<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE DECEMBER
31, 1996 AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF GRAY COMMUNICATIONS 
SYSTEMS, INC. AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL 
STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                       1,051,044
<SECURITIES>                                         0
<RECEIVABLES>                               18,823,839
<ALLOWANCES>                                 1,450,000
<INVENTORY>                                    624,118
<CURRENT-ASSETS>                            23,539,223
<PP&E>                                      53,993,742
<DEPRECIATION>                              18,209,891
<TOTAL-ASSETS>                             298,663,842
<CURRENT-LIABILITIES>                       23,881,335
<BONDS>                                    173,228,049
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                 20,000,000
<COMMON>                                    64,681,576
<OTHER-SE>                                  10,543,940
<TOTAL-LIABILITY-AND-EQUITY>               298,663,842
<SALES>                                              0
<TOTAL-REVENUES>                            79,305,199
<CGS>                                                0
<TOTAL-COSTS>                               63,226,287
<OTHER-EXPENSES>                           (5,704,582)<F1>
<LOSS-PROVISION>                               894,000
<INTEREST-EXPENSE>                          11,689,053
<INCOME-PRETAX>                             10,094,441
<INCOME-TAX>                                 4,416,000
<INCOME-CONTINUING>                          5,678,441
<DISCONTINUED>                                       0
<EXTRAORDINARY>                              3,158,960<F2>
<CHANGES>                                            0
<NET-INCOME>                                 2,519,481
<EPS-PRIMARY>                                     0.38
<EPS-DILUTED>                                     0.38
<FN>
<F1>Includes gain recognized on the sale of KTVE, the Company's NBC-
    affiliated television station of approximately $5.7 million.
<F2>Extraordinary charge net of taxes recorded in connection with 
    the early retirement of the Senior Note and the Old Credit Facility and
    the write-off of related unamortized loan aquisition costs.
</FN>