U.S. SECURITIES AND EXCHANGE COMMISSION

                    Washington, D. C. 20549

                         FORM 10-QSB


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

For the three months ending March 31, 1998

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15 (d)
	   OF THE EXCHANGE ACT

For the transition period from ______________ to ______________

Commission file number 0-7267

WEB PRESS CORPORATION	
______________________________________________________
(Exact name of registrant as specified in its charter)

Washington		                        91-0851298	
_______________________________     ____________________
(State or other jurisdiction of	    (I.R.S. Employer
 incorporation or organization)	     Identification No.)

22023 68th Avenue S., Kent, Washington 98032
____________________________________________
(Address of principal executive offices)	

Registrant's telephone number, including area code (253) 395-3343
                                                   ______________

Check whether the issuer (1) 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 ninety 
(90) days. 		Yes X  No _  

All reports during the preceding 12 months have been filed.

Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of the latest practicable date 
(applicable only to corporate issuers):  Common Stock, $.025 par 
value per share; 3,105,413 shares outstanding as of May 13, 1998.


                 _ _ _ _ _ _  _ _ _ _ _ _ _ _ _ _ _

                Page 1 of 14 pages in this document



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INTRODUCTORY REMARKS


The condensed financial statements included herein have been 
prepared by the Company, without audit, pursuant to the rules and 
regulations of the Securities and Exchange Commission.  Certain 
information and footnote disclosures normally included in 
financial statements prepared in accordance with generally 
accepted accounting principles have been condensed or omitted 
pursuant to such rules and regulations, although the Company 
believes that the disclosures are adequate to make the 
information presented not misleading.

The information furnished reflects all adjustments which are, in 
the opinion of management, necessary to a fair statement of the 
results for the interim period.

It is suggested that these condensed financial statements be read 
in conjunction with the financial statements and the notes 
therein included in the Company's latest annual report on Form 
10-KSB.



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                            PART I
                            ______

                    FINANCIAL INFORMATION
                    _____________________

                    WEB PRESS CORPORATION

                 CONSOLIDATED BALANCE SHEET
                   (Dollars in Thousands)


ASSETS                                   March 31, 1998
                                         ______________
                        
Current Assets:
  Cash.............................       	$   36
  Accounts receivable, less
  allowance for doubtful 
  accounts of $5...................   	   	   964
  Inventories......................      		 3,843
  Refundable income taxes..........      		   111
  Deposits.........................      		    51
  Deferred tax assets..............      		    83
  Prepaid expenses.................      		    19
                                           ______

  Total Current Assets.............      		 5,107 

Machinery and Leasehold Improvements,
at cost:
  Machinery and equipment..........      		 3,260
  Leasehold improvements...........      		   195
                                           ______

                                          	 3,455

  Less accumulated depreciation
    and amortization...............      		 2,559
                                           ______

  Machinery and Leasehold
    Improvements (Net).............      		   896
                                           ______

  Total Assets.....................      		$6,003
                                           ______
                                           ______



The above figures are unaudited.  The accompanying notes are an 
integral part of the Consolidated Financial Statements.


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                    WEB PRESS CORPORATION

                 CONSOLIDATED BALANCE SHEET
                    (Dollars in Thousands)


LIABILITIES AND STOCKHOLDERS' EQUITY      March 31, 1998
                                          ______________

Current Liabilities:
  	Note payable to bank.....................	$  437
	  Accounts payable.........................	   428
	  Customer deposits........................	   196
	  Accrued expenses.........................	   559
	  Current portion of long-term debt........	   318
                                             ______

Total Current Liabilities...................	 1,938

Long-Term Debt, less current portion........	 1,007

Deferred Tax Liabilities....................	   438

Commitments

Stockholders' Equity:
  	Common stock, par value $.025 per share:
	   Authorized, 4,000,000 shares
	   Issued, 3,436,513 shares................	    86
	  Paid-in capital..........................	   320
  	Retained earnings........................	 2,311
                                             ______

                                           		 2,717

  	Treasury stock, 331,100 shares at cost...	   (97)
                                             ______

Total Stockholders' Equity..................	 2,620
                                             ______

Total Liabilities and
 Stockholders' Equity.......................	$6,003
                                             ______
                                             ______




The above figures are unaudited.  The accompanying notes are an 
integral part of the Consolidated Financial Statements.


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                   WEB PRESS CORPORATION

           Consolidated Statements of Operations

           For the three months ending March 31,
      (Dollars in Thousands Except Earnings Per Share)

	
                                         1998      1997
                                         ____      ____

Sales.........................		        $1,015	   $1,460

Cost of sales.................		           768   	 1,119
                                        ______    ______
                             		   						   247	      341

Selling, general and
  administrative expenses.....		           334   	   285
                                        ______    ______
                              		  						   (87)	      56

Interest expense..............		            46   	    39
                                        ______    ______

Earnings (loss) before taxes
  (benefit)...................		          (133)  	    17

Taxes (benefit) on earnings
  (loss)......................		           (45)  	     6
                                        ______    ______

Net earnings(loss)............		        $  (88)	  $   11
                                        ______    ______
                                        ______    ______

Net earnings(loss) per share..   		      $(.03)	  $.004
                                         _____    _____
                                         _____    _____



The above figures are unaudited.  The accompanying notes are an 
integral part of the Consolidated Financial Statements.


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                     WEB PRESS CORPORATION

             CONSOLIDATED STATEMENTS OF CASH FLOWS
             For the three months ending March 31,
                     (Dollars in Thousands)

                             				        	     1998	    1997
                                               ____     ____

Cash flows from operating activities:
  Net earnings (loss)......................		$  (88)  	$  11
  Adjustments to reconcile net 
  earnings (loss) to net cash provided
  (used) by operating activities:
    Depreciation and amortization..........  		  52   	   52
    Inventory valuation reserve............    		16
    Provision for losses on accounts  
      receivable...........................       2   	    3
    Deferred taxes.........................  		 (45)  	    6
    Retirement of plant assets.............       5

    Increase (Decrease) in cash from
    changes in operating accounts:

      Accounts  receivable.................  	2,507   	 (511)
      Inventory............................ 	(1,109)  	 (446)
      Deposits.............................		    56
      Prepaid expenses.....................	     19   	   (6) 
      Accounts payable.....................   	(260)   	  171
      Customer deposits....................   	   2    	   16
      Accrued expenses.....................   	(749)      117
      Income taxes payable.................	              (38)
                                             ______     _____

      Total adjustments....................   		496    	 (636)
                                             ______     _____

    Net cash provided(used) by 
      Operating activities.................   	 408    	 (625)

Cash flows from investing activities:
  Capital expenditures.....................   	(451)   	  (10)
  Proceeds from retirement of plant
    Assets.................................      55
                                             ______     _____
Net cash used by investing activities......   	(396)      (10)

(Continued on following page)

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(Continued from previous page)


Cash Flows from financing activities:
  Proceeds from issuance of
    long-term debt.........................   	 421   	  975
  Payments on long-term debt............... 	   (68)  	 (865)
                                             ______    _____

  Net borrowings (payments) from
    financing activities...................    (335)     546 
                                             ______    _____

  Net cash provided by financing
    activities.............................      18   	  656 
                                             ______    _____

Net increase in cash.......................		    30   	   21

Cash at beginning of period................ 	     6   	    6
                                             ______    _____

Cash at end of period...................... 	$   36	   $  27

Supplemental disclosures of cash
  flow information:

  Cash was paid during the year for:

  Interest................................  	   $42   		 $21 
  Taxes...................................           			  38



The above figures are unaudited.  The accompanying notes are an 
integral part of the Consolidated Financial Statements. 

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                    WEB PRESS CORPORATION

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

           FOR THE THREE MONTHS ENDING MARCH 31, 1998

Note 1 - Summary of Significant Accounting Policies:

Principles of consolidation
___________________________

The accompanying consolidated financial statements include the 
accounts of Web Press Corporation and Web Leader International, 
Inc., its wholly owned Domestic International Sales Corporation 
(DISC).  All significant inter-company accounts and transactions 
have been eliminated in consolidation.

Inventories
___________
Raw materials, work-in-progress and finished goods inventories 
are stated at the lower of average cost or market.  Used presses 
and other related press equipment are stated at the lower of 
cost (specific identification basis) or market.  Inventory costs 
include material, labor, and manufacturing overhead.

Inventories were classified as follows:

                                (Dollars in Thousands)
                            				    March 31, 1998    
                                    ______________

	   Raw materials and parts
    (including subassemblies).....     $1,273
    Work-in-progress..............	       854
    Finished goods................	     1,364
    Used equipment................	       352
                                       ______

                                  				 $3,843
                                       ______
                                       ______

Machinery and leasehold improvements
____________________________________

Machinery and equipment are depreciated on the straight-line 
method, for financial statement purposes, based upon useful 
lives of three to ten years.  Leasehold improvements are 
amortized over their useful lives or the term of the lease, 
whichever is shorter.  For income tax purposes, accelerated 
methods are used for all eligible assets.



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<PAGE>


Maintenance and repairs are charged directly to costs or 
expenses as incurred.  Equipment of only nominal value and 
renewals and betterments that do not appreciably extend the life 
of the asset are charged directly to costs or expenses.

Fully depreciated or fully amortized assets which are no longer 
in use or are not identifiable are written off by charges to the 
allowance for accumulated depreciation and amortization.  When 
assets are retired or disposed of, the costs and accumulated 
depreciation of such assets are removed from the accounts and 
the difference between the net depreciated cost and the amount 
received is recorded in the statements of operatinos.

Revenue recognition
___________________

Revenue from sales of manufactured products under firm contracts 
is recognized generally at the time equipment is available for 
shipment.  All freight and installation costs are accrued at the 
time revenue is recognized.  Estimated costs related to product 
warranties are provided at the time of sale.  Proceeds received 
on contracts prior to recognition as a sale are recorded as 
deposits.

Income taxes
____________
Income taxes are provided on income for financial reporting 
purposes without regard to the period in which such taxes are 
payable.  Deferred taxes are provided for all significant items 
which are reported for tax purposes in different periods than 
the consolidated statements of earnings.  Investment tax credits 
are recorded as a reduction of federal income taxes in the year 
available.

Earnings per share
__________________

Earnings per share calculations are based on the weighted 
average number of shares outstanding.

Note 2 - Financing:

The Company has a line of credit with a commercial bank for 
borrowing up to $1.200 million. The interest rate charged is 2 
percent above the bank's prime rate.  Borrowings against this 
line were $437 thousand on March 31, 1998.  Accounts receivable, 
firm orders in production, inventories, and values in excess of 
the long-term financing on equipment are pledged as collateral.


                             9

<PAGE>

The Company has a second line of credit with the bank for 
borrowing up to an additional $1 million to manufacture 
equipment for export.  The loan is a revolving line of credit 
based on a series of transactions backed by letter of credit 
orders acceptable to the bank.  The line is secured by an 
"export working capital guarantee" from the Export-Import Bank 
of the United States.  The interest rate charged is 1.5 percent 
above the bank's prime rate.  There were no borrowings against 
this line on March 31, 1998.

                            10

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Long-term debt consists of the following:

                                    		(Dollars in Thousands)
                                    		    March 31, 1998 
                                          ______________

Term note, 2% above prime rate, due 
in monthly installments of $24,837 
including interest.  Final payment 
due February, 2001........................     $  749

Note payable for equipment, 8%, due in 
monthly installments of $6,794 
including interest.  Final payment due 
in March, 2003............................      		421

Note payable for equipment, 9.3%, due
in monthly installments of $2,198
including interest.  Final payment due
in March, 2004............................      		121

Note payable for equipment and leasehold
improvements, 12%, due in monthly install-
ments of $2,262 including interest.  
Final payment due in October, 1998........	        15

Note payable for equipment, 10%, due in 
monthly installments of $1,039 including 
interest.  Final payment due in 
November, 1998............................	         8

Note payable for equipment, 8.23%, due in
monthly installments of $277 including
interest.  Final payment due in December,
2001......................................         11
                                               ______
                                             	  1,325

Less current portion......................	       318 
                                               ______

 	                                             $1,007
                                               ______
                                               ______

	Equipment with an original cost of $621 thousand is pledged 
as collateral under the notes payable for equipment and the 
equipment purchase contracts.


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Note 3 - Common Stock:

The Company's Stock Option Plan permits issuance of stock 
options to key employees at prices not less than 100% of market 
price at the date of grant.  An aggregate of 600,000 shares of 
common stock is reserved in connection with this Plan.  As of 
March 31, 1998, no options had been granted under this Plan.


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

Operating results

Sales for the first quarter of 1998 were $1.015 million, compared 
with $1.134 million for the same period in 1997.  New equipment 
sales accounted for most of the decline.  Service and parts sales 
were slightly lower in 1998, too.  The Company sold one used 
press in 1998.  There was no used equipment sold in the first 
quarter of 1997.  The backlog of orders believed to be firm was 
$3.155 million on May 13, 1998, compared with $1.579 million on 
May 13, 1997.

Cost of sales, expressed as a percentage of sales, decreased to 
75.6 percent in the first quarter of 1998 compared with 76.6 
percent in the first quarter of 1997.  Gross profits were $247 
thousand and $341 thousand in the first quarter of 1998 and 1997, 
respectively.

Selling, general and administrative expenses increased by $49 
thousand in the first quarter of 1998 compared with the same 
period in 1997.  Most of the increase was in selling expenses, 
which increased $40 thousand due to higher payroll, advertising 
and promotion, and travel expenses.  General and administrative 
expenses increased $9 thousand due to higher payroll expenses and 
personnel recruiting costs.  Most other expenses were 
approximately the same in 1998 as they were in 1997.

Interest expense was $46 thousand in the first quarter of 1998, 
compared with $39 thousand in the first quarter of 1997.  The 
average interest rate on the Company's short-term borrowings from 
the bank was 10.4 percent in 1998 and 10.5 percent in 1997.  The 
average amount of short-term borrowings outstanding decreased to 
$322 thousand in 1998 from $374 thousand in 1997. 

The Company had a net loss of $88 thousand in the first quarter 
of 1998, compared with net earnings of $11 thousand in the first 


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quarter of 1997.  Lower booked sales of new equipment in the 
first quarter of 1998 caused the net loss.

The Company's operating results for the first quarter are not 
necessarily indicative of results to be expected for the full 
year, particularly because of the high value of each order for 
the Company's equipment and their irregular timing.  The Company 
expects 1998 sales to exceed 1997 sales and to operate profitably 
for the year.

Liquidity

Net working capital was $3.169 million and the current ratio was 
2.6:1 on March 31, 1998.  Net cash provided from operating 
activities was $408 thousand in the first quarter of 1998.  
Changes in working capital components include an increase in 
inventories of $1.109 million, a decrease in accounts receivable 
of $2.507 million, and lower accrued expenses and accounts 
payable of $749 thousand and $260 thousand, respectively.

Finished goods inventory increased to $1.364 million on March 31, 
1998, an increase of $594 thousand from December 31, 1997.  Work-
in-progress was $854 thousand on March 31, 1998, increasing $343 
thousand from December 31, 1997.  Used equipment inventory and 
raw materials and parts inventories increased slightly in the 
first quarter of 1998.  The higher inventories are necessary to 
meet press shipment requirements in the second and third quarters 
of 1998.

Funds provided by operations are the Company's primary source of 
liquidity.  In addition, the Company uses short-term debt from 
two separate revolving lines of credit with a commercial bank to 
finance fluctuating working capital requirements.  On March 31, 
1998, the Company had additional borrowing capacity of $763 
thousand from its operating line of credit.  There were no 
borrowings from its "export line" of credit on March 31, 1998.

Capital Resources

In February 1998, the Company borrowed $420,700 from the bank to 
purchase a new machine tool.  The loan is for 5 years, but will 
be amortized over 7 years.  The interest rate charged is 9 
percent.  The first payment was due on March 18, 1998, and was 
for interest only.  Commencing April 18, 1998, the Company will 
make 59 additional monthly payments of $6,794, followed by one 
final payment of $155,675 on February 18, 2003.


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<PAGE>

Long-term debt and deferred income taxes (net of deferred tax 
assets), as a percentage of total capitalization was 34 percent 
on March 31, 1998.  The Company believes that its borrowing 
capacity is sufficient to provide for orderly growth.

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

(a) Exhibits

(10) Material Contracts

		The following exhibits are filed herewith:

		(10a)	being the Business Loan Agreement between Web Press 
        Corporation and Washington First International Bank 
        dated April 3, 1998.

		(10b)	being the Borrowing Agreement between Web Press 
        Corporation and the Export-Import Bank of the United 
        States dated April 3, 1998.

(b) Reports on Form 8-K -- There are no reports on Form 8-K 
    filed for the three months ending March 31, 1998.


                         SIGNATURE
                         _________


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.



                                  	       WEB PRESS CORPORATION 
                                          _____________________
                                                   (Registrant)


May 13, 1998                    \s\ Gary B. Palmer 
____________                    _________________________
Date                            Gary B. Palmer, President


May 13, 1998                    \s\ Craig L. Mathison
____________                    _____________________
Date                            Craig L. Mathison
                                Secretary/Treasurer
                               (Principal Accounting Officer)


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