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,
     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
                    --------------------------
                    (Issuer's telephone number)

                               N/A
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(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                      1,646,733
-----------------------------                --------------------
       (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,
       ASSETS                                           1998        1997   
                                                     -----------  ----------
CURRENT ASSETS
  <S>                                                <C>         <C>
  Cash and cash equivalents                          $  187,298  $  284,261 
  Short-term investments                                  5,000      64,402 
  Accounts receivable (less allowance for doubtful           
    accounts: May 31 - $12,000; Aug. 31 - $12,000)      716,685     882,224 
  Inventories                                         1,351,571   1,177,452 
  Deferred taxes                                         44,000      44,000 
  Other current assets                                   17,591      24,383 
                                                     ----------  ----------
    TOTAL CURRENT ASSETS                              2,322,145   2,476,722 
                                                     ----------  ----------
    
PROPERTY AND EQUIPMENT                                            
           
  Furniture and equipment                               514,713     473,934 
  Leasehold improvements                                 23,060      23,060 
                                                     ----------  ----------
                                                        537,773     496,994 
  Less accumulated depreciation                         418,637     395,830 
                                                     ----------  ----------
                                                        119,136     101,164 
                                                     ----------  ----------
OTHER ASSETS                                                     
           
  Investments                                         3,628,562   3,284,214 
  Deferred taxes                                        155,800     147,000 
                                                     ----------  ----------
                                                      3,784,362   3,431,214 
                                                     ----------  ----------
       TOTAL ASSETS                                  $6,225,643  $6,009,100 
                                                     ==========  ==========
</TABLE>

<TABLE>
       LIABILITIES AND STOCKHOLDERS' EQUITY
<CAPTION>

CURRENT LIABILITIES
  <S>                                                <C>         <C>
  Accounts payable                                   $   49,058  $   95,117 
  Accrued payroll and payroll taxes                     217,552     464,659 
  Accrued income taxes                                  121,000      36,990 
  Payable to investment company                          60,449     285,392 
  Accrued liabilities - other                            31,103     182,054 
                                                     ----------  ----------
    TOTAL CURRENT LIABILITIES                           479,162   1,064,212 
                                                     ----------  ----------
STOCKHOLDERS' EQUITY                                             
           
  Common stock, $0.01 par value (authorized -
    5,000,000 shares; issued and outstanding -
    May 31, 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     (298,621)   (265,933)
  Retained earnings                                   2,749,608   1,948,873 
                                                     ----------  ----------
                                                      5,746,481   4,944,888 
                                                     ----------  ----------
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $6,225,643  $6,009,100 
                                                     ==========  ==========
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,
                                    1998       1997       1998       1997   
                                  ---------- ---------- ---------- ----------
<S>                               <C>        <C>        <C>        <C>
REVENUES                          $1,498,149 $1,235,805 $4,251,423 $3,390,514

COST OF GOODS SOLD                   536,652    468,739  1,633,858  1,270,184
                                  ---------- ---------- ---------- ----------
GROSS PROFIT                         961,497    767,066  2,617,565  2,120,330
                                  ---------- ---------- ---------- ----------
OPERATING EXPENSES                                                
           
  General and administrative         180,026    119,724    485,751    365,851
  Research and development           185,895    163,896    566,785    501,011
  Selling                            224,852    206,472    607,911    511,210
                                  ---------- ---------- ---------- ----------
    TOTAL OPERATING EXPENSES         590,773    490,092  1,660,447  1,378,072
                                  ---------- ---------- ---------- ----------
INCOME FROM OPERATIONS               370,724    276,974    957,118    742,258

OTHER INCOME                          40,889     52,450    265,618    243,319
                                  ---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES           411,613    329,424  1,222,736    985,577
                                                       
PROVISION FOR INCOME TAXES           143,000    112,000    422,000    335,000
                                  ---------- ---------- ---------- ----------
NET INCOME                        $  268,613 $  217,424 $  800,736 $  650,577
                                  ========== ========== ========== ==========

BASIC EARNINGS PER SHARE               $0.16      $0.14      $0.49      $0.41
                                       =====      =====      =====      =====

DILUTED EARNINGS PER SHARE             $0.15      $0.13      $0.46      $0.38
                                       =====      =====      =====      =====

See notes to condensed financial statements.
</TABLE>

<TABLE>
                            TECHNOLOGY 80 INC.
                    CONDENSED STATEMENTS OF CASH FLOWS
                                (UNAUDITED)
<CAPTION>
                                                        Nine months ended
                                                               May31,
                                                          1998       1997
                                                      ---------- ----------
OPERATING ACTIVITIES
  <S>                                                 <C>        <C>
  Net income                                          $  800,736 $  650,577 
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Depreciation and amortization                         31,644     25,691 
    Deferred taxes                                        39,700     30,125 
    Gain on sale of investments                         (184,945)  (134,843)
    Gain on sale of fixed asset                             (384)    (1,483)
    Changes in operating assets and liabilities:                            
       Accounts receivable                               165,539   (101,037)
       Inventories                                      (174,119)   (28,423)
       Other current assets                                6,792     (3,496)
       Accounts payable                                  (46,059)     5,905 
       Accrued income taxes                               84,010   (134,137)
       Accrued liabilities                              (623,001)  (146,110)
                                                      ---------- ----------
       NET CASH PROVIDED BY OPERATING ACTIVITIES          99,913    162,769 
                                                      ---------- ----------

INVESTING ACTIVITIES                                              
           
  Proceeds from sale of equipment                          1,350      1,750 
  Purchase of equipment                                  (50,582)   (41,180)
  Proceeds from sales and maturities
   of investments                                      1,645,062  1,409,738 
  Purchases of investments                            (1,826,252)(1,557,529)
    NET CASH USED IN INVESTING ACTIVITIES               (230,422)  (187,221)
                                                      ---------- ----------

FINANCING ACTIVITIES
  Proceeds from exercise of stock options                 33,546      6,609 
                                                      ---------- ----------
    NET CASH PROVIDED BY FINANCING ACTIVITIES             33,546      6,609 
                                                      ---------- ----------

NET DECREASE IN CASH AND CASH EQUIVALENTS                (96,963)   (17,843)

CASH AND CASH EQUIVALENTS AT BEGINNING
 OF THE PERIOD                                           284,261    419,136 
                                                      ---------- ----------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD        $  187,298 $  401,293 
                                                      ========== ==========

See notes to condensed financial statements.
</TABLE>

                            TECHNOLOGY 80 INC.
            NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
                               May 31, 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
  May 31, 1998 and 1997 follow:

<TABLE>
<CAPTION>
                                                                   Per share
                1998                        Income       Shares      amount
                ----                        ------       ------    ---------
<S>                                        <C>          <C>           <C>
Earnings per share of common
 stock - basic                             $268,613     1,640,420     $0.16
Stock options                                  -          123,367       -  
                                           --------     ---------     -----
Earnings per share of common
 stock - assuming dilution                 $268,613     1,763,787     $0.15
                                           ========     =========     =====

                                                                   Per share
                1997                        Income       Shares      amount
                ----                        ------       ------    ---------
Earnings per share of common
 stock - basic                             $217,424     1,575,391     $0.14
Stock options                                  -          157,907       -  
                                           --------     ---------     -----
Earnings per share of common
 stock - assuming dilution                 $217,424     1,733,298     $0.13
                                           ========     =========     =====
</TABLE>

Item 2:  Management's Discussion and Analysis


Results of Operations
---------------------
Revenues for the third quarter ended May 31, 1998 increased 21% over the
same period the preceding year and increased 25% for the nine months ended
May 31, 1998.  The revenue increase for the three and nine months ended May
31, 1998 was due to an increase in sales volume.  One customer accounted
for 14% of the sales volume for the nine months ended May 31, 1998.

Gross profit percentages for the third quarter ended May 31, 1998 and 1997
was 64% and 62% respectively.  Gross profit percentages for the nine months
ended May 31, 1998 was 62% compared to 63% for the nine months ended May
31, 1997.

Operating expenses as a percentage of sales was 39% for the three and nine
months ended May 31, 1998 compared to 40% and 41% for the same periods the
prior year, respectively.

Other income decreased $11,561 for the quarter ended May 31, 1998 and
increased $22,299 for the nine months ended May 31, 1998 from the same
periods the preceding year.  The increase for the nine months was primarily
due to increased investment income.

Net income was $268,613 and $217,424 for the quarter ended May 31, 1998 and
1997 respectively.  This represents a 24% increase.  For the nine months
ended May 31, 1998 and 1997, net income was $800,736 and $650,577
respectively. This represents a 23% increase.

Liquidity and Capital Resources
-------------------------------
Registrant's balance sheet shows a strong capital position. Operations
provided $99,913 in cash compared to $162,769 the same period the prior
year.  Cash and cash equivalents decreased $96,963 since August 31, 1997. 
Investing activities used $230,422 primarily for the purchase of investments.  
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)


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