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 MAY 31,
    1997.
[ ] 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.
-----------------------------------------------------------------
(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
                    --------------------------
                   (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                     1,576,045
-----------------------------                 -------------------
            (Title of Class)                 (Shares Outstanding)

<TABLE>
                       Part I - Financial Information

Item 1:  Financial Statements

                            TECHNOLOGY 80 INC.
                         CONDENSED BALANCE SHEETS
                                (UNAUDITED)
<CAPTION>
                                                           May 31,    August 31,
                                                            1997         1996   
                   ASSETS                               -----------  -----------
CURRENT ASSETS
 <S>                                                    <C>          <C>
 Cash and cash equivalents                              $  401,293   $  419,136 
 Short-term investments                                      5,000      127,163 
 Accounts receivable (less allowance for doubtful
   accounts: May 31 - $9,000; Aug. 31 - $9,000)            688,574      587,537 
 Inventories                                               985,167      956,744 
 Deferred taxes                                             41,200       38,600 
 Other current assets                                       32,565       29,069 
                                                        ----------   ---------- 
   TOTAL CURRENT ASSETS                                  2,153,799    2,158,249 
                                                        ----------   ---------- 
PROPERTY AND EQUIPMENT
 Furniture and equipment                                   462,756      424,670 
 Leasehold improvements                                     23,060       23,060 
                                                        ----------   ---------- 
                                                           485,816      447,730 
 Less accumulated depreciation                             386,644      363,780 
                                                        ----------   ---------- 
                                                            99,172       83,950 
                                                        ----------   ---------- 
OTHER ASSETS
 Investments                                             2,540,103    2,580,957 
 Deferred taxes                                            225,675       74,400 
                                                        ----------   ---------- 
                                                         2,765,778    2,655,357 
                                                        ----------   ---------- 
     TOTAL ASSETS                                       $5,018,749   $4,897,556 
                                                        ==========   ========== 
</TABLE>

<TABLE>
<CAPTION>
                   LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
 <S>                                                    <C>          <C>
 Accounts payable                                       $   55,318   $   49,413 
 Accrued payroll and payroll taxes                         145,192      217,214 
 Accrued income taxes                                       72,000      206,137 
 Accrued liabilities - other                                   291       74,379 
                                                        ----------   ---------- 
   TOTAL CURRENT LIABILITIES                               272,801      547,143 
                                                        ----------   ---------- 
STOCKHOLDERS' EQUITY
 Common stock, $0.01 par value (authorized -
   5,000,000 shares; issued and outstanding -
   May 31, 1,576,045, Aug. 31, 1,571,170 shares)            15,760       15,712 
 Paid-in capital                                         3,390,505    3,383,944 
 Other - loans                                            (162,263)    (162,263)
 Unrealized loss on available-for-sale securities         (364,176)    (102,526)
 Retained earnings                                       1,866,122    1,215,546 
                                                        ----------   ---------- 
                                                         4,745,948    4,350,413 
                                                        ----------   ---------- 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $5,018,749   $4,897,556 
                                                        ==========   ========== 

See notes to condensed financial statements.
</TABLE>

<TABLE>
                             TECHNOLOGY 80 INC.

                      CONDENSED STATEMENTS OF INCOME

                                (UNAUDITED)
<CAPTION>
                                   Three months ended      Nine months ended
                                         May 31,                 May 31,
                                       1997       1996       1997        1996   
                                    ---------- ---------- ----------  ----------
<S>                                 <C>        <C>        <C>         <C>
REVENUES                            $1,235,805 $1,087,912 $3,390,514  $3,021,487

COST OF GOODS SOLD                     468,739    437,920  1,270,184   1,227,400
                                    ---------- ---------- ----------  ----------
GROSS PROFIT                           767,066    649,992  2,120,330   1,794,087
                                    ---------- ---------- ----------  ----------
OPERATING EXPENSES
  General and administrative           119,724    121,304    365,851     360,818
  Research and development             163,896    165,123    501,011     448,412
  Selling                              206,472    181,399    511,210     517,464
                                    ---------- ---------- ----------  ----------
    TOTAL OPERATING EXPENSES           490,092    467,826  1,378,072   1,326,694
                                    ---------- ---------- ----------  ----------
INCOME FROM OPERATIONS                 276,974    182,166    742,258     467,393

OTHER INCOME                            52,450     78,507    243,319     167,111
                                    ---------- ---------- ----------  ----------
INCOME BEFORE INCOME TAXES             329,424    260,673    985,577     634,504

PROVISION FOR INCOME TAXES             112,000     97,000    335,000     224,000
                                    ---------- ---------- ----------  ----------
NET INCOME                          $  217,424 $  163,673 $  650,577  $  410,504
                                    ========== ========== ==========  ==========

EARNINGS PER SHARE                       $0.13      $0.10      $0.38       $0.24
                                         =====      =====      =====       =====

See notes to condensed financial statements.
</TABLE>

<TABLE>
                             TECHNOLOGY 80 INC.

                    CONDENSED STATEMENTS OF CASH FLOWS

                                (UNAUDITED)
<CAPTION>
                                                            Nine months ended
                                                                 May 31,
                                                            1997         1996   
                                                        -----------  -----------
OPERATING ACTIVITIES
 <S>                                                    <C>          <C>
 Net income                                             $  650,577   $  410,504 
 Adjustments to reconcile net income to net
 cash provided by operating activities:
   Depreciation                                             25,691       20,916 
   Deferred taxes                                           30,125       45,000 
   Gain on sale of investments                            (134,843)     (76,964)
   Gain on sale of fixed asset                              (1,483)         (62)
   Changes in operating assets and liabilities:
     Accounts receivable                                  (101,037)     (25,325)
     Inventories                                           (28,423)    (104,700)
     Other current assets                                   (3,496)         377 
     Accounts payable                                        5,905       27,332 
     Accrued income taxes                                 (134,137)           0 
     Accrued liabilities                                  (146,110)      43,601 
                                                        ----------   ---------- 
       NET CASH PROVIDED BY OPERATING ACTIVITIES           162,769      340,679 
                                                        ----------   ---------- 

INVESTING ACTIVITIES
 Proceeds from sale of equipment                             1,750        1,350 
 Purchase of equipment                                     (41,180)     (14,475)
 Proceeds from sales and maturities of investments       1,409,738    1,967,764 
 Purchases of investments                               (1,557,529)  (2,911,353)
 Repayment of other - loans                                      0        1,442 
                                                        ----------   ---------- 
   NET CASH USED IN INVESTING ACTIVITIES                  (187,221)    (955,272)
                                                        ----------   ---------- 
FINANCING ACTIVITIES
 Proceeds from exercise of stock options                     6,609        7,258 
                                                        ----------   ---------- 
   NET CASH PROVIDED BY FINANCING ACTIVITIES                 6,609        7,258 
                                                        ----------   ---------- 
NET DECREASE IN CASH AND CASH EQUIVALENTS                  (17,843)    (607,335)

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD       419,136      926,163 
                                                        ----------   ---------- 
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD          $  401,293   $  318,828 
                                                        ==========   ========== 

See notes to condensed financial statements.
</TABLE>

                             TECHNOLOGY 80 INC.

            NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

                               May 31, 1997


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, 1996 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 1996 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 is based upon the number of weighted average common
  shares outstanding of 1,721,483 for the quarter ended May 31, 1997 and
  1,718,574 for the quarter ended May 31, 1996.

Item 2:  Management's Discussion and Analysis


Results of Operations
---------------------
Revenues for the third quarter ended May 31, 1997 increased 14% over the
same period the preceding year and increased 12% for the nine months ended
May 31, 1997.  The revenue increase for the three and nine months ended May
31, 1997 was due to an increase in sales volume.

Gross profit percentages for the third quarter ended May 31, 1997 and 1996
was 62% and 60% respectively.  Gross profit percentages for the nine months
ended May 31, 1997 was 63% compared to 59% for the nine months ended May
31, 1996.  The increase is primarily due to increased cost cutting
measures.

Operating expenses as a percentage of sales was 40% for the three months
and 41% for the nine months ended May 31, 1997 compared to 43% and 44% for
the same periods the prior year, respectively.

Other income decreased $26,057 for the quarter ended May 31, 1997 and
increased $76,208 for the nine months ended May 31, 1997 from the same
periods the preceding year. 

Net income was $217,424 and $163,673 for the quarter ended May 31, 1997 and
1996 respectively.  This represents a 33% increase.  For the nine months
ended May 31, 1997 and 1996, net income was $650,577 and $410,504
respectively.  This represents a 58% increase.

Liquidity and Capital Resources
-------------------------------
Registrant's balance sheet shows a strong capital position.  Operations
provided $162,769 in cash compared to providing $340,679 the same period
the prior year.  Cash and cash equivalents decreased $17,843 since August
31, 1996.  The company used $187,221 to purchase investments and equipment
since August 31, 1996.  Registrant expects that there will be sufficient
capital to fund its operations during fiscal year 1997.

Registrant has no 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 (following signature page)

           Exhibit 11 -- Statement Re: Computation of Per-Share Earnings 

           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)


         July 14, 1997                 /s/ Duane Markus, President, CEO
   -------------------------           --------------------------------
            (Date)                       Duane Markus, President, CEO