FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549



(Mark  One)

[X]     QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR 15(d) OF THE SECURITIES
        EXCHANGE  ACT  OF  1934
For  the  quarterly  period  ended  June  30,  2001


[  ]     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:  000-26957

                              DCH TECHNOLOGY, INC.
        (Exact name of small business issuer as specified in its charter)

             Delaware                                    84-1349374
   (State or other jurisdiction             (I.R.S. Employer Identification No.)
of incorporation or organization)

                             27811 Avenue Hopkins #6
                               Valencia, CA  91355
                    (Address of Principal Executive Offices)

                    Issuer's telephone number: (661) 775-8120

     Check  whether  the  issuer  (1)  filed all reports required to be filed by
Section  13  or 15(d) of the Exchange Act during the preceding 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  [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     As of July 31, 2001, the issuer had 29,650,285 shares of common stock, $.01
par  value  per  share,  outstanding.


<PAGE>
                              DCH TECHNOLOGY, INC.

                                    CONTENTS

                                                                        Page No.
                                                                        --------
PART  I  -  FINANCIAL  INFORMATION

   Item  1.     Financial  Statements

                Independent  Accountant's  Report

                Consolidated  Balance  Sheets

                Consolidated  Statements  of  Operations

                Consolidated  Statements  of  Cash  Flows

                Notes  to  Consolidated  Financial  Statements

   Item  2.     Management's  Discussion  and  Analysis  of  Financial
                Condition  and  Results  of  Operations

   Item  3.     Quantitative  and  Qualitative  Disclosures  About
                Market  Risk

PART  II  -  OTHER  INFORMATION

   Item  1.     Legal  Proceedings

   Item  2.     Changes  in  Securities  and  Use  of  Proceeds

   Item  3.     Defaults  Upon  Senior  Securities

   Item  4.     Submission  of  Matters  to  a  Vote  of  Security  Holders

   Item  5.     Other  Information

   Item  6.     Exhibits  and  Reports  on  Form  8-K

SIGNATURES


<PAGE>
PART  I.  FINANCIAL  INFORMATION



                         Independent Accountant's Report


Board  of  Directors  and  Shareholders
DCH  Technology,  Inc.

We have reviewed the accompanying consolidated balance sheet of DCH (Diversified
Commercial Hydrogen) Technology, Inc. and subsidiary as of June 30, 2001 and the
related  consolidated  statements of operations and cash flows for the six month
period  then  ended.  These  financial  statements are the responsibility of DCH
Technology,  Inc.  management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A  review  of  interim financial
information  consists principally of applying analytical procedures to financial
data  and  making  inquiries of persons responsible for financial and accounting
matters.  It  is  substantially  less  in  scope  than  an  audit  conducted  in
accordance with generally accepted auditing standards, the objective of which is
the  expression  of  an  opinion  regarding  the financial statements taken as a
whole.  Accordingly,  we  do  not  express  such  an  opinion.

Based  on our review, we are not aware of any material modifications that should
be  made  to the consolidated financial statements referred to above for them to
be  in  conformity  with  generally  accepted  accounting  principles.

We  have  previously  audited,  in  accordance with auditing standards generally
accepted  in the United States of America, the consolidated balance sheet of DCH
Technology,  Inc.  and  subsidiaries  as  of  December 31, 2000, and the related
consolidated  statements  of operations, stockholders' equity and cash flows for
the  year  then  ended not presented herein; and in our report dated February 6,
2001,  we  expressed  an  unqualified  opinion  on  those consolidated financial
statements.  In  our  opinion,  the  information  set  forth in the accompanying
consolidated  balance sheet as of December 31, 2000, is fairly presented, in all
material  respects,  in relation to the consolidated balance sheet from which it
has  been  derived.


/s/  Moss  Adams  LLP

Los  Angeles,  California
July  19,  2001


<PAGE>
<TABLE>
<CAPTION>
                         DCH Technology, Inc. and Subsidiaries
                              CONSOLIDATED BALANCE SHEETS


                                        ASSETS

                                                          JUNE 30,     DECEMBER 31,
                                                            2001            2000
                                                        -------------  --------------
CURRENT ASSETS                                           (UNAUDITED)
<S>                                                     <C>            <C>
   Cash and cash equivalents                            $    152,653   $      75,300
   Accounts receivable, net of allowances                    172,382         175,047
   Inventories                                               562,075         528,816
   Prepaid expenses                                          267,809          84,261
   Other receivable                                           33,543          17,076
                                                        -------------  --------------

     TOTAL CURRENT ASSETS                                  1,188,462         880,500

PROPERTY AND EQUIPMENT, net                                2,350,792       2,362,357

OTHER ASSETS
   Intangible assets, net of accumulated amortization        132,673         134,536
   Restricted cash deposit                                   700,000         700,000
   Investments with no readily determinable fair value        25,000          25,000
   Investment in joint venture                                38,187          41,623
   Marketing, leased asset, net of depreciation              165,641               -
   Other                                                       9,071          10,190
                                                        -------------  --------------

     TOTAL OTHER ASSETS                                    1,070,572         911,349
                                                        -------------  --------------

                                                        $  4,609,826   $   4,154,206
                                                        =============  ==============


LIABILITIES AND STOCKHOLDERS' EQUITY


CURRENT LIABILITIES
   Accounts payable                                     $    359,151   $     659,053
   Accrued liabilities                                       129,865         427,563
   Accrued compensation                                      570,809         728,805
   Current portion of note payable                            59,367          55,867
   Current portion of capital lease obligations               16,635          14,623
   Unearned revenue                                          109,194               -
                                                        -------------  --------------

     TOTAL CURRENT LIABILITIES                             1,245,021       1,885,911

LONG TERM LIABILITIES, net of current portion
   Note payable                                              679,906         710,658
   Capital lease obligations                                   4,562          14,662
                                                        -------------  --------------

     TOTAL LIABILTIES                                      1,929,489       2,611,231


                                      F-1
<PAGE>
MINORITY INTEREST IN LLC                                          57               -

STOCKHOLDERS' EQUITY
   Preferred stock, $0.10 par value
     5,000,000 shares authorized,
     no shares issued and outstanding                              -               -

   Common stock, $0.01 par value,
     50,000,000 shares authorized,
     29,208,785 and 25,560,616 shares
     issued and outstanding                                  292,088         255,606

   Additional paid-in-capital                             24,175,744      17,631,900
   Investment in limited liability companies                 (64,554)        (68,714)
   Other comprehensive loss                                   (6,756)         (3,320)
   Accumulated deficit                                   (21,716,242)    (16,272,497)
                                                        -------------  --------------
     TOTAL STOCKHOLDERS' EQUITY                            2,680,280       1,542,975
                                                        -------------  --------------

                                                        $  4,609,826   $   4,154,206
                                                        =============  ==============
</TABLE>


                                      F-2
<PAGE>
<TABLE>
<CAPTION>
                      DCH Technology, Inc. and Subsidiaries
                      CONSOLIDATED STATEMENTS OF OPERATIONS


                                    FOR THE THREE MONTHS ENDED   FOR THE SIX MONTHS ENDED
                                            June  30,                   June  30,
                                    -------------------------  --------------------------
                                        2001          2000          2001          2000
                                    -----------  ------------  ------------  ------------
                                    (UNAUDITED)   (UNAUDITED)   (UNAUDITED)   (UNAUDITED)
<S>                                 <C>          <C>           <C>           <C>
Sales                               $  231,525   $   265,756   $   420,276   $   576,431

Cost of goods sold                     121,224       323,428       224,420       481,111
                                    -----------  ------------  ------------  ------------

Gross profit                           110,301       (57,672)      195,856        95,320


Operating expenses:
   Selling, general and              1,770,951     1,242,507     4,069,050     2,502,714
   administrative expenses
   Depreciation and amortization       105,890        42,003       203,088        69,769
   Research and development            581,884       418,535     1,376,593       684,710
                                    -----------  ------------  ------------  ------------

   Total operating expenses          2,458,725     1,703,045     5,648,731     3,257,193
                                    -----------  ------------  ------------  ------------

     Loss from operations           (2,348,424)   (1,760,717)   (5,452,875)   (3,161,873)

Other income (expense), net            (12,730)       52,602         3,150        71,541
                                    -----------  ------------  ------------  ------------

Net loss before Minority interest   (2,361,154)   (1,708,115)   (5,449,725)   (3,090,332)

Minority interest                        5,980             -         5,980             -
                                    -----------  ------------  ------------  ------------
Net loss                            (2,355,174)   (1,708,115)   (5,443,745)   (3,090,332)


Other comprehensive loss
 Foreign currency translation              471             -         3,436             -
                                    -----------  ------------  ------------  ------------

   Comprehensive loss               (2,354,703)  $(1,708,115)  $(5,447,181)  $(3,090,332)
                                    ===========  ============  ============  ============

Net loss per share
   Basic                            $    (0.08)  $     (0.07)  $     (0.19)  $     (0.13)
                                    ===========  ============  ============  ============

   Diluted                          $    (0.08)  $     (0.07)  $     (0.19)  $     (0.13)
                                    ===========  ============  ============  ============

Weighted average shares
outstanding                         28,889,286    24,501,567    28,238,191    22,918,479
                                    ===========  ============  ============  ============
</TABLE>


    The Accompanying Notes are an Integral Part of these Financial Statements


                                      F-3
<PAGE>
<TABLE>
<CAPTION>
                      DCH Technology, Inc. and Subsidiaries
                      CONSOLIDATED STATEMENTS OF CASH FLOWS



                                                                  FOR THE SIX MONTHS ENDED
                                                                         JUNE 30,
                                                                 ---------------------------
                                                                        2001         2000
                                                                 ------------  -------------
<S>                                                              <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES                               (UNAUDITED)   (UNAUDITED)

   Net loss                                                      $(5,443,745)   $(3,090,332)
   Adjustments to reconcile net loss to net cash used
     by operating activities:
      Depreciation and amortization                                  203,088         69,769
      Loss on disposal of equipment                                      524              -
      Issuance of stock, warrants and options for services         2,852,999        752,154
     Loss from investment in partnerships and joint venture            4,160         10,443
     Minority interest                                                (5,980)          -
   Change in assets and liabilities:
     Accounts receivable, net allowance                                2,665       (412,881)
     Inventory                                                      (270,784)       (91,166)
     Prepaid expenses                                                 66,452       (186,805)
     Other receivables                                                14,131         49,658
     Accounts payable                                               (299,902)       (27,151)
     Unearned revenue                                                109,194              -
     Accrued liabilities                                            (182,698)        67,398
     Accrued compensation                                           (157,996)        94,223
                                                                 ------------  -------------

     NET CASH USED IN OPERATING ACTIVITIES                        (3,107,892)    (2,764,690)

CASH FLOWS FROM INVESTING ACTIVITIES
   Investment in certificate of deposit                                    -       (700,000)
   Minority interest investment in LLC                                 6,037              -
   Deposits made for equipment                                         1,119       (127,267)
   Purchase of licenses and intellectual property                    (16,826)             -
   Purchase of property and equipment                               (101,473)      (789,073)
                                                                 ------------  -------------

     NET CASH USED IN INVESTING ACTIVITIES                          (111,143)    (1,616,340)

CASH FLOWS FROM FINANCING ACTIVITIES
   Proceeds from issuance of common stock and warrants             2,783,117      5,210,000
   Principal payments on capital leases                               (8,088)        (7,857)
   Principal payments on long-term debt                              (27,252)        (7,518)
   Proceeds from exercise of options and warrants                    548,611      1,159,400
   Proceeds from common stock subscriptions receivable                     -        131,000
                                                                 ------------  -------------

     NET CASH RECEIVED FROM FINANCING ACTIVITIES                   3,296,388      6,485,025
                                                                 ------------  -------------

NET INCREASE IN CASH                                                  77,353      2,103,995

CASH, BEGINNING OF PERIOD                                             75,300      1,193,084
                                                                 ------------  -------------

CASH, END OF PERIOD                                              $   152,653   $  3,297,079
                                                                 ============  =============

Supplemental disclosure of cash flow information:

   Cash paid for

     Interest                                                    $    31,164   $     5,069
     Income taxes                                                      1,950         1,950


Non-cash  transactions
     During the period ended June 30, 2001, accrued expenses of $115,000
       was  settled  with the  issuance  of  options
     During the period ended June 30, 2001, prepaid services under a consulting agreement of
       $250,000 were paid with the issuance of stock
</TABLE>

    The Accompanying Notes are an Integral Part of these Financial Statements


                                      F-4
<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1)  BASIS  OF  PRESENTATION

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared  in  accordance  with the instructions to Form 10-QSB. The consolidated
balance  sheet,  statement  of  operations and cash flows at and for the periods
ended  June 30, 2001 have been reviewed by the Company's independent auditors in
accordance  with  the  professional  standards  and  procedures  as set forth in
Statement  of  Auditing  Standards  No.  71  (SAS  71).  SAS  71  procedures for
conducting  a  review  of interim financial information generally are limited to
inquiries  and  analytical  procedures concerning significant accounting matters
relating  to  the  financial information to be reported. They do not include all
information  and  footnotes  necessary  for  a  fair  presentation  of financial
position  and  results of operations and cash flows in conformity with generally
accepted  accounting  principles. These consolidated financial statements should
be  read  in  conjunction with the consolidated financial statements and related
notes contained in the Company's Annual Report on Form 10-KSB for the year ended
December  31,  2000.  In  the  opinion of management, all adjustments considered
necessary  for  a  fair  presentation  have been included in the interim period.
Operating  results  for  the  six months ended June 30, 2001 are not necessarily
indicative  of the results that may be expected for the year ending December 31,
2001.

(2)  LOSS  PER  SHARE

     Loss  per  share  of  common  stock  is computed using the weighted average
number  of  common  shares  outstanding  during  the period shown.  Common stock
equivalents  were  not  included  in  the  determination of the weighted average
number  of  shares  outstanding,  as  they  would  be  antidilutive.

(3)  INVENTORIES

                                                June  30,       December 31,
                                                  2001              2000
                                                ---------       ------------
      Raw  Materials                            $ 271,717       $    393,158
      Work in Process                             289,558            124,797
      Finished Goods                                  800             10,861
                                                ---------        -----------
              Total                             $ 562,075        $   528,816
                                                =========        ===========


(4)  INCOME  TAXES

     The Company records income taxes using an asset and liability method. Under
this  method,  deferred  Federal and State income tax assets and liabilities are
provided for temporary differences between the financial reporting basis and the
tax-reporting  basis of assets and liabilities. At June 30, 2001, cumulative net
operating losses, which have not been deducted for income tax reporting purposes
amount  to  approximately  $19,000,000.  These losses may be carried forward and
used  to  offset  future  taxable income. Unused loss carry forward amounts will
expire  for Federal and State purposes starting 2013 and 2002, respectively. The
deferred  tax  assets  resulting  from  this loss carry forward is approximately
$7,800,000.  The  entire amount of this deferred tax asset has been reserved and
reduced  to  $-0- because of the uncertainty regarding the future utilization of
the  loss  carry  forward  amounts.


<PAGE>

(5)  BUSINESS SEGMENT INFORMATION

     The  Company's  reportable segments include the hydrogen fuel cell division
Located in Wisconsin and the hydrogen sensor division located in California. The
Following  table  represents  segment  information  for the three and six months
ended  June  30,  2001  and  2000:

                                            Fuel Cells    Sensors        Total
  For the three months ended June 30, 2001: ----------   ----------   ----------
   Sales                                     $   5,828    $ 225,697   $ 231,525
   Gross profit (loss)                       $  (5,572)   $ 115,873   $ 110,301

  For the three months ended June 30, 2000:
   Sales                                     $  22,600    $ 243,156   $ 165,756
   Gross profit (loss)                       $(136,996)   $  79,324   $ (57,672)

  For the six months ended June 30, 2001:
   Sales                                     $   7,528    $ 412,748   $ 420,276
   Gross profit (loss)                       $ (11,126)   $ 206,982   $ 195,856

  For the six months ended June 30, 2000:
   Sales                                     $ 304,940    $ 271,491   $ 576,431
   Gross profit (loss)                       $  24,722    $  70,598   $  95,320


(6)  RECLASSIFICATIONS

     Certain  prior  year  amounts  have  been  reclassified to conform with the
current  year  presentation.  These  changes  have  no  effect  on net earnings.


(7)  NEW ACCOUNTING PRONOUNCEMENTS

     In  June  2001,  the  Financial  Accounting  Standards  Board (FASB) issued
Statements of Financial Accounting Standards No. 141, Business Combinations, and
No.  142,  Goodwill  and  Other  Intangible  Assets,  effective for fiscal years
beginning  after December 15, 2001. Under the new rules, goodwill will no longer
be  amortized  but will be subject to annual impairment tests in accordance with
the Statements. Other intangible assets will continue to be amortized over their
useful  lives. Management believes these pronouncements will not have a material
effect  on  the  Company's  financial  statements  or  disclosures.

<PAGE>
ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITIONS AND
          RESULTS  OF  OPERATIONS.

     THIS  REPORT  CONTAINS  FORWARD-LOOKING  STATEMENTS  WITHIN  THE MEANING OF
SECTION  21E  OF  THE SECURITIES EXCHANGE ACT OF 1934. THESE STATEMENTS INCLUDE,
WITHOUT  LIMITATION,  STATEMENTS  ABOUT OUR EXPECTATIONS, BELIEFS, INTENTIONS OR
FUTURE  STRATEGIES  THAT  ARE  SIGNIFIED  BY THE WORDS "EXPECTS", "ANTICIPATES",
"INTENDS",  "BELIEVES",  OR  SIMILAR  LANGUAGE. THESE FORWARD-LOOKING STATEMENTS
INVOLVE  RISKS,  UNCERTAINTIES AND OTHER FACTORS. ALL FORWARD-LOOKING STATEMENTS
INCLUDED  IN  THIS DOCUMENT ARE BASED ON INFORMATION AVAILABLE TO US ON THE DATE
HEREOF  AND  SPEAK ONLY AS OF THE DATE HEREOF. THE FACTORS DISCUSSED BELOW UNDER
"FORWARD-LOOKING  STATEMENTS"  AND ELSEWHERE IN THIS FORM 10-QSB ARE AMONG THOSE
FACTORS  THAT IN SOME CASES HAVE AFFECTED OUR RESULTS AND COULD CAUSE THE ACTUAL
RESULTS  TO  DIFFER  MATERIALLY  FROM  THOSE  PROJECTED  IN  THE FORWARD-LOOKING
STATEMENTS.

     The  following  discussion should be read in conjunction with the condensed
consolidated  financial  statements  and  notes  thereto.

General
-------

     DCH  (Diversified Commercial Hydrogen) Technologies, Inc. (DCH), is engaged
in  the  acquisition,  development and commercial exploitation of hydrogen-based
technologies.

     We seek out patented technologies in our focus areas, secure those patented
technologies  through  licensing  agreements with the patent holders and convert
the  technologies  into viable products which we then produce and sell. We focus
on  technologies  related to the use of hydrogen, primarily hydrogen gas sensors
and  Proton  Exchange  Membrane  (PEM) fuel  cells.  We also provide services to
promote  hydrogen  safety.

     We  commenced initial production of our first hydrogen gas detector product
line,  the  Robust  Hydrogen  Sensor  (TM)  product  line, in November 1998, and
currently  offer eight hydrogen sensor products. We began to commercialize a low
power (up to 10 kWs) fuel cell in 1998. In March 2000, we created a wholly-owned
subsidiary,  the  Enable  Fuel  Cell  Corporation,  to  focus on this market. We
currently  obtain  our  funding  from  equity  financings  and product sales. As
production activity increases, production facilities are more fully utilized and
we  implement  our complete marketing strategy, we expect revenues from sales of
products  to  increase  as  a  proportion  of  our  funding.

     On  August  10,  2000, our common stock began trading on the American Stock
Exchange  under  the  symbol  "DCH."

     On  July 1, 2001, we entered into consulting agreements with David Haberman
and David Walker. Messrs. Haberman and Walker founded DCH in 1994. Both of these
gentlemen  have  recently resigned as DCH Company Operating Officers. Mr. Walker
served  as an officer (Vice President and President) from 1994 to June 30, 2001.
Mr.  Haberman  had  served  as Vice President from 1994 until June 30, 2001. The
Stockholders  reelected  both  as  Members of the Board of Directors at the June
2001  meeting.  Mr  Haberman  was  again  elected  by  the Board to serve as its
Chairman.

     The  founders felt this move was necessary to ensure DCH's continued growth
and success as the Company evolves from an entrepreneurial enterprise to a major
corporation.  The  rest of the Board of Directors concurred with their decision.


<PAGE>
Hydrogen  Sensors
-----------------

     Beginning  in  April  2001,  we  began  shipping our new hand-held hydrogen
monitoring  system,  the H2scan(TM). The H2scan unit is a completely re-designed
and  integrated  unit,  based  on  over  two  and a half years of input from our
customers,  and is a significant step forward in both technology and capability.
The  H2Scan in standard configuration comes with a carrying case, extra battery,
charger,  and  an  extension  wand  for reaching areas of detection out of arm's
length.  By  combining  efficient  electronics  engineering  and molded assembly
components,  we  have  shortened  assembly  time for the units and increased our
gross  profit  margin  on the units. At the same time, we have added to the unit
over  nine  new features and three sensor components that formerly were optional
equipment.  In  April  2001, we delivered the first H2scan unit to an automotive
customer  for  use  at  a  hydrogen refilling station in Sacramento, California.

     Our line of hydrogen specific sensors is also making increased inroads into
semiconductor  manufacturing. We are currently sole source suppliers for several
companies.  Several automotive companies are either testing or using our sensors
in prototype fuel cell cars or using our handheld H2scan unit for leak detection
during  fueling at hydrogen refueling stations. We are continuing to ship sensor
products for the use in real time measurement for reformer applications. We have
redesigned  a sensor head for measuring the amount of hydrogen in the out gas of
the  reformer.  Several fuel cell and automotive companies are currently testing
our  Robust  Hydrogen  Sensor  for  this  application.  Our  sensor research and
development  efforts are focused on working with automotive companies to develop
an  effective,  cost-efficient  sensor  for  hydrogen-fueled  cars  and  trucks.

     In  May  2001, we granted distribution rights to market and sell our sensor
products  to  SunLine  Services  Group  of Thousand Palms, California a separate
agency  of  SunLine  Transit  Authority,  which is a world leader in alternative
energy  vehicles.  SunLine  Services  Group is a world hub for demonstrating the
latest  in  alternative  energy vehicles, including the latest technologies from
Stuart  Energy,  Teledyne, Siemens, Quest Air, Hydrogen Burner, and many others.
These  technologies  are  showcased  in  a  "Clean  Air  Mall"  at  SunLine's
headquarters.

     We  have  targeted for future sensor product distribution arrangements with
several  companies  that  operate  businesses  in  multiple  locations  and have
established  distribution  networks  selling  other  industrial  gas  products.

Fuel  Cells
-----------

     During  the  second  quarter  ended  June  30, 2001, our 3 kW PEM fuel cell
demonstration  project  with  the  Texas  Natural  Resource  and  Conservation
Commission  (TNRCC)  concluded with a public demonstration in Austin, Texas. The
demonstration  project  showed  the  use  of  our  mobile  3KW  fuel  cell as an
environmentally  friendly system for powering air quality measurement equipment.

     In  May 2001, we reached an agreement with IPS MeteoStar, Aurora, Colorado,
a  global  supplier  of remote data-logging systems that communicate information
back  to  customers real-time via satellite, to begin distributing products with
our  portable  fuel  cells  serving  as  the  internal  electric power supply. A
MeteoStar  monitoring system powered by our 12W/12V fuel cell is currently being
used  by  the  State  of  Texas  for  monitoring  water  quality.

     In  June  2001,  we  signed  an  agreement  with  ZAPWORLD.COM, Sebastopol,
California,  a  company  that designs, manufactures and sells electric bicycles,
scooters,  motorcycles  and  other  electric  transportation  and  recreational
products,  to  develop  the  world's  first commercially available hydrogen fuel
cell-powered  electric  bicycle. We are scheduled to introduce the first jointly
produced  units  by  2002.


<PAGE>
     In July 2001, we demonstrated our third-generation of higher-power portable
fuel  cells at the South Coast Air Quality Management District (AQMD) Conference
in  Diamond  Bar,  California.  The  unit demonstrated at the AQMD meeting stood
less  than  2  feet  high with less than a 2.5 square-foot base, yet delivered a
constant 1 kW of power with peak power of nearly 2 kW. Our new fuel cell unit is
distinguished  by its unique simplicity in design and operation and by the power
it  can  deliver  in  a  very  compact  package.


Results  of  Operations
-----------------------

Three  and  Six  Months  Ended June 30, 2001, Compared With Three and Six Months
--------------------------------------------------------------------------------
Ended June 30, 2000
-------------------

     In  the three months ended June 30, 2001, we had sales of $231,525 compared
to sales of $265,756 for the three months ended June 30, 2000. In the six months
ended  June 30, 2001, we had sales of $420,276 compared to sales of $576,431 for
the  six  months  ended June 31, 2000. The lower sales in both the three and six
month  periods ended June 30, 2001 resulted primarily from a large non-recurring
contract  sale realized during the first quarter of 2000. These lower 2001 sales
were offset in part by an increase in the number of sensor units sold during the
second  quarter of 2001. In the three months ended June 30, 2001 we had received
orders  for two 5kW fuel cells and ten 12-watt fuel cells. The 12-watt units are
scheduled  for  delivery  in  the  third  quarter  of 2001 and the 5kW units are
scheduled  for  delivery  before  the end of 2001. We have received deposits and
advance  payments  on  certain  of  these  units.  These  units  are  all  under
construction  at  our  Enable  subsidiary.  The  sales backlog on these units is
approximately  $318,000.

     The  cost of products sold decreased to $121,224 for the three months ended
June  30,  2001 from $323,428 for the three months ended June 30, 2000. The cost
of  products  sold  decreased to $224,420 for the six months ended June 30, 2001
from  $481,111 for the six months ended June 30, 2000. In percentage terms, cost
of goods sold represented 52% of total sales for the three months ended June 30,
2001 versus 122% for the same period in 2000, and 53% of total sales for the six
months  ended  June  30, 2001 versus 83% for the same period in 2000. These cost
reductions  in  2001  were achieved primarily as a result of the introduction of
our  new  H2Scan  hydrogen  sensor  product  line.  The components for these new
sensors  are  more  easily integrated, thus resulting in lower manufacturing and
assembly  costs.  We  do  not  anticipate  that  fuel  cells  currently  under
construction  will  contribute  to  our  gross  profit  margin.

     We  incurred $1,770,951 in selling, general and administrative expenses for
the  three  months  ended  June  30,  2001, compared to $1,242,507 for the three
months  ended  June  30,  2000.  We  incurred $4,069,050 in selling, general and
administrative  expenses  for  the  six  months ended June 30, 2001, compared to
$2,502,714  for the six months ended June 30, 2000. Included in selling, general
and  administrative  expense  for  the  three  months  ended  June  30, 2001 was
$1,037,279  of  expense  related  to  the  issuance  of  fully vested options to
purchase  approximately  811,900 shares of stock to employees and consultants in
lieu  of  cash  compensation.  For  the  six  months  ended June 30, 2001, these
expenses  equaled  $  2,596,192,  and  related  to the issuance of approximately
50,000  shares  of  stock  and  fully  vested  options to purchase approximately
1,711,909 shares of stock. We issued the stock and fully vested options in order
to  conserve  cash  for  our  operations,  in accordance with an ongoing plan we
implemented  in the first quarter of 2001. Employees receiving stock and options
have agreed to receive these securities, in lieu of cash, for a portion of their
salaries.  We  conserved  approximately  $1,000,000 of cash during the first six
months  of  2001  under this program. In the three and six months ended June 30,
2000, similar non-cash compensation equaled $312,685 and $848,305, respectively.

     Depreciation  and  amortization  increased to $105,890 for the three months
ended  June  30,  2001  compared  to $42,003 for the three months ended June 30,
2000,  and increased to $203,088 for the six months ended June 30, 2001 compared
to  $69,769  for  the six months ended June 30, 2000, reflecting the purchase in
May  2000  of  the  building  located  at  24832 Avenue Rockefeller in Valencia,
California  and  additional  equipment  to  support  our  operations.

     The  Company  is currently in negotiations to sell the building and related
land  located  at  24832  Avenue  Rockefeller  in  Valencia,  California. If the
transaction is successful, the Company will generate approximately $1,400,000 of
working  cash  flow  through  both  the sales proceeds and the use of a $700,000
restricted  cash deposit that is held as security on the property. In connection
with the transaction the Company will have a 10 year operating lease for the use
of  the  facility.


<PAGE>
     We  expended  a  total  of  $581,884 on research and development during the
three  months  ended June 30, 2001, compared to expenditures of $418,535 for the
three  months  ended  June  30,  2000. Research and development expenses totaled
$1,376,593  for the six months ended June 30, 2001, compared to $684,710 for the
six  months  ended  June  30,  2000.  The  majority  of the increases in 2001 in
research  and  development  expenses  was  due  to  a  greater  focus  on  the
commercialization  and  development  of  products,  especially  in our fuel cell
operation.

     Due  primarily  to  these  factors,  we  incurred a loss from operations of
$2,355,174  for  the  three months ended June 30, 2001, compared to an operating
loss  of  $1,708,115  for  the  three  months ended June 30, 2000. We also had a
foreign  currency  translation adjustment of $471 in the second quarter of 2001,
resulting  in  a  comprehensive  loss  of $2,354,703 for that period. Despite an
increase  in  the  number  of  shares  outstanding  during  the  period  (we had
28,889,286 weighted average common shares outstanding for the three months ended
June  30,  2001,  as  compared  to  24,501,567  weighted  average  common shares
outstanding for the comparable period in 2000), the net loss per share increased
to  $0.08  per  share for the three months ended June 30, 2001, as compared to a
loss  of  $0.07  per  share  for  the  comparable  period  in  2000.

     We incurred a net loss of $5,443,745 for the six months ended June 30, 2001
compared  to a net loss of $3,090,332 for the six months ended June 30, 2000. We
also  had a foreign currency translation adjustment of $3,436 in 2001, resulting
in  a  comprehensive loss of $5,447,181 for that period.  Despite an increase in
the  number  of shares outstanding during the period (we had 28,238,191 weighted
average  common  shares  outstanding  for the six months ended June 30, 2001, as
compared  to  22,918,479  weighted  average  common  shares  outstanding for the
comparable  period  in  2000),  the  net  loss  per share increased to $0.19 per
share  for  the  six  months  ended  June  30,  2001,  as  compared to a loss of
$0.13  per  share  for  the  comparable  period  in  2000.


Liquidity  and  Capital  Resources
----------------------------------

     We  generated  a  total of $3,296,388 in net cash from financing activities
for  the  six  months ending June 30, 2001, as compared to $6,485,025 during the
comparable six months in 2000. Substantially all of the financing activities for
the  six months ended June 30, 2001 consisted of equity financings, supplemented
by  proceeds  from  the  exercise  of  options  and  warrants.

     We  utilized  $3,107,892  of  net  cash for operating activities in the six
months  ended June 30, 2001, compared to $2,764,690 for the comparable period in
2000.  The  increase  in  net  cash  used for operating activities was primarily
related  to  the  growth  of our product sales and operations during the period,
including  an increase in inventory and accounts receivable. We used $111,143 of
net  cash  for  investing  activities  in  the  six  months ended June 30, 2001,
compared  to  $1,616,340  of net cash for investing activities in the six months
ended  June  30, 2000. These funds were primarily used in both years to purchase
production  equipment  and  the  acquisition of licenses for our sensor and fuel
cell  production.  The  higher  spending  in  the  first six months of 2000 also
reflects the acquisition of the Avenue Rockefeller property for the expansion of
our  sensor  production  capability.

     At June 30, 2001, we had $152,653 in unrestricted cash, compared to $75,300
in  cash  at  December  31,  2000.  We  also  had  accounts  receivable  (net of
allowance)  of  $172,382  at  June  30, 2001, compared to accounts receivable of
$175,047  at  December  31,  2000.  Investment in  inventory totaled $562,075 at
June  30, 2001 compared to $528,816  at December 31, 2000.  The  slight increase
in  inventory  is  a  combination  of  additional  inventory requirements in our
sensor  operations,  and  work  in  process  at  our  fuel  cell  operation.


<PAGE>
     At June 30, 2001, we had accounts payable of $359,151, compared to accounts
payable  of $659,053 at December 31, 2001.  The decrease is due primarily to our
efforts  to pay down existing liabilities and reduce additional costs during the
six  month period.  We also reduced our accrued compensation to $570,809 at June
30,  2001,  from  $728,805  at  December  31,  2000.  We had unearned revenue of
$109,194  at June 30, 2001, derived from fuel cells currently being manufactured
and  due  to  be  delivered  to  the  customer  in  the  third  quarter of 2001.

     We  are  dependent  upon  outside  sources  for  equity capital to fund our
operating requirements. We anticipate that a portion of our capital requirements
for  the  balance  of  the period ending December 31, 2001 will be provided from
external  funding  sources.  We  are actively pursuing and negotiating financing
arrangements  with potential strategic investors. However, there is no assurance
that  we  will  be  able to generate capital sufficient to meet our needs. If we
cannot  meet these capital requirements, we may be able to extend the period for
which  available  resources  would prove adequate by not proceeding with planned
major  operation  expansions  and  deferring  planned  staff  increases.


Forward-Looking  Statements
---------------------------

     The  forward-looking  statements contained in this Quarterly Report on Form
10-QSB  are subject to various risks, uncertainties and other factors that could
cause  actual  results to differ materially from the results anticipated in such
forward-looking  statements.  Included  among the important risks, uncertainties
and  other  factors  are  those  discussed  below.

RISKS  RELATED  TO  DCH'S  OPERATIONS

WE  MAY  BE UNABLE TO MEET OUR FUTURE CAPITAL REQUIREMENTS, WHICH MAY PREVENT US
FROM  IMPLEMENTING  OUR  BUSINESS  PLAN.

     Based on our current operating plan, we anticipate that our available funds
will  be  sufficient  to  satisfy  our  anticipated  needs  for working capital,
including  our  increased  marketing expenses, capital expenditures and business
expansion,  for  only  the  next  three  months.  After  that time, we will need
additional capital.  We may also need to raise additional funds in order to fund
more  rapid  expansion,  to  increase brand development and market awareness, to
develop  new  or  enhanced technology, to respond to competitive pressures or to
establish  strategic  relationships.  If  we  raise  additional funds by issuing
equity  or  convertible  debt  securities,  the  percentage  ownership  of  our
shareholders  will be diluted. Any new securities could have rights, preferences
and  privileges  senior  to those of our common stock. We cannot be certain that
additional  financing will be available when and to the extent required or that,
if available, it will be on acceptable terms. Recently, certain companies with a
history  of  generating  losses  apparently have been unable to raise additional
financing  to fund such continued losses. If adequate funds are not available on
acceptable  terms,  we  may  not  be  able to fund our expansion, increase brand
development  and  market  awareness,  develop  or enhance our service offerings,
respond  to  competitive  pressures  or  establish  strategic  relationships.

WE  HAVE  A  HISTORY OF LOSSES, AND WE EXPECT LOSSES FOR THE FORESEEABLE FUTURE.

     Since  our inception in November 1994, we have incurred substantial losses.
Our  comprehensive net loss equaled $5,447,181 for the six months ended June 30,
2001.  For  the year ended December 31, 2000, we had a comprehensive net loss of
$7,657,413.  We  had  an  accumulated  deficit  of $21,716,242 at June 30, 2001.

     We  anticipate  that  our  expenses  relating  to developing, marketing and
supporting  our  current  and future products will increase substantially in the
future.  Accordingly,  for  the  foreseeable  future  we  expect  to  experience
additional  losses as these increased expenses exceed our total revenues.  These
additional  losses  will  increase  our  accumulated  deficit.


<PAGE>
OUR  REVENUES  LARGELY  DEPEND  ON  ONE PRODUCT LINE, THE ROBUST HYDROGEN SENSOR
LINE. WE ANTICIPATE THAT THE MAJORITY OF OUR REVENUES WILL BE DERIVED FROM SALES
OF  OUR  HYDROGEN  SENSOR  PRODUCTS.

     To  date,  most  of  our  2001  revenue has come from sales of our hydrogen
sensor  products, with lesser revenues from sales of our fuel cells and hydrogen
safety  services,  respectively. We expect that this trend will continue for the
balance  of  2001.  In the event that 2001 sales of our hydrogen sensor products
fail  to  meet  our  expectations, our business and financial condition could be
impaired.

     We  have five other technologies under development, including three sensors
and  two  hydrogen fuel cells. Our future financial performance is dependent, in
significant  part,  upon  the  successful development, introduction and customer
acceptance  of  new  and  enhanced versions of the Robust Hydrogen Sensor, other
hydrogen  sensors,  our hydrogen fuel cell technologies and related new products
that  we  may  develop.  We  cannot  assure  you  that  we will be successful in
upgrading  the  Robust  Hydrogen Sensor or that we will successfully develop new
products,  or  that  any  new  product  will  achieve  market  acceptance.


ECONOMIC, POLITICAL OR MARKET CONDITIONS COULD IMPACT OUR BUSINESS AND CAUSE OUR
REVENUE  TO  BE  LOWER  THAN  ANTICIPATED.

     Our  business  may  be  sensitive to general economic conditions. A reduced
level  of  economic  and  manufacturing  activity  in  the  United  States  may
significantly  and  adversely  affect  the  demand  for  hydrogen  sensors  and
alternative  energy  sources  such  as  fuel  cells. A recession could cause our
customers  to  reduce or postpone their purchases, which could cause our revenue
to  be  lower  than  anticipated  and  negatively  affect  our  business.

FUEL  CELL  TECHNOLOGIES  ARE  NEW AND EVOLVING TECHNOLOGIES, COMPETE WITH OTHER
METHODS  OF  ENERGY  GENERATION,  AND  MAY  NOT  RECEIVE  WIDESPREAD ACCEPTANCE.

     Fuel cell technologies are in their very early stages of commercialization.
Like  many  new  technologies,  they  are  characterized  by  rapidly  evolving
technological  developments,  quickly  changing  marketing and sales strategies,
multiple  and  aggressive  market participants, fluctuating demand and uncertain
market  acceptance  for  products  and  services.

     Businesses  and  consumers  remain  uneducated  about  the  benefits  of
alternative  fuel  sources.  This lack of knowledge may delay the acceptance and
penetration  of  our fuel cell products into markets that have historically been
served  by  traditional  fuel  sources.  Businesses  and consumers also have the
option  of  using  other  methods  of  alternative  fuel  generation,  including
carbonate,  phosphoric  acid,  polymer  electrolyte  or  solid  oxide  fuel cell
systems,  as  well  as  traditional fossil fuels such as oil and gasoline. These
methods  may maintain or even increase their acceptance, to the detriment of our
hydrogen  fuel  cell  technology.

WE  MAY  NOT BE ABLE TO COMPETE EFFECTIVELY IN THE HYDROGEN SENSOR AND FUEL CELL
MARKETS.

     We  compete in both the hydrogen  sensor and fuel cell markets.  We may not
be  able  to  compete successfully against current and future competitors in our
markets.  The  markets  in  which  we  are engaged are new, rapidly evolving and
intensely  competitive,  and  we  expect competition to intensify further in the
future  both from existing competitors and new market entrants.  We believe that
our  ability  to  compete  depends  on  many  factors both within and beyond our
control,  including:


<PAGE>
     -    the  ease  of use, performance, features, price and reliability of our
          solutions  as  compared  to  those  of  our  competitors;
     -    the  timing and market acceptance of new solutions and enhancements to
          existing  solutions  developed  by  us  and  our  competitors;
     -    the  quality  of  our  customer  service  and  support;  and
     -    the  effectiveness  of  our  sales  and  marketing  efforts.

     Many  of  our  current  and  potential  competitors  are  likely  to  enjoy
substantial  competitive  advantages,  including:

     -    longer  operating  histories;
     -    greater  name  recognition;
     -    more  extensive  customer  bases;  and
     -    cooperative  relationships  among  themselves or with third parties to
          enhance  their  products.

     Increased  competition  is  likely  to  result in price reductions, reduced
gross  margins  and  loss  of  market  share,  any one of which could impair our
finances  and  business prospects.  We cannot assure you that we will be able to
compete  successfully  against  existing  or  potential  competitors  or  that
competitive  pressures  will  not  materially  impair  our  finances or business
prospects.  We  cannot  assure  you that we will be able to compete successfully
against existing or potential competitors or that competitive pressures will not
materially  impair  our  finances  or  business  prospects.

     The  markets  for  our  products  are  at  a  very  early  stage  of
commercialization,  are  rapidly changing and are characterized by an increasing
number  of  market  entrants.  As  is  typical  for  a  new and rapidly evolving
industry,  demand  for and market acceptance of recently introduced products are
subject  to  a  high  level of uncertainty and risk. Acceptance and usage of our
fuel cells is dependent on continued growth in use of alternative energy sources
by  businesses  and consumers. Businesses that already have invested substantial
resources  in  traditional or other energy sources may be reluctant to adopt new
alternative  sources.  Individuals with established patterns of purchasing goods
and  services  may  be reluctant to alter those patterns. Accordingly, it is not
assured  that  sufficient  demand  for  our products will develop to sustain our
business.

THE  LOSS  OF THE SERVICES OF ONE OR MORE OF OUR KEY PERSONNEL OR OUR FAILURE TO
HIRE,  INTEGRATE OR RETAIN OTHER QUALIFIED PERSONNEL COULD DISRUPT OUR BUSINESS.

     We  depend  upon  the  continued  services and performance of our executive
officers  and  other key employees, particularly John Donohue, our President and
Chief  Executive  Officer, Ronald Ilsley, our Chief Financial Officer, Dr. Johan
(Hans)  Friedericy,  our  Chief  Operating  Officer, David A. Walker, one of our
founders  and  a current member of our Board of Directors and David P. Haberman,
our  Chairman and Executive Vice President of Strategic Planning, Technology and
Business  Development.  While  we  currently carry "key person" insurance on the
lives  of  Messrs. Walker and Haberman, the proceeds of such insurance might not
adequately  compensate  us  for  the loss of either of them. We do not currently
carry  "key  person"  insurance  on any of our other executives. Competition for
qualified  personnel  in  technology, particularly in the fuel cell industry, is
intense and we may not be able to retain or hire necessary personnel as a result
of the highly specialized nature of our products. In addition, the amount of our
limited  working capital may impose compensation restrictions on us that make it
difficult  to  attract  and  hire  necessary  employees.

WE  MAY  NOT  BE  ABLE  TO  PROTECT  OUR  INTELLECTUAL  PROPERTY.


<PAGE>
     We  regard  the  protection  of  our copyrights, service marks, trademarks,
trade  dress  and  trade secrets as critical to our future success and rely on a
combination  of  copyright,  trademark,  service  mark and trade secret laws and
contractual  restrictions  to  establish  and  protect our proprietary rights in
products  and  services.  If  the  protection  of our trademarks and proprietary
rights  is  inadequate,  our brand and reputation could be impaired and we could
lose  customers.

     We  have  entered  into confidentiality and invention assignment agreements
with  our  employees  and  contractors,  and  nondisclosure  agreements with our
suppliers  and  strategic partners in order to limit access to and disclosure of
its  proprietary  information.  There can be no assurance that these contractual
arrangements or the other steps taken by us to protect our intellectual property
will  prove sufficient to prevent misappropriation of our technology or to deter
independent  third-party  development  of  similar  technologies.

     In  addition,  litigation  may  be  necessary  in the future to enforce our
intellectual  property  rights,  to  protect our trade secrets, to determine the
validity  and  scope  of  the proprietary rights of others, or to defend against
claims  of infringement or invalidity. Because laws protecting certain ownership
rights  in  hydrogen  sensor  and  hydrogen fuel cell products are uncertain and
still  evolving,  we cannot give you any assurance about the future viability or
value  of  any  of  our  current technology ownership rights.   Such litigation,
whether  successful or unsuccessful, could have a material and adverse effect on
our  business,  results  of  operations  or  financial  condition.

     While  we intend to pursue registration of our trademarks and service marks
in  the  U.S.  and internationally, effective trademark, service mark, copyright
and  trade  secret protection may not be available in every country in which our
services  are  made  available  online.  We  do  not  currently own any patented
technology  registered  with  the  United  States  Patent  and Trademark Office.

     Although we do not believe that we infringe the proprietary rights of third
parties,  there  can  be  no  assurance  that  third  parties  will  not  claim
infringement  by  us  with  respect  to past, current or future technologies. We
expect  that  participants  in  our  markets  will  be  increasingly  subject to
infringement  claims  as  the number of services and competitors in our industry
segment  grows.  Any  such  claim,  whether  meritorious  or  not,  could  be
time-consuming,  result  in  costly  litigation, cause service upgrade delays or
require  us  to  enter  into  royalty  or  licensing agreements. Such royalty or
licensing agreements might not be available on terms acceptable to us or at all.
As  a  result,  any  such  claim  could  have a material adverse effect upon our
business,  results  of  operations  and  financial  condition.

GOVERNMENTAL REGULATION OF THE HYDROGEN FUEL CELL AND HYDROGEN SENSOR TECHNOLOGY
MAY  RESTRICT  OUR  BUSINESS.

     Government  regulation  of  the use of hydrogen for industrial applications
and  fuel  cell generation varies greatly from country to country. There is some
risk  that  the United States and other countries will increase their regulation
of  these  technologies  in  the  future. As our products are utilized solely in
connection with hydrogen, any new law or regulation pertaining to the commercial
use  of  hydrogen,  or the application or interpretation of existing laws, could
adversely  impact  our  sales,  increase our cost of doing business or otherwise
have  a  material  and adverse effect on our business, results of operations and
financial  condition.

     We will be subject to various federal, state and local laws and regulations
relating  to;  land  use,  safe  working  conditions,  handling  and disposal of
hazardous  and potentially hazardous substances and emissions of pollutants into
the  atmosphere.  We  believe  that  we  have  obtained all necessary government
permits  and  have  been  in substantial compliance with all of these applicable
laws  and  regulations.


<PAGE>
     Since  1991,  the National Environmental Protection Act (NEPA) has required
that  each  local Department of Energy procurement office file and have approved
by  the  Department  of  Energy in Washington, DC, appropriate documentation for
environmental,  safety  and health impacts with respect to procurement contracts
entered  into  by  that local office.  The costs associated with compliance with
environmental  regulations  may or may not be recovered under existing or future
contracts  to  which  we are a party.  In addition, contract work may be delayed
until  such  approval  is  received.

PRODUCT DEFECTS AND PRODUCT LIABILITY CLAIMS RELATED TO OUR HYDROGEN SENSORS AND
HYDROGEN  FUEL  CELL  PRODUCTS  COULD  EXPOSE  US  TO  SIGNIFICANT  LIABILITY.

     Although  we test our products extensively prior to introduction, we cannot
assure  you  that  our  testing  will  detect  all  serious  defects, errors and
performance  problems  prior to commercial release of our future sensor and fuel
cell  products.  Any  future  defects, errors or performance problems discovered
after  commercial release could result in the diversion of scarce resources away
from  customer  service  and  product  development,  lost  revenues or delays in
customer acceptance of our products and damage to our reputation, which, in each
case,  could  have  a  material  and  adverse effect on our business, results of
operations  or  financial  condition.

     In  addition  to  the  potential  for product defects, hydrogen itself is a
dangerous  gas  under  certain circumstances.  For  example,  hydrogen is highly
explosive  when  it reaches concentrations  in  the  air  of  greater  than four
percent,  provided  an  ignition  source  is  present.  The  buoyant  and highly
dispersive  nature  of  hydrogen  gas  provides  challenges  in  the appropriate
location  of  our  sensors  for  effective hydrogen detection, but by its nature
makes  it  difficult  to  accumulate levels from leaks which reach this critical
four  percent  level.  However, an accidental explosion or fire from mishandling
of  our  products  or  due  to  unforeseen  circumstances  cause  damage  to our
reputation,  result  in  lost  sales  and  revenues  or have other material  and
adverse  effects  on  our  business.

     We have not experienced any product liability claims to date, but we may be
subject to such claims in the future.  A product liability claim brought against
us  could  have  a  material  and  adverse  effect  on  our business, results of
operations  or  financial  condition.

WE  ARE  HEAVILY RELIANT ON THIRD PARTIES FOR CERTAIN COMPONENTS AND ANY DELAYS,
DEFECTS  OR  OTHER PROBLEMS IN SUPPLYING THESE COMPONENTS COULD ADVERSELY AFFECT
OUR  BUSINESS.

     Our  CMOS  wafer  process  for  the  hydrogen  sensor  line  is  currently
accomplished  at  Silicon Valley Sensors, Inc., in San Jose, California. We have
purchased  equipment from Honeywell, Inc. that has enabled us to process the new
wafers  in-house  in  the  near  future.  There  can  be  no  assurance that our
manufacturing  efforts  will  be successful or cost-effective. Our manufacturing
partner  ICCI  fabricates  electronic  circuit  boards  for  the Robust Hydrogen
Sensor.  Sensor  casing  and  other  hardware  are  fabricated  by various small
manufacturers.  Although  delays  in  the  shipment and receipt of our component
parts may occur, historically we have experienced only those delays that tend to
occur  in  the  normal  course  of  business.

     Growth  in the volume of orders for our products may strain the capacity of
these component suppliers, and delays or other problems with component suppliers
could  have a material and adverse effect on our business.  Although we test the
component  parts  that  we receive from our suppliers, we cannot be assured that
our  components  will  be  completely  free  of  all  defects.


<PAGE>
THE  MARKETS  FOR  OUR  FUEL  CELL  PRODUCTS  ARE  AT  A  VERY  EARLY  STAGE  OF
COMMERCIALIZATION  ARE  RAPIDLY  CHANGING AND ARE CHARACTERIZED BY AN INCREASING
NUMBER  OF  MARKET  ENTRANTS.

     Fuel cell technologies are in their very early stages of commercialization.
Like  many  new  technologies,  they  are  characterized  by  rapidly  evolving
technological  developments,  quickly  changing  marketing and sales strategies,
multiple  and  aggressive  market participants, fluctuating demand and uncertain
market  acceptance  for  products  and  services.

ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK.

     Not  applicable.


PART  II.  OTHER  INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS.

     Not  applicable.

ITEM  2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS.

     Not  applicable.

ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES.

     Not  applicable.

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.

      On  June  12, 2001, we held our Annual Shareholders Meeting.  There were a
total  of  23,997,246  shares  of  voting common stock at the Meeting present in
person  and  by  proxy.  The  following  individuals  were elected at the Annual
Shareholders  Meeting  to  serve  as members of our Board of Directors until the
election  of  their  respective  successors:

Name                                    Votes  For

David  Haberman                         23,902,093
David  Walker                           23,904,593
Dr. Johan (Hans) Friedericy             23,905,393
Mark  Lezell                            23,731,251
Daniel  Teran                           23,730,951
Robert  Walker                          23,908,193
Raymond  Winkel                         23,908,293



     In  addition,  the shareholders cast 6,819,219 shares in favor of approving
and  adopting  the  DCH  2001  Stock  Option  Plan,  which  was  mailed  to each
shareholder  prior  to the Annual Shareholders Meeting. 470,217 shares were cast
against  the  adoption  of the 2001 Stock Option Plan and 1,000 shares abstained
from  voting  on  this matter.   The shareholders also cast 23,910,561 shares in
favor  of  ratifying the Board's engagement of Moss Adams LLP as our independent
accountants.  38,075  shares  were cast against the ratification, and 450 shares
abstained  from  voting  on  this  matter.


<PAGE>
ITEM  5.  OTHER  INFORMATION.

          Not  applicable.

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K.

     (a)  Exhibits.

          Not  applicable.

     (b)  Reports  on  Form  8-K.

          Not  applicable.


                                   SIGNATURES

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

                                   DCH  TECHNOLOGY,  INC.


Date  August 14, 2001              By:  /s/  John  Donohue
                                      -----------------------
                                   John  Donohue,
                                   President  and  CEO

                                   By:  /s/  Ronald  Ilsley
                                      -----------------------
                                   Ronald  Ilsley,
                                   Chief  Financial  Officer
                                   (Principal Accounting and
                                   Financial  Officer)


<PAGE>