<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the third
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>                   9-MOS
<FISCAL-YEAR-END>               AUG-31-1999
<PERIOD-END>                    MAY-31-1999
<CASH>                              721,870
<SECURITIES>                              0
<RECEIVABLES>                     1,248,721
<ALLOWANCES>                        269,140
<INVENTORY>                               0
<CURRENT-ASSETS>                  2,483,453
<PP&E>                            2,901,441
<DEPRECIATION>                    1,529,278
<TOTAL-ASSETS>                    4,585,308
<CURRENT-LIABILITIES>               511,476
<BONDS>                                   0
<PREFERRED-MANDATORY>                     0
<PREFERRED>                               0
<COMMON>                            687,316
<OTHER-SE>                        3,065,877
<TOTAL-LIABILITY-AND-EQUITY>      4,585,308
<SALES>                           3,892,442
<TOTAL-REVENUES>                  3,892,442
<CGS>                             1,704,693
<TOTAL-COSTS>                     4,428,475
<OTHER-EXPENSES>                  2,723,782
<LOSS-PROVISION>                    110,802
<INTEREST-EXPENSE>                   24,697
<INCOME-PRETAX>                    (536,033)
<INCOME-TAX>                          2,943
<INCOME-CONTINUING>                (531,601)
<DISCONTINUED>                            0
<EXTRAORDINARY>                           0
<CHANGES>                                 0
<NET-INCOME>                       (531,601)
<EPS-BASIC>                          (.04)
<EPS-DILUTED>                          (.04)