U.S. SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

                           Form 10-QSB

 
[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
     EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED FEBRUARY
     28, 1998.
[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE
     SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD
     FROM ____ TO ____.

                  Commission File Number 0-13870

                        Technology 80 Inc.
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(Exact name of small business issuer as specified in its charter)

         Minnesota                                41-1373380
-------------------------------               -------------------
(State or other jurisdiction of                (I.R.S. Employer
incorporation or organization)                Identification No.)

658 Mendelssohn Avenue North, Minneapolis, Minnesota        55427
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(Address of principal executive offices)               (Zip Code)

                          (612) 542-9545
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                   (Issuer's telephone number)

                               N/A
        ---------------------------------------------------
       (Former name, former address and former fiscal year,
                   if changed since last report)

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.  Yes [X]  No [ ]

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practible date.

Common Stock, $0.01 par value               1,640,420
------------------------------          -------------------
       (Title of Class)                 (Shares Outstanding)

                       Part I - Financial Information
<TABLE>
Item 1:  Financial Statements

                            TECHNOLOGY 80 INC.
                         CONDENSED BALANCE SHEETS
                                (UNAUDITED)
<CAPTION>
                                                      February 28, August 31
                                                         1998        1997
       ASSETS                                          ----------  ----------
CURRENT ASSETS                                                        
  <S>                                                     <C>        <C>
  Cash and cash equivalent                                $129,756   $284,261 
  Short-term investments                                     5,000     64,402 
  Accounts receivable (less allowance for doubtful                            
    accounts: Feb. 28 - $12,000; Aug. 31 - $12,000)        889,546    882,224 
  Inventories                                            1,137,433  1,177,452 
  Deferred taxes                                            44,000     44,000 
  Other current assets                                      25,488     24,383 
                                                        ---------- ---------- 
    TOTAL CURRENT ASSETS                                 2,231,223  2,476,722 
                                                        ---------- ----------
PROPERTY AND EQUIPMENT                                                        
  Furniture and equipment                                  502,037    473,934 
  Leasehold improvements                                    23,060     23,060 
                                                        ---------- ----------
                                                           525,097    496,994 
  Less accumulated depreciation                            407,109    395,830 
                                                        ---------- ----------
                                                           117,988    101,164 
                                                        ---------- ----------
OTHER ASSETS                                                                  
  Investments                                            3,283,017  3,284,214 
  Deferred taxes                                           210,800    147,000 
                                                        ---------- ----------
                                                         3,493,817  3,431,214 
                                                        ---------- ----------
    TOTAL ASSETS                                        $5,843,028 $6,009,100 
                                                        ========== ========== 
</TABLE>

<TABLE>
<CAPTION>
       LIABILITIES AND STOCKHOLDERS' EQUITY                                   
CURRENT LIABILITIES                                                           
  <S>                                                   <C>        <C>
  Accounts payable                                      $   91,910 $   95,117 
  Accrued payroll and payroll taxes                        162,691    464,659 
  Accrued income taxes                                      78,100     36,990 
  Payable to investment company                             72,842    285,392 
  Accrued liabilities - other                               19,656    182,054 
                                                        ---------- ----------
    TOTAL CURRENT LIABILITIES                              425,199  1,064,212 
                                                        ---------- ----------
STOCKHOLDERS' EQUITY                                                          
  Common stock, $0.01 par value (authorized -
    5,000,000 shares; issued and outstanding - 
    Feb. 28, 1,640,420, Aug. 31, 1,605,045 shares)          16,404     16,051 
  Paid-in capital                                        3,441,353  3,408,160 
  Other - loans                                           (162,263)  (162,263)
  Unrealized loss on available-for-sale securities        (358,661)  (265,933)
  Retained earnings                                      2,480,996  1,948,873 
                                                        ---------- ---------- 
                                                         5,417,829  4,944,888 
                                                        ---------- ---------- 
       TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $5,843,028 $6,009,100 
                                                        ========== ========== 

See notes to condensed financial statements.
</TABLE>

<TABLE>
                             TECHNOLOGY 80 INC.
                      CONDENSED STATEMENTS OF INCOME
                                (UNAUDITED)
<CAPTION>
                                  Three months ended       Six months ended
                                     February 28,             February 28,
                                  1998         1997        1998        1997
                                  ----         ----        ----        ----
<S>                              <C>         <C>         <C>         <C>
REVENUES                         $1,429,677  $1,160,828  $2,753,274  $2,154,708
                                           
COST OF GOODS SOLD                  556,959     413,908   1,097,206     801,443
                                 ----------  ----------  ----------  ----------
                                           
GROSS PROFIT                        872,718     746,920   1,656,068   1,353,265
                                 ----------  ----------  ----------  ----------
                                           
OPERATING EXPENSES                                                             
  General and administrative        156,026     117,426     305,725     246,127
  Research and development          203,996     183,130     380,890     337,114
  Selling                           180,170     152,503     383,059     304,739
                                 ----------  ----------   ---------  ----------
  TOTAL OPERATING EXPENSES          540,192     453,059   1,069,674     887,980
                                 ----------  ----------   ---------  ----------
                                           
INCOME FROM OPERATIONS              332,526     293,861     586,394     465,285
                                           
OTHER INCOME                        165,189      73,475     224,729     190,868
                                 ----------  ----------   ---------  ----------
                                           
INCOME BEFORE INCOME TAXES          497,715     367,336     811,123     656,153
                                           
PROVISION FOR INCOME TAXES          175,000     130,000     279,000     223,000
                                 ----------  ----------   ---------  ----------
                                           
NET INCOME                       $  322,715  $  237,336  $  532,123  $  433,153
                                 ==========  ==========  ==========  ==========
                                           
EARNINGS PER SHARE                    $0.20       $0.15       $0.33       $0.27
                                      =====       =====       =====       =====

See notes to condensed financial statements.
</TABLE>

<TABLE>
                             TECHNOLOGY 80 INC.
                    CONDENSED STATEMENTS OF CASH FLOWS
                                (UNAUDITED)
<CAPTION>
                                                         Six months ended
                                                           February 28,
                                                      1998            1997
                                                   ----------     -----------
OPERATING ACTIVITIES                                                          
  <S>                                                <C>           <C>
  Net income                                         $  532,123    $  433,153 
  Adjustments to reconcile net income to net
   cash used by operating activities:                                         
    Depreciation and amortization                        20,116        16,381 
    Deferred taxes                                       24,700        19,750 
    Gain on sale of investments                        (174,924)     (118,031)
    Gain on sale of fixed asset                            (384)            0 
    Changes in operating assets and liabilities:                              
       Accounts receivable                               (7,322)     (127,830)
       Inventories                                       40,019       (38,208)
       Other current assets                              (1,105)       (8,959)
       Accounts payable                                  (3,207)        6,505 
       Accrued income taxes                              41,110      (158,137)
       Accrued liabilities                             (676,916)     (177,601)
                                                     -----------   -----------
         NET CASH USED BY OPERATING ACTIVITIES         (205,790)     (152,977)
                                                     -----------   -----------
    
INVESTING ACTIVITIES                                                          
  Proceeds from sale of equipment                         1,350             0 
  Purchase of equipment                                 (37,906)      (33,799)
  Proceeds from sales and maturities
    of investments                                    1,273,514     1,090,672
  Purchases of investments                           (1,219,219)   (1,112,915)
                                                     -----------   -----------
    NET CASH PROVIDED (USED) BY
    INVESTING ACTIVITIES                                 17,739       (56,042)
                                                     -----------   -----------
    
FINANCING ACTIVITIES                                                          
  Proceeds from exercise of stock options                33,546         2,476 
                                                     -----------   -----------
    NET CASH PROVIDED BY FINANCING ACTIVITIES            33,546         2,476 
                                                     -----------   -----------
    
NET DECREASE IN CASH AND CASH EQUIVALENTS              (154,505)     (206,543)
    
CASH AND CASH EQUIVALENTS AT BEGINNING
OF THE PERIOD                                           284,261       419,136 
                                                     -----------   -----------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD       $  129,756    $  212,593 
                                                     ===========   ===========
See notes to condensed financial statements.
</TABLE>
                             TECHNOLOGY 80 INC.
            NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
                             February 28, 1998

NOTE A - FINANCIAL INFORMATION

  The unaudited interim financial statements have been prepared pursuant
  to the rules and regulations of the Securities and Exchange Commission;
  accordingly, certain information and footnote disclosures normally
  included in financial statements prepared in accordance with generally
  accepted accounting principles have been condensed or omitted.  The
  condensed balance sheet at August 31, 1997 has been derived from the
  audited financial statements at that date but does not include all of
  the information and footnotes required by generally accepted accounting
  principles for complete financial statements. These interim financial
  statements should be read in conjunction with the financial statements
  and notes in the Company's 1997 Annual Report on Form 10-KSB filed with
  the Securities and Exchange Commission.

  In the opinion of management, the financial statements reflect all
  adjustments (which include only normal recurring adjustments) necessary
  for a fair presentation of the interim periods.

NOTE B - EARNINGS PER SHARE

  Earnings per share are calculated in accordance with the provisions of
  Statement of Financial Accounting Standards No. 128 - "Earnings per
  Share" (SFAS No. 128), effective for interim and annual periods ending
  after December 15, 1997.  SFAS No. 128 requires the Company to report
  both basic earnings per share which is based on weighted-average number
  of common shares outstanding and diluted earnings per share which is
  based on the weighted-average number of common shares outstanding and
  all dilutive potential common shares outstanding.  All prior years
  earnings per share in this report have been recalculated to reflect the
  provisions of SFAS No. 128.  All earnings per share data in this report
  reflect basic earnings per share, unless otherwise indicated.  The
  details of the earnings per share calculations for the quarter ending
  February 28, 1998 and 1997 follow:
<TABLE>
<CAPTION>
                                                                  Per share
               1998                        Income       Shares     amount
               ----                        ------       ------    ---------
<S>                                        <C>          <C>           <C>
Earnings per share of common
  stock - basic                            $322,715     1,635,651     $0.20
Stock options                                  -          124,655        - 
Earnings per share of common               --------     ---------     -----
  stock - assuming dilution                $322,715     1,760,306     $0.18
                                           ========     =========     =====

                                                                  Per share
               1997                        Income       Shares     amount
               ----                        ------       ------    ---------
Earnings per share of common
  stock - basic                            $237,336     1,572,894     $0.15
Stock options                                  -          145,437        - 
Earnings per share of common               --------     ---------     -----
  stock - assuming dilution                $237,336     1,718,331     $0.14
                                           ========     =========     =====
</TABLE>

Item 2:  Management's Discussion and Analysis

Results of Operations
---------------------
Revenues for the second quarter ended February 28, 1998 increased 23% over
the same period the preceding year and increased 28% for the six months
ended February 28, 1998.  The revenue increase for the three and six months
ended February 28, 1998 was due to an increase in sales volume.  One
customer accounted for 15% of the sales volume for the six months ended
February 28, 1998.

Gross profit percentages for the second quarter ended February 28, 1998 and
1997 was 61% and 64% respectively.  Gross profit percentages for the six
months ended February 28, 1998 was 60% compared to 63% for the six months
ended February 28, 1997.

Operating expenses as a percentage of sales was 38% for the three months
and 39% for the six months ended February 28, 1998 compared to 39% and 41%
for the same periods the prior year, respectively.

Other income increased $91,714 for the quarter ended February 28, 1998 and
increased $33,861 for the six months ended February 28, 1998 from the same
periods the preceding year.  The increase was primarily due to increased
investment income.

Net income was $322,715 and $237,336 for the quarter ended February 28,
1998 and 1997 respectively.  This represents a 36% increase.  For the six
months ended February 28, 1998 and 1997, net income was $532,123 and
$433,153 respectively.  This represents a 23% increase.

Liquidity and Capital Resources
-------------------------------
Registrant's balance sheet shows a strong capital position.  Operations
used $205,790 in cash compared to $152,977 the same period the prior year. 
Cash and cash equivalents decreased $154,505 since August 31, 1997. 
Investing activities provided for $17,739.  Proceeds from the exercise of
stock option was $33,546.  Registrant expects that there will be sufficient
capital to fund its operations during fiscal year 1998.

Registrant has no long-term debt and does not anticipate, at this time,
that it will be necessary to seek any debt financing in the near future for
ongoing operations, but may consider some type of financing for other
purposes.

Statements included in this Management's Discussion and Analysis or Plan of
Operation and elsewhere in this Form 10-QSB, in future filings by the
Registrant with the Securities and Exchange Commission and in the
Registrant's press releases and oral statements made with the approval of
authorized executive officers, if the statements are not historical or
current facts, should be considered "forward-looking statements" made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.  These statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical earnings and those presently anticipated or projected. 
Registrant wishes to caution the reader not to place undue reliance on any
such forward-looking statements, which speak only as of the date made.

                         Part II - Other Information

Item 1:   Legal Proceedings
          -----------------

          None.

Item 2:   Changes in Securities
          ---------------------

          None.

Item 3:   Defaults Upon Senior Securities
          -------------------------------

          None.

Item 4:   Submission of Matters to a Vote of Security Holders
          ---------------------------------------------------

          None.

Item 5:   Other Information
          -----------------

          None.

Item 6:   Exhibits and Reports on Form 8-K
          --------------------------------

          a. Exhibits
             --------

          Exhibit 27 - Financial Data Schedule

          b. Reports on Form 8-K
             -------------------

          None.

                                 SIGNATURES

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


                                              Technology 80 Inc.
                                         ----------------------------
                                                 (Registrant)


April 14, 1998                         /s/ Duane Markus, President, CEO
------------------------               ---------------------------------
    (Date)                               Duane Markus, President, CEO