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, 2002


[ ]     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)

                             24832 Avenue Rockefeller
                               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 August 14, 2002, the issuer had 36,154,206 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                                          3

                Consolidated  Balance  Sheets                                  3

                Consolidated  Statements  of  Operations                       5

                Consolidated  Statements  of  Cash  Flows                      6

                Notes  to  Consolidated  Financial  Statements                 7

   Item  2.     Management's  Discussion  and  Analysis  of  Financial
                Condition  and  Results  of  Operations                        8

   Item  3.     Quantitative  and  Qualitative  Disclosures  About
                Market  Risk                                                  16

PART  II  -  OTHER  INFORMATION

   Item  1.     Legal Proceedings                                             16

   Item  2.     Changes in Securities and Use of Proceeds                     16

   Item  3.     Defaults Upon Senior Securities                               16

   Item  4.     Submission of Matters to a Vote of Security Holders           16

   Item  5.     Other Information                                             17

   Item  6.     Exhibits and Reports on Form 8-K                              17

SIGNATURES                                                                    17


                                        2
<PAGE>
<TABLE>
<CAPTION>
PART  I.  FINANCIAL INFORMATION

                              DCH Technology, Inc. and Subsidiaries
                                   CONSOLIDATED BALANCE SHEETS

                                             ASSETS


                                                                        JUNE 30,      DECEMBER 31,
                                                                          2002            2001
                                                                      -------------  --------------
CURRENT ASSETS                                                         (UNAUDITED)
<S>                                                                   <C>            <C>
   Cash and cash equivalents                                          $     21,237   $     356,281
   Accounts receivable, net of allowances                                  103,663         230,192
   Inventories, net of reserves                                            316,407         528,442
   Prepaid expenses, net of reserves                                        95,307         444,643
   Other receivable                                                          - 0 -           6,392
                                                                      -------------  --------------

     TOTAL CURRENT ASSETS                                                  536,614       1,565,950

PROPERTY AND EQUIPMENT, net of depreciation and reserves                   303,935         633,040

OTHER ASSETS
   Intangible assets, net of accumulated amortization                      143,304         135,608
   Investments with no readily determinable fair value                         -0-          15,000
   Investment in joint venture, net of reserves                             17,914          32,696
   Other                                                                    48,901         119,156
                                                                      -------------  --------------

     TOTAL OTHER ASSETS                                                    210,119         302,460
                                                                      -------------  --------------

                                                                      $  1,050,668   $   2,501,450
                                                                      =============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY


CURRENT LIABILITIES
   Accounts payable                                                   $    570,736   $     469,292
   Accrued liabilities                                                     132,568         167,116
   Accrued compensation                                                    320,193         212,919
   Current portion of capital lease obligations                              4,774          13,462
   Unearned revenue                                                         75,000          75,000
                                                                      -------------  --------------

     TOTAL CURRENT LIABILITIES                                           1,103,271         937,789

                                                                      -------------  --------------

     TOTAL LIABILTIES                                                    1,103,271         937,789


                                      F-1
<PAGE>
MINORITY INTEREST IN LLC                                                         -           3,544

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,
     36,154,206 and 25,560,616 shares
     issued and outstanding                                                361,542         321,487

   Additional paid-in-capital                                           29,295,441      27,514,120
   Investment in limited liability companies                               (64,554)        (64,554)
   Other comprehensive loss                                                 (5,207)         (8,340)
   Accumulated deficit                                                 (29,639,825)    (26,202,596)
                                                                      -------------  --------------
     TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                                  (52,603)      1,560,117
                                                                      -------------  --------------

                                                                      $  1,050,668   $   2,501,450
                                                                      =============  ==============

            The Accompanying Notes are an Integral Part of these Financial Statements
</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,
                                    -------------------------  --------------------------
                                       2002          2001          2002          2001
                                   ------------  ------------  ------------  ------------
                                    (UNAUDITED)   (UNAUDITED)   (UNAUDITED)   (UNAUDITED)
<S>                                <C>           <C>           <C>           <C>

Sales                              $   192,441   $   231,525   $   404,451   $   420,276

Cost of goods sold                     434,868       121,224       629,945       224,420
                                   ------------  ------------  ------------  ------------

Gross profit                          (242,427)      110,301      (225,494)      195,856

Operating expenses:
   Selling, general and                959,441     1,770,951     2,126,451     4,069,050
   administrative expenses
   Depreciation and amortization       321,566       105,890       377,093       203,088
   Research and development            409,078       581,884       693,642     1,376,593
                                   ------------  ------------  ------------  ------------

   Total operating expenses          1,690,085     2,458,725     3,197,186     5,648,731
                                   ------------  ------------  ------------  ------------

     Loss from operations           (1,932,512)   (2,348,424)   (3,422,680)   (5,452,875)

Other income (expense), net            (15,469)      (12,730)       (3,057)        3,150
                                   ------------  ------------  ------------  ------------

Net loss before Minority interest   (1,947,981)   (2,361,154)   (3,425,737)   (5,449,725)

Minority interest                            -         5,980             -         5,980
                                   ------------  ------------  ------------  ------------
Net loss                            (1,947,981)   (2,355,174)   (3,425,737)   (5,443,745)

Other comprehensive loss
 Foreign currency translation           (3,530)          471        (3,133)        3,436
                                   ------------  ------------  ------------  ------------

   Comprehensive loss              $(1,951,511)  $(2,354,703)  $(3,428,870)  $(5,447,181)
                                   ============  ============  ============  ============

Net loss per share
   Basic                           $     (0.05)  $     (0.08)  $     (0.10)  $     (0.19)
                                   ============  ============  ============  ============

   Diluted                         $     (0.05)  $     (0.08)  $     (0.10)  $     (0.19)
                                   ============  ============  ============  ============

Weighted average shares
outstanding                         36,126,683    28,889,286    34,891,812    28,238,191

      The Accompanying Notes are an Integral Part of these Financial Statements
</TABLE>


                                        5
<PAGE>
<TABLE>
<CAPTION>
                                 DCH TECHNOLOGY AND SUBSIDIARIES
                               CONSOLIDATED STATEMENTS OF CASHFLOW

CASH  FLOWS  FROM  OPERATING  ACTIVIES                        FOR THE SIX MONTHS ENDED JUNE 30,
                                                             2002 (UNAUDITED)   2001 (UNAUDITED)
                                                            -----------------  -----------------
<S>                                                         <C>                <C>
     Net loss                                               $     (3,425,737)  $     (5,443,745)
     Adjustments to reconcile net loss to net cash
     Used in operating activities
          Depreciation and Amortization                              377,092            203,088
          Issuance of stock, warrants and options
          for services                                               263,484          2,852,999
          Loss from investment in partnerships and
          joint venture                                               15,037              4,160
          Loss on disposal of property and equipment                  83,363                524
          Gain on sale of stock                                      (85,000)
          Minority interest                                                              (5,980)

     Change in assets and liabilities
          Accounts receivable                                        133,723              2,665
          Inventory                                                  212,034           (270,784)
          Prepaid expenses                                           251,574             66,452
          Other receivables                                                              14,131
          Accounts payable                                           101,444           (299,902)
          Accrued expenses                                           (34,548)          (182,698)
          Accrued compensation                                       107,275           (157,996)
          Deferred revenue                                                 -            109,194
          Other                                                       (8,909)                 -
                                                            -----------------  -----------------

          NET CASH USED IN OPERATING ACTIVITIES                   (2,009,168)        (3,107,892)

     CASH FLOWS FROM INVESTING ACTIVITES
          Minority interest investment in LLC                                             6,037
          Sale of investment w/nonreadily ascertainable
          value                                                      100,000
          Deposits made for leased equipment                          50,905              1,119
          Purchases of licenses and intellectual property            (25,986)           (16,826)
          Purchase of property and equipment, net                          -           (101,473)
                                                            -----------------  -----------------
     NET CASH USED IN INVESTING ACTIVITES                            124,919           (111,143)

     CASH FLOWS FROM FINANCING ACTIVIES

          Proceeds from sale of common stock and warrants          1,447,140          2,783,117
          Principal payments on capital lease                         (8,688)            (8,088)
          Proceeds from long-term debt                                     -            (27,252)
          Proceeds from exercise of options and warrants             110,753            548,611
                                                            -----------------  -----------------
     NET CASH RECEIVED FROM FINANCING ACTIVITIES                   1,549,205          3,296,388

     NET INCREASE (DECREASE) IN CASH                                (335,044)            77,353

     CASH, BEGINNING OF PERIOD                                       356,281             75,300
                                                            -----------------  -----------------
     CASH, END OF PERIOD                                    $         21,237   $        152,653
                                                            =================  =================

     Supplemental disclosure of cash flow information:
               Cash paid for

                    Interest                                $          2,766   $         31,164
                    Income taxes                                       2,275              1,950

        The Accompanying Notes are an Integral Part of these Financial Statements
</TABLE>


                                        6
<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. 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, 2001. In the opinion of management, all
adjustments considered necessary for a fair presentation (consisting of normal
recurring adjustments and accruals) have been included in the interim period.
Operating results for the six months ended June 30, 2002 are not necessarily
indicative of the results that may be expected for the year ending December 31,
2002.

(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)  INVENTORY

<TABLE>
<CAPTION>
                                                 December 31, 2001   June 30, 2002
                                                 ------------------  ---------------
<S>                                              <C>                 <C>
      Raw Materials                              $          296,560  $      524,007
      Work in Process                                       221,630           5,238
      Finished Goods                                         10,252         103,569
                                                 ------------------  ---------------
           Subtotal                              $          528,442  $      632,814
           Less reserve                          $                -  $     (316,407)
                                                 ------------------  ---------------
                                                 $          528,442  $      316,407
                                                 ==================  ===============
</TABLE>

(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, 2002 cumulative net
operating losses, which have not been deducted for income tax reporting
purposes, amount to approximately $28 million. 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 $9.4 million. 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.


                                        7
<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) Technology, Inc. (DCH) has been
engaged since 1995 in the acquisition, development, and commercialization of
hydrogen-based technologies.

     We have focused on hydrogen-specific gas sensors through our wholly-owned
subsidiary DCH Sensors, Inc. and hydrogen-based proton exchange membrane (PEM)
fuel cells through our wholly-owned subsidiary Enable Fuel Cell Corporation. We
have also provided hydrogen safety services through our Center for Hydrogen
Safety LLC.

     In the quarter ended June 30, 2002, our financial condition remained
challenging.  Since June 30, 2002, it has continued to deteriorate.   Throughout
the period, and as of the date of filing of this Quarterly Report, we have been
experiencing a very severe cash shortfall.  We have attempted to meet this
challenge in several ways.  In June 2002, we furloughed substantially all of our
employees.  We undertook diligent efforts to find a strategic investor or
partner, but to date have not reached any agreement or understanding with any
such party.  We have solicited and are currently negotiating offers to purchase
our existing subsidiaries; however, to date no such transaction has been
consummated.  All of these efforts have been made more challenging by the
economic downturn in the sensor and fuel cell markets as well as the United
States economy in general.  In the event that we cannot secure sufficient
working capital in the next few weeks through the sale of one or more
subsidiaries, location of a strategic partner or investor, or otherwise, we will
be required to pursue certain strategic options including but not limited to
ceasing operations.

     Effective August 15, 2002, our common stock was delisted for trading on the
American Stock Exchange.  It is now traded on the Over-the-Counter Bulletin
Board under the symbol  "DCHT."

Hydrogen Sensors
-----------------
     During the three-month period ending June 30, 2002, we shipped $184,741
worth of hydrogen sensors. Since mid June, we have operated with a much-reduced
staff and a minimal operation designed to satisfy existing customer orders.

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

     During the three-month period ending June 30, 2002, we shipped one 5kW fuel
cell on May 14, 2002 to a major east coast utility. In mid-une 2002, we
curtailed all operations at our Enable Fuel Cell Corporation.


                                        8
<PAGE>
Center for Hydrogen Safety (CHS)
--------------------------------

     During the three-month period ending June 30, 2002, there were no
activities at the Center for Hydrogen Safety.

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

Three  and  Six  Months  Ended June 30, 2002, Compared With Three and Six Months
Ended  June  30,  2001
--------------------------------------------------------------------------------

     In the three months ended June 30, 2002, we had sales of $192,441 compared
to sales of $231,525 for the three months ended June 30, 2001. Our sales for the
six months ended June 30, 2002 equaled $404,451 compared to sales of $420,276
for the comparable period in 2002. The lower sales for the three- and six-month
periods in 2002 primarily reflected a general slowdown in hydrogen related
equipment and DCH's own difficult working capital position.

     The cost of products sold was $434,868 for the three months ended June 30,
2002 as compared to $121,224 for the three months ended June 30, 2001, and
$629,945 for the six months ended June 30, 2002 as compared to $224,420 for the
six months ended June 30, 2001. Included in cost of goods sold is a writedown of
inventory in the amount of $316,407. Due to various economic factor described
herein, management determined that the carrying value of inventory as of June
30, 2002 is not likely to be realized in the normal course of business, and
therefore, inventory was adjusted to estimated net realizable value during the
quarter ended June 30, 2002.

     We incurred $959,441 in selling, general and administrative expenses for
the three months ended June 30 2002, compared to $1,770,951 for the three months
ended June 30, 2001. Our selling, general and administrative expenses for the
six months ended June 30, 2002 equaled $2,126,451 compared to $4,069,050 for the
six months ended June 30, 2001. Selling, general and administrative expense for
the period ended June 30, 2002 includes a writeoff of prepaid expenses of
$255,411. These prepaid amounts pertained to a three-year consulting contract
initiated in fiscal 2001, and to prepaid rent. During the quarter ended June 30,
2002, management determined that it was unlikely that this contract, or the
prepaid rent, would provide future benefit to DCH, and therefore, the amount was
charged to operations. Included in selling, general and administrative expenses
for the three and six months ended June 30, 2002 was $17,677 and $218,412,
respectively, of expense related to the issuance of fully vested options to
purchase 167,456 and 1,053,216 shares of stock, respectively, to employees and
consultants in lieu of cash compensation. We issued the fully vested options in
order to conserve cash for our operations.

     Depreciation and amortization increased to $321,566 for the three months
ended June 30, 2002, compared to $105,890 for the three months ended June 30,
2001, and increased to $377,093 for the six months ended June 30, 2002 compared
to $203,088 for the comparable period in 2001. Depreciation and amortization
includes a charge of $200,000 made during the quarter ended June 30, 2002. Due
to the curtailment of the operations of our fuel cell division, and due to the
general economic environment and financial condition of DCH, management has
determined that the value of property, plant and equipment has been impaired.
Accordingly, a charge to reduce the carrying value of property, plant and
equipment to estimated fair value has been made during the period ended June 30,
2002.

     We expended a total of $409,078 on research and development during the
three months ended June 30, 2002, compared to expenditures of $581,884 for the
three months ended June 30, 2001. Research and development expenses equaled
$693,642 for the six months ended June 30, 2002, compared to $1,376,593 for the
six months ended June 30, 2001. The decreases in 2002 in research and
development expenses reflected a greater focus on the commercialization and
production of products, especially for our fuel cell operation.


                                        9
<PAGE>
     Due primarily to these factors, we incurred a loss from operations of
$1,932,512 for the three months ended June 30, 2002, compared to an operating
loss of $2,348,424 for the three months ended June 30, 2001, and an operating
loss of $3,422,680 for the six months ended June 30, 2002, compared to a loss
from operations of $5,452,875 for the six months ended June 30, 2001. DCH had
36,126,683 weighted average common shares outstanding for the three months ended
June 30, 2002, as compared to 28,889,286 weighted average common shares
outstanding for the comparable period in 2001, and 34,891,812 weighted average
common shares outstanding for the six months ended June 30, 2002, compared to
28,238,191 weighted average common shares outstanding for the comparable period
in 2001. Our net loss per share decreased to $0.05 per share for the three
months ended June 30, 2002, as compared to a loss of $0.08 per share for the
comparable period in 2001, and decreased to $0.10 per share for the six months
ended June 30, 2002, as compared to a net loss per share of $0.19 for the six
months ended June 30, 2001.


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

     DCH generated a total of $1,549,205 in net cash from financing activities
for the six months ended June 30, 2002, as compared to $3,296,388 during the
comparable six months in 2001. Substantially all of the financing activities for
the six months ended June 30, 2002 consisted of equity financings, supplemented
by proceeds from the exercise of options and warrants.

     We utilized $2,016,485 of net cash for operating activities in the six
months ended June 30, 2002, compared to $3,107,892 for the comparable period in
2001. The decrease in net cash used for operating activities was primarily
related to cost reductions and curtailment of operating activities. We received
$132,237 of net cash in investing activities in the six months ended June 30,
2002, compared to the expenditure of $111,143 of net cash for investing
activities in the six months ended June 30, 2001. The majority of the funds
received during the first six months of 2002 represent proceeds from sale of our
investment in CryoFuel Systems, Inc., a privately held company, and from
deposits made for the purchase and lease of equipment.

     At June 30, 2002, we had $21,237 in cash, compared to $356,281 in cash at
December 31, 2001. We also had accounts receivable (net of allowances) of
$103,663 at June 30, 2002, compared to accounts receivable of $230,192 at
December 31, 2001. Investment in inventory totaled $316,407 at June 30, 2002
compared to $528,442 at December 31, 2001. The decrease in inventory is a result
of management's decision to reduce inventory values as discussed above.

     At June 30, 2002 DCH had accounts payable of $570,736, compared to accounts
payable of $469,292 at December 31, 2001, reflecting our difficult working
capital position. Our accrued compensation increased to $320,193 at June 30,
2002 from $212,919 at December 31, 2001, as management elected to defer salaries
in consideration of our cash requirements. We had unearned revenue of $75,000 at
June 30, 2002. These funds represent deposits and advance payments received from
customers for fuel cells currently being manufactured and due to be delivered to
customers before the end of 2002.

     In the quarter ended June 30, 2002, our financial condition remained
challenging. Since June 30, 2002, it has continued to deteriorate. Throughout
the period, and as of the date of filing of this Quarterly Report, we have been
experiencing a very severe cash shortfall. We have attempted to meet this
challenge in several ways. In June 2002, we furloughed substantially all of our
employees. We undertook diligent efforts to find a strategic investor or
partner, but to date have not reached any agreement or understanding with any
such party. We have solicited and are currently negotiating offers to purchase
our existing subsidiaries; however, to date no such transaction has been
consummated. All of these efforts have been made more challenging by the
economic downturn in the sensor and fuel cell markets as well as the United
States economy in general. In the event that we cannot secure sufficient working
capital in the next few weeks through the sale of one or more subsidiaries,
location of a strategic partner or investor, or otherwise, we will be required
to pursue certain strategic options including but not limited to ceasing
operations.


                                       10
<PAGE>
Subsequent Events

On  July  9  the  Board of Directors of DCH approved and directed the company to
seek buyers for both the Enable Fuel Cell Corporation and DCH Sensors, Inc. in a
competitive  process.   This  action  was  taken by the Board as a result of our
very  challenging  financial  and  cash  position.  Management  is  in  detailed
negotiations  with a potential buyer for our sensor subsidiary and still seeking
offers for Enable.   The difficult cash position of DCH and the present economic
climate  present  a  very  difficult position for us, and our Board of Directors
will  continually  monitor  the  issues  and  take  action  as  needed.

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 ARE IN IMMEDIATE NEED OF ADDITIONAL CAPITAL.

     We are currently experiencing a very severe cash shortfall.  We have been
seeking a strategic investor or partner, but to date have not reached any
agreement or understanding with any such party.  We have solicited and are
currently negotiating offers to purchase our existing subsidiaries; however, to
date no such transaction has been consummated.  We obtained the majority of our
capital during the first quarter of 2002 from the sale of equity securities, but
do not currently have free-trading shares available for public sales under a
registration statement.  We may from time to time raise funds from private
placements of equity or debt securities; however, we currently have not entered
into any agreement or other understanding regarding any private placements.
Obtaining capital has been, and will continue to be, extremely challenging in a
difficult environment, due to the economic downturn in the sensor and fuel cell
markets, as well as the United States economy in general.  In the event that we
cannot secure sufficient working capital in the next few weeks through the sale
of one or more subsidiaries, location of a strategic partner or investor, or
otherwise, we will be required to pursue certain strategic options including but
not limited to ceasing operations.

WE HAVE A HISTORY OF LOSSES, AND WE EXPECT LOSSES FOR THE NEXT TWO FISCAL YEARS;
WE MAY NOT BE ABLE TO CONTINUE AS A GOING CONCERN.

     Since our inception in November 1994, we have incurred substantial losses.
Our comprehensive net loss equaled $1,951,511 for the three months ended June
30, 2002. For the year ended December 31, 2001, we had a comprehensive net loss
of $9,935,119.  We had an accumulated deficit of $29,639,825 at June 30, 2002.

     We anticipate that in the event we continue operations, of which there can
be no assurance, our expenses relating to developing, marketing and supporting
our  current  and future products will increase substantially in the future.
Accordingly, for the next two fiscal years, we expect to experience additional
losses as these increased expenses exceed our total revenues.  These additional
losses will increase our accumulated deficit.

     These conditions give rise to substantial doubt about our ability to
continue as a going concern.  Our financial statements do not include
adjustments relating to the recoverability and classification of reported asset
amounts or the amount and classification of liabilities that might be necessary
should we be unable to continue as a going concern.  Our continuation as a going
concern is dependent upon our ability to obtain additional financing from the
sale of our common stock, as may be required, and ultimately to attain
profitability.


                                       11
<PAGE>
WE MAY BE UNABLE TO NEGOTIATE RENEWALS OF CERTAIN COOPERATIVE RESEARCH AND
DEVELOPMENT AGREEMENTS (CRADA'S) AND TECHNOLOGY LICENSES UPON WHICH WE RELY.

     We license patented technologies from other parties in order to develop and
commercialize products based on those technologies.  In order to develop,
commercialize, manufacture and sell our products, we rely upon our ability to
enter into agreements such as the LANL CRADA which permits us to exploit the
technology underlying our PEM fuel cell.  There is no guarantee that we will be
able to negotiate renewals of this or other CRADA's or license agreements upon
which we rely.

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 due to the
current economic slowdown, terrorist activity or the threat of such activity, or
otherwise 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:

     -    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.


                                       12
<PAGE>
     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.

     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, and Dr.
Johan (Hans) Friedericy, our Chief Operating Officer. We do not currently carry
"key person" insurance on Messrs. Donohue, Friedericy or Ilsley. 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.

     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
our 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.


                                       13
<PAGE>
     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
segments grow. 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 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.

     DCH and our future hydrogen fuel cell manufacturing facilities will also 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.

     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


                                       14
<PAGE>
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.


     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.

     We are heavily reliant on the ability of Corlund Electronics to manufacture
the electronic circuit boards for our Robust Hydrogen Sensor(TM). Sensor casing
and other hardware are fabricated by various small manufacturers. WR Gore Inc.
is our preferred supplier of fuel cell membranes, however we continue to
evaluate other sources. Measurement Systems manufactures silicon wafers
containing our individual sensor chips. 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.

SOME OF THE INFORMATION IN THIS QUARTERLY REPORT ON FORM 10-QSB CONTAINS
FORWARD-LOOKING STATEMENTS.

     Some of the information in this Quarterly Report on Form 10-QSB contains
forward-looking statements that involve risks and uncertainties.  You can
identify these statements by forward-looking words such as "may", "will",
"expect", "anticipate", "believe", "estimate" and "continue" or similar words.
You should read statements that contain these words carefully because they:

     -    discuss our expectations about our future performance;
     -    contain projections of our future operating results or of our future
          financial condition; or
     -    state other "forward-looking" information.

     We believe it is important to communicate our expectations to our
     stockholders. There may be events in the future, however, that we are not
     able to predict accurately or over which we have no control. The risk
     factors listed in this section, as well as any cautionary language in this
     Quarterly Report, provide examples of risks, uncertainties and events that
     may cause our actual results to differ materially from the expectations we
     describe in our forward-looking statements. You should be aware that the
     occurrence of any of the events described in these risk factors and
     elsewhere in this Quarterly Report could have a material and adverse effect
     on our business, results of operations and financial condition.


                                       15
<PAGE>
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.

     Not applicable.


                                       16
<PAGE>
ITEM  5.  OTHER  INFORMATION.

     Not  applicable.

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

     (a)  Exhibits.

          Exhibit No.               Name of Exhibit
          -----------               ---------------

          99.1                      Certification of Chief Executive Officer
                                    And Chief Financial Officer

     (b)  Reports on Form 8-K.

          On June 13, 2002, we filed a Current Report on Form 8-K, reporting
under Item 5 thereof the furloughing of substantially all of our employees.


                                   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 19, 2002            By: /s/ John Donohue
                                     --------------------------------------
                                     John  Donohue,
                                     President  and  CEO

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


                                       17
<PAGE>