6






                     U.S. Securities and Exchange Commission
                             Washington, D.C. 20549


                                   Form 10-Q

X    QUARTERLY  REPORT  PURSUANT TO SECTION  13  OR  15(d)  OF  THE
     SECURITIES EXCHANGE ACT OF 1934

     For the quarterly period ended   March 31, 1998

__   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)  OF  THE
     SECURITIES EXCHANGE ACT OF 1934
     For the transition period from              to

     Commission file number  1-10932


                         INDIVIDUAL INVESTOR GROUP, INC.
             (Exact name of registrant as specified in its charter)


     Delaware                                     13-3487784
     (State or other jurisdiction of              (IRS Employer
     incorporation or organization)               Identification No.)

               1633 Broadway,  38th Floor,  New York, New York 10019 (Address of
                    principal executive offices)

                                 (212) 843-2777
                         (Registrant's telephone number)


Check  whether  the  registrant  (1) filed all  reports  required to be filed by
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during the past 12
months (or for 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 the  registrant's  classes of
common  equity,  as of  the  latest  practicable  date:  As of  April  7,  1998,
registrant had outstanding  7,231,007 shares of Common Stock, $.01 par value per
share.




                INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES

                                      INDEX




Part 1.   Financial Information
                                                               Page


   Item 1. Financial Statements

     Consolidated Condensed Balance Sheets (Unaudited)
     as of March 31, 1998 and December 31, 1997                 3

     Consolidated Condensed Statements
     of Operations (Unaudited) for the three months
     ended March 31, 1998 and 1997                              4

     Consolidated Condensed Statements
     of Cash Flows (Unaudited) for the three months
     ended March 31, 1998 and 1997                              5

     Notes to Consolidated Condensed

     Financial Statements     (Unaudited)                       6-7


   Item 2. Management's Discussion and Analysis of Financial

   Condition and Results of Operations                          8-12

Part 2. Other Information

   Item 2. Sales of Unregistered Securities                     13


   Item 6. Exhibits and Reports on Form 8-K                     13

Signatures                                                      14

                                       2

<TABLE>
<S>                                 <C>

                                    INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES

                                          CONSOLIDATED CONDENSED BALANCE SHEETS
                                                     (UNAUDITED)
</TABLE>





<TABLE>

<S>                                                                      <C>                    <C>

                                                                            March 31,             December 31,
                      ASSETS                                                  1998                    1997
                                                                         ----------------        ----------------

Current assets:
     Cash and cash equivalents                                                $2,823,083              $3,533,622
     Accounts receivable (net of allowances of $600,770 in                     2,601,342               2,993,299
               1998 and $533,693 in 1997)
     Prepaid expenses and other current assets                                   280,309                 224,801

                                                                         ----------------        ----------------
                      Total current assets                                     5,704,734               6,751,722

Investment in fund (Note 2)                                                    3,597,119               4,037,432
Deferred subscription expense                                                    385,618                 426,826
Property and equipment - net                                                     519,009                 556,070
Other assets                                                                     384,917                 384,917

                                                                         ================        ================
                      Total assets                                           $10,591,397             $12,156,967
                                                                         ================        ================


                       LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Accounts payable                                                         $2,272,962              $2,093,987
     Accrued expenses                                                            745,826                 803,502
     Deferred revenue                                                            348,140                 343,250
                                                                         ----------------        ----------------
                      Total current liabilities                                3,366,928               3,240,739

Deferred subscription revenue                                                  2,730,864               2,661,129

                                                                         ----------------        ----------------
                      Total liabilities                                        6,097,792               5,901,868
                                                                         ----------------        ----------------

Stockholders' Equity:
     Preferred stock, $.01 par value, authorized 2,000,000 shares               -                       -
     Common stock, $.01 par value; authorized
        18,000,000 shares; issued and outstanding 7,231,007                       72,310                  71,461
        shares in 1998 and 7,146,071 shares in 1997
     Additional paid-in capital                                               19,911,666              19,514,363
     Accumulated Deficit                                                     (15,490,371)            (13,330,725)

                                                                         ----------------        ----------------
                      Total stockholders' equity                               4,493,605               6,255,099
                                                                         ----------------        ----------------

                                                                         ================        ================
                      Total liabilities and stockholders' equity             $10,591,397             $12,156,967
                                                                         ================        ================
</TABLE>





See Notes to Consolidated Condensed Financial Statements


                                        3


<TABLE>

                                  INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES

                                   CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                                     (UNAUDITED)



<S>                                                          <C>                        <C>

                                                                     For the Three Months Ended March 31,
                                                             -------------------------------------------------
                                                                     1998                       1997
                                                             ---------------------      ----------------------

Revenues:
   Financial Information Services:
      Advertising                                                      $2,793,264                  $2,329,712
      Circulation                                                         850,956                   1,179,242
      List rental and other                                               309,753                     336,661
                                                             ---------------------      ----------------------
      Total financial information services revenues                     3,953,973                   3,845,615
   Investment management services (Notes 2 and 5)                         101,334                     121,174
   Net depreciation in fund (Note 2)                                     (440,313)                 (1,665,317)

                                                             ---------------------      ----------------------
      Total revenues                                                    3,614,994                   2,301,472
                                                             ---------------------      ----------------------

Operating expenses:
      Editorial, production and distribution                            3,078,327                   2,156,491
      Promotion and selling                                             1,503,297                   1,476,125
      General and administrative                                        1,149,660                   1,032,587
      Depreciation and amortization                                        73,311                      65,425

                                                             ---------------------      ----------------------
      Total operating expenses                                          5,804,595                   4,730,628
                                                             ---------------------      ----------------------


                                                             ---------------------      ----------------------
Operating loss                                                         (2,189,601)                 (2,429,156)
                                                             ---------------------      ----------------------

Interest income                                                            29,955                      10,943

                                                             ---------------------      ----------------------
Net loss                                                              ($2,159,646)                ($2,418,213)
                                                             ---------------------      ----------------------

Net loss per weighted average common share                                 ($0.30)                     ($0.39)

Weighted average number of common
  shares outstanding during the period                                  7,203,199                   6,154,162

</TABLE>


See Notes to Consolidated Condensed Financial Statements



                                       4

<TABLE>
<S>                               <C>               <C>    


                                  INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES

                                   CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                                    (UNAUDITED)

</TABLE>




<TABLE>

<S>                                                                      <C>                         <C>



                                                                                 For the Three Months Ended March 31,
                                                                         --------------------------------------------------
                                                                                 1998                        1997
                                                                         ----------------------      ----------------------

     Cash flows from operating activities:
     Net loss                                                                      ($2,159,646)                ($2,418,213)
     Adjustments to reconcile net loss to
       net cash used in operating activities:
        Depreciation and amortization                                                   73,311                      65,425
        Loss on sale of equipment                                                        1,258                 -
        Changes in operating assets and liabilities:
           Decrease (increase) in:
             Accounts receivable                                                       391,957                     114,674
             Prepaid expenses and other current assets                                 (55,508)                   (139,814)
             Deferred subscription expense                                              41,208                     254,444
           Increase (decrease) in:
             Accounts payable and accrued expenses                                     121,299                    (859,466)
             Deferred subscription revenue                                              69,735                    (346,257)
             Deferred revenue                                                            4,890                 -
                                                                         ----------------------      ----------------------
           Net cash used in operating activities                                    (1,511,496)                 (3,329,207)
                                                                         ----------------------      ----------------------


     Cash flows from investing activities:
     Purchase of property and equipment                                                (38,559)                    (51,795)
     Proceeds from sale of equipment                                                     1,051                 -
     Decrease in investment in affiliate                                               440,313                   2,565,317

                                                                         ----------------------      ----------------------
           Net cash provided by investing activities                                   402,805                   2,513,522
                                                                         ----------------------      ----------------------


     Cash flows from financing activities:
     Proceeds from exercise of stock options                                           398,152                      96,676
                                                                         ----------------------      ----------------------
           Net cash provided by financing activities                                   398,152                      96,676
                                                                         ----------------------      ----------------------


     Net decrease in cash and cash equivalents                                        (710,539)                   (719,009)

     Cash and cash equivalents, beginning of period                                  3,533,622                   1,544,451

                                                                         ======================      ======================
     Cash and cash equivalents, end of period                                       $2,823,083                    $825,442
                                                                         ======================      ======================
</TABLE>




See Notes to Consolidated Condensed Financial Statements



                                       5

                INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
               FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                                   (UNAUDITED)

1.   BASIS OF PRESENTATION

          The consolidated  condensed financial  statements include the accounts
     of Individual  Investor Group,  Inc. and its subsidiaries  (the "Company").
     Such financial  statements  have been prepared in accordance with generally
     accepted accounting principles for interim financial reporting and with the
     instructions  to Form 10- Q.  Accordingly,  they do not  include all of the
     information  and  footnotes  as required by generally  accepted  accounting
     principles for annual financial  statements.  In the opinion of management,
     all adjustments  (consisting of normal  recurring  adjustments)  considered
     necessary for a fair presentation have been included. Operating results for
     the three months ended March 31, 1998 are not necessarily indicative of the
     results  that may be expected for the year ending  December  31, 1998.  For
     further  information,  refer to the consolidated  financial  statements and
     footnotes  thereto  included in the  Company's  Annual  Report for the year
     ended December 31, 1997 on Form 10- KSB.

2.   INVESTMENT MANAGEMENT SERVICES

          A  wholly-owned  subsidiary,   WisdomTree  Capital  Management,   Inc.
     ("WTCM"), serves as general partner of (and investor in) a domestic private
     investment  fund.  The Company is also a limited  partner in the fund.  The
     fair  value  of  the  Company's  investment  in  the  fund  decreased  from
     $4,037,432  at December  31, 1997 to  $3,597,119  at March 31,  1998.  This
     decrease resulted from net losses on the Company's  investment in the fund.
     As  discussed in Note 5, the Company has decided to dissolve the fund and
     distribute the net assets to all investors as soon as the investments held
     by the fund are liquidated.

          Selected unaudited financial  information for the fund as of March 31,
     1998 and December 31, 1997 is as follows:

                                                     
                                      March 31,       December 31,
                                         1998            1997

          Assets (at fair             $50,043,422     $71,245,441
          value)
          Liabilities                  19,177,609      32,104,302
          Partners' capital            30,865,813      39,141,139

          The net loss for the fund for the three  months  ended  March 31, 1998
     totaled $3,778,203 as compared to a net loss of $16,638,713 for the quarter
     ended March 31, 1997.

          The Company,  through WTCM, provides investment management services to
     the domestic private  investment fund referred to above, and to an offshore
     private investment fund. Total equity under management by the Company as of
     March 31, 1998 for both the domestic and offshore  funds was  approximately
     $38.7 million.


                                       6


          WTCM   is  also  entitled  to  receive  a  special allocation equal to
     20% of the net income, if  any,  of each  of the funds (not including
     income earned on  its own   investment),  subject  to  certain limitations,
     calculated at year end, which is December 31st for  the domestic  fund and
     June 30th for the offshore fund.  If the  amount of the special allocation
     for the  offshore fund  were  calculated as of May 11,  1998  a  gain  of
     approximately  $216,000 would have been earned  by  the Company;  however,
     as the ultimate amount to be  earned is  dependent  on the performance of
     the  fund  through June  30th, benefits (if any) are not recorded until
     June 30, 1998. The  Company  does not  expect to  receive  a  special
     allocation during 1998 from the domestic fund based  on the negative
     performance of that fund to date.

3.   STOCK OPTIONS

          During the three  months  ended March 31,  1998,  the Company  granted
     38,500 options to purchase the Company's Common Stock;  84,938 options were
     exercised  (providing proceeds of $398,152);  21,000 options were canceled.
     Of the total  granted,  all options were granted under Company stock option
     plans which expire at various dates through March 2008.

4.   LOSS PER COMMON SHARE

           Net loss per  weighted  average  common  share  for the  three  month
     periods  ended March 31,  1998 and 1997 were  computed  using the  weighted
     average  number  of common  shares  outstanding  during  each  period.  The
     exercise of stock options and warrants were not assumed in the  computation
     of loss per  common  share,  as the effect  would  have been  antidilutive.
     Previously  reported net loss per share amounts are the same as required by
     the  adoption  of  Statement  of  Financial  Accounting  Standard  No. 128,
     "Earnings Per Share," which became effective in the fourth quarter of 1997.

5.   SUBSEQUENT EVENT

          On April 28, 1998 the Company's Board of Directors decided to dissolve
     the domestic and offshore private investment funds (see Note 2 above) and
     distribute the net assets to all investors as soon as the investments held
     by the funds are  liquidated.  As of March 31,  1998 the Company's
     investment  in the  domestic  fund was  valued at $3,597,119. The Company
     has no investment in the offshore fund.


                                       7


 
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

     Forward Looking Statements

     When used in this Form 10-Q and in future  filings by the Company  with the
Securities and Exchange  Commission,  the words or phrases "will likely result,"
"management   expects,"  or  "the  Company   expects,"   "will   continue,"  "is
anticipated,"  "estimated"  or similar  expressions  are  intended  to  identify
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance
on any such forward- looking statements, each of which speak only as of the date
made. Such statements are subject to certain risks and uncertainties  that could
cause actual results to differ  materially  from  historical  earnings and those
presently  anticipated  or projected.  The Company has no obligation to publicly
release  the result of any  revisions  which may be made to any  forward-looking
statements to reflect  anticipated  events or circumstances  occurring after the
date of such statements.

Three  Months  Ended March 31, 1998 as Compared to the  Three  Months
Ended March 31, 1997

     Operating Losses

     The Company's  operating loss decreased by $239,555,  to $2,189,601 for the
three months  ended March 31,  1998,  as compared to  $2,429,156  in 1997.  This
decrease in operating loss relates primarily to the net effect of a reduction in
the net  depreciation  of the  Company's  investment  in the domestic fund of an
approximate  $1.2  million,  offset by an  approximate  $1 million  increase  in
operating  losses  incurred  by the  Company's  financial  information  services
operations. The Company's online service, www.iionline.com,  incurred a negative
contribution  (before deducting general and administrative  ("G&A") expenses) of
approximately  $0.5 million for the quarter,  compared with  approximately  $0.1
million in 1997,  reflecting  continued  investment  in this new  service  line.
Individual  Investor  incurred a negative  contribution  (before  deducting  G&A
expenses) of approximately $0.1 million, as compared to a positive  contribution
of $0.3  million  in 1997.  This is  primarily  a  result  of the  increases  in
editorial,  production,  promotion and selling costs  described  below,  without
achieving planned increases in advertising  revenues.  In addition,  during 1998
the profit contribution  (before deducting G&A expenses) from Special Situations
Report declined by approximately $0.1 million,  because of reduced  subscription
revenues. General and administrative and depreciation expenses increased by $0.1
million.

     Revenues

     Total revenues increased 57%, to $3,614,994 for the quarter ended March 31,
1998, as compared to $2,301,472 for the quarter ended March 31, 1997.

     Revenues from financial information services rose 3%, to $3,953,973 for the
quarter ended March 31, 1998, as compared to $3,845,615 in 1997.

     Advertising  revenues increased by $463,552,  or 20%, to $2,793,264 for the
quarter  ended  March 31,  1998,  as  compared to  $2,329,712  in 1997.  Of this
increase,  the Company's  website,  www.iionline.com,  generated $229,421 in the
first  quarter of 1998 (there  were no  revenues in the first  quarter of 1997).

                                       8


Ticker (sm) advertising revenues increased by $152,947,  or 52%, to $448,932 for
the quarter ended March 31, 1998, as compared to $295,985 for the same period in
1997,  primarily due to three issues  published in 1998 compared to two in 1997,
together with 20% circulation and rate increases  effected in 1998.  Advertising
revenues for Individual Investor increased by 4% in the first quarter of 1998 as
compared  to the first  quarter  of 1997.  As a result of the  increase  in paid
circulation  of  Individual  Investor,   effective  November  1997  the  company
increased its advertising  rates by 18%.  However,  total  advertising pages for
Individual  Investor  decreased by 8% in the 1998 period as compared to the 1997
period,  in part  reflecting  the fact that the  Company was without a Publisher
throughout the first quarter of 1998. In April 1998 this position was filled. In
addition,  the  categories  of pages  that  declined  were lower  margin  pages.
Although  overall pages declined,  the higher margin consumer pages increased by
10% for the quarter ended March 31, 1998 as compared to the same period in 1997.

     Circulation revenues decreased 28%, to $850,956 for the quarter ended March
31, 1998,  as compared to $1,179,242  in 1997.  Individual  Investor had average
paid circulation of over 525,000 in the first quarter of 1998, comprised of paid
subscribers and newsstand distribution,  as compared to average paid circulation
of over  433,000  in the  first  quarter  of  1997.  Nevertheless,  subscription
revenues for Individual  Investor  decreased  14%, to $584,021.  The decrease in
subscription  revenues is a direct  result of the  reduction  of direct mail and
television  campaigns in favor of other sources for subscribers (such as the use
of subscription agencies and airline frequent flyer promotions) that provide for
continuing  numbers of new subscribers with lower marketing  expenses but little
or no subscription revenue.  Subscription revenues for the Company's newsletter,
Special Situations Report,  decreased 70%, to $93,417, as a result of a decrease
in subscribers.  As of March 1998,  Special  Situations Report had approximately
5,300 paid  subscribers as compared to 12,000 in March 1997.  This decrease is a
direct result of the reduction of television  campaign  promotions.  The Company
believes  that  subscription   revenues  for  Individual  Investor  and  Special
Situations  Report will stabilize at current  levels.  In addition,  the Company
does not currently impose a charge for use of its online service.

     List rental and other revenues totaled $309,753 for the quarter ended March
31,  1998,  as compared to $336,661 in 1997.  List rental  revenue  decreased to
$160,768  for the quarter  ended March 31, 1998 as compared to $276,730 in 1997.
The decrease in list rental revenue is primarily attributable to reduced demand.
Other  revenues,  which  primarily  include the sale of reprints from Individual
Investor  and  Ticker  magazines  and  revenues  from an  affinity  credit  card
agreement, increased to $148,985 in 1998 as compared to $59,931 in 1997.

     Investment management services revenues were $101,334 for the quarter ended
March 31,  1998,  as  compared to $121,174  in 1997.  Revenues  from  investment
management  services are a  combination  of  management  fees,  being 1 to 1-1/2
percent of assets under management,  and a special profit allocation,  being 20%
of  defined  performance  (with  additional  revenues  of  $42,092  in 1997 from
portfolio  consulting  activities).  Because total equity managed by the Company
was  approximately  $38.7  million  as of March 31,  1998 as  compared  to $28.3
million as of March 31, 1997, management fees earned by the Company increased to
$101,334  for the first  quarter of 1998 as compared  to $79,082 in 1997.  While
total  equity  managed by the  Company as of March 31, 1998  increased  from the
prior year,  it decreased  from $47 million and $66 million at December 31, 1997
and 1996, respectively. The performance of the managed funds was negative during
the three months ended 1998 and 1997,  and for the years ended December 31, 1997
and 1996, as compared to positive performance by the Nasdaq Small Cap market and

                                       9



the Russell  2000 Index.  As a result of the  continuing  negative  performance,
assets under  management  continue to  decrease.  Net  withdrawals  in excess of
contributions  from the funds were  approximately  $13 million for 1997.  In the
first  quarter  of  1998  investors  in  the  funds  made  net   withdrawals  of
approximately $4.6 million. The Company has decided to dissolve the domestic and
offshore funds and distribute the net assets to all investors as soon as the
investments held by the funds are liquidated. As of March 31, 1998 the value
of the Company's investment in the domestic  fund $3,597,119.  No assurance can
be given that the Company will realize this entire amount in the liquidation of
the domestic fund.

     Net  depreciation in fund totaled  $440,313 for the quarter ended March 31,
1998 as compared to net  depreciation of $1,665,317 in 1997. Net depreciation in
fund  directly  relates to the  realized and  unrealized  earnings of the amount
invested by the Company in the domestic fund's portfolio  which,  because of the
nature of the investments, will vary significantly from period to period and may
result in losses as well as income.

     Operating Expenses

     Total operating expenses increased 23%, to $5,804,595 for the quarter ended
March 31, 1998 as compared to $4,730,628 in 1997.

     Editorial,   production  and  distribution   expenses   increased  43%,  to
$3,078,327  in 1998 from  $2,156,491  in 1997.  Of this  increase,  the  Company
incurred  expenses  totaling  $645,568 in 1998, as compared to $103,328 in 1997,
related  to  continuing  development  and  ongoing  maintenance  of its web site
www.iionline.com. Management anticipates expenses relating to online services to
increase as  development  continues.  Production and  distribution  expenses for
Individual Investor increased by $196,803, to $1,336,308 in 1998, as compared to
$1,139,505  in 1997 due to  additional  copies  printed for a larger  subscriber
base.  Also,  costs incurred in the first quarter of 1998 for the production and
distribution of Ticker increased by $66,805, to $381,211 in 1998, as compared to
$314,406 in 1997,  primarily  due to three issues  published in 1998 compared to
two in 1997.  Staffing levels have been increased to aid growth in the Company's
current publications as well as its online service.

     Promotion and selling expenses  increased 2%, to $1,503,297 for the quarter
ended March 31, 1998, from  $1,476,125 in 1997.  Advertising  salaries,  payroll
taxes and commissions  have increased by  approximately 6% as a result of higher
revenues and new sales personnel added in 1997 in an attempt to further increase
advertising  revenues,  and to develop  advertising for Ticker.  These increases
were offset in part by  reductions  in  marketing  expenses  for the  investment
management services operations and subscription promotion expenses.

     General and  administrative  expenses  increased 11%, to $1,149,660 for the
quarter ended March 31, 1998,  as compared to $1,032,587 in 1997.  Substantially
all of this increase  resulted from higher levels of employee  benefits relating
to additional personnel, legal fees, and recruiting fees.

     Depreciation  and  amortization  expense  increased 12%, to $73,311 in 1998
from  $65,425  in  1997.  The  increase  in 1998 is  primarily  attributable  to
depreciation of office furniture and computer equipment purchased for additional
personnel.

                                       10



      Interest  and other  income  increased  to $29,955 in 1998 from $10,943 in
1997.  This  increase is primarily  due to higher levels of cash invested by the
Company.

     The  Company's  net  loss  for the  first  three  months  of  1998  totaled
$2,159,646  as compared to a net loss of  $2,418,213  for the same period of the
prior year.  No income taxes were  provided in 1998 or 1997 due to the net loss.
The net loss per  weighted  average  common  share for the first three months in
1998 was $0.30 as compared to $0.39 in 1997.

Liquidity and Capital Resources

     As of March 31,  1998,  the  Company  had  working  capital of  $2,337,806,
including cash and cash  equivalents  totaling  $2,823,083.  In addition,  as of
March 31, 1998 the value of the  Company's  investment  in the domestic  private
investment  fund was  $3,597,119,  which  will be  available,  subject to market
fluctuations  and liquidity,  to provide  working  capital to fund the Company's
operations as the domestic fund is liquidated and its assets are  distributed to
its partners.  However,  no assurance can be given that the Company will realize
the entire amount upon  liquidation  of its  investment in the fund.  During the
three months ended March 31, 1998 the Company  received  $398,152 from exercises
of stock  options.  These inflows  helped to fund the Company's net cash used in
operating activities of $1,511,496 during the quarter.

      The Company  incurred an operating loss of $2,189,601 for the three months
ended March 31, 1998.  This loss was  attributable  to a number of factors.  Net
depreciation  in  fund  totaled  $440,313  for the  quarter.  In  addition,  the
Company's  investment in its online service  incurred net expenses over revenues
of  approximately  $0.5 million  (before  deducting  general and  administrative
expenses).  During the first  quarter of 1998 the Company also fell short on its
goals for advertising pages sold (and the Company, accordingly, did not meet its
goals for  advertising  revenues),  partially  resulting from the effect of rate
increases implemented of approximately 18% in November 1997.

      The Company's  current  level of revenues are not  sufficient to cover its
expenses.  Under its current  business  plan,  during 1998 the Company  does not
intend to  significantly  reduce its expenses,  expects to continue to invest in
its existing  products and  anticipates  losses to continue in 1998.  Therefore,
profitability  will be  achieved  in  future  periods  only if the  Company  can
substantially increase its revenues while controlling increases in expenses. The
Company  intends to continue to increase its  investment  in its online  service
since it believes that this line of business offers the greatest opportunity for
generating substantial revenues over the longer term.

     Management  expects  advertising  revenues to continue to grow based upon a
number of factors. First, the Company expects to derive the benefit of increased
advertising rates for Individual Investor.  Second, the Company believes that it
can attract more advertising pages from higher margin consumer  advertisers with
an improved advertising management structure, including a new publisher hired in
April 1998, and other new key sales  personnel.  Third,  the Company  expects to
realize the benefits of increased awareness of Ticker in the marketplace and the
effect of the new rate increase for Ticker implemented in February 1998. Fourth,
the Company expects to realize higher revenues from a full year of operations of
www.iionline.com,  as well as generate  additional  revenues  from this  rapidly
growing medium. The Company also believes that overall circulation revenues have
stabilized.

                                       11



     No assurance can be given that advertising revenues for Individual Investor
and Ticker will increase because higher advertising rates may not be accepted by
advertisers,  advertising pages may continue to decline for Individual Investor,
and the advertising mix may change.  Although the Company has recently added key
advertising  sales  personnel  and has hired a new  publisher in April 1998,  no
assurance  can be given that these  changes will result in  advertising  revenue
increases.  The Company also believes  that a stock market  correction or "bear"
market would affect its ability to sell advertising to the financial  advertiser
categories. In addition, although the Company has developed a specific marketing
strategy for www.iionline.com, no assurance can be given that this strategy will
be successful.

     Based on the Company's business plan, the Company believes that its working
capital and its investment in the fund will be sufficient to fund its operations
and capital  requirements  through 1998, although there can be no assurance that
the assumptions in its business plan will be realized or that the full amount of
its  investment  in the fund will be  realized  in 1998  since it is  subject to
market  fluctuations  and  liquidity.  Thereafter,  if  revenues  have  not been
significantly  increased  above current  levels,  the Company will need to raise
additional  capital  in  order  to  sustain  operations  or  else  consider  the
discontinuance or sale of parts of its current  operations.  The Company has not
yet determined the costs that it will incur in connection  with its  anticipated
relocation  to new space in early  1999,  although it can be expected to be at a
significantly  higher rate per square foot.  No assurance can be given as to the
availability of additional  financing or, if available,  the terms upon which it
may be  obtained.  Any such  additional  financing  may result in dilution of an
investor's  equity  investment  in the  Company.  Failure  to obtain  additional
financing  on favorable  terms could have a  substantial  adverse  effect on the
Company's future ability to conduct  operations.  There can be no assurance that
additional  losses will not be incurred in the future,  or that the Company will
be able to operate profitably in the future.

     In August 1997 the Company  retained the  investment  banking firm of Bear,
Stearns & Co. Inc. ("Bear Stearns") to assist the Company in exploring strategic
initiatives to enhance  shareholder  value, the process for which is continuing.
With the  assistance  of Bear  Stearns,  the  Company  has  focused  on  various
alternatives  including  identifying,   evaluating,  and  approaching  potential
strategic  partners seeking  investment  positions in the Company's  information
services business.

                                       12




<TABLE>
<S>                        <C>    <C>    

                                          INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES


 
                                                    PART II- OTHER INFORMATION
</TABLE>




ITEM 2 - Sales of Unregistered Securitie

<TABLE>
<S>              <C>                    <C>          <C>                            <C>            <C>
- ---------------- ----------------------- ---------- -------------------------------- --------------- -------------------------------
                                          Number    Consideration received and       Exemption       If option, warrant or
Date of sale     Title of security         Sold     description of underwriting or   from            convertible security, terms
                                                    other discounts to market        registration    of exercise or conversion
                                                    price afforded to purchasers     claimed
- ---------------- ----------------------- ---------- -------------------------------- --------------- -------------------------------

1/98 -3/98       options to purchase      38,500    options granted - no              Section 4(2)   vesting over a period of
                 common stock granted               consideration received by                        three to five years from date
                 to employees,                      Company until exercise                           of grant, subject to certain
                 directors and                                                                       conditions of continued
                 consultants                                                                         service; exercisable for a
                                                                                                     period lasting ten years from
                                                                                                     date of grant at exercise
                                                                                                     prices ranging from $6.00 to
                                                                                                     $7.25
</TABLE>








ITEM 6 - Exhibits and Reports on Form 8-K

     (a)  Exhibits

         10.1  Agreement with Michael J. Kaplan dated April 1, 1998

         27    Financial Data Schedule March 31, 1998

     (b)  The Company did not file any reports
          on Form 8-K during the Quarter Ended
          March 31, 1998

                                       13




                                   SIGNATURES


In accordance with the requirements of the Securities  Exchange Act of 1934, the
Registrant  caused  this  report to be signed on its  behalf by the  undersigned
thereunto duly authorized.



DATE: May 13, 1998

                    INDIVIDUAL INVESTOR GROUP, INC. (Registrant)




                    By:    /s/ Jonathan L. Steinberg          
                    --------------------------------------------
                         Jonathan Steinberg, CEO and Chairman of the Board





                    By:  /s/ Scot A. Rosenblum              
                    -----------------------------------------
                         Scot Rosenblum, Executive Vice President and
                         Chief Financial Officer





                    By:  /s/ Henry G. Clark               
                    ------------------------------------------
                         Henry G. Clark, Controller
                         (Principal Accounting Officer)



                                       14









                                  EXHIBIT INDEX


  Exhibit No.    Description                                                Page

    10.1         Agreement with Michael J. Kaplan dated April 1, 1998        16

    27           Financial Data Schedule March 31, 1998                      26


                                       15



                                                                    EXHIBIT 10.1

                                    AGREEMENT

     AGREEMENT,  dated April 1, 1998, by and between Individual  Investor Group,
Inc.,  a  corporation  organized  and  existing  under  the laws of the State of
Delaware with an address at 1633  Broadway,  38th Floor,  N.Y.,  N.Y. 10019 (the
"Company") and Michael J. Kaplan,.  Esq., an individual residing in the State of
New York with an address at 310 Palisade  Avenue,  Dobbs  Ferry,  New York 10522
("Kaplan").

     WHEREAS,  Kaplan has been employed by the Company since September 30, 1996,
first  as  General  Counsel,  and  commencing  as of May 9,  1997  also  as Vice
President;  the Company and Kaplan are the parties to that certain  Stock Option
Agreement dated May 9, 1997 (the "Option Agreement"); the Company and Kaplan are
the parties to that certain Indemnification  Agreement dated as of September 30,
1996 (the "Indemnification Agreement"), and; the Company and Kaplan now mutually
desire to provide for the orderly  termination  of the  employment  relationship
which  existed  between them and otherwise  make  provision  respecting  certain
economic and other matters relating to the Option Agreement and  Indemnification
Agreement;

     NOW THEREFORE, in consideration of the mutual promises and covenants herein
contained, the parties hereto agree as follows:

l.   Termination of Employment.

     (A)  Termination.   Kaplan's   employment  with  the  Company  (and/or  any
subsidiary  of the  Company) is hereby  terminated  effective as of the close of
business on May 15,  1998 (the  "Termination  Date").  Kaplan may take two weeks
vacation between the date of this Agreement and the Termination  Date.  Kaplan's
capacities as Vice President and General Counsel will similarly be terminated on
the Termination Date. If Kaplan does not use this two weeks of vacation in full,
Kaplan shall be paid for such un-used time.  Notwithstanding the foregoing,  the
Company's Chief Executive Officer may terminate Kaplan's  employment sooner, and
thereby accelerate the Termination Date, upon 48 hours' notice.

     (B) Transition. Between the date of this Agreement and the Termination Date
Kaplan shall use his best  efforts to fulfill his duties to the Company  (and/or
any subsidiary of the Company) generally and to assist in the orderly transition
of legal  matters  and files to such  counsel  and  other  persons  as  Jonathan
Steinberg may direct.  In connection  therewith,  Kaplan shall work with outside
counsel to  prepare a list of pending  projects  and shall  prepare  appropriate
status reports regarding such matters. It being acknowledged that the transition
of all of such legal  matters and files may not be completed by the  Termination
Date and Kaplan may have  personal  knowledge  regarding  such matters and files
that  may  not  have  been  communicated  to  others  in  connection  with  such
transition,  subsequent  to the  Termination  Date,  Kaplan  shall make  himself
reasonably  available  to the Company or its agents for  consultation  regarding
these matters upon request (it being  specifically  acknowledged  by the Company
that Kaplan is not required to perform legal  services or render legal advice to
the Company in connection with such consultation).

2.   Payments, Benefits and Other Arrangements.

     (A) Salary.  The Company shall make regular  payroll  payments to Kaplan at
the current  rate of salary  ($170,000  per annum),  through and  including  the
Termination Date, with final payment due not later than the Termination Date.

     (B)  Severance  Payment.  The Company shall make a payment to Kaplan in the
amount of One Hundred  Twenty  Thousand  Dollars  ($120,000),  net of applicable
withholding taxes (the "Payment"),  on July 1, 1998 (the "Payment Date").  After
making the Payment to Kaplan,  the Company shall have no other or further bonus,
severance, vacation, or other payment obligation to Kaplan.

     (C) Option Agreement. Notwithstanding anything to the contrary contained in
the Option  Agreement,  which is hereby  amended  to the extent  that any of the
following  provisions  are  inconsistent  with the existing  terms of the Option
Agreement,  it is  acknowledged  and agreed that:  (i) Kaplan shall be vested in
options to  purchase  a total of  50,000.66  shares of the  common  stock of the
Company (the "Vested  Options"),  including  specifically  the options vested as
indicated on the Option Schedule as follows (it being  specifically  agreed that
the 5/9/98 vesting is hereby guaranteed, notwithstanding any acceleration of the
Termination Date):

                                                          Exercise
          Date Vested         Number of Shares             Price

             9/30/97               8,333.33                 $8.00
            12/31/97              16,667.00                 $5.88
              1/1/98               8,333.33                 $7.25
              5/9/98              16,667.00                 $5.88

(ii) the Vested Options shall not become exercisable until 90 days following the
Termination Date and shall remain  exercisable  through the close of business on
the  first  anniversary  of the  date  they  first  become  exercisable  and not
thereafter;  and (iii) the termination of employment  effected by this Agreement
shall not cause the  acceleration  of  vesting  of any other  options  under the
Option  Agreement  and Kaplan waives and  relinquishes  the right to vest in any
other options included in the Option Agreement other than the Vested Options.

     (D) Indemnification  Agreement. The Indemnification  Agreement shall not be
modified, amended or impaired by this Agreement;  provided that Corporate Status
as defined under the  Indemnification  Agreement shall terminate  effective upon
the Termination Date, and; provided further, that the parties agree that Section
13(a) of the  Indemnification  Agreement shall hereby be amended and modified to
read only "May 15, 2008".

     (E) Medical and Dental Benefits.  The medical coverage  heretofore afforded
Kaplan  by the  Company  will be  paid  by the  Company  through  May 31,  1998.
Thereafter  Kaplan may continue  coverage for 18 months  pursuant to COBRA rules
and  regulations  at his own  expense.  The  Company  will  promptly  after  the
Termination  Date furnish Kaplan with a "HIPA"  certificate and otherwise comply
with all  applicable  laws for the  purpose of  allowing  Kaplan to  transfer to
another  health plan without a break or  limitation  in  coverage.  In the event
Kaplan elects COBRA coverage he shall  reimburse the Company the total amount of
the monthly premium rate for each month coverage is continued beyond May 1998.

     (F) Expenses.  The Company  shall  reimburse  Kaplan for expenses  incurred
prior to the  Termination  Date on behalf of the Company and in accordance  with
regular Company procedures.

     (G)  Equipment.  Kaplan  shall be entitled to retain the IBM  ThinkPad  and
IOMEGA Zip Drive he has used while  employed by the  Company in  exchange  for a
payment,  due on the Payment Date, in the amount of Five Hundred Dollars ($500),
or he shall return such  equipment to the Company on the Payment  Date.  Any and
all other  equipment and property of the Company  heretofore  utilized by Kaplan
and now in Kaplan's  possession will be delivered by Kaplan to the Company on or
before the Termination Date.

3.   Mutual Release, Non-Disparagement and Confidentiality.

     (A) On the Payment Date and conditioned  upon the Company and Kaplan making
the deliveries  required in this paragraph (with Kaplan's delivery being further
conditioned  upon the Company making the Payment),  the Company shall deliver to
Kaplan a Release dated the Payment Date, executed in the form attached hereto as
Exhibit A, and,  conditioned  upon  receipt  of the  Payment  and the  Company's
Release,  Kaplan shall  deliver to the Company a Release dated the Payment Date,
executed in the form attached hereto as Exhibit B. Delivery shall be made at the
offices of Graubard Mollen & Miller, 600 Third Avenue, New York, New York.

     (B) The  Company  and  Kaplan  agree  that the  termination  of  employment
effected hereunder is by mutual agreement. The Company shall refer all inquiries
regarding  Kaplan from  prospective  employees or other third parties seeking to
establish  a business  relationship  with Kaplan to  Jonathan  Steinberg  or his
successor,  if any, as Chief Executive  Officer.  Mr. Steinberg shall respond to
all such  inquiries  consistent  with the  foregoing  statement.  Following  the
execution of this Agreement, either the Company or Kaplan may make disclosure to
Company  personnel not already privy to  information  regarding  this  Agreement
regarding  the fact  that  Kaplan's  employment  has been  terminated  by mutual
agreement and that the presently  anticipated  last day of employment is May 15,
1998.  Kaplan agrees that he shall take no action and shall make no statement or
comment  which may,  directly or  indirectly,  disparage  the  reputation of the
Company  and/or  its  subsidiaries  and/or its or their  executives,  directors,
personnel and/or publications.  The Company and its officers and directors shall
take no action and shall make no  statement  or comment  which may,  directly or
indirectly, disparage the reputation of Kaplan.

     (C) The  Company  and  Kaplan  agree  to keep the  terms of this  Agreement
confidential,  except  that (i) Kaplan may make  disclosure  of the terms to his
immediate  family members and may disclose any terms that have  previously  been
disclosed  by the  Company,  (ii) the  Company  may make such  disclosure  as is
necessary to comply with  applicable  securities  laws or as may be requested by
regulatory  authorities,  and  (iii)  either  party may make  disclosure  to its
professional  advisors or in any legal  proceedings  brought by either  party to
enforce its rights hereunder.

4.   Miscellaneous.

     (A) Binding  Effect.  This Agreement shall be binding upon and inure to the
benefit of the parties, their heirs, executors,  administrators,  successors and
assigns (if any) permitted under  paragraph 4(J), and the parties,  their heirs,
executors,  administrators,  and  successors  and  assigns,  shall  execute  any
instruments  in writing  which may be  necessary  or proper in carrying  out its
purposes and intent and any and all necessary governmental or regulatory filings
with regard thereto.

     (B)  Choice  of Law,  Jurisdiction  and  Venue.  This  Agreement  shall  be
construed  under  and in  accordance  with  the laws of the  State of New  York,
without  regard to choice of law  principles.  The parties  agree that the State
Courts of the State of New York shall have sole and exclusive  jurisdiction over
any action brought to enforce the terms of this Agreement and the parties hereto
consent to the personal jurisdiction and venue of the courts of the State of New
York in the County of New York for such purposes.

     (C) Survival.  The  agreements  and  representations  and warranties of the
parties hereto contained in this Agreement shall survive any termination of this
Agreement.  The  agreements  and  obligations  of the Company  contained in this
Agreement  shall  survive  any  merger,  acquisition,  change of control  and/or
bankruptcy or other insolvency of the Company.

     (D) Confidentiality.  Kaplan agrees that he shall not divulge,  furnish, or
make accessible to anyone  including  present or former employees of the Company
(other  than in the  regular  course of  business  of the  Company  prior to the
Termination  Date and after the  Termination  Date only in  response to specific
inquiry  made  by a  duly  authorized  representative  of  the  Company  seeking
consultation  with Kaplan as  contemplated  in paragraph  1(B)) any knowledge or
information  with  respect  to  confidential  or secret  processes,  inventions,
discoveries,  improvements,  formulae, plans, material, devices, ideas, or other
know-how, whether intellectual property or not, with respect to any confidential
or secret  engineering,  development,  or research  work or with  respect to any
other  confidential  or secret  aspects of the  Company's  business  (including,
without  limitation,  customer lists,  subscription  lists,  supplier lists, and
pricing arrangements with customers,  subscribers, or suppliers). Kaplan further
agrees  that he shall not make use of, nor permit to be used,  any  confidential
notes, memoranda, specifications, programs, data, information or other materials
of any nature whether oral or written relating to any matter within the scope of
the  business  of the  Company  or  concerning  any of its  dealings  or affairs
otherwise  than for the benefit of the Company,  it being agreed that any of the
foregoing shall be and remain the sole and exclusive property of the Company and
that  immediately  upon the  termination  of Kaplan's  employment,  Kaplan shall
deliver  any or all  copies  of  the  foregoing  to  the  Company.  Kaplan  also
acknowledges  that as general counsel to the Company and its subsidiaries he has
become privy to  information  the  disclosure  of which by Kaplan is  prohibited
(except in limited  circumstances)  by the  attorney-client  privilege and he is
aware of such  privilege and will not disclose such  information in violation of
his ethical obligations as an attorney.

     (E) Work for  Hire.  Kaplan  agrees  that all  ideas,  marketing  concepts,
slogans,  advertising  campaigns,  characters,  proposals and plans  invented or
developed  by him which  relate  directly or  indirectly  to the business of the
Company  or  arose  out of his  employment  with the  Company  or the use of the
Company's  property  or  resources  including,  without  limitation,  any ideas,
proposals and plans which may be copyrighted, trademarked, patented or otherwise
protected  (collectively,  "Intellectual Property") are and will be the property
of the Company. Kaplan understands and agrees that any and all such Intellectual
Property constitute a "work for hire" under the U.S. Copyright Law. In the event
any such  Intellectual  Property is not  regarded  as a "work for hire,"  Kaplan
hereby assigns to the Company the sole and exclusive right to such  Intellectual
Property.  Kaplan  agrees that upon request of the Company,  he will execute and
deliver any and all documents or instruments and take any other action which the
Company shall deem necessary to assign to and vest completely in the Company all
right, title and interest in such Intellectual  Property,  to perfect trademark,
copyright and patent  protection with respect thereto,  or to otherwise  protect
the  Company's  trade  secrets and  proprietary  interest  in such  Intellectual
Property.  Kaplan  will,  at the request and  expense of the  Company,  sign and
execute all such deeds or  documents,  and provide such  cooperation,  including
truthful testimony, as the Company and its duly authorized agents may reasonably
require:  (i) to apply  for,  obtain and vest in the name of the  Company  alone
(unless the Company otherwise directs) trademarks,  copyrights, patents or other
analogous protection in any country throughout the world and when so obtained or
vested  to renew  and  restore  the  same;  and (ii) to  defend  any  opposition
proceedings in respect of such  applications  and any opposition  proceedings or
petitions or applications for revocation of such trademarks, copyrights, patents
or other  analogous  protection.  In the event Kaplan does not,  within five (5)
days,  execute and deliver such  documents  reasonably  necessary to vest in the
Company all right,  title and  interest in such  Intellectual  Property,  Kaplan
hereby  irrevocably  designates and appoints the Company and its duly authorized
officers and agents as Kaplan's  agent and  attorney-in-fact,  to act for and in
Kaplan's  behalf  and  stead  to  execute  and  file  any  such  application  or
applications  and to do  all  other  lawfully  permitted  acts  to  further  the
prosecution  and issuance of trademarks,  copyright,  patents or other analogous
protection  thereon  with the same  legal  force and  effect as if  executed  by
Kaplan.  The Company agrees to pay any and all  copyright,  trademark and patent
fees and expenses or other costs incurred by Kaplan for any assistance  rendered
to the Company pursuant to this paragraph.

     (F) If either  the  Company or Kaplan  commits a breach,  or  threatens  to
commit a breach,  of any of the provisions of Sections  3(B),  3(C) or 4(D), the
other shall have the right and remedy:

          (i) to have the provisions of this Agreement specifically enforced, it
being  acknowledged  that  any such  breach  or  threatened  breach  will  cause
irreparable  injury and that money damages will not provide an adequate  remedy;
and

          (ii)  with  respect  to a  breach  by  Kaplan  of  the  provisions  of
paragraphs  4(D) or 4(E),  the Company may require Kaplan to account for and pay
over to the Company all compensation,  profits, monies, accruals, increments, or
other  benefits  (collectively  "Benefits")  derived or  received by Kaplan as a
result of any  transactions  constituting  a breach of any of the  provisions of
paragraphs  4(D) or 4(E) and Kaplan  hereby  agrees to account  for and pay over
such Benefits to the Company.

     (G)  Headings.   The  headings   used  in  this   Agreement  are  used  for
administrative  purposes only and do not  constitute  substantive  matters to be
considered in construing the terms of this Agreement.

     (H) Notice. Any notice herein provided for shall be in writing and shall be
deemed  duly  given when  delivered  to the other to whom it is  addressed.  Any
notice herein provided for shall be sent to the address first above indicated in
this  Agreement or such other  address as either party may indicate by notice to
the other.

     (I) Merger.  This Agreement,  the Option Agreement and the  Indemnification
Agreement  (the latter two of which are amended as set forth herein)  embody the
entire  understanding  and  agreement  of the parties  hereto in relation to the
subject matter hereof,  and no promise,  condition,  representation or warranty,
express or implied,  not herein set forth shall bind any party  hereto.  None of
the terms and conditions of this Agreement may be changed,  modified,  waived or
canceled  orally or  otherwise  except by a writing  signed by both the  parties
hereto, specifying such change,  modification,  waiver or cancellation. A waiver
at any time of compliance with any of the terms and conditions of this Agreement
shall not be considered a modification, cancellation or waiver of such terms and
conditions of any preceding or succeeding  breach  thereof  unless  expressly so
stated.

     (J) Non-Assignability. This Agreement shall only be assignable by Kaplan to
his successors or assigns in the event of death or incapacity, and shall only be
assignable and shall be assigned by the Company to any legal successor.

     (K) Attorney  Fees and Penalty.  If either party seeks redress in the State
Courts of the State of New York to enforce its rights under this Agreement,  the
party  prevailing in such action shall be entitled to its reasonable  attorney's
fees and expenses as deemed  appropriate by the court,  including those relating
to the  prosecution  or  resistance of any  proceeding  in all appellate  courts
before  or  after  final  decision  of a court  of  competent  jurisdiction.  In
addition,  if Kaplan must seek redress in court to collect the Payment and shall
prevail in that action, he shall be entitled to a $50,000 penalty payment.

     IN WITNESS WHEREOF,  this Agreement has been duly executed and delivered by
and on behalf of the parties hereto as of the date first hereinabove written and
each such party executes this Agreement on the  understanding and agreement that
each has hereby bound and obligated itself hereby.

                                   INDIVIDUAL INVESTOR GROUP, INC.


                                   By:
                                        -------------------------------
                                        Jonathan    Steinberg, Chairman and
                                        Chief Executive Officer



                                        --------------------------------
                                        Michael J. Kaplan


                                                            Exhibit A

                                    RELEASE

     To all to whom these Presents shall come or may Concern, Know That:

     Individual Investor Group, Inc. ("IIG"), a corporation  organized under the
laws  of  the  State  of  Delaware,   WisdomTree  Capital  Management,  Inc.,  a
corporation organized and existing under the laws of the State of New York, I.I.
Strategic Consultants, Inc., a corporation organized and existing under the laws
of the  State  of  Delaware,  WisdomTree  Administration,  Inc.,  a  corporation
organized  and  existing  under  the  laws  of  the  State  of  Delaware,   I.I.
Interactive,  Inc., a corporation  organized and existing  under the laws of the
State of Delaware,  Advanced Marketing Ventures,  Inc., a corporation  organized
and  existing  under  the laws of the  State  of  Delaware,  WisdomTree  Capital
Advisors,  LLC, a limited liability corporation organized and existing under the
laws of the State of New York,  and each being fully  authorized to execute this
Release (hereinafter collectively referred to as the RELEASORS), in exchange for
consideration  heretofore  received by IIG and each of the RELEASORS the receipt
and sufficiency of which is hereby  acknowledged,  do hereby release and forever
discharge  Michael J. Kaplan,  Esq., an individual  (hereinafter  referred to as
RELEASEE), RELEASEE's heirs, executors,  administrators,  successors and assigns
from all actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings,  bonds, bills,  specialties,  covenants,  contracts,  controversies,
agreements,   promises,  variances,  trespasses,  damages,  judgments,  extents,
executions,  claims,  and demands of any kind whatsoever,  in law,  admiralty or
equity,  which against the  RELEASEE,  any or all of the RELEASORS or RELEASORS'
successors  and assigns ever had, now have or hereafter  can,  shall or may have
for,  upon,  or by  reason of any  matter,  cause or thing  whatsoever  from the
beginning  of the  world  to the day of the  date of this  RELEASE,  except  for
matters arising out of a breach of the obligations under an Agreement,  dated as
of March __, 1998 between IIG and Michael J. Kaplan, Esq.

     Whenever the text hereof  requires,  the use of the  singular  number shall
include the appropriate  plural number as the text of the within  instrument may
require.

     This RELEASE may not be changed orally.

     IN WITNESS  WHEREOF,  each of the undersigned as RELEASOR,  has caused this
RELEASE to be executed by its duly authorized officer on July 1, 1998.

Individual   Investor  Group,  Inc.         WisdomTree Capital Management, Inc.

By:                                         By:
   -----------------------------                -----------------------------
   Jonathan Steinberg, Chairman and             Jonathan Steinberg, Chairman and
   Chief Executive Officer                      Chief Executive Officer

I.I. Strategic Consultants, Inc.            WisdomTree Administration, Inc.

By:                                         By:
   -----------------------------                -----------------------------
   Jonathan Steinberg, Chairman and             Jonathan Steinberg, Chairman and
   Chief Executive Officer                      Chief Executive Officer

I.I. Interactive,Inc.                       Advanced Marketing Ventures, Inc.

By:                                         By:
   -----------------------------                -----------------------------
   Jonathan Steinberg, Chairman and             Jonathan Steinberg, Chairman and
   Chief Executive Officer                      Chief Executive Officer

                                            WisdomTree Capital Advisors, L.L.C.

                                            By:
                                                -----------------------------
                                                Jonathan Steinberg, Chairman and
                                                Chief Executive Officer

                                 ACKNOWLEDGMENTS


State of New York    )
                     ) ss.:
County of New York   )


     On the ____ day of July, 1998, before me personally came Jonathan Steinberg
to me known,  who being by me duly  sworn,  did  depose  and say that he resides
at_________ _______; that he is the Chairman and Chief Executive Officer of each
of the  corporations on whose behalf he has executed the above  instrument;  and
that he signed his name  thereto by  authority of the Board of Directors of each
of the said corporations.


                                             -----------------------------------
                                                       Notary Public

                                                                 Exhibit B

                                     RELEASE

     To all to whom these Presents shall come or may Concern, Know That:

     Michael J. Kaplan,  Esq., an  individual  residing in the State of New York
and being fully  authorized  and competent to execute this Release  (hereinafter
referred to as RELEASOR),  in exchange for consideration  heretofore received by
RELEASOR  the  receipt and  sufficiency  of which is hereby  acknowledged,  does
hereby release and forever discharge  Individual Investor Group, Inc. ("IIG"), a
corporation  organized  and  existing  under the laws of the State of  Delaware,
WisdomTree Capital Management,  Inc., a corporation organized and existing under
the  laws  of the  State  of New  York,  I.I.  Strategic  Consultants,  Inc.,  a
corporation  organized  and  existing  under the laws of the State of  Delaware,
WisdomTree Administration,  Inc., a corporation organized and existing under the
laws of the State of Delaware,  I.I. Interactive,  Inc., a corporation organized
and  existing  under  the laws of the  State  of  Delaware,  Advanced  Marketing
Ventures, Inc., a corporation organized and existing under the laws of the State
of Delaware,  WisdomTree Capital Advisors,  LLC, a limited liability corporation
organized  and  existing  under the laws of the  State of New  York,  WisdomTree
Associates, L.P., a limited partnership organized and existing under the laws of
the State of New York, and WisdomTree  Offshore,  Ltd., a Company  organized and
existing  under the laws of the  Cayman  Islands,  and each of their  respective
successors and assigns, officers,  directors,  employees and agents, and each of
their  respective  heirs,  executors,  administrators,  successors  and  assigns
(hereinafter  referenced to as RELEASEES),  from, all actions, causes of action,
suits,  debts,  dues,  sums  of  money,  accounts,   reckonings,  bonds,  bills,
specialties,   covenants,  contracts,   controversies,   agreements,   promises,
variances,  trespasses,  damages, judgements,  extents, executions,  claims, and
demands of any kind whatsoever,  in law, admiralty or equity,  which against the
RELEASEES,   the  RELEASOR,   RELEASOR'S,   heirs,  executors,   administrators,
successors  and assigns ever had, now have or hereafter  can,  shall or may have
for,  upon,  or by  reason of any  matter,  cause or thing  whatsoever  from the
beginning  of the  world  to the day of the  date of this  RELEASE,  except  for
matters arising out of a breach of the obligations under an Agreement,  dated as
of March __, 1998 between IIG and RELEASOR.

     Whenever the text hereof requires, the use of singular number shall include
the appropriate plural number as the text of the within instrument may require.

     This RELEASE may not be changed orally.

     IN WITNESS WHEREOF, the undersigned as RELEASOR,  has executed this RELEASE
July 1, 1998.


                                             ---------------------------------
                                             Michael J. Kaplan, Esq.



                                 ACKNOWLEDGMENT

State of New York   )
                    ) ss.:
County of New York  )



     On the 1st day of July,  1998,  before me personally came Michael J. Kaplan
to me  known  to be the  person  described  in and who  executed  the  foregoing
instrument, and acknowledged that he executed the same.

        
                                              ----------------------------------
                                              Notary Public





<TABLE> <S> <C>


<ARTICLE>                     5

<CIK>                         0000880631
<NAME>                        INDIVIDUAL INVESTOR GROUP INC
       
<S>                                           <C>
<PERIOD-TYPE>                                  3-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-START>                                 JAN-31-1998
<PERIOD-END>                                   MAR-31-1998
<CASH>                                           2,823,083
<SECURITIES>                                             0
<RECEIVABLES>                                    3,202,112
<ALLOWANCES>                                       600,770
<INVENTORY>                                              0
<CURRENT-ASSETS>                                 5,704,734
<PP&E>                                           1,241,920
<DEPRECIATION>                                   (722,911)
<TOTAL-ASSETS>                                  10,591,397
<CURRENT-LIABILITIES>                            3,366,928
<BONDS>                                                  0
<PREFERRED-MANDATORY>                                    0
<PREFERRED>                                              0
<COMMON>                                            72,310
<OTHER-SE>                                       4,421,295
<TOTAL-LIABILITY-AND-EQUITY>                    10,591,397
<SALES>                                          3,953,973
<TOTAL-REVENUES>                                 3,614,994
<CGS>                                            3,078,327
<TOTAL-COSTS>                                    5,804,595
<OTHER-EXPENSES>                                         0
<LOSS-PROVISION>                                         0
<INTEREST-EXPENSE>                                       0
<INCOME-PRETAX>                                (2,159,646)
<INCOME-TAX>                                             0
<INCOME-CONTINUING>                            (2,159,646)
<DISCONTINUED>                                           0
<EXTRAORDINARY>                                          0
<CHANGES>                                                0
<NET-INCOME>                                   (2,159,646)
<EPS-PRIMARY>                                       (0.30)
<EPS-DILUTED>                                       (0.30)
        

                                       



</TABLE>