<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the second quarter 10-QSB for the fiscal year ending August 31, 1999 and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0000835412 <NAME> TMS, INC> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> AUG-31-1999 <PERIOD-END> NOV-30-1998 <CASH> 347,447 <SECURITIES> 0 <RECEIVABLES> 1,550,481 <ALLOWANCES> 179,791 <INVENTORY> 0 <CURRENT-ASSETS> 2,395,231 <PP&E> 3,025,373 <DEPRECIATION> 1,490,763 <TOTAL-ASSETS> 4,655,039 <CURRENT-LIABILITIES> 676,077 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 686,565 <OTHER-SE> 2,925,978 <TOTAL-LIABILITY-AND-EQUITY> 4,655,039 <SALES> 1,127,316 <TOTAL-REVENUES> 1,127,316 <CGS> 694,630 <TOTAL-COSTS> 1,790,295 <OTHER-EXPENSES> 1,095,665 <LOSS-PROVISION> 28,652 <INTEREST-EXPENSE> 8,644 <INCOME-PRETAX> (667,620) <INCOME-TAX> (955) <INCOME-CONTINUING> (666,665) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (666,665) <EPS-PRIMARY> (.05) <EPS-DILUTED> (.05)