<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> 6-MOS <FISCAL-YEAR-END> AUG-31-1999 <PERIOD-END> FEB-28-1999 <CASH> 1,007,217 <SECURITIES> 0 <RECEIVABLES> 1,017,179 <ALLOWANCES> 174,467 <INVENTORY> 0 <CURRENT-ASSETS> 2,493,973 <PP&E> 2,997,026 <DEPRECIATION> 1,551,939 <TOTAL-ASSETS> 4,623,143 <CURRENT-LIABILITIES> 570,226 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 687,316 <OTHER-SE> 3,021,861 <TOTAL-LIABILITY-AND-EQUITY> 4,623,143 <SALES> 2,532,386 <TOTAL-REVENUES> 2,532,386 <CGS> 1,230,098 <TOTAL-COSTS> 1,230,098 <OTHER-EXPENSES> 1,872,928 <LOSS-PROVISION> 32,898 <INTEREST-EXPENSE> 16,808 <INCOME-PRETAX> (574,491) <INCOME-TAX> 955 <INCOME-CONTINUING> (573,536) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (573,536) <EPS-PRIMARY> (.04) <EPS-DILUTED> (.04)