<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MARCH 31, 1997 UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF
GRAY COMMUNICATIONS SYSTEMS, INC. AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<EXCHANGE-RATE>                                      1
<CASH>                                         354,504
<SECURITIES>                                         0
<RECEIVABLES>                               16,040,766
<ALLOWANCES>                                 1,360,000
<INVENTORY>                                    747,289
<CURRENT-ASSETS>                            22,706,409
<PP&E>                                      58,039,212
<DEPRECIATION>                              19,934,524
<TOTAL-ASSETS>                             298,688,479
<CURRENT-LIABILITIES>                       24,632,546
<BONDS>                                    170,196,045
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                 20,000,000
<COMMON>                                    66,438,044
<OTHER-SE>                                   9,578,728
<TOTAL-LIABILITY-AND-EQUITY>               298,688,479
<SALES>                                              0
<TOTAL-REVENUES>                            22,760,527
<CGS>                                                0
<TOTAL-COSTS>                               18,423,770
<OTHER-EXPENSES>                                45,763
<LOSS-PROVISION>                                49,425
<INTEREST-EXPENSE>                           4,975,693
<INCOME-PRETAX>                              (684,699)
<INCOME-TAX>                                 (223,600)
<INCOME-CONTINUING>                          (461,099)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 (461,099)
<EPS-PRIMARY>                                   (0.10)
<EPS-DILUTED>                                   (0.10)