<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the June 30, 1999 unaudited condensed consolidated financial statements of Gray Communications Systems, Inc., and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0000043196 <NAME> GRAY COMMUNICATIONS SYSTEMS, INC. <MULTIPLIER> 1 <CURRENCY> US DOLLARS <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1999 <PERIOD-START> JAN-01-1999 <PERIOD-END> JUN-30-1999 <EXCHANGE-RATE> 1 <CASH> 5,084,986 <SECURITIES> 0 <RECEIVABLES> 24,034,187 <ALLOWANCES> 1,239,269 <INVENTORY> 877,689 <CURRENT-ASSETS> 32,563,896 <PP&E> 86,889,596 <DEPRECIATION> 34,005,075 <TOTAL-ASSETS> 480,827,713 <CURRENT-LIABILITIES> 17,542,022 <BONDS> 291,286,715 <PREFERRED-MANDATORY> 0 <PREFERRED> 13,500,000 <COMMON> 67,570,193 <OTHER-SE> 42,112,478 <TOTAL-LIABILITY-AND-EQUITY> 480,827,713 <SALES> 66,621,239 <TOTAL-REVENUES> 66,621,239 <CGS> 0 <TOTAL-COSTS> 56,427,759 <OTHER-EXPENSES> (456,361) <LOSS-PROVISION> 307,956 <INTEREST-EXPENSE> 13,774,671 <INCOME-PRETAX> (3,324,830) <INCOME-TAX> (684,000) <INCOME-CONTINUING> (2,640,830) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (3,145,832) <EPS-BASIC> (0.26) <EPS-DILUTED> (0.26)