<ARTICLE>                     5
<LEGEND>
     This schedule contains summary financial information extracted from the
September 30, 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>                   9-MOS
<FISCAL-YEAR-END>                              DEC-31-1997
<PERIOD-START>                                 JAN-1-1997
<PERIOD-END>                                   SEP-30-1997
<EXCHANGE-RATE>                                1.000
<CASH>                                         1,762,155
<SECURITIES>                                   0
<RECEIVABLES>                                  18,370,489
<ALLOWANCES>                                   1,148,000
<INVENTORY>                                    899,716
<CURRENT-ASSETS>                               29,137,237
<PP&E>                                         63,339,138
<DEPRECIATION>                                 21,917,451
<TOTAL-ASSETS>                                 347,033,975
<CURRENT-LIABILITIES>                          24,778,838
<BONDS>                                        221,131,553
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    20,600,000
<COMMON>                                       64,813,516
<OTHER-SE>                                     7,575,284
<TOTAL-LIABILITY-AND-EQUITY>                   347,033,975
<SALES>                                        74,243,833
<TOTAL-REVENUES>                               74,243,833
<CGS>                                          0
<TOTAL-COSTS>                                  59,512,728
<OTHER-EXPENSES>                               26,378
<LOSS-PROVISION>                               99,334
<INTEREST-EXPENSE>                             15,785,529
<INCOME-PRETAX>                                (1,080,802)
<INCOME-TAX>                                   (79,000)
<INCOME-CONTINUING>                            (1,001,802)
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   (1,001,802)
<EPS-PRIMARY>                                  (0.26)
<EPS-DILUTED>                                  (0.26)