SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C.   20549


                                 FORM 10-Q


                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                   FOR THE QUARTER ENDED AUGUST 31, 1998

                         COMMISSION FILE NUMBER 0-9061


                             ELECTRO RENT CORPORATION          
              Exact name of registrant as specified in its charter


        CALIFORNIA                                    95-2412961      
(State or other jurisdiction of                   (I.R.S. Employer  
incorporation or organization)                   Identification No.) 


       6060 SEPULVEDA BOULEVARD
         VAN NUYS, CALIFORNIA                          91411-2501    
(Address of principal executive offices)             (Zip code)

                                 (818)  786-2525               
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 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        

At October 9, 1998 registrant had 24,431,424 shares of common stock
outstanding.

<PAGE>
                              ELECTRO RENT CORPORATION

                                      FORM 10-Q

                                   AUGUST 31, 1998

                                  TABLE OF CONTENTS


                                                                           Page
Part I:     FINANCIAL INFORMATION

      Condensed Consolidated Statements of Income for the Three Months
       Ended August 31, 1998 and 1997                                         3

      Condensed Consolidated Balance Sheets at
       August 31, 1998 and May 31, 1998                                       4

      Condensed Consolidated Statements of Cash Flows for the
       Three Months Ended August 31, 1998 and 1997                            5

      Notes to Condensed Consolidated Financial Statements                    6

      Management's Discussion and Analysis of Financial
        Condition and Results of Operations                                   7

Part II:    OTHER INFORMATION                                                 9

SIGNATURES                                                                   10


                                     Page 2  
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<TABLE>
                              ELECTRO RENT CORPORATION

                     CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                   (Unaudited) (000 omitted except per share data)
<CAPTION>
                                                            Three Months Ended  
                                                           August 31
                                                             1998        1997  
                                                           ---------   ---------
<S>                                                        <C>         <C>
Revenues:
  Rentals and leases                                     $   62,166  $   34,392
  Sales of equipment
    and other revenues                                       10,435       4,525
                                                           ---------   ---------
    Total revenues                                           72,601      38,917
                                                           ---------   ---------
Costs and expenses:
  Depreciation of equipment                                  27,139      11,615
  Costs of revenues other
    than depreciation                                        12,091       4,157
  Selling, general and
    administrative expenses                                  23,160      11,208
  Interest                                                    3,853         113
                                                           ---------   ---------
    Total costs and expenses                                 66,243      27,093
                                                           ---------   ---------
Income before income taxes                                    6,358      11,824

Income taxes                                                  2,607       4,847
                                                           ---------   ---------
Net income                                               $    3,751  $    6,977
                                                           =========   =========
Earnings per share:
  Basic                                                  $     0.15        0.29
  Diluted                                                $     0.15  $     0.28

Average shares used in per share calculation:
  Basic                                                      24,418      24,136
  Diluted                                                    25,225      24,960


                                               

<FN>
                              See accompanying notes to
                    condensed consolidated financial statements.
</TABLE>
                                     Page 3  
<PAGE>
<TABLE>
                              ELECTRO RENT CORPORATION

                        CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Unaudited) (000 omitted)

                                       ASSETS
<CAPTION>
                                                           August 31    May 31
                                                             1998         1998
                                                           ---------   ---------
<S>                                                        <C>         <C>
Cash                                                     $    1,042  $    2,281
Accounts receivable, net                                     62,003      66,518
Rental and lease equipment, net
  of accumulated depreciation                               277,409     293,048
Other property, net of accumulated
  depreciation and amortization                              25,406      25,867
Goodwill, net                                                63,052      63,346
Other                                                         6,710       6,836
                                                           ---------   ---------
                                                         $  435,622  $  457,896
                                                           =========   =========

                        LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
  Bank borrowings                                        $  202,100  $  226,900
  Accounts payable                                           20,549      20,733
  Accrued expenses                                           20,747      21,749
  Deferred income taxes                                      16,427      16,505
                                                           ---------   ---------
    Total liabilities                                       259,823     285,887
                                                           ---------   ---------
Shareholders' equity
  Common stock                                               10,449      10,410
  Retained earnings                                         165,350     161,599
                                                           ---------   ---------
    Total shareholders' equity                              175,799     172,009
                                                           ---------   ---------
                                                         $  435,622  $  457,896
                                                           =========   =========
<FN>
                              See accompanying notes to
                    condensed consolidated financial statements.

</TABLE>
                                     Page 4  
<PAGE>
                              ELECTRO RENT CORPORATION

                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Unaudited) (000 omitted)
<TABLE>
<CAPTION>
                                                           Three Months Ended  
                                                           August 31
                                                              1998        1997 
                                                           ---------   ---------
<S>                                                        <C>         <C>
Cash flows from operating activities:
  Net income                                             $    3,751  $    6,977
  Adjustments to reconcile net income to net cash
    provided by operating activities:
    Depreciation and amortization                            28,418      11,992
    Provision for losses on accounts receivable                 810         181
    (Gain) loss on sale of equipment                            727      (1,476)
    Change in operating assets and liabilities:
      (Increase) decrease in accounts receivable              3,705      (2,730)
      (Increase) decrease in other assets                       126        (188)
      Decrease in accounts payable                             (144)       (840)
      Increase (decrease) in accrued expenses                (1,002)      4,076
      Decrease in deferred income taxes                         (78)       (145)
                                                           ---------   ---------
      Net cash provided by operating activities              36,313      17,847
                                                           ---------   ---------
Cash flows from investing activities:
  Proceeds from sale of equipment                             9,319       3,736
  Payments for purchase of rental and lease equipment       (21,836)    (28,145)
  Payments for purchase of other property                      (274)       (204)
                                                           ---------   ---------
      Net cash used in investing activities                 (12,791)    (24,613)
                                                           ---------   ---------
Cash flows from financing activities:
  Increase (decrease) in short-term bank borrowings         (24,800)      5,500
  Proceeds from issuance of common stock                         39          61
                                                           ---------   ---------
      Net cash provided by (used in) financing activities   (24,761)      5,561
                                                           ---------   ---------
Net decrease in cash                                         (1,239)     (1,205)
Cash at beginning of period                                   2,281       2,207
                                                           ---------   ---------
Cash at end of period                                    $    1,042  $    1,002
                                                           =========   =========
<FN>
                              See accompanying notes to
                    condensed consolidated financial statements.
                                     Page 5  
</TABLE>
<PAGE>
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                (UNAUDITED)

Note 1 -- Basis of Presentation
-----------------------------------
      The unaudited consolidated financial statements are condensed and do not 
contain all information required by generally accepted accounting principles 
to be included in a full set of financial statements.  The condensed 
consolidated financial statements include Electro Rent Corporation and the 
accounts of its wholly owned subsidiaries. All intercompany balances and 
transactions have been eliminated.  The information furnished reflects all 
adjustments which are, in the opinion of management, necessary to a fair 
statement of the financial position and the results of operations of the 
Company.  All such adjustments are of a normal recurring nature. The 
preparation of financial statements in conformity with generally accepted 
accounting principles requires management to make estimates and assumptions 
that affect the reported amounts of assets and liabilities and disclosure of 
contingent assets and liabilities at the date of the financial statements and 
the reported amounts of revenues and expenses during the reporting period.  
Actual results could differ from those estimates.

Note 2 -- Net Income Per Share
-----------------------------------
     Shares outstanding for the three months ended August 31, 1997 have been 
restated to give effect to the two-for-one stock split effected in the form of 
a 100% stock dividend on April 30, 1998.

Note 3 -- Interest and Income Taxes Paid
-------------------------------------------
      Total interest paid during the three month period ended August 31, 1998 
and 1997 was $4,287,000 and $127,000, respectively.  Total income taxes paid 
during the three month period ended August 31, 1998 were $1,086,000 compared 
to $2,741,000 during the same period in the prior year.  Interest and income 
taxes paid will vary from amounts recorded in the financial statements.

Note 4 -- Noncash Investing and Financing Activities 
------------------------------------------------------- 
      The Company acquired equipment totaling $19,270,000 and $19,231,000 as 
of August 31, 1998 and May 31, 1998, respectively, and $10,486,000 and 
$19,405,000 as of August 31, 1997 and May 31, 1997, respectively, which was 
paid for during subsequent quarters.  

Note 5 -- Capital Leases
----------------------------
      The Company has certain customer leases providing bargain purchase 
options with a portion of lease revenue deferred until option exercise.   At 
August 31, 1998 investment in sales-type leases of $1,448,000 net of deferred 
interest of $86,000 is included in other assets.  Interest income is 
recognized over the life of the lease using the interest method.

                                     Page 6  
<PAGE>
Item 2.     Management's Discussion and Analysis of Financial Condition and   
                  Results of Operations                                

The following discussion addresses the financial condition of the Company as
of August 31, 1998 and the results of operations for the three month periods
ended August 31, 1998  and 1997.  This discussion should be read in conjunction
with the Management's Discussion and Analysis section included in the
Company's Annual Report on Form 10-K (pages  13-14) to which the reader is
directed for additional information.

On November 14, 1997, the Company acquired the computer and test and
measurement rental business of GE Capital Technology Management Services
(TMS), a competitor of Electro Rent, for a purchase price of approximately
$240.8 million.  


Results of Operations

Total revenues for the three months ended August 31, 1998 increased 87% to
$72.6 million from $38.9 million, primarily reflecting the acquisition of TMS. 
Rental revenues increased 31% to $37.3 million, lease revenues increased 323%
to $24.9 million and sales of equipment and other revenues increased 131% to
$10.4 million.  It is not possible to accurately determine the effects of the
TMS acquisition on revenues because of the almost immediate integration of all
TMS operations.  Partially offsetting the additional revenue base initially
provided by the TMS acquisition were the effects of a significant number of
acquired rental contracts disputed by TMS customers, higher than expected
attrition of TMS customers and a generally weak market during the last nine
months.

Depreciation of equipment increased from 34% of rental and lease revenues in
the first quarter of fiscal 1998 to 44% of rental and lease revenues in the
first quarter of fiscal 1999.  This increase is primarily due to lower
equipment utilization since the TMS acquisition, an increased proportion of
lower yield personal computer operating leases in the acquired TMS equipment
pool and an acceleration of depreciation for personal computers which was
implemented at the beginning of fiscal 1999 to bring recorded equipment
values more in line with market values over time.

Costs of revenues other than depreciation includes cost of equipment sales and
equipment parts and repair expenses.  Cost of equipment sales increased from
60% of equipment sales in the first quarter of fiscal 1998 to 108% of equipment
sales in the first quarter of fiscal 1999. This increase is primarily
attributable to a weak market for both personal computers and test and
measurement equipment and an increased proportion of personal computer sales. 
Equipment parts and repair expenses decreased from 5.1% of rental and lease
revenues in the first quarter of fiscal 1998 to 2.9% of rental and lease
revenues in the first quarter of fiscal 1999, primarily due to  the Company's
discontinuation of expensing certain personal computer parts which was 
effected in conjunction with the change to more accelerated depreciation
for personal computers.

Selling, general and administrative expenses totaled $23.2 million or 32% of
total revenues for the first quarter of fiscal 1999 as compared to $11.2
million or 29% of total revenues for the first quarter of fiscal 1998.  The
increase in the expense ratio reflects revenue declines experienced during the
last nine months, partially offset by cost savings resulting from the
integration of TMS, including the elimination of redundant functions and
facilities.

As a result of the changes in revenues, operating costs and expenses discussed
above, operating earnings were $10.2 million or 14% of total revenues in the
first quarter of fiscal 1999 compared to $11.9 million or 31% of total revenues
in the first quarter of fiscal 1998.

Interest expense increased to $3.9 million in the first quarter of fiscal 1999
from $.1 million in the first quarter of fiscal 1998. The increase is a result
of additional bank borrowings used to finance the TMS acquisition.

Liquidity and Capital Resources

The Company's primary capital requirements are purchases of rental and lease
equipment and debt service.  The Company purchases equipment throughout each
year to replace equipment which has been sold and to maintain adequate levels
of rental equipment to meet existing and new customer needs.  The market for
personal computers and test and measurement equipment has declined during the
last nine months.  In spite of the larger equipment pool after the TMS
acquisition, expenditures decreased in the first quarter of fiscal 1999 as
compared with the comparable prior year period and are expected to continue at
a lower level for the remainder of the year.  As a result, bank borrowings are
expected to continue declining at a significant rate.

During the three months ended August 31, 1998 and 1997 net cash provided by
operating activities was $36.3 million and $17.8 million, respectively.  The
increase in fiscal 1999 results primarily from the effects of the TMS
acquisition.  During the three months ended August 31, 1998 and 1997 net cash
used in investing activities was $12.8 million and $24.6 million, respectively.
The decrease results primarily from a lower level of equipment purchases and
increased equipment sales.  During the first quarter of fiscal 1999 net cash
used in financing activities was $24.8 million, reflecting decreased bank
borrowings for equipment purchases, while in the first quarter of fiscal 1998
net cash provided by financing activities was $5.6 million, reflecting
increased bank borrowings for equipment purchases.

The Company has available a revolving line of credit of $260 million, subject
to certain borrowing base restrictions, to meet acquisition needs as well as
working capital and general corporate requirements.  The Company had borrowings
of $202.1 million under the Credit Facility at August 31, 1998.

<PAGE>
Part II.  OTHER INFORMATION
----------------------------

Items 1. through 3.
----------------------------
      Nothing to report.   


Item 4.  Submission of Matters to a Vote of Security Holders
-----------------------------------------------------------
       (a)   On October 8, 1998, the 1998 Annual Meeting of Shareholders of the
Registrant was held.  Proxies pursuant to Regulation 14A were solicited in
connection with the meeting.  21,839,732 shares were present in person or by
proxy out of a total of 24,425,424 shares issued and outstanding and eligible
to vote on the record date.

       (b)     The meeting involved the election of directors.  The following
directors were elected by the number of affirmative votes set opposite their
respective names:

Name                               Number of Votes

Gerald D. Barrone                  21,776,828
Nancy Y. Bekavac                   21,778,250
Daniel Greenberg                   21,778,462
Joseph J. Kearns                   21,775,516
S. Lee Kling                       21,776,828
Michael R. Peevey                  21,676,970
Will Richeson, Jr.                 21,776,628
William Weitzman                   21,778,444

       (c)     Other matters submitted to a vote of security holders: 

The shareholders ratified the appointment of Arthur Andersen LLP as the
registrant's independent public accountants for the current year.  21,669,436
shares were voted for, 6,552 were voted against, and 163,774 shares abstained
from voting.


Item 5.
----------------------------
      Nothing to report.   


Item 6.    Exhibits and Reports on Form 8-K
-------------------------------------------
      Nothing to report.   

<PAGE>
                                  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 thereto duly authorized.

                                         ELECTRO RENT CORPORATION

DATED:        October 9, 1998            /s/ Craig R. Jones

                                          Craig R. Jones
                                          Vice President and
                                          Chief Financial Officer

                                     Page 13  
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