<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)