<ARTICLE>                     5
<LEGEND>
     This schedule contains summary financial information extracted from
the March 31, 1999 unaudited condensed consolidated financial statements of
Gray Communications Systems Inc. and is qualified in its entirety by reference
to such financial statements.
</LEGEND>

       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                        DEC-12-1999
<PERIOD-START>                           JAN-01-1999
<PERIOD-END>                             MAR-31-1999      
<CASH>                                   2,312,580
<SECURITIES>                                     0      
<RECEIVABLES>                           22,227,174
<ALLOWANCES>                             1,187,000        
<INVENTORY>                              1,111,054         
<CURRENT-ASSETS>                        29,502,877        
<PP&E>                                  85,032,581          
<DEPRECIATION>                          31,182,233
<TOTAL-ASSETS>                         480,246,217
<CURRENT-LIABILITIES>                   23,203,637
<BONDS>                                282,882,368
<PREFERRED-MANDATORY>                            0
<PREFERRED>                             13,500,000
<COMMON>                                67,353,124         
<OTHER-SE>                              43,684,818          
<TOTAL-LIABILITY-AND-EQUITY>           480,246,217
<SALES>                                 31,392,070
<TOTAL-REVENUES>                        31,392,070
<CGS>                                            0
<TOTAL-COSTS>                           27,059,114
<OTHER-EXPENSES>                          (421,748)
<LOSS-PROVISION>                            70,476        
<INTEREST-EXPENSE>                       6,770,163   
<INCOME-PRETAX>                         (2,015,459)       
<INCOME-TAX>                              (455,000)
<INCOME-CONTINUING>                     (1,560,459)
<DISCONTINUED>                                   0       
<EXTRAORDINARY>                                  0
<CHANGES>                                        0
<NET-INCOME>                            (1,812,960)
<EPS-PRIMARY>                                (0.15)       
<EPS-DILUTED>                                (0.15)