<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
DECEMBER 31, 1997 AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF GRAY
COMMUNICATIONS SYSTEMS INC., AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                        DEC-31-1997
<PERIOD-START>                           JAN-01-1997
<PERIOD-END>                             DEC-31-1997
<CASH>                                     2,367,300
<SECURITIES>                                       0
<RECEIVABLES>                             20,780,316
<ALLOWANCES>                               1,253,000
<INVENTORY>                                  846,891
<CURRENT-ASSETS>                          28,691,994
<PP&E>                                    65,740,943
<DEPRECIATION>                            23,635,256
<TOTAL-ASSETS>                           345,050,627
<CURRENT-LIABILITIES>                     18,602,914
<BONDS>                                  226,676,377
<PREFERRED-MANDATORY>                              0
<PREFERRED>                               20,600,000
<COMMON>                                  65,091,957
<OTHER-SE>                                 6,603,191
<TOTAL-LIABILITY-AND-EQUITY>             345,050,627
<SALES>                                  103,547,879
<TOTAL-REVENUES>                         103,547,879
<CGS>                                              0
<TOTAL-COSTS>                             82,818,219
<OTHER-EXPENSES>                              30,851
<LOSS-PROVISION>                             188,000
<INTEREST-EXPENSE>                        21,861,267
<INCOME-PRETAX>                           (1,162,458)
<INCOME-TAX>                                 240,000
<INCOME-CONTINUING>                       (1,402,458)
<DISCONTINUED>                                     0
<EXTRAORDINARY>                                    0
<CHANGES>                                          0
<NET-INCOME>                              (1,402,458)
<EPS-PRIMARY>                                  (0.36)<F1>
<EPS-DILUTED>                                  (0.36)
<FN>
<F1>EPS-BASIC
</FN>