(Mark One)

[X] 	QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended:   June 30, 2000

[  ] 	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from  to

Commission file number:  1-14068





|California                                                     | 68-0073366                          
|-------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
organization) | (I.R.S. Employer Identification No.)





(Issuer's telephone number (including area code):  (510) 476-0650

(Former name, former address and former fiscal year if changed since last report:

Check whether the issuer (1) has 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 issuer 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 registrant's classes of Common equity, as
of the latest practicable date:

|                     | August 10, 2000
|-------------------- | ---------------
|Class A Common Stock | 7,822,398      
|Class B Common Stock | 701,177        

PART I  -  FINANCIAL INFORMATION

Item  1.  -  Financial Statements









|                |                                                                      | June 30, 2000
|--------------- | -------------------------------------------------------------------- | -------------
|Current Assets: |                                                                     
|                | Cash and cash equivalents                                            | $    479,725 
|                | Accounts receivable, less allowance for doubtful accounts of $40,000 | 587,065      
|                | Inventories                                                          | 252,241      
|                | Prepaid expenses and other                                           | 18,889       
|                | Total current assets                                                 | 1,337,920    
|                | Furniture and equipment, net                                         | 70,215       
|                | Intangible assets                                                    | 57,720       
|                |                                                                      | $  1,465,855 



|Current Liabilities:                                                                                                                  |                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------
|                                                                                                                                      | Accounts payable                                                                                          
|                                                                                                                                      | Notes Payable, including $20,000 from shareholders                                                        
|                                                                                                                                      | Accrued payroll and benefits                                                                              
|                                                                                                                                      | Accrued liabilities                                                                                       
|                                                                                                                                      | Interest payable                                                                                          
|                                                                                                                                      | Total current liabilities                                                                                 
|Redeemable convertible Series A Preferred stock, no par value - 5,000,000
shares authorized; 175,439 issued and outstanding           | 500,000                                                                                                   
|Redeemable Class E common stock, no par value - 1,600,000 shares
authorized; 1,209,894 shares issued and outstanding at June 30, 2000 | 12,099                                                                                                    
|Shareholders' equity (deficit):                                                                                                       |                                                                                                           
|                                                                                                                                      | Class A common stock, no par value - 20,000,000 shares authorized;
7,795,731 shares issued and outstanding
|                                                                                                                                      | Class B common stock, no par value - 2,600,000 shares authorized;
701,177 shares issued and outstanding   
|                                                                                                                                      | Additional paid in capital                                                                                
|                                                                                                                                      | Accumulated deficit                                                                                       
|Total shareholders' equity                                                                                                            | 317,434                                                                                                   
|                                                                                                                                      | $    1,465,855                                                                                            









|                                             |                                     |                                     | Three Months Ended June 30, | Six Months Ended June 30,
|-------------------------------------------- | ----------------------------------- | ----------------------------------- | --------------------------- | -------------------------
|                                             |                                     |                                     | 2000                        | 1999                     
|Revenues:                                    |                                     |                                     |                             | (As Restated)            
|                                             | Net Sales                           | $  442,217                          | $     330,206               | $   720,477              
|                                             | Costs and expenses:                 |                                     |                             |                          
|                                             |                                     | Cost of goods sold                  | 277,233                     | 182,072                  
|                                             |                                     | Selling, general and
administrative | 500,750                     | 258,837                  
|                                             |                                     | Research and development            | 187,666                     | 131,907                  
|                                             | Total costs and expenses            | 965,649                             | 572,816                     | 1,525,667                
|Loss from operations                         | (523,432)                           | (242,610)                           | (805,190)                   | (416,390)                
|                                             | Interest income (expense), net      | 9,655                               | (12,000)                    | (3,719)                  
|Net loss                                     | $(513,777)                          | $(254,610)                          | $(808,909)                  | $(434,390)               
|Net loss per common share,
basic and diluted | $(.06)                              | $(.05)                              | $(.11)                      | $(.09)                   
|                                             | Weighted average shares
outstanding | 8,436,907                           | 4,900,406                   | 7,275,323                



**SEPRAGEN CORPORATION**

**STATEMENT OF SHAREHOLDERS' EQUITY (DEFICIT)**

**for the six months ended June 30, 2000**



|                                                                                                       | Common Stock | Additional

Paid in

Capital |                     
|------------------------------------------------------------------------------------------------------ | ------------ | ---------------------------- | --------------------
|                                                                                                       | Class A      | Class B                      | Accumulated

Deficit
|                                                                                                       | Shares       | Amount                       | Shares              
|Balance at December 31, 1999                                                                           | 5,412,562    | 10,745,987                   | 701,177             
|Conversion of Series A
Preferred Stock (unaudited)                                                     | 35,002       | 100,000                      | --                  
|Issuance of Class A Common
Stock at $0.68 per share
(unaudited)                                        | 2,022,334    | 1,369,480                    | --                  
|Issuance of Class A Common
Stock for services and accrued
liabilities at $0.75 per share
(unaudited)   | 36,000       | 27,000                       | --                  
|Issuance of Class A Common
Stock for notes payable and
accrued interest at $0.74 per
share (unaudited) | 199,833      | 148,565                      | --                  
|Compensation for issuance of
stock options                                                             | --           | --                           | --                  
|Exercise of Warrants to
purchase Class A Common
Stock at $0.50 per share
(unaudited)                   | 30,000       | 15,000                       | --                  
|Issuance of Class A Common
Stock for services and accrued
liabilities at $0.75 per share
(unaudited)   | 60,000       | 45,000                       | --                  
|Net Loss (unaudited)                                                                                   | --           | --                           | --                  
|Balance at June 30, 2000
(unaudited)                                                                   | 7,795,731    | $12,451,032                  | 701,177             









|                                                         |                                                                             |                                           |                                       | Six Months Ended June 30,
|-------------------------------------------------------- | --------------------------------------------------------------------------- | ----------------------------------------- | ------------------------------------- | -------------------------
|                                                         |                                                                             |                                           |                                       | 2000                     
|Cash flows from operating activities:                    |                                                                             | (As Restated)                            
|                                                         | Net Loss                                                                    | $ (808,909)                               | $(434,390)                           
|                                                         | Adjustments to reconcile net loss to net cash used in
operating activities: |                                           |                                      
|                                                         |                                                                             | Depreciation and Amortization             | 64,255                                | 59,109                   
|                                                         |                                                                             | Stock compensation expense                | 160,524                               | 60,896                   
|                                                         |                                                                             | Changes in assets and liabilities:        |                                       |                          
|                                                         |                                                                             |                                           | Accounts receivable                   | (188,048)                
|                                                         |                                                                             |                                           | Inventories                           | 8,295                    
|                                                         |                                                                             |                                           | Prepaid expenses and other            | (4,378)                  
|                                                         |                                                                             |                                           | Accounts payable                      | (202,259)                
|                                                         |                                                                             |                                           | Accrued liabilities                   | (36,479)                 
|                                                         |                                                                             |                                           | Accrued payroll and benefits          | (1,502)                  
|                                                         |                                                                             |                                           | Interest payable                      | 13,255                   
|                                                         |                                                                             |                                           | Customer deposits                     | --                       
|                                                         |                                                                             |                                           | Net cash used in operating activities | (995,246)                
|Cash flows from investing activities:                    |                                                                             |                                          
|                                                         | Acquisition of fixed assets                                                 | (17,742)                                  | (6,309)                              
|Cash flows from financing activities:                    |                                                                             |                                          
|                                                         | Proceeds from issuance of common stock                                      | 1,369,480                                 | --                                   
|                                                         | Proceeds from exercise of warrants                                          | 15,000                                    | --                                   
|                                                         | Proceeds from issuance of notes payable to shareholders                     | --                                        | 304,598                              
|                                                         | Payment of notes payable                                                    | (210,000)                                 | --                                   
|                                                         | Payment of notes payable to shareholders                                    | (40,000)                                  | --                                   
|                                                         |                                                                             | Net cash provided by financing activities | 1,334,480                             | 304,598                  
|                                                         |                                                                             | Net increase (decrease) in cash           | 121,492                               | 13,537                   
|Cash and cash equivalents at the beginning of the period | 358,233                                                                     | 41,136                                   
|Cash and cash equivalents at the end of the period       | $  479,725                                                                  | $ 54,673                                 
|                                                         |                                                                             |                                          
|Supplemental disclosure of cash information:             |                                                                             |                                          
|                                                         | Conversion of liabilities into Common Stock                                 | $175,565                                  | --                                   



**Note 1 - Basis of Presentation**

These condensed financial statements have been presented on a going concern basis.
Sepragen Corporation, (the "Company") has had recurring losses, deficits in equity and working
capital and used cash in operating activities in 1999 and the first and second quarters of 2000.
Although there can be no assurance that the Company will ever achieve profitable operations, the
Company expects overall revenues in 2000 to be measurably higher than during the previous
year as a result of growth in revenues from biotech sales as well as contributions from the food
and dairy sector.  Additionally, the Company expects to see a reduction in research and
development expenses related to the development of the Sepralac and Seprabitt processes as each
is ready for commercial distribution.

During March 2000, the Company sold 2,022,334 shares of Class A Common Stock and
received net proceeds of $1,369,480 and converted $175,565 of accounts payable, notes payable
and accrued liabilities into 235,833 shares of Class A Common Stock.  Management believes the
funds raised along with cash generated by operations will be sufficient to fund operations
through March 31, 2001.

Selling, general and administrative expenses for the three months and six months ended
June 30, 2000  includes stock compensation expense of $160,524.

**Note 2 - Interim Financial Reporting**

The accompanying unaudited interim financial statements have been prepared pursuant to
the rules and regulations for reporting on Form 10-QSB.  Accordingly, certain information and
footnotes required by accounting principles generally accepted in the United States of America
have been condensed or omitted.  In the opinion of management, all adjustments consisting of
normal recurring accruals considered necessary for a fair presentation have been included.
Operating results for the six months ended June 30, 2000 are not necessarily indicative of the
results that may be expected for the year ending December 31, 2000.  These interim statements
should be read in conjunction with the financial statements and the notes thereto, included in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 1999.

**Note 3 - Class A Common Stock:**

During the six month period ended June 30, 2000, the Company issued the following
shares of Class A Common Stock:

|Conversion of Series A Preferred Stock              | 35,002   
|--------------------------------------------------- | ---------
|Sales for cash                                      | 2,022,234
|Issuance for services                               | 60,000   
|Conversion of notes payable and accrued liabilities | 235,833  
|Exercise of warrants for cash                       | 30,000   
|                                                    | 2,383,169

**Note 4 - Segment Reporting:**

The Company has two operating segments based on the nature of the customer's industry,
the biotech and food (dairy) and beverage segments.  The chief operating decision-maker is the
Company's Chief Executive Officer who regularly reviews segment performance.  There was no
revenue in the first half of 2000 from the food and beverage segment.  Selling, general and
administrative expenses are not allocated to individual segments.  There are no significant assets
that are identifiable to a segment.

**Note 5 - Restatement of Prior Year Results:**

On March 15, 1999, the Company issued to four employees 132,013 shares of Class A
Common Stock at $0.48 per share in exchange for $63,365 of accrued salary.  Based upon the
fair market price of $0.875 per share as of that date, the difference of the value of the Common
Stock issued and the market price was $52,146.

On March 15, 1999, the Company issued to  a consultant options to purchase 10,000
shares of Class A Common Stock at $0.50 per share in exchange for  consulting services, which
options were subsequently exercised.   The fair value of the options issued was $8,750.  The
costs associated with the issuance of the 132,013 shares and 10,000 options were not recorded
until the fourth quarter of 1999.  These charges are reflected in the restated results for 1999.

|Year to Date               | Net Loss as
Reported | Net Loss
Restated | Net Loss per Share
As Reported | Net Loss per
Share Restated
|-------------------------- | -------------------- | ----------------- | ------------------------------ | ---------------------------
|June 30, 1999 (six
months) | $(373,494)           | $(434,390)        | $(0.08)                        | $(0.09)                    

**Note 6 - Loss per Share**

Basic loss per share is calculated using the weighted average number of common shares
outstanding in the period. Diluted loss per share includes potentially dilutive securities such as
outstanding options and warrants, using the "treasury stock" method and convertible securities
using the "if-converted" method.  The assumed exercise of 1,428,361 options and warrants and
assumed conversion of 175,439 convertible securities have not been included in the calculation
of diluted loss at June 30, 2000 per share as the effect would be anti-dilutive.

**Item 2. Management's Discussion and Analysis.**

**First six months of 2000  compared to first six months  of 1999.**

Our net sales decreased by $164,000 or 19% from $884,000 in the first six months of
1999 to $720,000 for the comparable period in 2000. There were no sales from the food/dairy
sector in the first half of 2000.  In 1999, the food/dairy sector had revenues of $234,000.

Our gross profit decreased by $77,000 or 21% from $361,000 in the first half of 1999 to
$284,000 for the comparable period in 2000. The decrease in gross profit was due to lower sales.
As a percentage of sales gross profit decreased by 2% from 41% in the first half of 1999 to 39%
for the same period in 2000. The decrease of 2% was due to the higher discount given to overseas
distributors in the first half of 2000.

Our selling, general and administrative expenses increased  by $266,000 from $490,000
in the first six months 1999 to $756,000 for the comparable period in 2000. The increase was
primarily due additional financing, registration, advertising and public relation expenses and a
non-cash stock compensation charge of $161,000.  We were required to record compensation
expense related to stock option re-measurement and milestone attainment of $106,000 and
$55,000 in compensation expense for the issuance of common stock to a consultant.

Our research and development expenses increased by $45,000 from $288,000 in the first
six months of 1999 to $333,000 in the first six months of 2000.  The increase was due to
increases in engineering costs to enhance and upgrade the QuantaSep product line, partially
offset by reductions in expenses related to completed projects.

Net loss increased by  86% from $434,000 in the first six months of 1999 to $809,000 for
the comparable period in 2000. The increase in loss is due to lower revenue and higher
department expenses and stock compensation expense as described above.

**Three months ended June 30, 2000 compared to three months ended June 30, 1999.**

Our net sales increased by $112,000 or 34% from $330,000 in the second quarter of 1999
to $442,000 for the second quarter of 2000.  The increase was primarily in the QuantaSep
product line.

Our Gross profit increased by $17,000 or 11% from $148,000 in the second quarter of
1999 to $165,000 for the comparable period in 2000.  As a percentage of sales, gross profit
decreased by 8% from 45% in the second quarter of 1999 to 37% in the second quarter of 2000.
The decrease was due to higher discount given to overseas distributors in the second quarter of
2000.

Our selling, general and administrative increased by $242,000 or 93% from $$259,000 in
the second quarter of 1999 to $501,000 in the second quarter of 2000.  The increase was
primarily due to additional financing, registration, advertising and public relation expenses and a
non-cash stock compensation charge of $161,000.  We were required to record compensation
expense related to stock option remeasurement and milestone attainment of $106,000 and
$55,000 in compensation expense for the issuance of stock to a consultant.

Our research and development expenses increased by $56,000 from $132,000 in the
second quarter of 1999 to $188,000 for the comparable period in 2000. The increase was due to
additional engineering costs to enhance and upgrade the QuantaSep product line.

**Inflation.**

We believe that the impact of inflation on its operations since our inception has not been
material.

**Liquidity and Capital Resources:**

We used cash of $995,000 and $285,000 for operations during the first six months of
2000 and 1999, respectively.  Cash used in operations in the first six months of 2000 was the
result of the net loss incurred for the six months of $809,000 offset by non-cash expense of
$225,000, and  the net change in operating assets and liabilities resulting in use of cash of
$411,000. Cash used in operations in the first six months of 1999 was the result of the net loss
incurred for the six months of 1999 of $434,000, offset by non-cash expenses of $120,000, and
the net change in operating assets and liabilities resulting in source of cash of $430,000.

Financing activities provided cash of $1,334,000 and  $305,000 during the first six
months of 2000 and 1999, respectively. The cash provided in the first six months of 2000 was
due to proceeds from issuance of common stock of $1,384,000 partially offset by $250,000
retirement of notes payable. The cash provided in the first six months of 1999 resulted from
issuance of notes payable of $304,000.

At June 30, 2000, we had cash and cash equivalents of $480,000 as compared with
$358,000 on December 31, 1999.  At June 30, 2000, we had a working capital of $702,000, as
compared to a working capital deficit of $261,000 at December 31, 1999. The increase in cash
was due to the successfully completed round of financing that raised net proceeds of $2,234,000.

With the availability of working capital and reduction of outstanding debt, we are
planning to add to our infrastructure and support capabilities that we believe will result in
additional revenues in the foreseeable future. However, no assurance can be made that our plans
will be successful.

Our working capital must increase significantly to fund the level of manufacturing and
marketing required to meet any growth in demand for our products from the dairy, food and
beverage, pharmaceutical and biotechnology industries during the next two years. Moreover, we
require additional funds to extend the use of our technology to new applications within the
pharmaceutical and biotechnology industries as well as to application within the food and dairy
industries and to attract the interest of strategic partners in one or more of these markets.

Since our initial public offering ("IPO"), we have funded our working capital
requirements substantially from the net cash proceeds from the IPO and private placements of
securities. Prior to the IPO, we funded our activities primarily through sales of our Superflo
columns and the QuantaSep systems, loans from our principal shareholders, and private
placements of securities.

Our financing requirements may vary materially from those now planned because of
changes in the focus and direction of research and development programs, relationships with
strategic partners, competitive advances, technological change, changes in our marketing and
other factors, many of which will be beyond our control.  Based on our current operating plan,
we believe that we will only be able to fund our operations through March 31, 2001.
Accordingly, we will have to either turn profitable or obtain additional funds to support our
operations.

In August 1998, we announced the signing of a license agreement with Anchor Products.
Under this agreement, Anchor Products will have exclusive manufacturing rights to the Sepralac
Process in Australia and New Zealand and non-exclusive world wide marketing rights to
products produced by the Sepralac process.  In return, we have received $700,000 out of total of
about $1 million from Anchor Products, comprised of a license fee of $200,000 and an equity
investment of $500,000 for the purchase of 175,439 shares of redeemable cumulative preferred
stock.

On October 15, 1998, we announced a licensing agreement for the Sepralac process with
Carbery Milk Products of Ballineen, County Cork, Ireland. Under the agreement, Carbery will
have manufacturing and marketing rights to certain products produced from the Sepralac Process.
In return, we will receive a license fee of $350,000 of which $200,000 was received in 1998 and
the balance is payable over three years at $50,000 per year.

We currently have no credit facility with a bank or other financial institution.  Further,
our stock is traded over-the-counter and as such there is limited liquidity in our stock which
makes financing difficult. We are seeking to enter into strategic alliances with corporate partners
in the industries comprising our primary target markets (biopharmaceutical, food, dairy and
juice).  Our ability to further develop and market our Sepralac(TM) Process for whey separation
and other potential food and juice products and processes will be substantially dependent upon
our ability to negotiate partnerships, joint ventures or alliances with established companies in
each market.  In particular, we will be reliant on such joint venture partners or allied companies
for both market introduction, operational assistance and financial assistance.  We believe that
development, manufacturing and market introduction of products in these industries will cost
millions of dollars and require operational capabilities in excess of those currently available to
us.  No assurance can be given, however, that the terms of any additional alliances will be
successfully negotiated or that such alliance will be successful in generating the revenue required
to make us profitable.



|Item 1. | Legal Proceedings                                   | Not Applicable
|------- | --------------------------------------------------- | --------------
|Item 2. | Changes in Securities                               | Not Applicable
|Item 3. | Defaults Upon Senior Securities                     | Not Applicable
|Item 4. | Submission of Matters to a Vote of Security Holders | Not Applicable
|Item 5. | Other Information                                   | Not Applicable



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.

SEPRAGEN CORPORATION

DATE:  August 15, 2000		By: /s/ Vinit Saxena

Vinit Saxena

Chief Executive Officer, President

and Principal Financial and Chief

Accounting Officer