<ARTICLE> 5 <CIK> 0000225544 <NAME> KNUSAGA CORPORATION <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> AUG-31-1996 <PERIOD-START> SEP-01-1995 <PERIOD-END> AUG-31-1996 <CASH> 34,020 <SECURITIES> 0 <RECEIVABLES> 1,104,970 <ALLOWANCES> 0 <INVENTORY> 506,203 <CURRENT-ASSETS> 1,826,327 <PP&E> 2,894,223 <DEPRECIATION> 796,286 <TOTAL-ASSETS> 3,957,502 <CURRENT-LIABILITIES> 1,735,485 <BONDS> 1,867,979 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 70,000 <OTHER-SE> 284,038 <TOTAL-LIABILITY-AND-EQUITY> 3,957,502 <SALES> 8,177,943 <TOTAL-REVENUES> 8,201,655 <CGS> 7,342,353 <TOTAL-COSTS> 1,507,047 <OTHER-EXPENSES> 190,808 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 196,346 <INCOME-PRETAX> (26,675) <INCOME-TAX> (27,733) <INCOME-CONTINUING> 1,058 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,058 <EPS-PRIMARY> .01 <EPS-DILUTED> .01