 2.  Management's Discussion and Analysis of              8-10
            Financial Condition and Results of
            Operations


PART II     OTHER INFORMATION 

   Item 1.  Legal Proceedings                                    11

   Item 2.  Changes in Securities                                11

   Item 3.  Defaults upon Senior Securities                      11

   Item 4.  Submission of Matters to a Vote of                   11
            Security Holders

   Item 5.  Other Information                                    11

   Item 6.  Exhibits and Reports on Form 8-K                     11 
   
     

SIGNATURES                                                       12











 PART 1.   FINANCIAL INFORMATION
 Item 1.   Financial Statements
 
                            INTERNATIONAL YOGURT COMPANY
                                    BALANCE SHEETS
                                                                
                                                  January 31, October 31,
                                                      1999        1998     
                 ASSETS                           (unaudited)

 Current assets
    Cash and cash equivalents                     $  282,449   $  277,246
    Accounts receivable, net                         742,079      907,749
    Inventories                                    2,046,895    1,917,125
    Other current assets                             266,110      254,325

       Total current assets                        3,337,533    3,356,445
 
 Fixed assets, net                                 2,061,557    2,130,607
 Deferred tax asset                                  799,000      818,000
 Intangible and other long-term assets, net          254,675      250,605
                                                  $6,452,765   $6,555,657    
LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities
    Note payable to bank                          $  886,800   $  782,800
    Current portion of long-term debt                 49,869       49,869
    Current obligations under capital lease           48,105       48,105
    Accounts payable                                 740,172      933,826
    Other accrued liabilities                        111,060      127,132
       Total current liabilities                   1,836,006    1,941,732
 Long-term debt payable to related parties
    and others, less current portion                 135,277      147,284
 Long term obligations under
    capital lease, less current portion                6,168       15,321

       Total liabilities                           1,977,451    2,104,337
 Shareholders' equity
    Common stock, nor par value,          
    30,000,000 shares authorized;
    2,364,593 shares issued                        5,360,942    5,360,941
    Accumulated deficit                             (725,531)    (775,033)
    Less common stock in treasury, 48,000 shares    (160,097)    (134,588)

       Net shareholders' equity                    4,475,314    4,451,320
 
                                                  $6,452,765   $6,555,657
 








 The accompanying notes are an integral part of the financial statements.
 
                       INTERNATIONAL YOGURT COMPANY
                            STATEMENTS OF INCOME
                                 (unaudited)
                                      
          For the three months ended January 31,1999 and 1998
 
 
                                                    1999          1998 
   
 
Revenue                                           $2,177,866   $1,613,935
                                              
Cost of sales                                      1,527,360    1,118,913
 
       Gross profit                                  650,506      495,022
 
 Selling and marketing expenses                      283,624      271,557
 
 General and administrative expenses                 276,135      252,796
 
       Income (loss) from operations                  90,747      (29,331)
 
 Other income (expenses):
    Interest income                                    2,753        4,473
    Interest expense                                 (24,997)     (37,598)
    Other, net                                           -          8,028 

       Income (loss) before income taxes              68,503      (54,428)
 
 Provision for income taxes                          (19,000)           -
 
       Net income (loss)                          $   49,503   $  (54,428)
 
 

Basic net income (loss) per share                 $      .02   $     (.02)
Diluted net income (loss) per share               $      .02   $     (.02)


















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

                         INTERNATIONAL YOGURT COMPANY
                           STATEMENTS OF CASH FLOWS
                                       
             For the three months ended January 31, 1999 and 1998
                                  (Unaudited)
                                        
                                                      1999         1998    
 
 Increase (decrease) in cash and cash equivalents
 Cash flows from operating activities:
 
 Net income (loss)                                $   49,503   $  (54,428)
 Adjustments to reconcile net 
 Income (loss) to net cash provided
 By operating activities:
    Depreciation                                      84,837       64,208
    Gain on sale of equipment                           -          (8,028)   
    Deferred income taxes                             19,000          -
    Change in assets and liabilities
       Accounts receivable                           165,670      224,698
       Inventories                                  (129,770)    (125,088)
       Other assets                                  (18,524)     (16,801)
       Accounts payable                             (193,393)     (85,954)
       Other accrued liabilities                     (16,332)     (    95)
 
    Net cash (used) provided by                      (39,009)      (1,488)
       operating activities

 
 Cash flows from investing activities:
    Expenditures for plant and equipment             (13,119)     (82,011)

       Net cash used in investing activities         (13,119)     (82,011)
 
 Cash flows from financing activities:
    Net increase (decrease) in line of credit        104,000      (16,000)
    Proceeds from bank equipment financing              -          42,179
    Proceeds from issuance of stock                     -          39,250  
    Principal payments on long term debt
       and capital leases                            (21,160)     (17,986)
    Treasury stock purchased                         (25,509)        -
       Net cash provided by (used in)                                    
          financing activities                        57,331       47,443
       Net increase (decrease)in cash
          and equivalents                              5,203      (36,056)

 Cash and equivalents, beginning of period           277,246      414,194

 Cash and equivalents, end of period              $  282,449   $  378,138
 
 




  The accompanying notes are an integral part of the financial statement.

                          INTERNATIONAL YOGURT COMPANY
                         NOTES TO FINANCIAL STATEMENTS
                                        
 
 Note A - Basis of Presentation
 
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01
of Regulation S-X.  Accordingly, they do not include all of the information 
and footnotes required by generally accepted accounting principles for
complete financial statements.  In the opinion of management, all adjust-
ments, which consist of normal recurring accruals, considered necessary for
a fair presentation have been included.  Operating results for the quarter
ended January 31, 1999 are not necessarily indicative of the results that 
may be expected for the year ending October 31, 1999.  For further 
information, refer to the financial statements, and footnotes thereto, 
included in the Corporation's annual report on Form 10-K for the year ended 
October 31, 1998.


Note B - Inventories

Inventories consist of                      January 31,     October  31,
                                               1999              1998        
  
Finished goods                               $1,551,725       $1,462,681
Raw materials                                   352,318          336,821
Packaging materials and supplies                142,852          117,623
                                             $2,046,895       $1,917,125


Note C - Earnings per share

Earnings per share are calculated as follows for the three months ended
January 31, 1999 and 1998:


                                  Three Months Ended January 31, 1999
                                Net Earnings    Shares      Per-Share
                                (Numerator)  (Denominator)    Amount

  Basic earnings per share:

  Net earnings                     $49,503    2,318,908        $.02 

  Effect of dilutive securities        -         65,548          -
  
  Diluted earnings per share       $49,503    2,384,456        $.02








NOTES TO FINANCIAL STATEMENTS - Continued



                                Three Months Ended January 31, 1998
                                Net Loss      Shares      Per-Share
                               (Numerator)  (Denominator)    Amount

  Basic (loss) per share:

  Net loss                        ($54,428)     2,241,499      ($.02)

  Effect of dilutive securities        -              -           - 
 
  Diluted (loss) per share        ($54,428)     2,241,499      ($.02)



Options to purchase 131,000 shares at prices from $1.71 to $2.31 were
excluded from the diluted loss per share calculation, even though the 
average price for the quarter was higher than the exercise prices, because 
the effect would have been antidilutive.



































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


The following discussion includes forward-looking statements within the
meaning of the "safe-harbor" provisions of the Private Securities Litigation
Reform Act of 1995.  Such forward-looking statements are based on the 
beliefs of the Company's management and on assumptions made by and 
information currently available to management.  All statements other than 
statements of historical fact, regarding the Company's financial position, 
business strategy and plans and objectives of management for future 
operations of the Company are forward-looking statements.  When used herein, 
the words "anticipate," "believe," "estimate," "expect," and "intend" and 
words or phrases of similar meaning, as they relate to the Company or 
management, are intended to identify forward-looking statements. Although 
the Company believes that the expectations reflected in such forward-looking 
statements are reasonable, it can give no assurance that such expectations 
will prove to have been correct. Forward-looking statements are subject to 
certain risks and uncertainties, which could cause actual results to differ 
materially from those indicated by the forward-looking statements.  These 
risks and uncertainties include the Company's ability to maintain or expand 
its distribution abilities, including the risk of disruptions in the 
transportation system and relationships with brokers and distributors. 
Further, actual results may be affected by the Company's ability to compete
on price and other factors with other manufacturers and distributors of
frozen dessert products; customer acceptance of new products; general trends
in the food business as they relate to customer preferences for the 
Company's products; and the Company's ability to obtain raw materials and 
produce finished products in a timely manner, as well as its ability to 
develop and maintain its co-packing relationships and strategic alliances.  
In addition, there are risks inherent in dependence on key customers, the 
loss of which could materially adversely affect the Company's operations.  
The reader is advised that this list of risks is not exhaustive and should 
not be construed as any prediction by the Company as to which risks would 
cause actual results to differ materially from those indicated by the 
forward-looking statements.

Results of Operations

Revenues

The Company's revenues for the first fiscal quarter ending January 31, 1999
were $2,177,866, up 34.9% compared to the corresponding quarter in 1998.        

Over the last three years the percentage increase in first quarter revenues 
has grown each year.  In the first quarter of 1997, revenues were up 5.9%, 
1998 was up 7%, and 1999 was up 34.9% compared to the corresponding quarter 
in the prior year.  The increase in the current quarter was primarily the 
result of YOCREAM Smoothie sales and penetration of YOCREAM frozen yogurt 
into convenience stores.  

From a broader perspective, the driving forces behind the year to year 
revenue trends continues to be due to the competitive success of the 
Company's products, new product development capabilities, and long-term 
customer alliances.  The successes are also due to an established national 
distribution system including a network of brokers and distributors, and 
expanded direct sales activity.  The strategy implemented in 1997 to 
intensify direct sales activity through its own regional sales managers has 
enabled the Company to better support its brokers and distributors, and 
recently to penetrate the convenience store market segment.   

A year ago the Company had just developed its YOCREAM line of fruit 
smoothies, which are adaptable to both blender and dispenser operation.  
Since its introduction, this product accounted for much of the revenue 
increases, and is expected to continue to drive the growth in fiscal 1999. 

Recently the Company has developed another YOCREAM smoothie drink which is 
designed to be sold by retail stores, out of the refrigerated case along 
with other juice and soft drink products.  This product is scheduled to be 
released in the second quarter and management expects that this product will 
also be successful.

Gross Profit

The Company's gross profit margin decreased from 30.7% of revenues in the 
1998 first quarter to 29.9% of revenues in the current quarter.  The slight 
decrease is primarily due to the change in sales mix.

Selling and Marketing Expenses

Selling and marketing expenses in the first quarter decreased from 16.8% to
13% of revenues for the quarter. Such expenses increased slightly over the 
same period last year, but decreased as a percentage of revenues, primarily 
due to the growth in revenues.   

General and Administrative Expenses

General and administrative expenses decreased, as a percentage of 
revenues,from 15.7% to 12.7% of revenues for the quarter. Such expenses 
increased slightly over the same period last year, but decreased as a 
percentage of revenues, primarily due to the growth in revenues.
 
Income from Operations

The income from operations was $90,747, or 4.2% of revenues, compared to a 
loss of $29,331, or -1.8% of revenues, in the comparable quarter last year.  
The improved results are primarily due to the significant increase in 
revenues with only slight increases in operating expenses.          

Net Income

Net income for the quarter was $49,503 compared with a loss of $54,428 in 
the comparable quarter last year.  Historically the Company has lost money 
in the first quarter due to the seasonal nature of the demand for frozen 
yogurt.  The improved results are due to the growth in sales from the 
Company's smoothie drink products and yogurt sales to convenience stores.  

Net income in the current quarter was, for the first time, reduced by a 
provision for income taxes.  As of the end of fiscal 1998, the Company has 
recognized substantially all of the deferred tax benefit of its net 
operating loss carryforwards, thus the need for the current tax provision.  
The provision will reduce the related deferred tax asset established in 
prior years. Although the benefit of the net operating loss carryforwards 
have been recognized for financial statement purposes, such losses are still 
available to reduce taxable income over the next several years.

Liquidity and Capital Resources.

In recent years,the Company has financed its operations and expansion from 
bank loans, operating leases, capital leases, stock sales, and internally 
generated funds.  

As of January 31, 1999, the Company's total borrowings under its bank line 
of credit were $886,800, compared with $1,317,000 at January 31, 1998.  The 
reduction in the amount borrowed is due to the growth in operating results 
and related cash flow over the past twelve months.  The line permits 
borrowings of up to $1,700,000 subject to the Company being in compliance 
with certain ratios and negative covenants, and is collateralized by 
qualified accounts receivable, inventories and loan insurance provided by a 
governmental agency. Interest is at 1 percent over the bank's basic 
commercial lending rate. The line is subject to renewal by May 1, 1999.

Accounts receivable at January 31, 1999 and October 31, 1998 were $742,079 
and $907,749, respectively. This decrease of 18.3% is primarily attributable 
to the seasonal decline in revenues compared to October 1998.  The current 
level is higher than the January 31, 1998 total of $604,162 due to the 
current quarter's growth in revenues.

Inventories at January 31, 1999 and October 31, 1998 were $2,046,895 and 
$1,917,125 respectively.  This increase of 6.8% is spread between increases 
in finished goods, raw materials and packaging materials.  The current level 
is higher than the January 31, 1998 total of $1,933,289, primarily due to an 
increase in raw materials necessitated by the growth in YOCREAM fruit 
smoothie sales.     

At January 31, 1999 the Company had working capital of $1,501,527 compared 
with $1,414,713 at October 31, 1998, and $951,568 at January 31, 1998.  The 
improvement is primarily due to the reduction in bank borrowings.  This has 
resulted from an increase in cash provided from operating activities over 
the last year, and the proceeds from the exercise of stock options in fiscal 
year 1998.

The Company believes its existing assets, bank lines, and revenues from
operations will be sufficient to fund the Company's operations for at least
the next twelve months.  The Company also expects its bank line to be 
renewed or replaced at maturity. In the event that the Company's bank lines 
were not renewed or replaced, the Company would need to curtail operations 
substantially, seek additional capital, or both. 

The Company has begun the process of making its assessment of its Year 2000 
issues.  Management has determined that its accounting software is Year 2000 
ready, and in late fiscal 1998 the Company completed a planned upgrade to 
its network operating system, and replaced certain computers. Contact has 
been made with certain business partners, and in the next few months the 
Company plans further contacts with customers and suppliers.  The Company 
also plans to work with a computer consultant to review all of its hardware 
and systems, as well as evaluating risks, and formulating contingency plans.  
At this time, management is not aware of any issues that would have a 
material impact on its financial statements.

PART II.  OTHER INFORMATION

Item 1.   Legal  Proceedings

     The Company is not involved in any material pending legal proceedings,
     other than non-material legal proceedings occurring in the ordinary 
     course of business.



Item 2.   Changes in Securities

      None.



Item 3.   Defaults Upon Senior Securities

      None.



Item 4.   Submission of Matters to Vote of Security Holders

      None.  



Item 5.   Other Information

      None


Item 6.  Exhibits and Reports on Form 8-K

      A.   Exhibits
      
             Exhibit 27 - Financial Data Schedule is filed herewith

      B.   Reports on Form 8-K - not applicable                 
      
















                                  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.

  Registrant:

                      INTERNATIONAL YOGURT COMPANY



Date:    March 17, 1999               By:    /s/  John N. Hanna                
        
                                            John N. Hanna, Chairman of the
                                            Board, and Chief Executive 
Officer


Date:     March 17, 1999               By:   /s/ W. Douglas Caudell          
                                            W. Douglas Caudell, Chief        
                                            Financial Officer