<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Annual Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarterly period ended June 30, 1997
Commission File number 0-24098
UStel, Inc.
(Name of Small Business Issuer in its charter)
Minnesota 95-4362330
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification Number)
2775 South Rainbow Blvd., #102. Las Vegas, Nevada 89102
(Address of principal executive offices) (Zip code)
(702) 247-7400
(Issuer's telephone number, including area code)
Check whether the issuer: (1) filed all reports required to be filed
Sections 13 or 15(d) of the Exchange Act during the past 12 months (or such
shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes_X___ No_____.
State the number of shares outstanding of each of issuers's classed of
common equity as of the latest practicable date.
Class Outstanding as of August 12, 1997
Common Stock, $0.01 par value per share 6,787,778 shares
Transitional Small Business Disclosure Format (check one)
Yes______; No___X__
PAGE
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SIGNATURES
In accordance with the requirements of the Securities Exchange Act, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
UStel, INC.
Date August 14, 1997 By: /s/ Robert L. B. Diener
Robert L. B. Diener
Chief Executive Officer
Date August 14, 1997 By: /s/ Edmund C. King, Jr.
Edmund C. King, Jr.
Chief Financial Officer
Date August 14, 1997 By: /s/ Richard C. Ward
Richard C. Ward
Controller
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/TEXT
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-27
<SEQUENCE>2
<DESCRIPTION>ARTICLE 5 FIN. DATA SCHEDULE FOR JUNE 30, 1997 FORM 10-QSB
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-START> Jan-01-1997
<PERIOD-END> Jun-30-1997
<CASH> 555698
<SECURITIES> 0
<RECEIVABLES> 8553043
<ALLOWANCES> 1473000
<INVENTORY> 0
<CURRENT-ASSETS> 7775190
<PP&E> 3072476
<DEPRECIATION> 644936
<TOTAL-ASSETS> 11618877
<CURRENT-LIABILITIES> 3339044
<BONDS> 500000
0
2750
<COMMON> 54069
<OTHER-SE> 7721014
<TOTAL-LIABILITY-AND-EQUITY> 11618877
<SALES> 11568447
<TOTAL-REVENUES> 11568447
<CGS> 8844107
<TOTAL-COSTS> 12092060
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (280365)
<INCOME-PRETAX> (803978)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (803978)
<EPS-PRIMARY> (0.183)
<EPS-DILUTED> 0
</TABLE>
