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 NOVEMBER 30, 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 January 13, 1999 registrant had 24,454,249 shares of common stock
outstanding.

<PAGE>
                              ELECTRO RENT CORPORATION

                                      FORM 10-Q

                                  NOVEMBER 30, 1998

                                  TABLE OF CONTENTS


                                                                           Page
Part I:     FINANCIAL INFORMATION

      Condensed Consolidated Statements of Income for the Three Months
       and Six Months Ended November 30, 1998 and 1997                        3

      Condensed Consolidated Balance Sheets at
       November 30, 1998 and May 31, 1998                                     4

      Condensed Consolidated Statements of Cash Flows for the
       Six Months Ended November 30, 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                                                11

SIGNATURES                                                                   12


                                     Page 2  
<PAGE>
<TABLE>
Part I.  FINANCIAL INFORMATION
-----------------------------------

                              ELECTRO RENT CORPORATION

                     CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                   (Unaudited) (000 omitted except per share data)
<CAPTION>
                                    Three Months Ended      Six Months Ended  
                                   November 30             November 30
                                     1998        1997        1998        1997  
                                   --------    --------    ---------   ---------
<S>                                <C>         <C>         <C>         <C>
Revenues:
  Rentals and leases             $  60,538   $  42,394   $  122,704  $   76,786
  Sales of equipment
    and other revenues               8,455       8,082       18,890      12,607
                                   --------    --------    ---------   ---------
    Total revenues                  68,993      50,476      141,594      89,393
                                   --------    --------    ---------   ---------
Costs and expenses:
  Depreciation of equipment         26,880      15,116       54,019      26,731
  Costs of revenues other
    than depreciation                7,211       8,135       19,302      12,292
  Selling, general and
    administrative expenses         20,446      13,980       43,606      25,188
  Interest                           3,347         983        7,200       1,096
                                   --------    --------    ---------   ---------
    Total costs and expenses        57,884      38,214      124,127      65,307
                                   --------    --------    ---------   ---------
Income before income taxes          11,109      12,262       17,467      24,086

Income taxes                         4,554       5,027        7,161       9,874
                                   --------    --------    ---------   ---------
Net income                       $   6,555   $   7,235   $   10,306  $   14,212
                                   ========    ========    =========   =========
Earnings per share:
  Basic                          $    0.27   $    0.30   $     0.42        0.59
  Diluted                        $    0.26   $    0.29   $     0.41  $     0.57
                                                                       
Average shares used in 
  per share calculation:
  Basic                             24,431      24,302       24,425      24,230
  Diluted                           24,934      25,102       25,086      25,020


                                               

<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>
                                                          November 30,  May 31,
                                                             1998         1998
                                                           ---------   ---------
<S>                                                        <C>         <C>
Cash                                                     $    2,304  $    2,281
Accounts receivable, net                                     59,319      66,518
Rental and lease equipment, net
  of accumulated depreciation                               264,629     293,048
Other property, net of accumulated
  depreciation and amortization                              23,073      25,867
Goodwill, net                                                62,343      63,346
Other                                                         5,391       6,836
                                                           ---------   ---------
                                                         $  417,059  $  457,896
                                                           =========   =========

                        LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
  Bank borrowings                                        $  177,000  $  226,900
  Accounts payable                                           20,446      20,733
  Accrued expenses                                           20,968      21,749
  Deferred income taxes                                      16,291      16,505
                                                           ---------   ---------
    Total liabilities                                       234,705     285,887
                                                           ---------   ---------
Shareholders' equity:
  Common stock                                               10,449      10,410
  Retained earnings                                         171,905     161,599
                                                           ---------   ---------
    Total shareholders' equity                              182,354     172,009
                                                           ---------   ---------
                                                         $  417,059  $  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>
                                                           Six Months Ended  
                                                           November 30,
                                                              1998        1997 
                                                           ---------   ---------
<S>                                                        <C>         <C>
Cash flows from operating activities:
  Net income                                             $   10,306  $   14,212
  Adjustments to reconcile net income to net cash
    provided by operating activities:
    Depreciation and amortization                            56,500      27,608
    Provision for losses on accounts receivable               1,434         419
    Gain on sale of equipment                                  (483)     (2,480)
    Change in operating assets and liabilities:
      (Increase) decrease in accounts receivable              5,765     (11,933)
      (Increase) decrease in other assets                     1,445      (3,387)
      Increase (decrease) in accounts payable                 5,758        (994)
      Increase (decrease) in accrued expenses                  (781)      6,199
      Decrease in deferred income taxes                        (214)       (297)
                                                           ---------   ---------
      Net cash provided by operating activities              79,730      29,347
                                                           ---------   ---------
Cash flows from investing activities:
  Payment for acquisition of business                            -     (239,212)
  Proceeds from sale of equipment                            16,261      10,937
  Payments for purchase of rental and lease equipment       (45,845)    (46,656)
  Payments for purchase of other property                      (262)       (980)
                                                           ---------   ---------
      Net cash used in investing activities                 (29,846)   (275,911)
                                                           ---------   ---------
Cash flows from financing activities:
  Increase (decrease) in short-term bank borrowings         (49,900)    246,800
  Proceeds from issuance of common stock                         39          96
                                                           ---------   ---------
      Net cash provided by (used in) financing activities   (49,861)    246,896
                                                           ---------   ---------
Net increase in cash                                             23         332
Cash at beginning of period                                   2,281       2,207
                                                           ---------   ---------
Cash at end of period                                    $    2,304  $    2,539
                                                           =========   =========
<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 and six month periods ended November 30, 
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 six month periods ended November 30, 1998 
and 1997 was $7,205,000 and $568,000, respectively.  Total income taxes paid 
during the six month period ended November 30, 1998 were $6,523,000 compared 
to $11,701,000 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 $13,186,000 and $19,231,000 as 
of November 30, 1998 and May 31, 1998, respectively, and $11,674,000 and 
$19,405,000 as of November 30, 1997 and May 31, 1997, respectively, payable 
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 
November 30, 1998 investment in sales-type leases of $1,189,000 net of 
deferred interest of $75,000 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 November 30, 1998 and the results of operations for the six month periods 
ended November 30, 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

Comparison of Three Months Ended November 30, 1998 and 1997

Total revenues for the three months ended November 30, 1998 increased 37% to 
$69.0 million from $50.5 million, primarily reflecting the acquisition of GE 
Technology Management Services (TMS) on November 14, 1997.  Rental and lease 
revenues increased 43% to $60.5 million and sales of equipment and other 
revenues increased 5% to $8.5 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 twelve months.

Depreciation of equipment increased from 36% of rental and lease revenues in 
the second quarter of fiscal 1998 to 44% of rental and lease revenues in the 
second 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.

Costs of revenues other than depreciation includes cost of equipment sales and 
equipment parts and repair expenses.  Cost of equipment sales decreased from 
86% of equipment sales in the second quarter of fiscal 1998 to 83% of 
equipment sales in the second quarter of fiscal 1999.  This decrease is 
primarily attributable to a lower proportion of personal computer sales in 
fiscal 1999 which typically have lower sales margins than test and measurement 
equipment. Equipment parts and repair expenses decreased from 3.0% of rental 
and lease revenues in the second quarter of fiscal 1998 to 1.9% of rental and 
lease revenues in the second 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 $20.4 million or 30% of 
total revenues for the second quarter of fiscal 1999 as compared to $14.0 
million or 28% of total revenues for the second quarter of fiscal 1998.  The 
increase in the expense ratio reflects revenue declines experienced during the 
last twelve 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, earnings before interest and taxes were $14.5 million or 21% of total 
revenues in the second quarter of fiscal 1999 compared to $13.2 million or 26% 
of total revenues in the second quarter of fiscal 1998.

Interest expense increased to $3.3 million in the second quarter of fiscal 
1999 from $1.0 million in the second quarter of fiscal 1998. The increase is a 
result of additional bank borrowings used to finance the TMS acquisition.


Comparison of Six Months Ended November 30, 1998 and 1997

Total revenues for the six months ended November 30, 1998 increased 58% to 
$141.6 million from $89.4 million in the prior year comparable period, 
primarily reflecting the acquisition of TMS.  Rental and lease revenues 
increased 60% to $122.7 million and sales of equipment and other revenues 
increased 50% to $18.9 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 twelve months.

Depreciation of equipment increased from 35% of rental and lease revenues in 
the first half of fiscal 1998 to 44% of rental and lease revenues in the first 
half 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.

Costs of revenues other than depreciation includes cost of equipment sales and 
equipment parts and repair expenses.  Cost of equipment sales increased from 
77% of equipment sales in the first half of fiscal 1998 to 97% of equipment 
sales in the first half 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 4.7% of rental and lease 
revenues in the first half of fiscal 1998 to 2.4% of rental and lease revenues 
in the first half 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 $43.6 million or 31% of 
total revenues for the first half of fiscal 1999 as compared to $25.2 million 
or 28% of total revenues for the first half of fiscal 1998.  The increase in 
the expense ratio reflects revenue declines experienced during the last twelve 
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, earnings before interest and taxes were $24.7 million or 17% of total 
revenues in the first half of fiscal 1999 compared to $25.2 million or 28% of 
total revenues in the first half of fiscal 1998.

Interest expense increased to $7.2 million in the first half of fiscal 1999 
from $1.1 million in the first half 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 twelve months.  In spite of the larger equipment pool after the TMS 
acquisition, expenditures decreased in the first half 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.

During the six months ended November 30, 1998 and 1997 net cash provided by 
operating activities was $79.7 million and $29.3 million, respectively.  The 
increase in fiscal 1999 results primarily from the effects of the TMS 
acquisition and a decrease in accounts receivable.  During the six months 
ended November 30, 1998 and 1997 net cash used in investing activities was 
$29.8 million and $275.9 million, respectively.  This decrease is attributable 
to the TMS acquisition in the prior year, partly offset by  a lower level of 
equipment purchases and increased equipment sales in fiscal 1999.  During the 
first half of fiscal 1999 net cash used in financing activities was $49.9 
million, reflecting decreased bank borrowings primarily from the increase in 
net cash provided by operating activities, while in the first half of fiscal 
1998 net cash provided by financing activities was $246.9 million, reflecting 
increased bank borrowings for the TMS acquisition.

The Company has available a revolving line of credit of $210 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 $177.0 million under the Credit Facility at November 30, 1998.


Year 2000 Compliance

General.  The computer systems issue relating to dates beyond 1999 is the 
result of many computer programs being written to use and store dates with 
only the last two digits of the applicable year.  As a result, these programs 
may assume that all two digit dates are twentieth century dates.  This could 
result in system failure, anomalous system behavior or incorrect system 
reporting. System failure could, in turn, temporarily affect the Company's 
ability to process customer transactions, interface with vendors and engage in 
similar normal business activities.

The Company has assessed how it may be impacted.  The Company has formulated 
and begun implementation of a plan to address all known aspects of the issue. 
The Company has already completed a substantial portion of this plan and is on 
schedule to fully complete the plan by May 1999.

Software Information Systems.  Software information systems consist of the 
Company's base financial and operations system (internally-developed PERFECT 
system), other smaller scale software applications and other programs 
developed internally.  All of these systems were found to be substantially 
year 2000 compliant with immaterial associated costs.

Vendor Provided Computer Hardware and Operating Systems.  Vendor provided 
computer hardware and operating systems include all data center equipment (Sun 
Microsystems Enterprise 6000) and networks (Novell and Microsoft NT).  All of 
these systems were found to be substantially year 2000 compliant with the 
exception of the Sun 6000 operating system.  This will be upgraded in February 
1999 with immaterial associated costs.

Communications Systems.  Communications systems include all data center 
equipment and software systems used to support external communications with 
customers, employees, suppliers and business partners, and all corporate 
equipment and software systems used to support internal business management 
communications.  Corporate communications systems have been recently replaced 
and/or upgraded.  Each significant component of these communications systems 
has been tested and all were found to be substantially year 2000 compliant 
with immaterial associated costs.  The Company is currently evaluating 
communications systems at each of its field offices and will make any 
necessary replacements and/or upgrades by May 1999.  The Company does not 
expect any associated costs to be material.

Suppliers and Other Business Partners.  This area of the plan called for all 
significant suppliers and other business partners to be monitored for year 
2000 readiness.  The Company is not currently aware of any single vendor or 
business partner with year 2000 compliance issues that could have a material 
impact on the Company.  Year 2000 business transaction tests of all direct 
interfaces with vendors and other business partners will be completed by May 
1999.  The Company can provide no assurance that year 2000 compliance will be 
successfully implemented by all of its suppliers.

Contingency Planning.  The Company has not yet developed a comprehensive 
contingency plan to address the risk of operational problems and costs likely 
to result from a failure by the Company or by a supplier or business partner 
to address year 2000 readiness.  This plan will be developed by the end of May 
1999.  It will list specific action plans for failure in any of the identified 
areas of the year 2000 compliance plan. The Company believes that failure to 
complete any of the remaining work to be done will not alone adversely affect 
the continuity of the core business.  The Company believes its current state 
of readiness is on schedule with a conservative plan to be fully year 2000 
compliant by May 1999 and that business risks have been minimized.  However, 
there can be no guarantee that year 2000 compliance issues not yet identified 
or fully addressed will not materially affect the Company's operations or 
expose it to third party liability.

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

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


Item 4.  Submission of Matters to a Vote of Security Holders
-----------------------------------------------------------
      Nothing to report.   


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:        January 13, 1999            /s/ Craig R. Jones

                                          Craig R. Jones
                                          Vice President and
                                          Chief Financial Officer

                                     Page 13  
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