U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

[ X]    Quarterly report pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934 for the quarterly period ended March 31, 1998.

[  ]     Transition report pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934

        For the transition period from _____________ to _______________.

Commission File No.  0-23226

                           ROCHEM ENVIRONMENTAL, INC.
               (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

                  UTAH                                      76-0422968
                 (STATE OF                                (IRS EMPLOYER
               INCORPORATION)                          IDENTIFICATION NUMBER)

                610 N. MILBY ST.
                HOUSTON, TEXAS                                 77003
        (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)             (ZIP CODE)

Registrant's telephone number, including area code:  (713) 224-7626

        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

        As of May 6, 1998, the registrant  had  19,084,751  shares of Common 
Stock,  par value $0.001 per share, issued and outstanding.

        Transitional Small Business Disclosure Format. (Check one):

                             Yes            No       X
<PAGE>


                           ROCHEM ENVIRONMENTAL, INC.

                            FORM 10-QSB REPORT INDEX
<TABLE>
<CAPTION>
<S>                                  <C> <C>                                           <C>
10-QSB PART AND ITEM NO.

        Part I Financial Information

               Item 1.  Financial Statements (Unaudited)

                            Consolidated balance sheet as of
                               March 31, 1998. . . . . . . . . . . . . . . . . . . . . 3

                             Consolidated statement of operations for the three
                               months ended March 31, 1998 and 1997 . . . . . . . . .  4

                             Consolidated statement of operations for the six
                               months ended March 31, 1998 and 1997. . . . . . . . . . 5

                             Consolidated statement of cash flows for the six
                                months ended March 31, 1998 and 1997 . . . . . . . . . 6

                             Notes to consolidated financial statements  . . . . . . . 7

               Item 2.       Management's Discussion and Analysis of Financial
                                  Condition and Results of Operations. . . . . . . . . 9

        Part II Other Information

               Item 1.       Legal Proceedings. . . . . . . . . . . . . . . . . .. . .13

               Item 2.       Changes in Securities . . . . . . . . . . . . .. .  . . .13
               Item 3.       Defaults Upon Senior Securities . . . . . . . . . . . . .13
               Item 4.       Submission of Matters to a Vote of Security Holders.. . .13
               Item 5.       Other Information . . . . . . . . . . . . . . . . . . . .13

               Item 6.       Exhibits and Reports on Form 8-K. . . . . . . . . . . . .14
               Signature. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .  15
</TABLE>

                                       2
<PAGE>
                    ROCHEM ENVIRONMENTAL, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET
                              AS OF MARCH 31, 1998
                                   (Unaudited)

         ASSETS
Current assets:
        Cash and cash equivalents                                    $132,824
        Trade accounts receivable                                     105,460
        Prepaid expenses                                               17,026
                                                              ----------------
                Total current assets                                  255,310

Inventory                                                              84,036
Property and equipment, net                                         1,010,838
Intangible assets, net                                              3,959,478
Other assets                                                           20,639
                                                              ----------------
                Total assets                                       $5,330,301
                                                              ================

        LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:

        Accounts payable                                             $234,437
        Accrued expenses                                               74,537
        Payable to related parties                                    201,250
        Notes payable to related parties                              125,000
                                                              ----------------
                Total current liabilities                             635,224
Long term note payable to related party                                25,000

                                                              ----------------
                Total liabilities                                    $660,224
Stockholders' equity:

        Common stock, $.001 par value, 50,000,000
                shares authorized, 19,084,751  issued and
                outstanding                                            19,085
        Preferred stock, no par value, 10,000,000 shares
                authorized, none outstanding                                0
        Additional paid-in capital                                 10,302,680
        Accumulated deficit                                        (5,651,688)
                                                              ----------------
                Total stockholders' equity                          4,670,077
                                                              ----------------
                Total liabilities and stockholders' equity         $5,330,301
                                                              ================


   The accompanying notes are an integral part of the consolidated financial
                                  statements.

                                       3
<PAGE>
                    ROCHEM ENVIRONMENTAL, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (UNAUDITED)

                                                    Three months ended March 31,
                                                    ----------------------------
                                                          1998           1997
                                                    ------------   ------------
Revenues:
  Service and lease ..............................  $    339,121   $    263,542
  Product sales ..................................        32,021         93,157
                                                    ------------   ------------
       Total revenues ............................       371,142        356,699

Cost of sales:
   Service and lease .............................       199,352        107,945
   Product sales .................................        12,791         41,954
   Depreciation ..................................        36,938         38,306
                                                    ------------   ------------
      Total cost of sales ........................       249,081        188,205
                                                    ------------   ------------

Gross profit .....................................       122,061        168,494

Selling, general and administrative expenses:
   Depreciation and amortization expense .........       115,518        120,653
   Other expenses ................................       182,987        219,165
                                                    ------------   ------------
      Total selling, general and
      administrative expenses ....................       298,505        339,818

Interest expense, net ............................         7,504         11,176
                                                    ------------   ------------

   Net loss ......................................      (183,948)      (182,500)
                                                    ------------   ------------


   Net loss applicable to common stock ...........  ($   183,948)  ($   182,500)
                                                    ============   ============

   Net loss per share ............................  ($      0.01)  ($      0.01)
                                                    ============   ============

Weighted average shares outstanding ..............    19,084,751     18,959,751
                                                    ============   ============

    The accompanying notes are an integral part of the consolidated financial
                                  statements.

                                       4
<PAGE>
                    ROCHEM ENVIRONMENTAL, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (Unaudited)

                                                      Six months ended March 31,
                                                    ----------------------------
                                                          1998           1997
                                                    ------------   ------------
Revenues:
  Service and lease ..............................  $    703,523   $    505,804
  Product sales ..................................        62,021         93,157
                                                    ------------   ------------
       Total revenues ............................       765,544        598,961

Cost of sales:
   Service and lease .............................       410,392        227,077
   Product sales .................................        31,581         41,954
   Depreciation expense ..........................        73,876         75,051
                                                    ------------   ------------
      Total cost of sales ........................       515,849        344,082
                                                    ------------   ------------

Gross profit .....................................       249,695        254,879

Selling, general and administrative expenses:
   Depreciation and amortization expense .........       231,035        241,306
   Other expenses ................................       403,586        379,437
                                                    ------------   ------------
      Total selling, general and
      administrative expenses ....................       634,621        620,743

Interest expense, net ............................        12,151         14,407
                                                    ------------   ------------

   Net loss ......................................      (397,077)      (380,271)
                                                    ------------   ------------


   Net loss applicable to common stock ...........  ($   397,077)  ($   380,271)
                                                    ============   ============

   Net loss per share ............................  ($      0.02)  ($      0.02)
                                                    ============   ============

Weighted average shares outstanding ..............    19,084,751     18,959,751
                                                    ============   ============

    The accompanying notes are an integral part of the consolidated financial
                                  statements.

                                       5
<PAGE>
                    ROCHEM ENVIRONMENTAL, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF CASH FLOWS

                                   (Unaudited)

                                                      Six months ended March 31,
                                                    ----------------------------
                                                            1998           1997
                                                     ------------   ------------
Cash flows from operating activities:

Net loss ...............................................  ($397,077)  ($380,271)
        Adjustments to reconcile net loss to net
        cash used in operating activities:
                Depreciation and amortization ..........    304,911     316,357
                Compensation element of stock warrants .      6,250      18,750
                Basis of Equipment Sold ................    164,886         954
        Changes in assets and liabilities:
                Trade accounts receivable ..............     (4,961)    (99,334)
                Inventory ..............................     (7,033)          0
                Prepaid expenses .......................     31,867      33,382
                Other assets ...........................       (200)       (430)
                Accounts payable .......................     44,953      (7,521)
                Accrued expenses .......................    (37,781)       (506)
                Payable to related party ...............     25,259       2,575
                                                          ---------   ---------
Net cash provided by (used in) operating activities ....    131,074    (116,044)
                                                          ---------   ---------

Cash flows from investing activities:
                Capital expenditures ...................    (59,857)    (54,905)
                                                          ---------   ---------
Net cash used in investing activities ..................    (59,857)    (54,905)
                                                          ---------   ---------

Cash flows from financing activities:
               Decrease in restricted cash .............      6,465       5,186
               Proceeds from sale of common stock ......          0         250
               Proceeds from notes payable to rel.party.          0      50,000
               Payments on loans .......................    (59,896)          0
                                                          ---------   ---------
Net cash (used in) provided by financing activities ....    (53,431)     55,436

Net increase (decrease) in cash and cash
equivalents ............................................     17,786    (115,513)
Cash and cash equivalents beginning of period ..........    115,038     151,079
                                                          ---------   ---------
Cash and cash equivalents end of period ................  $ 132,824   $  35,566
                                                          =========   =========

Supplemental disclosure of cash flow information:

        Interest paid ..................................  $  12,361   $   6,706
        Income tax paid ................................          0           0


   The accompanying notes are an integral part of the consolidated financial
                                  statements.

                                       6
<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.  GENERAL:
    The accompanying consolidated financial statements are unaudited, but, in
    the opinion of management, include all adjustments necessary for a fair
    presentation of consolidated financial position and results of operations
    for the periods presented. Please refer to the audited financial statements
    for the year ended September 30, 1997, for details of accounting policies
    and accounts.

2.  SIGNIFICANT CUSTOMERS AND RELATED PARTY:
    The Company had sales constituting approximately 83% of revenue from two
    customers during the six months ended March 31, 1998.

3.  NOTES PAYABLE:
    Notes payable as of March 31, 1998 are as follows:

        Notes payable to banks
        9.5% secured by equipment, due in monthly
          installments of principal and interest of $3,794,
          or on demand, matures September 16, 1998        $      24,277
        Other                                             $       1,452
                                                          --------------
                                                          $      25,729
                                                          ==============  
        Notes payable to related party
        10%, unsecured, principal and interest due July 27,
          1998                                            $      50,000

        Secured by equipment, interest at the prime rate
          plus 2%, principal and interest due June 28,
          1998                                                   25,000

        10%, unsecured, principal and interest due July 19,
          1998                                                   50,000

        10%, unsecured, principal and interest due

          December 25, 1998                                      25,000
                                                                 ------
                                                                150,000
    Less: Current portion                                       125,000
                                                                 ------

                                                          $      25,000
                                                          ==============  

                                       7
<PAGE>
4.      SIGNIFICANT EVENT:

        On January 1, 1998, Pall Corporation purchased 8,589,714 shares of the
        Company's common stock held by Swiss-based Rochem Group. These shares
        represent 45% of the Company's total outstanding shares. This purchase
        was part of Pall Corporation's acquisition of the Rochem Group's reverse
        osmosis and nanofiltration technologies.

                                       8
<PAGE>
ITEM 2           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

This section contains forward-looking statements that are based on current
Company expectations and are subject to a number of factors that could cause
actual results to differ materially. Such factors include, but are not limited
to, market demand, competitive pricing considerations, regulatory approval and
market acceptance of new technologies.

RESULTS OF OPERATIONS

        Rochem Environmental, Inc., a Utah corporation (the "Company"), is
primarily engaged in the business of providing industrial wastewater treatment
services and capital equipment to companies in the refining, petrochemical and
oil and gas industries. In connection therewith, the Company utilizes patented
technology licensed exclusively to it through a distributor agreement from
Rochem Separation Systems, Inc. ("RSS"), a majority owned subsidiary of Rochem
AG. The patented technology involves the use of Rochem's Disc Tube(TM) form of
membrane separation modules. Management believes this process is superior to
other technologies in its ability to cost effectively treat a wide variety of
wastewaters with the recovery of relatively pure water and the concentration of
products and by-products for reuse or disposal.

        The Company's consolidated revenues grew by 28% to $765,544 for the six
months ended March 31, 1998, from $598,961 for the six months ended March 31,
1997. The increased revenue is primarily due to a product lease contract during
the six months ended March 31, 1998 as compared to the six months ended March
31, 1997. The consolidated revenues grew to $371,142 for the three months ended
March 31, 1998, from $356,699 for the three months ended March 31, 1997.

        The revenue generated by service and lease activity continued to
experience growth during the six months ended March 31, 1998 with $703,523 of
revenue as compared to $505,804 of revenue for the six months ended March 31,
1997. Revenue from product sales of $62,021 is lower for the six months ended
March 31, 1998, from $93,157 for the six months ended March 31, 1997. Affecting
the product sales revenues has been the delay in projects that the Company has a
key role to provide equipment. During the three months ended March 31, 1998, the
Company conducted a major test at a petrochemical plant in Louisiana, sold a
test unit and began laboratory testing for other new customers. The Company
continues to focus significant resources on the continued growth in these
technology demonstration efforts, as they are essential to the Company's
strategy to increase the product sales.

        Gross profit decreased to $249,695 for the six months ended March 31,
1998 as compared to $254,879 for the six months ended March 31, 1997. For the
three months ended March 31, 1998 the gross profit decreased to $122,061 as
compared to $168,494 for the three months ended March 31, 1997. This decrease
was primarily due to lower product sales resulting in a lower contribution to
gross profit and service and lease activities providing a lower gross profit as
percent of revenue than service and lease activities during the previous period.

                                       9
<PAGE>
        Selling, general and administrative expenses increased to $634,621 for
the six months ended March 31, 1998 from $620,743 for the six months ended March
31, 1997, of which approximately $231,035 and $241,306, respectively, were
non-cash expenses associated with amortization and depreciation. This increase
resulted primarily from an increase in personnel and related costs. These costs
associated with personnel are related with the Company's growth strategy and
expanded sales and demonstration activities.

        Interest expense decreased to $12,151 for the six months ended March 31,
1998 from $14,407 for the six months ended March 31, 1997.

        Net loss increased to $397,077 for the six months ended March 31, 1998
from $380,271 for the six months ended March 31, 1997. This increase is
primarily due to the impact of the Company's investments in strategic personnel
that are expected to result in increased revenue and gross profit in future
periods.

        As of March 31, 1998, the Company had a total of 11 employees, 5 of whom
were involved in field operations and testing, 4 devoted to sales and
demonstration activities and 2 involved in the general administrative and
financial areas.

LIQUIDITY AND CAPITAL RESOURCES

        As of March 31, 1998, the Company had a working capital deficit of
$379,914 and a quick ratio of 0.4 to 1.0 as compared to net working capital
deficit of $331,835 and a quick ratio of 0.3 to 1.0 on March 31, 1997. This
increase in working capital deficit is primarily due to the increase in current
liabilities for capital expenditures to acquire rental service equipment and is
related to an increase in accounts payable to related parties. Current assets
increased to $255,310 as of March 31, 1998 from $171,330 as of March 31, 1997.
Inventory decreased to $884,036 as of March 31, 1998 from $197,576 at March 31,
1997. This reduction in inventory was due to the transfer of equipment from
inventory to rental service equipment for which the Company had a contract.

        Net cash provided by operating activities in the three months ended
March 31, 1998 was $131,074. In contrast, in the three months ended March 31,
1997 operating activities used $116,044 in net cash. This increase in net cash
provided by operating activities is primarily due to the Company's improvement
in gross profit net of non-cash adjustments.

        Net cash used for the purchase of capital equipment during the six
months ended March 31, 1998 was $59,857 as compared to $54,905 during the three
months ended March 31, 1997. This additional rental service equipment was
acquired to support contract work that is expected to continue through Fiscal
1998.

        During the six months ended March 31, 1998, financing activities used
net cash of $53,431. These financing activities were primarily the retirement of
a loan. In contrast, during the six months ended March 31, 1997, financing
activities provided $55,436.

        In January 1997, the Company obtained a $50,000 loan from Fluid
Separation Systems for working capital needs. This loan bears interest at 10%
due at maturity and is 

                                       10
<PAGE>
due in July 1998. In May 1997, the Company obtained a $120,000 loan from
Citizens Bank and Trust to partially fund the construction of equipment for
which the Company has a rental contract. This loan was for six months and was
fully repaid in November 1997.

        In Fiscal 1996, the Company had not generated sufficient internal cash
flow to fund operations and to satisfy the debt obligations to Rochem AG and
Lefco. In January 1996, the Company entered into an agreement with Rochem AG
whereby Rochem AG converted the principal amount of its January 1995 $50,000
loan into 500,000 shares of Company Common Stock, purchased an additional
500,000 shares of Company common stock for $50,000, and agreed to provide the
Company a $100,000 credit facility to meet working capital needs during Fiscal
1996. Through this credit facility, Fluid Separation Systems loaned the Company
$25,000 in December 1995, $50,000 in February 1996 and $25,000 in July 1996. On
January 31, 1996, the Company used the proceeds of these transactions to retire
a $50,000 loan from Citizens Bank. In December 1996, Fluid Separation Systems
has granted extensions to the maturity date and waived interest payments until
the maturity date of the loan. The loans bear interest of prime plus 2% for the
December 1995 loan and 10% for the February and July 1996 loans and are due June
1998, July 1998 and December 1998, respectively.

        Additionally, in January 1996, Lefco agreed to convert its January 1995
$50,000 loan into 500,000 shares of Company common stock and provided a $50,000
credit facility to be utilized by the Company to meet working capital needs
during the 1996 fiscal year. In September 1996, the Company exercised the
$50,000 credit facility with Lefco. This loan was repaid in September 1997
through the Company obtaining a loan for the final payment of $43,249 from
Woodforest National Bank. This loan requires monthly installments of principal
and interest of $3,794 and matures September 1998.

        As noted above, the Company has had a working capital deficit of
$379,914 including $125,000 due and payable within Fiscal 1998 from loan
facilities provided by a related party. In Fiscal 1997, the Company made capital
investments to acquire additional equipment and to upgrade existing rental
service equipment for present customers. These investments are expected to
continue to provide additional cash in Fiscal 1998. The Company is currently in
negotiations for several contracts that the Company believes will generate
sufficient cash flows to continue to fund operations and meet working capital
needs during Fiscal 1998. Because the timing of these projects cannot be
controlled, the Company is evaluating and exploring other financing
alternatives. In the event additional funding is required, the Company will
consider alternatives to do so through a combination of efforts or methods,
including additional extensions on its notes payable, financing rental service
equipment or contracts, joint ventures, equity investors, venture capital
groups, institutions, issuance of convertible or subordinated debt, or a form of
business combinations. Should the need arise for the use of any of these methods
to raise capital, there can be no assurances that any of these alternatives will
be available to the Company.

                                       11
<PAGE>
IMPACT OF YEAR 2000

        The Year 2000 is the result of computer programs being written using two
digits rather than four to define the applicable year. Any of the Company's
computer programs that have time-sensitive software may recognize a date using
"00" as the year 1900 rather than the year 2000. This could result in a system
failure or miscalculations causing disruptions of operations, including, among
other things, a temporary inability to process transactions, send invoices, or
engage in similar normal business activities. The Company presently believes
that the Year 2000 Issue will not pose significant operational problems for its
computer systems.

        The Company has initiated formal communications with all of its
significant suppliers and large customers, to determine the extent to which the
Company's interface systems are vulnerable to those third parties' failure to
remediate their own Year 2000 issues. There can be no guarantee that the systems
of other companies on which the Company's systems rely will be timely converted
and would not have an adverse effect on the Company's systems. The Company has
determined it has no exposure to contingencies related to the Year 2000 Issue
for services it has provided.

                                       12
<PAGE>
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

               The following matters were submitted to a vote of shareholders
               during the Annual Meeting of Stockholders held on March 27, 1998.

               On March 27, 1998, the holders of a majority of shares of Common
               Stock of the Company approved the election of four directors for
               the coming year.

                                            FOR           WITHHELD      ABSTAIN
                                            ---           --------      -------
               William E. Bracken          14,461,418     27,945           0
               David A. LaMonica           14,461,418     27,945           0
               Philip LeFevre              14,461,418     27,945           0
               Erick J. Neuman             14,461,418     27,945           0


               On March 27, 1998, the holders of a majority of shares of Common
               Stock of the Company approved the ratification of Weinstein Spira
               & Company, P.C. as independent auditors for the fiscal year
               ending September 30, 1998.

                                            FOR           AGAINST       ABSTAIN
                                            ---           -------       -------

                                           14,475,563      13,800         0

ITEM 5. OTHER INFORMATION

               None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        (a) The following exhibits are incorporated by reference thereto:

               EXHIBIT
               NUMBER       IDENTIFICATION OF EXHIBIT
               ------       -------------------------
               2.1(1)       -Reorganization Agreement
               3.1(2)       -Amended and Restated Articles of Incorporation
               3.2(5)       -Bylaws
               4.1(5)       -Common Stock Specimen
               4.2(4)       -Certificate of Designation of Preferences, Rights
                             and Limitations of Series A Preferred Stock
               4.3(4)       -Certificate of Designation of Preferences, Rights
                             and Limitations of Series B Preferred Stock
               10.1(2)     - Distributor Agreement
               10.2(4)     - Asset Purchase Agreement
               10.3(2)     - Term Sheet
               10.4(6)     - Facilities Lease Agreement
               10.5(6)     - Termination Agreement Between Company and GH
                             Venture Group
               10.6(6)     - Agreement Between Company and Lefco Environmental
                             Technology, Inc.
               10.7(6)     - Agreement Between Company and Rochem Separation
                             Systems, Inc.
               10.8(6)     - Agreement Between Company and Rochem AG
               10.9(7)     - Employment Agreement With Erick Neuman
               16.1(3)     - Letter regarding change in certifying accountant
               16.2(3)     - Letter regarding change in certifying accountant
        --------------------

               (1) Previously filed as an exhibit on Form 8-K dated July 20,
               1993. 
               (2) Previously filed as an exhibit on Form 8-K dated September
               30, 1993.
               (3) Previously filed as an exhibit on Form 8-K dated November 5,
               1993.
               (4) Previously filed as an exhibit on Form 8-K dated November 19,
               1993.
               (5) Previously filed as an exhibit on Form 8-K dated January 13,
               1994.
               (6) Previously filed as an exhibit on Form 10-KSB for the fiscal
               year ended September 30, 1995.
               (7) Previously filed as an exhibit on Form 8-K dated October 24,
               1997.

                                       14
<PAGE>
                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                               ROCHEM ENVIRONMENTAL, INC.
                                               --------------------------
                                                     (Registrant)

Date:  5/15/98                                 By: /s/ ERICK J. NEUMAN
                                               --------------------------
                                               Erick J. Neuman, President;
                                               Secretary; Chief Executive 
                                               Officer,
                                               Chief Financial Officer, and 
                                               Principal
                                               Accounting Officer

Date:  5/15/98                                 By: /s/  WILLIAM E. BRACKEN
                                               --------------------------
                                               William E. Bracken, Vice 
                                               President

                                       15