UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

               QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15(D) OF

                       THE SECURITIES EXCHANGE ACT OF 1934


For the quarter ended: March 31, 1999          Commission file number: 33-23617

                           MATERIAL TECHNOLOGIES, INC.
                          ----------------------------
             (Exact name of registrant as specified in its charter)

                Delaware                                   95-4622822
    -------------------------------                  --------------------
    (State or other jurisdiction of                    (IRS  Employer
     incorporation or organization)                  identification  No.)


                          11661  San Vicente Boulevard
                                    Suite 707
                       Los  Angeles,  California  90049
                    ---------------------------------------
                    (address of principal executive offices)
                                (Zip Code) 90064


                                 (310)  208-5589
                    ---------------------------------------
               (Registrant's telephone number including area code)

           Securities Registered pursuant to Section 12(g) of the Act:

                                     Common
                                     ------

     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
                                                       ---     ---

     Indicate  by check mark if disclosure of delinquent filers pursuant to Item
405 or Regulation S-K is not contained herein, and will not be contained, to the
best  of  registrant's  knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment of this
form  10-K.  [  ]

     The  aggregate  market  value of the voting stock held by Non-affiliates of
the  registrant  at  May  1,  1999  was  $2,271,124.

     Documents  incorporated  by  reference-None.

                                      1
<PAGE>
                                      INDEX



                                                                          PAGE
                                                                         ------

Part  1.  Financial  Statements

     Balance  Sheets                                                      3 - 4

     Statements  of  Operations  -
        First Quarter Ended March 31, 1998 and 1999 and from
        the Company's inception (October 21, 1983) through
               March  31,  1999                                               5

     Statements  of  Cash  Flows
        First Quarter Ended March 31, 1998 and 1999 and from
        the  Company's  inception (October 21, 1983) through
               March  31,  1999                                           6 - 7

     Notes  to  Financial  Statements                                         8

     Management's  Discussion  and  Analysis                                  9

Part  2.  Other  Information                                                 10

                                      2
<PAGE>
<TABLE>
<CAPTION>

MATERIAL  TECHNOLOGIES,  INC.
(A  Development  Stage  Company)
BALANCE  SHEETS
-----------------------------------------------------------------------------

ASSETS

                                          December 31,          March 31.
                                            1998                 1999
                                      -----------------  --------------------
(Unaudited)
<S>                                   <C>                <C>
  CURRENT ASSETS
    Cash and Cash Equivalents. . . .  $              20  $             71,422
    Accounts Receivable. . . . . . .            202,737               162,969
    Employee Advance . . . . . . . .              1,500                 1,500
                                      -----------------  --------------------

      TOTAL CURRENT ASSETS . . . . .            204,257               235,891
                                      -----------------  --------------------

  FIXED ASSETS
    Property and Equipment, Net
        of Accumulated Depreciation.              2,712                 1,987
                                      -----------------  --------------------

  OTHER ASSETS
     Intangible Assets, Net of
        Accumulated Amortization . .             16,690                16,193
    Investments. . . . . . . . . . .              8,219                 8,219
    Refundable Deposit . . . . . . .              1,868                 1,868
                                      -----------------  --------------------

      TOTAL OTHER ASSETS . . . . . .             26,777                26,280
                                      -----------------  --------------------

      TOTAL ASSETS . . . . . . . . .  $         233,746  $            264,158
                                      =================  ====================
</TABLE>

                                      3
<PAGE>
<TABLE>
<CAPTION>

MATERIAL  TECHNOLOGIES,  INC.
(A  Development  Stage  Company)
BALANCE  SHEETS
---------------------------------------------------------------------------------------------------------------

                                                                          December 31,          March 31.
                                                                             1998                 1999
                                                                      ------------------  ---------------------
                                                                                               (Unaudited)

LIABILITIES AND STOCKHOLDERS'  (DEFICIT)
<S>                                                                   <C>                 <C>
  CURRENT LIABILITIES
    Legal Fees Payable . . . . . . . . . . . . . . . . . . . . . . .  $         149,453   $            121,983 
    Consulting Fees Payable. . . . . . . . . . . . . . . . . . . . .            101,669                 20,401 
    Accounting Fees Payable. . . . . . . . . . . . . . . . . . . . .             23,308                 28,188 
    Other Accounts Payable . . . . . . . . . . . . . . . . . . . . .             17,334                 42,803 
    Accrued Expenses . . . . . . . . . . . . . . . . . . . . . . . .             25,197                 19,286 
    Loan Payable - Officer . . . . . . . . . . . . . . . . . . . . .             73,177                109,516 
    Loan Payable-Others. . . . . . . . . . . . . . . . . . . . . . .             46,273                 47,434 
                                                                      ------------------  ---------------------

      TOTAL CURRENT LIABILITIES. . . . . . . . . . . . . . . . . . .            436,411                389,611 

    Payable on Research and
       Development Sponsorship . . . . . . . . . . . . . . . . . . .            257,240                266,240 
    Notes Payable - Other. . . . . . . . . . . . . . . . . . . . . .             25,527                 25,000 
                                                                      ------------------  ---------------------

      TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . .            719,178                680,851 
                                                                      ------------------  ---------------------

  STOCKHOLDERS' EQUITY (DEFICIT)
    Class A Common Stock, $.001 Par Value, Authorized 10,000,000
       Shares, Outstanding 10,061,897 at December 31, 1998, and
       10,236,897 shares at March 31, 1999 . . . . . . . . . . . . .             10,062                 10,237 
    Class B Common Stock, $.001 Par Value, Authorized 100,000
       Shares, Outstanding 60,000 Shares . . . . . . . . . . . . . .                 60                     60 
     Class A Preferred, $.001 Par Value, Authorized  900,000 Shares
       Outstanding 350,000 Shares. . . . . . . . . . . . . . . . . .                350                    350 
    Additional Paid in Capital . . . . . . . . . . . . . . . . . . .          2,996,664              3,063,156 
    Less Notes Receivable - Common Stock . . . . . . . . . . . . . .            (14,720)               (14,720)
    Deficit Accumulated During the Development Stage . . . . . . . .         (3,486,067)            (3,483,995)
    Unrealized Holding Gain on Investment Securities . . . . . . . .              8,219                  8,219 
                                                                      ------------------  ---------------------

    TOTAL STOCKHOLDERS' (DEFICIT). . . . . . . . . . . . . . . . . .           (485,432)              (416,693)
                                                                      ------------------  ---------------------

      TOTAL LIABILITIES AND STOCKHOLDERS'
         (DEFICIT) . . . . . . . . . . . . . . . . . . . . . . . . .  $         233,746   $            264,158 
                                                                      ==================  =====================
</TABLE>

                             See accompanying notes

                                      4
<PAGE>
<TABLE>
<CAPTION>

MATERIAL  TECHNOLOGIES,  INC.
(A  Development  Stage  Company)
STATEMENTS  OF  OPERATIONS
-----------------------------------------------------------------------------------------------------------------------------

                                                                                                   From Inception
                                                       For the Three Months Ended                (October 21, 1983)
                                                               March 31,                               Through
                                                        1998                  1999                  March 31, 1999
                                                 -----------------  ----------------------  ---------------------------------
                                                    (Unaudited)          (Unaudited)                   (Unaudited)
<S>                                              <C>                <C>                     <C>
 REVENUES
  Sale of Fatigue Fuses . . . . . . . . . . . .  $              -   $                   -   $                         64,505 
  Sale of Royalty Interests . . . . . . . . . .                 -                       -                            198,750 
  Research and Development Revenue. . . . . . .            96,744                 198,860                          1,622,174 
  Test Services . . . . . . . . . . . . . . . .                 -                       -                             10,870 
                                                 -----------------  ----------------------  ---------------------------------
    TOTAL REVENUES. . . . . . . . . . . . . . .            96,744                 198,860                          1,896,299 
                                                 -----------------  ----------------------  ---------------------------------

COSTS AND EXPENSES
  Research and Development. . . . . . . . . . .            28,202                   8,077                          1,847,039 
  General and Administrative. . . . . . . . . .           100,611                 192,373                          3,585,116 
                                                 -----------------  ----------------------  ---------------------------------
    TOTAL COSTS AND EXPENSES. . . . . . . . . .           128,813                 200,450                          5,432,155 
                                                 -----------------  ----------------------  ---------------------------------
    INCOME (LOSS) FROM OPERATIONS . . . . . . .          (128,813)                 (1,590)                        (3,535,856)
                                                 -----------------  ----------------------  ---------------------------------

OTHER INCOME (EXPENSE)
  Expense Reimbursed. . . . . . . . . . . . . .                 -                       -                              4,510 
  Interest Income . . . . . . . . . . . . . . .                 -                      66                             39,569 
  Gain on Sale of  Stock. . . . . . . . . . . .                 -                   4,396                            207,497 
  Miscellaneous Income. . . . . . . . . . . . .                 -                       -                             25,145 
  Loss on Sale of Equipment . . . . . . . . . .                 -                       -                            (12,780)
  Gain on Foreclosure . . . . . . . . . . . . .                 -                       -                             18,697 
  Modification of Royalty Agreement . . . . . .                                                                       (7,332)
  Settlement of Teaming Agreement . . . . . . .                 -                       -                             50,000 
  Litigation Settlement . . . . . . . . . . . .                 -                       -                             18,095 
                                                 -----------------  ----------------------  ---------------------------------
    TOTAL OTHER INCOME. . . . . . . . . . . . .                 -                   4,462                            343,401 
                                                 -----------------  ----------------------  ---------------------------------

NET INCOME (LOSS) BEFORE EXTRAORDINARY
  ITEMS AND PROVISION FOR INCOME TAXES. . . . .           (32,069)                  2,872                         (3,192,455)
PROVISION FOR INCOME TAXES. . . . . . . . . . .                 -                    (800)                            (8,600)
                                                 -----------------  ----------------------  ---------------------------------
    NET INCOME (LOSS) BEFORE
      EXTRAORDINARY ITEMS . . . . . . . . . . .           (32,069)                  2,072                         (3,201,055)
 EXTRAORDINARY ITEMS
  Forgiveness of Debt . . . . . . . . . . . . .                 -                       -                           (289,940)
  Utilization of Operating  Loss Carry forward.                 -                       -                              7,000 
                                                 -----------------  ----------------------  ---------------------------------
    NET INCOME (LOSS) . . . . . . . . . . . . .  $        (32,069)                  2,072                         (3,483,995)
                                                 =================  ======================  =================================

PER SHARE DATA
  Income (Loss) Before Extraordinary Item . . .                          $         0.0002 
  Extraordinary Items . . . . . . . . . . . . .                                        -- 
                                                                          -----------------                                   
    NET INCOME (LOSS) . . . . . . . . . . . . .                          $         0.0002 
                                                                          =================                                   
  COMMON SHARES OUTSTANDING . . . . . . . . . .                                10,236,897 
                                                                          =================                                   
</TABLE>

                             See accompanying notes

                                      5
<PAGE>
<TABLE>
<CAPTION>

MATERIAL  TECHNOLOGIES,  INC.
(A  Development  Stage  Company)
STATEMENTS  OF  CASH  FLOWS
--------------------------------------------------------------------------------------------------------------

                                                                                             From Inception
                                                          For the Three Months Ended        (October 21, 1983)
                                                                   March 31,                     Through
                                                            1998               1999           March 31, 1999
                                                      -----------------  -----------------  ------------------
                                                         (Unaudited)        (Unaudited)        (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                   <C>                <C>                <C>
  Net Income (Loss). . . . . . . . . . . . . . . . .  $        (32,069)  $          2,072   $      (3,483,995)
                                                      -----------------  -----------------  ------------------
  Adjustments to Reconcile Net Income
    (Loss) to Net Cash Provided
    (Used) by Operating Activities
  Depreciation and Amortization. . . . . . . . . . .             1,195              1,222             170,605 
  Bad Debts. . . . . . . . . . . . . . . . . . . . .            50,000 
  Gain on Sale of Securities . . . . . . . . . . . .                 -             (4,396)           (193,596)
  Charge off of Deferred Offering Costs. . . . . . .                 -                  -              36,480 
  Charge off of Long-lived Assets due to Impairmant.                 -                  -              92,919 
  Modification of Royalty Agreement. . . . . . . . .                 -                  -               7,332 
  Gain on Foreclosure. . . . . . . . . . . . . . . .                 -                  -             (18,697)
  (Increase) Decrease in Accounts Receivable . . . .            25,392             39,768            (214,469)
  (Increase) in Employee Advances. . . . . . . . . .              (848)                 -                   - 
  (Increase) Decrease in Prepaid Expense . . . . . .                 -                  -                 321 
  Loss on Sale of Equipment. . . . . . . . . . . . .                 -                  -              12,780 
  Issuance of Common  Stock for Services . . . . . .                 -                  -             410,597 
  Issuance of Stock for Agreement Modification . . .                 -                  -                 152 
  Forgiveness of Indebtedness. . . . . . . . . . . .                 -                  -             165,000 
  Increase (Decrease) in Accounts
    Payable and Accrued Expenses . . . . . . . . . .           (21,811)           (18,321)            670,639 
  Interest Accrued on Note Payable . . . . . . . . .             5,059             12,661             103,136 
  Increase in Research and Development
     Sponsorship Payable . . . . . . . . . . . . . .                 -                  -             218,000 
  (Increase) in Note for Litigation Settlement . . .                 -                  -             (25,753)
  (Increase) in Deposits . . . . . . . . . . . . . .                 -                  -              (2,189)
                                                      -----------------  -----------------  ------------------
    TOTAL ADJUSTMENTS. . . . . . . . . . . . . . . .             8,987             30,934           1,483,257 
                                                      -----------------  -----------------  ------------------
  NET CASH PROVIDED (USED) BY
   OPERATING ACTIVITIES. . . . . . . . . . . . . . .           (23,082)            33,006          (2,000,738)
                                                      -----------------  -----------------  ------------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Proceeds From Sale of Equipment. . . . . . . . . .                 -                  -              10,250 
  Purchase of Property and Equipment . . . . . . . .                 -                  -            (229,413)
  Proceeds from Sale of Securities . . . . . . . . .                 -              4,396             283,596 
  Purchase of Securirties. . . . . . . . . . . . . .                 -                  -             (90,000)
  Proceeds from Foreclosure. . . . . . . . . . . . .                 -                  -              44,450 
  (Increase) in Other Assets . . . . . . . . . . . .                 -                  -             (69,069)
  Payment for License Agreement. . . . . . . . . . .                 -                  -              (6,250)
                                                      -----------------  -----------------  ------------------

  NET CASH PROVIDED (USED) BY
   INVESTING ACTIVITIES. . . . . . . . . . . . . . .                 -              4,396             (56,436)
                                                      -----------------  -----------------  ------------------

See accompanying notes
</TABLE>

                                      6
<PAGE>
<TABLE>
<CAPTION>

MATERIAL  TECHNOLOGIES,  INC.
(A  Development  Stage  Company)
STATEMENTS  OF  CASH  FLOWS
-----------------------------------------------------------------------------------------------------------------

                                                                                              From Inception
                                                       For the Three Months Ended          (October 21, 1983)
                                                      March 31,            March 31,             Through
                                                        1998                 1999             March 31, 1999
                                                  ------------------  -------------------  ----------------------
                                                     (Unaudited)          (Unaudited)           (Unaudited)

CASH FLOWS FROM FINANCING ACTIVITIES
<S>                                               <C>                 <C>                  <C>
  Issuance of Common Stock Net of Offering Costs  $                -  $                -   $             957,319 
  Costs incurred in Offering . . . . . . . . . .                   -                   -                 (31,480)
  Sale of Common Stock Warrants. . . . . . . . .                   -                   -                  18,250 
  Sale of Preferred Stock. . . . . . . . . . . .                   -                   -                 258,500 
  Sale of Redeemable Preferred Stock . . . . . .                   -                   -                 150,000 
  Capital Contributions. . . . . . . . . . . . .                   -                   -                 301,068 
  Proceeds from Note Payable . . . . . . . . . .                   -                   -                  (5,000)
  Loans  From  Officers. . . . . . . . . . . . .              49,000              50,000                 675,807 
  Repayments to Officer. . . . . . . . . . . . .                   -             (16,000)               (360,532)
  Increase in Loan Payable-Others. . . . . . . .                   -                   -                 164,664 
                                                  ------------------  -------------------  ----------------------

CASH FLOWS FROM FINANCING ACTIVITIES:. . . . . .              49,000              34,000               2,128,596 
                                                  ------------------  -------------------  ----------------------

NET INCREASE (DECREASE) IN CASH
      AND CASH EQUIVALENTS . . . . . . . . . . .              25,918              71,402                  71,422 
BEGINNING BALANCE CASH AND
      CASH EQUIVALENTS . . . . . . . . . . . . .               2,451                  20                       - 
                                                  ------------------  -------------------  ----------------------
ENDING BALANCE CASH AND CASH
    EQUIVALENTS. . . . . . . . . . . . . . . . .  $           28,369  $           71,422                 71,422
                                                  ==================  ===================  ======================
</TABLE>

                                      7
<PAGE>
                           MATERIAL TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS

NOTE  1.  In the opinion of the Company's management, the accompanying unaudited
financial  statements  contain  all  adjustments (consisting of normal recurring
accruals)  necessary  to present fairly the financial position of the Company as
of  March 31, 1999 and 1998 and the results of operations and cash flows for the
three  month  periods  then  ended.  The  operating  results of the Company on a
quarterly  basis  may  not be indicative of operating results for the full year.

                                      8
<PAGE>
                           MATERIAL TECHNOLOGIES, INC.
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF
                                   OPERATIONS


RESULTS  OF  OPERATIONS  FOR  THE  THREE  MONTHS  ENDED  MARCH 31, 1999 AND 1998
--------------------------------------------------------------------------------

During  the  three  month  period  ended  March  31, 1999, the Company generated
approximately  $198,860 under its research and development contracts as compared
to  $96,744  generated  during  the  three-month  period  ended  March 31, 1998.

During  the  three  month  periods  ended  March  31, 1999 and 1998, the Company
incurred  approximately  $8,077, and $28,202, respectively, in development costs
all  of  which  related  to  the  above  indicated  contracts.

General  and  administration costs were $192,373 and $100,611, respectively, for
the  three-month  periods  ended  March  31,  1999  and 1998. The major expenses
incurred during 1999, consisted of Officer's compensation of $50,000, consulting
fees  of  $42,050,  professional  fees  of $26,827, interest expense of $13,347,
telephone  expense  of  $4,015,  rent  expense  of $7,544, and travel expense of
$14,663  The  major  expenses  incurred  during  1998,  consisted  of  Officer's
compensation  of  $22,500,  consulting  fees  of  $19,631,  professional fees of
$23,879,  interest  expense of $5,739, telephone expense of $5,876, rent expense
of  $4,244,  and  travel  expense  of  $2,333.


LIQUIDITY  AND  CAPITAL  RESOURCES
----------------------------------

Cash  and  cash  equivalents  as  of  March  31,  1999 and 1998 were $71,422 and
$28,369,  respectively. During the first quarter of 1999, the Company received a
total  of $293,024 which consisted of $238,628 from its research and development
contracts,  $50,000  in  loans  from  its President, and $4,396 from the sale of
investment securities. Of the $293,024 received, $205,622 was used in operations
and  $16,000 was repaid to its President.  During the first quarter of 1998, the
Company  received  $49,000  from officer loans. Of the $49,000 borrowed, $23,082
was  used  in  operations

                                      9
<PAGE>
     PART  II.  OTHER  INFORMATION


     ITEM  2.  CHANGES  IN  SECURITIES

          In  February  1999,  the  Corporation  issued 175,000  shares  of  its
          Class A Common  Stock to a consultant in exchange for the cancellation
          of $66,667 of unpaid  fees  owed.



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

                           Material Technologies, Inc.
                           ---------------------------
                                   Registrant


                               /s/ Robert M. Bernstein
                               ------------------------
                                   Robert M. Bernstein, President and Chief
                                   Financial Officer