SECURITIES AND EXCHANGE COMMISSION
                       WASHINGTON, D. C.   20549

                               FORM 10-K

(Mark One)
[ X ]           ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
           SECURITIES EXCHANGE ACT OF 1934  [FEE REQUIRED]

                FOR THE FISCAL YEAR ENDED MAY 30, 1999


                    Commission File Number 0-12611

                           AULT INCORPORATED
        (Exact name of registrant as specified in its charter)

   MINNESOTA                                    41-0842932
(State or other jurisdiction of                      (IRS Employer
incorporation or organization                   Identification Number)

7105 NORTHLAND TERRACE                               55428-1028
(formerly of 7300 BOONE AVENUE NORTH)                (Zip Code)
MINNEAPOLIS, MINNESOTA
(address of principal executive offices)

Registrant's telephone number, including area code: (612) 493-1900
Securities registered pursuant to Section 12(b) of the Act:  None
Securities registered pursuant to Section 12(g) of the Act:

                      Common Stock, No Par Value
                           (Title of Class)

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 of Regulation 8-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 amendments to this Form 10-K.      [X]

The  aggregate market value of the voting stock held by non-affiliates
of the registrant was approximately $23,196,000 based upon the closing
price  of the Company's common stock on the NASDAQ National Market  on
August 4, 1999, multiplied by the number of outstanding shares of  the
Company held by persons other than officers, directors and 10% or more
shareholders  referred  to  in the "Security  Ownership  of  Principal
Shareholders and Management" table referred to under Item 12 herein.

On  August  4,  1999, there were outstanding 4,383,787 shares  of  the
Registrant's common stock.

Documents  Incorporated by Reference:  The Company's  Proxy  Statement
for  its  Annual Meeting of Shareholders to be held on  September  30,
1999, is incorporated by reference into Part III of this Form 10-K.

The  Form 10-K consists of 87 pages.  The Exhibit Index is located  on
page 44.


                           AULT INCORPORATED

                               FORM 10-K
                FOR THE FISCAL YEAR ENDED MAY 30, 1999

                                PART I


ITEM 1. BUSINESS

(a)  General Development of Business

Ault Incorporated (herein "Ault" or "Company") was incorporated under
the laws of the State of Minnesota in 1961.  The Company designs,
manufactures, and markets a line of external power conversion products
and is a leading domestic supplier of such products to original
equipment manufacturers (OEMs) of data communications equipment,
telecommunications equipment, portable medical equipment, and
microcomputers and related peripherals.  To strengthen its position,
in December 1998, the Company purchased the power supply division of
LZR Electronics, Inc., a small closely-held corporation located in
Gaithersburg, Maryland.  For further information see "Management's Discussion
and Analysis of Financial Condition and Results of Operations" under Item 7
herein and Note 1 under Notes to Consolidated Financial Statements under
Item 8 herein.

(b)  Financial Information About Industry Segments

The Company operates in only one industry segment - the manufacture
and sale of power conversion devices.

(c)  Narrative Description of the Business

Ault's power conversion products are used to adapt alternating current
(AC) to provide a source of power at various levels up to 90 watts for
a wide variety of electronic equipment.  Most of the Company's
products are located outside the equipment they power as wall plug-in
or as in-line components and are generally referred to as external
power conversion products.  A small portion of the Company's products
are located inside the equipment they power, when this feature is
required by OEM customers, and are generally known as internal power
conversion devices.  External power conversion products, in contrast
to more widely used internal power conversion devices, enable
designers of electronic equipment to remove heat and hazardous
voltages from the end product thereby allowing the end product to
function more safely and effectively.  Also, by removing the power
conversion feature from inside the end product, the OEM is afforded
greater flexibility in designing and styling.  These advantages have
particular application in the Company's target markets where advances
in semiconductor technology have reduced power requirements of many
items of equipment to levels supplied by the Company's products, where
rapid growth and strong competition have resulted in competitive
pressure to bring new products to market quickly, and where there is
increasing emphasis on smaller and portable products that perform
increasingly sophisticated functions.  Ault's business strategy is to
offer OEMs in these markets an expanding line of high quality power
conversion products and devices, related design engineering and
flexible customer services.

(1)  Products

   Ault's product line includes the four major types of external power
   conversion products: switching power supplies, linear power
   supplies, battery chargers and transformers.  The Company's power
   conversion products are capable of providing power at most output
   levels which OEMs expect from an external device.  The Company's
   design and application engineers work closely with customers to
   assure that these products are appropriately customized to meet
   each OEM customer's precise power conversion product requirements.

   The  following table summarizes the proportion of sales of the each
   of  the Company's four major product categories for its last  three
   fiscal years ended May 30, 1999:
<TABLE>
<CAPTION>
                     Sale of Products by Category
                    as a Percentage of Total Sales

                                                Years Ended

   Product Type                 May 30, 1999   May 31, 1998    June 1, 1997
   <S>                                  <C>            <C>             <C>

   Switching Power Supplies              49%            37%             42%
   Linear Power Supplies                  17             15              16
   Transformers                           25             40              34
   Battery Chargers                        9              8               8
   Total                                100%           100%            100%
</TABLE>


   Power Supplies.  The Company's power supplies provide the entire
   power conversion features for electronic equipment in power outputs
   ranging from 1 to 90 watts.  These products contain a component
   level transformer, which reduces the voltage level, as well as
   other circuitry and components which convert alternating current
   (AC) to direct current (DC) and, in most cases, maintain voltage
   within specific limits.

   *    Switching Power Supplies.  The Company believes, the market for
     switching power supplies is the fastest growing segment of the overall
     external power conversion product market.  Switching power supplies
     use switching transistors to convert power from AC to DC and are more
     energy efficient and considerably smaller and lighter in weight than
     linear units with comparable power outputs.  For power requirements
     exceeding 12 watts, switching power supplies are generally more cost
     effective. The Company currently manufactures these products up to 90
     watts of power.  The applications in which these products are
     currently used include telecommunications products, data
     communications products, modems, computers and computer peripherals,
     medical equipment, microprocessor controlled systems, security
     systems, automatic teller terminals, test equipment, multiplexers,
     digital cameras and point of sales equipment.

     The Company's switching power supply products include a family
     of universal input power supplies which provide output power
     from input power sources ranging from 90 to 265 volts.  This
     family of power supplies can be used in virtually any country
     for applications such as local area networks ("LANs"), printer
     and fiber optic links.  The Company also designs universal input
     switching power supplies specifically for medical markets.  The
     Company believes it offers the widest range of external
     switching power supply products currently available for medical
     applications.

     The company designs and manufactures switching power supplies
     principally for external applications but also designs and
     manufactures these products for internal power when such action
     enhances customer relations.

   *    High Density Switching Power Supplies.  In fiscal 1997, the
     Company introduced product families based upon patented high density
     power conversion technology.  This technology enables the Company to
     offer switching power supply products less than one-half the size of
     its existing switching power supplies which provide comparable power
     output.  The Company's high density switching power supplies provide
     approximately 45 watts to 90 watts of power.  Technologies acquired
     from the purchase of LZR Electronics in fiscal 1999 will enable the
     Company to offer high density power supplies with considerably higher
     power ranges.  The Company believes that the addition of these
     products will enable it to compete for product applications currently
     not served by the Company or its competitors, including routers,
     servers and wireless communications that operate on higher power
     ranges.

   *    Linear Power Supplies.  Linear power supplies are larger and
     generally less expensive than switching power supplies because their
     design is based on technology employing steel laminations with
     windings of copper wire rather than switching transistors.  Linear
     power supplies tend to be used when the wattage output required is
     relatively low.  Ault manufactures linear power supplies that provide
     up to 11 watts of regulated power and 70 watts of unregulated power.
     The Company's linear power supplies are used in a variety of
     applications, including modems, telecommunications products, local
     area networks, microprocessor controlled systems, test equipment and
     multiplexers.

   *    Transformers.  The Company manufactures a wide variety of wall
     plug-in transformers, as part of its full range of power conversion
     products.   Transformers are used primarily in applications where OEMs
     desire to remove heat, electromagnetic interference and weight from
     electronic equipment, while incorporating the rest of the power
     conversion systems within the product.  These products reduce AC
     voltage from approximately 110 volts (230 volts in some countries)
     down to lower voltage that range from 5 to 60 volts AC.   The
     Company's product line also includes highly customized transformers
     that operate within stringent power output tolerances, features that
     are not offered by most of the Company's competitors.  The Company's
     transformers are utilized in a broad spectrum of applications,
     including modems, telephone sets, multimedia products and scanners.

   *    Battery Chargers.  Ault has been an innovator in battery charging
     technology since the early 1980s.  Ault specializes in providing
     custom designed, advanced solutions for manufacturers of portable and
     battery powered equipment.  Applications for the Company's battery
     chargers include medical devices, mobile telecom devices, notebook
     computers, global positioning equipment and radio frequency
     communications products.

     The Company's products serve the entire range of widely used
     battery chemistries such as nickel cadmium, sealed lead acid,
     gel cell and nickel-metal hydride.  In addition, the Company has
     developed battery chargers for the particular requirements of
     emerging battery chemistries such as zinc air, lithium ion and
     lithium polymer.  The Company is committed to supporting these
     new emerging chemistries and to developing battery charger
     products to be introduced as these new battery chemistries
     become commercially accepted.

     The Company sells primarily "smart" battery chargers as
     distinguished from trickle chargers.  Smart charger products use
     integrated circuits to control various charging characteristics
     while allowing for fast charge time and extended battery life.
     Trickle charging is typically used for slow (8 to 10 hours)
     charging and/or standby battery maintenance.

     The Company believes that the demand for high quality battery
     chargers will continue to increase to accommodate the growing
     sophistication of portable electronic equipment.

(2)  Markets and Customers

   The Company's marketing efforts are directed primarily toward OEMs
   producing non-consumer electronic equipment for
   telecommunications, data communications, computer peripheral and
   medical applications.  These markets are characterized by trends
   toward smaller, portable products capable of performing
   increasingly sophisticated functions, as well as intense
   competitive pressure to rapidly introduce new products and product
   enhancements.  Based on its expertise in customizing a broad range
   of products to meet customer requirements, the Company believes it
   is well positioned to serve the needs of its OEM customers as they
   respond to these trends and competitive factors.

   Historically, the most significant market for the Company's
   products has been OEMs of telecommunications/data communications
   equipment, and in fiscal 1999 sales in this market represented
   approximately 61% of net sales. The Company's products power cable
   and ADSL modems, network termination equipment (devices which
   interface between telephone network and the customer's PBX or
   other telephone system), line conditioning equipment (devices
   which prepare telephone lines for the transmission of computer
   generated data), and various items of equipment ancillary to
   business telephones, including speaker phones, automatic dialers,
   callers identification units and alpha numeric displays, low to
   medium speed PC modems and multiplexers (equipment which enables
   the simultaneous transmission of multiple channels of information
   over the same telephone line).

   The Company believes the telecommunications/data communications
   market is growing at a rapid rate and is devoting significant
   portions of its product development effort toward introduction of
   new product families for applications in this combined market.

   In fiscal 1999 approximately 22% of the Company's net sales were
   to OEMs of computers and computer peripherals such as digitizers,
   printers, plotters, portable terminals, point of sales scanners
   and optical character readers, LAN hardware and multimedia
   speakers for computer applications.

   Approximately 12% of net sales in fiscal 1999 were to OEMs of
   portable medical equipment such as infusion pumps, patient
   monitoring systems, apnea monitors, and portable terminals for
   patient history input diagnostics.

   The balance of approximately 5% of the Company's net sales in
   fiscal 1999 was to OEMs of various industrial equipment, including
   digital cameras and mine safety devices.

(3)  Design Engineering and Product Development

   Design engineering teams at the Company's facilities in the United
   States and South Korea are responsible for developing new power
   conversion products and customizing existing products to meet
   customer needs.  In fiscal 1999, the Company increased its
   engineering staff to 53 and spent approximately 4.8% of its
   revenues on product engineering, compared to an average
   expenditure of 4.2% for each of the preceding two years.  The
   Company also utilizes the significant engineering resources of its
   Asian subcontractors for the development of products targeted for
   subcontract manufacturing.  The Company's product development
   activities are divided equally between developing products to
   satisfy customer needs and new products based upon anticipated
   customer needs and marker trends.  New product development
   opportunities are evaluated based upon criteria such as global
   market potential, return on investment and technological
   advantages.  The Company believes that its collaborative efforts
   with customers, combined with its forward-looking concern for
   power technology and market trends, have enabled it to gain a
   reputation as a leading innovator in the development of new
   external power conversion products.

   Reflecting an increased emphasis on new product development during
   the past years, the Company developed and introduced 35 new
   product families in 1999 and 29 in 1998. Several product families
   are currently in various stages of development. Anticipating
   continued growth of approximately 30% annually in the switching
   power supply segment of the power conversion product market, a
   significant portion of the new products under development are
   switching power supplies.

(4)  Sales and Distribution

   The Company markets its products primarily in the U.S. and Canada
   through a network of 20 manufacturer representatives employing
   approximately 115 salespersons, each of whom represents, in
   addition to Ault's products, several different but complementary
   product lines of other manufactures.  The Company also sells
   through six national distributor organizations which employ over
   200 salespersons.  The Company selects representatives based upon
   their industry knowledge as well as account expertise with
   products that are synergistic with the Company's products.
   Individual salespersons are trained, mentored and technically
   assisted by the Company's application engineers and other sales
   administration staff.  Any reduction in the efforts of these
   manufactured representatives or distributors could adversely
   affect the Company's business and operating results.

   The Company begins the sales process by identifying a potential
   customer or market; researching the target or potential customer's
   total business, product and strategic needs; and then preparing a
   total solution proposal that includes engineering, product
   development, safety agency approvals, logistics and project
   development processes, coordinating pilot runs and assisting OEMs
   with their product introductions.  Among the logistics services
   provided by the Company are warehousing of finished products for
   unscheduled requirements and customs clearance in order to
   facilitate just-in-time production schedules.

   The Company focuses its selling efforts primarily on OEMs in the
   U.S. and Canada.  Many of the larger OEM customers of the Company
   manufacture and sell their products globally.  As a result, the
   Company has extended its presence to markets throughout the world.

   The Company's sales in the Pacific Rim are primarily to customers
   in South Korea and Australia. In fiscal 1998, the Company
   finalized an agreement, with a well-recognized sales
   representative organization in Japan which will sell the Company's
   product in Japan and most Pacific Rim countries.  Certain of the
   Company's products have already obtained required MITI (Ministry
   of International Trade and Industry) approvals in Japan and
   actions are being taken to establish a sales administrative
   presence in that country to further strengthen opportunity for
   selling in the Japanese market.

   The Company currently markets its products in Europe through a
   network of distributors, with a total of approximately 15
   salespersons, who are managed by an engineer employed by the
   Company.

(5)  Safety Agency Certification

   The power conversion system is potentially the most hazardous
   element in most electronic equipment because the power supply
   modifies standard power to a level appropriate for such equipment.
   Virtually all of the Company's customers require that the power
   conversion products supplied by the Company meet or exceed
   established international safety and quality standards, since many
   of the Company's products are used in conjunction with equipment
   which are distributed through the world.  In response to these
   customer requirements, the vast majority of the Company's products
   are designed and manufactured in accordance with certification
   requirements of many safety agencies, including Underwriters
   Laboratories Incorporated ("UL") in the United Stares; the
   Canadian Standards Association (CSA) in Canada; Technischer
   Uberwachungs-Verein `(TUV") in Germany; the British Approval Board
   for Telecommunication "(BABT") in the United Kingdom, the
   International Electrotechnical Committee ("IEC"), a European
   standards organization and (EC) a standard for the European
   Community.  In addition, some of the Company's products have also
   received Japanese MITI approval.  For certain safety applications,
   the Company's  products conform to FCC Class B requirements which
   regulate the levels of electronic magnetic interference that may
   be emitted by electronic equipment.  Unlike most of its
   competitors, the Company is a certified test laboratory for UL and
   CSA and is able to conduct most certification tests at its plant
   in Minneapolis.  This procedure reduces the time required to
   obtain safety certifications. The Company's Minneapolis and South
   Korean facilities are certified to ISO 9001.

(6)  Innovative Team Approach

   The Company uses a team-based organizational structure consisting
   of seven teams.  The Company's customer base is divided into six
   geographical regions with a specific Ault team assigned to manage
   the needs of customers in each region.  A seventh team, Ault
   Express, manages the requirements of customers who have orders of
   certain minimum annual levels.  Each team is headed by a
   coordinator selected by the president and an assistant coordinator
   who is elected annually by the team.  The teams consist of people
   from all areas of the business, including salespersons from
   manufacturer representative organizations and national
   distributors as well as the Company's own production personnel,
   engineers, technicians, administrative personnel and others.
   Guided by a written statements of corporate values, these teams
   are charged with responsibility for all aspects of the customer
   relationship, including sales, manufacturing, design engineering
   and other support functions with a view to achieving continuous
   improvements in customer service.  The Company believes that its
   innovative implementation of this team-based organizational
   structure provides competitive advantages by increasing
   communication with customers as well as facilitating
   responsiveness to the needs of the Company's diverse worldwide
   customer base.  In 1996, Ault received recognition for its
   innovative approach from the trade publication of the American
   Manufacturing Association.

(7)  Competition

   The Company competes primarily with various manufacturers of
   external power conversion products.  The industry is highly
   fragmented, with manufacturers generally focusing their marketing
   on specific segments.  The Company has experienced strong
   competition from Taiwanese-based manufacturers principally on
   price.  Many of these competitors have a smaller presence in the
   external conversion market than the Company, although several are
   engaged in more than one business and have significantly greater
   financial resources.

   No single company dominates the overall external power conversion
   product market, and the Company's competitors vary depending upon
   the particular power conversion product category.  The companies
   with which Ault competes most directly in each of its major
   product categories are: Leader Electronics, Inc. and Golden
   Pacific Electronics, Inc. for transformers; Dee Van Enterprise
   Co., Ltd and Sino American Electronics Company., Ltd. for linear
   power supplies; Portrans Electrical Corp., Ltd. and Phihong
   Enterprise Co., Ltd. for switching power supplies; and Engineering
   Design Sales, Inc. and Xenotronics Company for battery chargers.

   The Company competes on the basis of the quality and performance
   of its products, the breadth of its product line, customer
   service, dependability in meeting delivery schedules, design
   engineering services, and price.  The Company believes it is
   currently one of a small number of companies that design,
   manufacture and obtain certifying agency approvals for the full
   range of external power conversion devices which OEMs consider in
   designing their electronic product.

   The Company provides a total solution approach to the OEMs' entire
   external power conversion product needs through its commitment to
   reliable partnerships and its delivery of high quality products
   supported by solution oriented design engineering.  In addition,
   the presence of Ault Korea and Ault China and the expanding
   arrangements with subcontract manufacturers in China and Thailand
   provide the Company with additional strength to compete
   effectively when price is the primary consideration.

   Internal power conversion products continue to be used for most
   electronic equipment, and as a result the Company experiences
   competition from numerous companies providing such internal
   products, including both OEMs and independent suppliers.  With the
   trend toward lower power requirements in portable electronic
   equipment and with the increasing availability of smaller,
   competitively-priced internal switching power supplies, certain
   customers of the Company may choose to return to internal power
   supplies in place of the external power conversion products they
   currently purchase.  In relation to this competition, the Company
   stresses the several advantages of external power conversion
   products, which generally can be obtained with only a relatively
   small increase in unit cost.

(8)  Manufacturing and Sources of Supply

   The Company's manufacturing operations consist of assembly and
   integration of electronic components to meet product
   specifications and design requirements for a variety of power
   conversion applications.  Manufacturing is currently conducted at
   the Company's facility in Minneapolis, Minnesota; Seoul, South
   Korea; Xianghe, China, and at four locations in China and Thailand
   using subcontract manufacturers.  Ault typically manufactures
   prototypes and low volume products at its facility in Minneapolis,
   Minnesota.  It is anticipated that by the end of fiscal year 2000,
   Ault China will be equipped to manufacture substantially all of
   the Company's products.

   A number of the components and raw material integral to the
   manufacture of the Company's products are purchased from a single
   supplier or a limited number of suppliers. Electronic components
   and raw material used in the Company's products are nevertheless
   generally available from a large number of suppliers, although
   from time to time shortages of particular items are experienced.

   Quality and reliability are emphasized in both the design and
   manufacture of the Company's products.  This emphasis is reflected
   in the ISO 9001 certification of the Company's Minneapolis
   facility in 1991 and of its South Korea facility in 1998.  The
   Company tests 100% of its finished products against its own and
   the customers' specifications, then ships the products in custom
   engineered protective packaging to minimize any damage during
   shipment.

   The Company has subcontract manufacturing arrangements with
   business partner in Thailand and two in China. The Company does
   not have long term commitments from the subcontractors and the
   subcontractors build product for the Company pursuant to
   individual purchase orders.  The Company selects its subcontract
   manufacturers based upon their ability to manufacture high quality
   products, the sufficiency of their engineering capabilities to
   support products being manufactured; and their ability to meet
   required delivery times.  In addition, each of the Company's
   subcontract manufacturers is regularly reviewed by the Company's
   Taiwanese-based Director of Far East Operations with respect to
   product quality and other performance criteria.

(9)  Significant Customers: Backlog

   The Company sells its products to over 200 customers and it is the
   Company's objective to maintain a diversified customer base and to
   avoid, where practicable, dependence upon a single customer.  In
   fiscal 1999, one customer accounted for 13.3% of the Company's net
   sales.

   The Company enters into buying commitments and other scheduling
   agreements with certain customers.  For its larger customers,
   these agreements allow for order increases and decreases within
   scheduled limits and include cancellation charges for completed
   and in-process products and procured materials.  Most products are
   shipped within 4 to 10 weeks of an order.  Order backlog at August
   4, 1999 was $13,486,000 as compared to $13,643,000 on August 1,
   1998.  See Order Backlog, under ITEM 7, MANAGEMENT DISCUSSION AND
   ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS.

(10) Warranties

   The Company provides up to a three-year parts and labor warranty
   against defects in materials or workmanship on all of its
   products. Servicing and repairs are conducted at the Company's
   manufacturing facilities in Minneapolis and South Korea. The
   Company's warranty expenses have not been significant.

(11) Patents

   The Company holds four patents, three of which it no longer
   considers significant.  The fourth patent, acquired in December
   1995, covers high density power conversion technology ("high
   density patent") which enabled the Company to offer external
   switching power supplies less than one-half the size of current
   power supply products but with comparable power outputs.

   The high-density patent was issued by the United States Patent
   Office in 1994 and the original applicant did not pursue patent
   protection in foreign countries.  Since the high-density patent
   was issued prior to being assigned to the Company, the Company is
   precluded from seeking patent protection in most foreign
   countries. For that reason, some of its competitors may use this
   type of technology for products manufactured and sold outside the
   United States.  Also there can be no assurance that the scope of
   the high-density patent will prevent competitors, many of whom
   have greater financial and other resources, from introducing
   competitive products or from challenging the validity of the high
   density patent.

 (12)     Seasonality

   As indicated by ITEM 8(b) SUPPLEMENTAL FINANCIAL INFORMATION, net
   sales of the Company have reflected a certain degree of
   seasonality.  The Company's first quarter falls during the summer
   months and during the first quarter of fiscal 1998 and fiscal
   1999, the Company recorded levels of sales which were generally
   lower than sales that were recorded for the succeeding periods.
   The Company attributes this seasonality to the buying patterns of
   its customers, the timing of industry trade shows where new
   products are introduced and to other factors.  The Company
   believes that similar seasonality trends will be experienced in
   the future.

 (13)     Employees

   As  of August 4, 1999, the Company employed approximately 438 full-
   time employees at its  facilities as follows:
<TABLE>
<CAPTION>
                                 South
                                 Korea  China   Taiwan      US   Total
   <S>                             <C>    <C>        <C>   <C>     <C>

   Manufacturing                   104    118               51     273
   Engineering                      14      8               31      53
   Marketing                         8      8               18      34
   General and
      Administrative                15     22        1      40      78

   Total                           141    156        1     140     438
</TABLE>

   None  of  the  Company's  employees  are  represented  by  a  labor
   organization and the Company has never experienced a work  stoppage
   or  interruption due to a labor dispute.  Management believes  that
   its relations with its employees are good.

(14) Executive Officers of the Registrant

   Certain information with respect to the executive officers of the
   Company is set forth:
<TABLE>
<CAPTION>
                                                                     Officer
     Name              Age  Position; Former Employment              Since
     <S>               <C>  <S>                                          <C>

     Frederick M.      56   President and Chief Executive Officer        1980
     Green                  and Director
     Carlos S.         62   Vice President, Treasurer, Chief
     Montague               Financial Officer (Retiring) and             1981
                            Assistant Secretary
     Richard A.        53   Secretary                                    1995
     Primuth
     Hokung Choi       59   Vice President - Far East Operations         1989
     Gregory L.        46   Vice President - Marketing                   1988
     Harris
</TABLE>

(15) Risk Factors

   The following risk factors are relevant to an understanding of the
   business matters discussed herein

   *    Technological Change and New Product Development. The electronic
     equipment market is characterized by rapidly changing technology and
     shorter product life cycles.  The Company's future success will
     continue to depend upon its ability to enhance its current products
     and to develop new products that keep pace with technological
     developments and respond to changes in customer requirements.  Any
     failure by the Company to respond adequately to technological changes
     and customer requirements or any significant delay in new product
     introductions could have a material adverse effect on the Company's
     business and results of operations.  In addition, there can be no
     assurance that new products to be developed by the Company will
     achieve market acceptance.  See "Business-Design Engineering and
     Product Development."

   *    Fluctuation in Financial Results.  The Company's financial results
     are subject to fluctuation due to various factors, includintg general
     business cycles in the Company's markets, the mix of products sold,
     stage of each product in its life cycle and the rate and cost of
     development of new products.  In addition, component and material
     costs, the timing of orders from and shipments of products to
     customers and deferral or cancellation of orders from major customers
     could adversely affect financial results.  Price competition in the
     markets in which the Company competes is intense, and could result in
     a decline in gross margin, which in turn could adversely impact the
     Company's profitability.

   *    Dependence on Outside Contractors.  The Company currently depends
     on third parties located in foreign countries for a significant
     portion of the manufacture and assembly of certain of its products.
     Some of these countries are economically troubled areas.  The
     Company's reliance on such outside contractors reduces its control
     over quality and delivery schedules.  While the Company takes an
     active role in overseeing quality control with its third party
     manufacturers, the failure by one or more of these subcontractors to
     deliver quality products or to deliver products in a timely manner
     could have a material adverse effect on the Company's operations.  In
     addition, the Company's third-party manufacturing arrangements are
     short term in nature and could be terminated with little or no notice.
     If this happened, the Company would be compelled to seek alternative
     sources to manufacture certain of its products.  There can be no
     assurance that any such attempts by the Company would result in
     suitable arrangements with new third-party manufacturers.  See
     "Manufacturing and Sources Supply."

   *    Dependence on Key Personnel; Management of Growth.  The Company's
     success depends in part upon the continued services of many of its
     highly skilled personnel involved in management, engineering and
     sales, and upon its ability to attract and retain additional highly
     qualified employees.  The loss of service of any of these key
     personnel could have a material adverse effect on the Company.  The
     Company does not have key-person life insurance on any its employees.
     In addition, the Company's future success will depend on the ability
     of its officers and key employees to manage growth successfully and to
     attract, retain, motivate and effectively utilize the team approach to
     manage its employees.  If the Company's management is unable to manage
     growth effectively, the Company's business and results of operations
     could be adversely affected.

   *    Anti-takeover Considerations.  Certain anti-takeover provisions
     of the Minnesota Business Corporation Act and the ability of the Board
     of Directors to issue preferred stock without stockholder approval
     under the Company's Right Plan may have the effect of delaying or
     preventing a change in control or merger of the Company.  These
     provisions could delay, discourage, hinder or preclude an unsolicited
     acquisition of the Company, could make it less likely that
     stockholders receive a premium for their shares as a result of any
     such attempt and could adversely affect the market price of the Common
     Stock.  See "Note 7 - Stockholders' Equity under NOTES TO CONSOLIDATED
     FINANCIAL STATEMENTS.

   *    Year 2000 Interruptions.  The Company utilizes several microchip
     based date referenced systems for its business operations, including
     the timely procurement of material and supporting customer
     requirements.  Because these business matters are also dependent on
     support from external sources, the Company cannot provide any
     assurance that its ability to provide service to customers will not be
     interrupted by the inability of any supporting microchip-based  date
     referenced  system to timely process data.  This situation could have
     an adverse material effect on the Company's ability to retain
     customers and to generate revenue and profitability.

(d)  Financial Information About Foreign and Domestic Operations and
Export Sales

Export Sales by the U.S. Operations in fiscal year 1999 represented
14.3% of the Company's gross sales most of which were to OEMs in
Europe and Canada.  All other revenues were derived from domestic
sales principally in the U.S.  For other financial information about
foreign and domestic operations and export sales including the amount
of export sales for the last 3 years, refer to Note 9, Segment
Information and Foreign Operations, under NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS.


ITEM 2. PROPERTIES
The Company's headquarters and US manufacturing facility has been
located in Brooklyn Park, a suburb of Minneapolis, Minnesota in a
leased facility, approximately 50,000 square feet in size.  The
Company will relocate to a new facility of approximately 65,000 square
feet, also located in Brooklyn Park, in September 1999.

The Company's only other US property is approximately 6,616 square
feet of leased space in Gaithersburg, Maryland.  The lease runs for
five years through June of 2004, and the facility houses principally
the Company's Maryland engineering personnel.

The Company's subsidiary, Ault Korea Corporation, operates in a 36,000
square foot facility in Suwon City in the province of Kyungki-Do,
Korea.

Ault China, a subsidiary of Ault Korea Corporation occupies a 40,000
square foot leased facility in The Province of Xiang-He in China.  The
lease expires in the year 2009.

Management considers all of the Company's properties to be well
maintained and current manufacturing arrangements, including
subcontract arrangements in China and Thailand, are believed to be
adequate for manufacturing requirements.

ITEM 3. LEGAL PROCEEDINGS

No material litigation or other claims are presently pending against
the Company.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable.
                               PART II.

ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER
          MATTERS

(a)  Market Information

Ault common shares are traded in the national over-the-counter market
under the symbol AULT.  The following table presents the range of
closing bid prices for the Company's common stock on the NASDAQ Market
for fiscal 1999 and 1998.  The bid quotations representing prices in
the over-the-counter market between dealers in securities, do not
include retail mark-ups, mark-downs or commissions and do not
necessarily represent actual transactions.

<TABLE>
<CAPTION>
               Fiscal 1999                       Fiscal 1998

                     $              $             $             $
        Quarter    High           Low           High          Low
          <C>      <C>            <C>           <C>           <C>

          1st        6-1/8        3-3/8         10-1/8        7-3/4
          2nd        7-3/8        6-3/5           9-1/8       6-1/2
          3rd        8-3/8        6-1/5           7-1/8       4-5/8
          4th      11-7/8         6-3/4           8-1/4       5-4/5

</TABLE>

(b)  Holders

As of August 4, 1999 there were 288 shareholders of record for the
Company's common stock.  This number of record stockholders does not
include beneficial owners of common stock whose shares are held of
record by Depository Trust under the name CEDE & Co.

(c)  Dividends

Ault has not paid cash dividends on its common shares, and, under
present policy of its Board of Directors to retain any earnings for
use in the business, does not anticipate paying cash dividends on its
common shares in the foreseeable future.

ITEM 6.                    SELECTED FINANCIAL SUMMARY
<TABLE>
<CAPTION>
                                          YEARS ENDED

                               MAY 30,   MAY 31,   JUNE 1,  JUNE 2,  MAY 28,
                                1999       1998      1997     1996     1995

                                   (Amounts in Thousands, Except Per Share Data)
<S>                            <C>        <C>      <C>      <C>       <C>

Net Sales                      $50,938    $41,136  $40,012  $33,774   $27,054
Gross Profit                    14,018     10,761   10,523    8,265    $6,327
Operating Expenses              11,427      8,883    7,941    6,699    $5,570

   Operating Income              2,592      1,877    2,582    1,566      $757

Income Before Income Taxes      2,848       1,927    2,275      908     $333

  Income Taxes (Benefit)           860        609      (90)      25         -

Net Income                      $1,988     $1,318   $2,365     $883      $333
Net Income Per Share:
   Basic                         $0.47      $0.32    $0.79    $0.42     $0.16
   Diluted                        0.45       0.31     0.72     0.39      0.16

Total Assets                   $33,303    $25,417  $26,094  $18,730   $15,429
Property Equipment and
Leasehold
Improvements, Net               $6,808     $4,479   $3,568   $2,849    $3,002
Working Capital                 16,364     15,304   15,231    3,754    $2,703
Long Term Notes Payable          1,187        414      441      935    $1,221
Stockholders' Equity           $23,442    $19,628  $18,936   $5,571    $4,484
</TABLE>

See NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


ITEM 7.    MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
           AND RESULTS OF OPERATIONS

From time to time, in reports filed with the Securities and Exchange
Commission, in press releases, and in other communications to
shareholders or the investing public, the Company may make forward-
looking statements concerning possible or anticipated future results
of operations or business developments which are typically preceded by
the words "believes", "expects", "anticipates", "intends" or similar
expressions.  For such forward-looking statements, the Company claims
the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
Shareholders and the investing public should understand that such
forward-looking statements are subject to risks and uncertainties
which could cause results or developments to differ significantly from
those indicated in the forward-looking statements.  Such risks and
uncertainties include, but are not limited to, the overall level of
sales by OEMs in the telecommunications, data communications, computer
peripherals and the medical markets; buying patterns of the Company's
existing and prospective customers; the impact of new products
introduced by competitors; delays in new product introductions; higher
than expected expense related to sales and new marketing initiatives;
availability of adequate supplies of raw materials and components and
other risks affecting the Company's target markets generally,
including risks described under Item 1 above.

RESULTS OF OPERATIONS

Net Sales: Net sales were $50,938,000 for fiscal 1999 up 23.8% from
$41,136,000 for fiscal 1998 which were up 2.8% from $40,012,000 in
fiscal 1997.  The improvement in fiscal 1999 is primarily due to
strong growth in sales within the telecommunications and data
communications markets where the Company's products are sold to
original equipment manufacturers (OEMs) for use in applications such
as modems, network routers and wide as well as local area network
systems.  The Company believes that orders for its products will
continue to increase in fiscal 2000 because of growth in the
telecommunications/data communications, computer and medical markets
served by the Company, and the acquisition in fiscal 1999 of the power
supply business of LZR Electronics, Inc.  Significant among the
applications for the Company's products are cable and analog modems,
wireless telephones, scanners, electronic testing instruments and
portable medical products.  Cable modems, fastest growing among these
applications, are designed to process data transmitted over cable
lines that also transmit television signals. Dataquest, a nationally
known marketing research organization, forecast cable modem shipments
growing from 500,000 units in 1998 to 2.4 million units by 2002. The
Company believes that, because of its established relationships with
several major manufacturers of cable modems, it is well positioned to
benefit from growth in demand for these products.  Many of these
applications are designed to function with the Company's switching
power supplies, one of the highest margin products of the Company.
Orders and sales for the Company's products for portable medical
product applications also grew during fiscal 1999.  These products
utilize the Company's switching power supplies and battery chargers
and are traditionally the Company's highest margin application.

Acquisition of LZR: To strengthen its position in the medical product
application market, the Company acquired the assets of the power
supply division of LZR Electronics, a closely held corporation located
in Gaithersburg, Maryland in December 1998.  Prior to being acquired
by Ault, LZR had annual revenues of approximately $6.5 million in
calendar 1997 and 1998.  LZR's product line is based on a technology
platform which allows the efficient development of customer specific
power supplies for medical markets requiring lower volumes of
production.  In addition to complementing the Company's sales for many
high volume applications, many of LZR's products are agency approved
for medical product applications.  The Company believes that its
greater sales channels and larger customer base will enable it to
leverage the LZR product line to greater revenue levels.

New Product Development:  Service to customers continues as a strong
strategic focus of the Company.  To this end, the Company's
engineering activities are directed to developing products for various
customer applications that are anticipated to generate revenue in
fiscal 2000 and later years. In addition to cable modems and portable
medical products, these applications include uninterruptible power
supplies, power supplies for asymmetric digital subscriber line (ADSL)
modems (a competing technology to cable modem), hubs, routers and
switchers for the networking market. All of these factors are the
basis for the Company's belief that the growth realized in its fiscal
1999 sales will continue through fiscal 2000.

Order Backlog: The Company's order backlog at May 30, 1999 totaled
$12,963,000 compared to $15,340,000 at May 31, 1998 and $14,720,000 at
June 1 1997.  The order backlog at May 30, 1999 represented sales for
approximately thirteen weeks and reflected the posture of many OEMs to
limit their contractual commitments to the best lead-times of their
suppliers. Order backlog as an indicator of future shipment and raw
material requirements has changed because of the Company's shorter
lead-times available from customers.  These changes require the
Company to place greater reliability on its ability to forecast
customer needs and requirements for on-time shipment of products.

Gross Profit: Gross profit increased to $14,018,000 or 27.5% of net
sales for fiscal 1999, $10,761,000 or 26.2% of net sales for 1998 and
$10,523,000 for fiscal 1997 which was 26.3% of net sales.  The
improvements are due principally to the greater proportions in the
sales mix of battery chargers, as well as linear and switching power
supplies, which have higher margins as compared to transformer
products.  Revenue from shipments of transformers, traditionally a
lower margin product, decreased during fiscal 1999 compared to fiscal
1998.

Operating Expenses: Operating expenses were $11,427,000 or 22.4% of
net sales in fiscal 1999, as compared to $8,883,000 equaling 21.6% of
net sales for fiscal 1998. In fiscal 1997, operating expenses were
$7,940,000 or 19.8% of net sales.  The increased expenditures were
incurred principally due to (1) sales commissions paid to sales
representatives on the larger sales in fiscal 1999, (2) integration of
LZR into the Company, and (3) continued support of strategic
initiatives to achieve the following purposes:

     1.   Strengthen the Company's sales and marketing competitive position
        in the US and Asia.
     2.   Enhance Asian manufacturing supervision.
     3.   Provide and maintain direct communication links between Ault US
        and Ault Korea.
     4.   Install and maintain programs to upgrade the quality of
        management information services.
     5.   Certify products for sale in broader foreign markets and to
        respond more expeditiously to customer requirements.
     6.   Upgrade logistic support to provide forecasting techniques
        necessary to meet product delivery lead-times and to support US
        Customs requirements necessitated by increased foreign business
        activities.

These higher operating expenses will also affect profitability in the
first quarter of fiscal 2000.  It is anticipated that expenditures
relating to these matters will contribute to the generation and
support of future business in fiscal 2000 and beyond. The Company's
objective is to reduce the proportion of operating expenses to future
net sales without jeopardizing future business.

Operating Income: Operating income totaled $2,592,000 for fiscal 1999
and $1,877,000 for fiscal 1998 equaling, respectively, 5.1% and 4.6%
of net sales. Operating income totaled $2,582,000 for fiscal 1997 or
6.5% of net sales.  The improvements in operating income for fiscal
1999 are due principally to the greater sales and better gross margin
on the mix of products, as previously discussed.  The decrease in
operating income from fiscal 1997 to fiscal 1998 was due primarily to
implementation of strategic initiatives.

Non-Operating Income: Other income of $402,000 for fiscal 1999,
$197,000 for fiscal 1998 and $183,000 for fiscal 1997 represented
principally interest income, currency exchange rate gains on foreign
contracts by the Korean subsidiary and income derived from rented
portions of the Korean manufacturing facility.  The Company incurred
interest expenses of $146,000 in fiscal 1999, $148,000 in fiscal 1998
and $490,000 in fiscal 1997 paid principally on bank credit facilities
and long-term borrowings.

Income Tax: The Company had pre-tax income of $2,848,000 in fiscal
1999 and $1,927,000 in fiscal 1998 on which US and Korean income tax
of $860,000 or 30% and $609,000 or 32% were incurred. Pre-tax income
for fiscal 1997 equaled $2,275,000 with a net tax benefit of $90,000
after reinstatement of certain deferred tax assets of $681,000.   The
tax rates for fiscal 1999 and fiscal 1998 are below the normal rates
because of the utilization of business credits and of net operating
loss carry forwards by the foreign operations to offset portions of
their accrued taxes.

Net Income: The Company reported net income of $1,988,000 for fiscal
1999, $1,318,000 for fiscal 1998 and $2,365,000 for fiscal 1997.

Per Share Earnings: Diluted per share earnings were $0.45 for fiscal
1999 and $0.31 for fiscal 1998 based on outstanding, diluted weighted,
average shares of 4,414,000 and 4,254,000, respectively for each
period. Diluted per share earnings were $0.72 on outstanding, diluted
weighted, average shares of 3,279,000 for fiscal 1997.

LIQUIDITY AND CAPITAL RESOURCES

The following table describes the Company's working capital position
at May 30, 1999 and at May 31, 1998:

<TABLE>
<CAPTION>
                                          May 30,        May 31,
                                           1999           1998
                                                (000)
  <S>                                   <C>             <C>

  Working capital                       $16,364         15,303
      Cash                                3,303          5,935
      Trading securities fair value         850            866
      Current Assets                     24,790         20,364
      Current Liabilities                 8,426          5,061
      Current Ratio                        2.94           4.02

  Unutilized bank credit facilities       4,073          3,264
  Cash provided (used) by operations    (1,129)          4,801

</TABLE>

Current Working Capital Position: At May 30, 1999, the Company had
current assets of $24,790,000 and current liabilities of $8,426,000,
resulting in working capital of $16,364,000. To support normal growth
in revenue, capital expenditures and attainment of profit goals, the
Company relies, first, on cash flows from operations and, second, on
its credit facilities.

Cash and Investments: At May 30, 1999, the Company had cash and
trading securities totaling $4,153,000, down from $6,801,000 at May
31, 1998 principally because of cash payments made to acquire the
power supply assets of LZR Electronics, Inc.  Cost of the acquisition
to the Company amounted to $4,045,000. The cost includes the
recognition of goodwill (including professional fees incurred by the
Company) amounting to $1,490,000, assets with a total value of
$2,105,000 and an assumption of $450,000 in liabilities.  The assets
purchased included inventories valued at $1,863,000, manufacturing
equipment and tooling valued at $193,000, contracts, intellectual
property rights and other operating assets valued at $49,000.  The
aggregate payments to LZR amounted to $3,505,000, which consisted of
cash payments of $2,555,000 and delivery of a one year, 8.0%
convertible promissory note for $500,000.  The note was convertible at
the option of the holder into 78,865 shares of the Company's common
stock and was converted in the third quarter of fiscal 1999.

Credit Facilities:  The Company maintains two credit facilities. Its
primary credit facility is with US Bank and a smaller facility with
Korea Exchange Bank supports the South Korean subsidiary.  See Note 3,
under NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

The credit arrangement with US Bank includes:
     (a)  A revolving credit facility of $4.0 million, secured by Company
       assets and expiring on December 1, 1999.  At May 30, 1999, borrowings
       against it amounted to $729,000.
     (b)  One or more term loans, each up to $400,000.  At May 30, 1999,
       borrowings totaling $713,000 were outstanding on three term loans.
     (c)  One or more notes payable, secured by equipment, land, and
       buildings.  At May 30, 1999, borrowings totaling $876,000 were
       outstanding.

The South Korean credit facility is approximately $1.5 million of
which borrowings at May 30, 1999 totaled $698,000.

The Company also has a short-term advancing term note for up to
$3,200,000 through January 1, 2000.  This note is in connection with
construction of the new manufacturing/office facility in Minneapolis.
No advances were outstanding as of May 30, 1999.  The Company plans to
obtain long-term financing for the facility during fiscal 2000. See
Note 8, under NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

CASH FLOWS FOR FISCAL 1999

Operations:  Operations used $1,129,000 of cash during fiscal 1999 due
principally to the following activities in trade receivables,
inventories, accounts payables and accrued expenses:
  (a)  Increases in trade receivables mainly due to the increased net
     sales in fiscal 1999 used $4,025,000 of cash.  Further use of cash
     from increased net sales is anticipated in fiscal 2000.
  (b)  Increases in inventories used $253,000 of cash. The increases are
     due principally to requirements of customers that the Company carries
     additional stockings of finished products to support their emergency
     needs.  This is a normal business practice in the power supply market.
     No changes that are anticipated over the near term are expected to be
     of any significant impact on use of cash.
  (c)  Increases in accounts payable and accrued expenses provided
     $466,000 of cash from liabilities associated with purchases of
     material to support customer orders and emergency stockings of
     finished products. Further contribution to cash from increased
     liabilities for these purposes is anticipated in fiscal Y2K.

Investing Activities: Investing activities used net cash of $4,504,000
relating principally to:
  (a)  Manufacturing and tooling equipment obtained and goodwill, net of
     amortization, recognized from LZR Electronics, Inc. transaction.
  (b)  Purchases of manufacturing and tooling equipment amounting to
     $1,544,000, required to support normal operations.
  (c)  Purchase of land in South Korea. Acquired at a cost of $445,000,
     the land is required to relocate the Korean manufacturing facility which
     is being acquired by the Korean Government for public improvement purposes.

Financing Activities: Financing activities provided net cash of
$2,745,000, which were comprised principally of the following
transactions:
  (a)  Borrowings under the revolving credit facilities provided
     $729,000 of cash.
  (b)  Proceeds from long-term borrowings provided $1,491,000 of cash
     including a US Bank equipment term loan, a Korea Government Agency
     working capital loan and a Kamco Korea Corporation mortgage loan. The
     Kamco Korea Corporation mortgage loan was acquired on the South Korean
     property that is intended to be the site for the subsidiary's
     manufacturing facility when its current facility is acquired by the
     Korean Government, as discussed under Investing Activities.
  (c)  Payments from notes receivable from the sales of common stock
     provided $59,000 and proceeds from the issuance of common stock
     provided $636,000.  LZR Electronics, Inc. converted portions of the
     Company's promissory note that was issued as discussed under Cash and
     Investments.
  (d)  Principal payments on long-term borrowings used $170,000 of cash.

Effect of Foreign Currency Exchange Rate Fluctuations:  The economic
downturn in South Korea, which in fiscal 1998 resulted in a dramatic
devaluation of the Won, the country's currency, has improved.
However, compared to its value during the past several years, the Won
remains weak in relation to the value of the US dollar.   The effect
of translating the Korean financial statements, which were prepared in
Won, to US dollars, resulted in a net asset value increase of $257,000
during fiscal 1999, which related principally to long-term inter-
company receivables.

Summary:  The Company's cash and working capital positions are sound
and, together with its credit facilities, are adequate for the support
of the Company's strategies into fiscal year 2000.

Information about Products and Services:  The Company's business
operations are comprised of principally one activity-the design,
manufacture and sale of equipment for converting electric power to a
level used by OEMs principally in computer peripherals, data
communications/telecommunications and medical markets to charge
batteries, and /or power equipment.  The Company supports these power
requirements by making available to the OEM products that have various
technical features.  These products are managed as one product segment
under the Company's internal organizational structure and the Company
does not consider any financial distinctive measures, including net
profitability and segmentation of assets to be meaningful to
performance assessment.

Information about Revenue by Geography:  Distribution of revenue from
the US, from each foreign country that is the source of significant
revenue and from all other foreign countries as a group are as
follows:

<TABLE>
<CAPTION>
                                               YEAR ENDING
                                         MAY 30, 1999   MAY 31, 1998
                                                    ($000)
          <S>                                 <C>         <C>

          US                                  $42,076     $29,871
          Canada                                1,977       1,283
          France                                   34       3,842
          Ireland                               2,884       2,316
          All Other Foreign Countries           3,967       3,824
                      Total                   $50,938     $41,136
</TABLE>

The Company considers a country to be the geographic source of revenue
if it has all contractual obligations to the Company, including
obligation to pay for trade receivable invoices.

IMPACT OF FOREIGN OPERATIONS AND CURRENCY CHANGES

South Korea had a significant fall in the value of its currency during
the third quarter of fiscal 1998, but recovered portions of the early
loss by the end of the fiscal year and showed relative stability
through fiscal 1999.  Although products manufactured by the Korean
subsidiary contributed a large portion of total sales, the devalued
Won had no significant impact on the Company's consolidated sales for
the year because the predominant portions of the subsidiary's sales
were made under inter-company contracts with the US operations.  Sales
by the subsidiary in its local market are not material in amounts in
contrast to its inter-company sales.  The Company's US operations have
no significant exposure to currency risks because the predominant
portions of its foreign contracts are made in US dollars.

AULT ADDRESSES Y2K ISSUE

Y2K (Revised August 17, 1999):  The Y2K issue is principally the
result of computer programs that were written and component embedded
logic that were designed using two digits instead of four digits to
define the year segment of a date field. No recognition was given for
the change in date identification after calendar 1999 that would
require a distinction between year 1900 and years after 1999. The
Company's computer equipment, software and hardware with embedded
logic technologies that are time sensitive may recognize a two digit
date field using "00" as the year 1900 instead of 2000. This could
result in a system failure or miscalculations causing disruptions in
business, including among other things, a temporary inability to
process transactions, send invoices or engage in similar normal
business activities.

State of Readiness: The Company is not engaged in the manufacturing of
products that are Y2K sensitive, but it uses Y2K sensitive products of
other manufacturers and relies on services of others such as equipment
suppliers, software providers and suppliers with Y2K sensitive
manufacturing environment. The data shown below describes the
Company's activities and preparedness affecting its suppliers, freight
services, desk-top software, other manufacturing information software
and hardware and electric power support:

US Suppliers:  The Company has realigned its network of US suppliers
and is concentrating its efforts to maintain uninterrupted material
support only on suppliers it believes are dealing effectively with the
Y2K issue. Guided by Ault's forecast system and monitored by the
Company, each supplier will carry a minimum of four months of material
enough to cover any potential interruptions during the critical times.
Suppliers are now working from Y2K material forecast data.

Asian Suppliers:  Many of our Asian suppliers have been less reliant
on electronic systems, relying to a great extent on manual systems.
Arrangements have been reached where these suppliers are committed to
carry up to eight weeks of supplies through the critical period of
Y2K.

Freight Services:  All freight carriers surveyed or visited were
reported as already Y2K compliant.

Desk Top Software:
  *    Office 95: Users will be upgraded to Office 97 and Excel
     spreadsheets troubleshooted, by 8-31-99
  *    Windows 95 users will be upgraded to NT 4.0, by 8-31-99
  *    Symix business information software reported as being compliant
     will be run in a test environment using a HP 9000 for compliance
     proof, by 8-31-99

Other Manufacturing Information & Communications Software:  The
following software reported by their manufacturers as compliant. The
Company will conduct test on systems as dated:
  *    Automatic test equipment for product reliability 8-31-99
  *    EDI for customer/supplier communications 9-15-99
  *    Price quotation system.   This system was determined not Y2K
     compliant.  The Company is designing a new system that will be
     compliant and ready by 9-09-99

The following systems were documentary certified compliant:
  *    Lucent Technologies email system
  *    AT&T telephone system
  *    Pro-Engineering documentation software

Hardware:
  *    HP UNIX server was tested compliant.
  *    About 75% of non-compliant workstations already replaced
  *    Remaining workstations will be tested and those not compliant
     will be replaced by 8-31-99
  *    HP 10.2 Unix Operating System was reported by the manufacturer to
     be of questionable Y2K compliance. The Company will upgrade to HP
     version 11.0 and test for compliance by 10-01-99

Electric Power:  The Company does not anticipate any interruption to
its US manufacturing due to any non-compliance from the local power
company. Its China facility is already provided with backup generators
and backup generators will be added its Korea facility by October,
1999.

Cost to Address Year 2000 Issues:  To date, the Company has not
incurred any significant expenditures in connection with identifying
or evaluating Year 2000 compliance issues and has only used its
internal resources in this effort. The Company presently estimates the
labor costs used on compliance efforts to be approximately $60,000 and
replacement of hardware to be about $50,000. With respect to future
costs, the Company estimates it will spend approximately $50,000 for
remediation, validation and replacement of hardware and software which
the Company presently knows are not compliant and another $25,000 for
future staff time for such remediation. In addition, the Company
estimates that it may spend no more than another $10,000 on
remediation and validation of products and programs which have not yet
been assessed. The Company believes that these estimates are
reasonable and of minimal impact on operations. Capital expenditures
among these costs will be handled in accordance with generally
acceptable accounting principles. All other costs are expensed as
period costs as they are incurred. The Company does not consider that
these period costs will be of any material impact on its operations.
The Company does not anticipate any potential negative financial
impact of Year 2000 compliance issues relating to its business and its
ability to function normally. Any significant business interruption,
however, could have a material, adverse impact on the Company's
financial condition and results of operations.

Risks of Year 2000 Issues:  The Company considers any adverse events to
be unlikely and although remote, it recognizes the following
situations as worse case issues that could result from any Year 2000
non-compliance:
  1.   Customer Litigation.  Although the Company believes that its
     efforts will ensure that there is no disruptions in the business or
     operations of its customers, the possibility exists, though remote,
     that some customers may experience problems that may motivate such
     customers to commence litigation against the Company for restitution
     and damages that they believe may be related to such problems.
  2.   Disruption of Material Supply.  The Company has surveyed its
     suppliers with regard to their Y2K readiness and has taken action
     towards reasonable assurance that it pool of suppliers will be Y2K
     ready. Suppliers will maintain reserves of material through critical
     Y2K periods as are indicated by the Company's forecast system.
  3.   Disruption of the Company's Computer Information System.  The
     Company has identified all of its hardware and software that will
     require compliance. Some have been tested and upgraded or replaced.
     Final testing and necessary upgrading are anticipated to complete by
     October 1999. The Company considers any disruption of its computer
     information system to be unlikely.
  4.   Disruption of the Company's Computer-based Manufacturing
     Supporting System.  The company has inventoried all of its vendor
     provided computer-based systems, such as its testing and documentation
     systems. Although some vendors have provided documentary certification
     of compliance, the Company expects to compliance test these equipment
     and remedy any defects by September 1999. While no disruptions are
     anticipated, the Company believes that if disruptions occur, they will
     not be significant and will be dealt with promptly.
  5.   Disruption of Communication, Utilities and other Externally
     Provided Supports.  The Company has surveyed its providers of electric
     power, telecommunication, banking and other services and does not
     anticipate that it will encounter any non-compliance matters that
     originate from these service providers.

Contingency Plan: The Company has established contingency plans for
non-disruption of material supply as well as for the continuation of
the supply of electric power to operate its Asian subsidiaries. The
Company does not anticipate that any further contingency provision
will be required.

ITEM 7A.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK

Approximately 3% of the Company's total assets are invested in trading
securities of various domestic companies.  Although the market value
of these investments is subject to fluctuation from time to time,
management does not believe that any risk of loss of the principal
amounts would be material to the Company's profitability or asset
value.

The Company experiences foreign currency gains and losses, which are
reflected in the financial statements, due to the strengthening and
weakening of the U.S. dollar against currencies of the Company's
foreign subsidiaries.  The net exchange gain or foreign loss arising
from this was not material in 1999, 1998 and 1997.  The Company
anticipates that it will continue to have exchange gains or losses in
the future.

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA

(a)  Financial Statements
     Index to Consolidated Financial Statements

                                                                 Page

     *     Independent Auditor's Report                            19

     *     Consolidated Balance Sheets, May 30,                    20
           1999 and May 31, 1998.

     *     Consolidated Statements of Income for
           the Years Ended May 30, 1999, May 31,                   22
           1998, and June 1, 1997.

     *     Consolidated Statements of
           Stockholders' Equity for the Years                      23
           ended May 30, 1999, May 31, 1998, and
           June 1, 1997.

     *     Consolidated Statements of Cash Flows
           for the Years ended May 30, 1999, May                   24
           31, 1998, and June 1, 1997.

     *     Notes to Consolidated Financial                         26
           Statements

(b)  Supplemental Financial Information

     *     Quarterly Financial Data                                36








                     INDEPENDENT AUDITOR'S REPORT


To the Board of Directors
Ault Incorporated and Subsidiary
Minneapolis, Minnesota

We have audited the accompanying consolidated balance sheets of Ault
Incorporated and Subsidiary as of May 30, 1999 and May 31, 1998, and
the related consolidated statements of income, stockholders' equity,
and cash flows for each of the three fiscal years in the period ended
May 30, 1999.  These financial statements are the responsibility of
the Company's management.  Our responsibility it to express an opinion
on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement.  An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation.  We
believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the financial position
of Ault Incorporated and Subsidiary as of May 30, 1999, and May 31,
1998, and the results of their operations and their cash flows for
each of the three fiscal years in the period ended May 30, 1999, in
conformity with generally accepted accounting principles.


McGladrey & Pullen, LLP

Minneapolis, Minnesota
July 9, 1999




AULT INCORPORATED AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
May 30, 1999 and May 31, 1998

<TABLE>
<CAPTION>
ASSETS (Note 3)                           1999             1998
<S>                                  <C>              <C>

Current Assets
   Cash and cash Equivalents           $3,303,277       $5,934,794
   Investment in trading Securities       849,914          866,174
   Trade receivables, less
    allowance for doubtful Accounts
    of $30,000 in 1999; $31,000 in
    1998, (Note 10)                    10,466,897       6 ,254,920
   Inventories (Note 2)                 9,050,605        6,616,359
   Prepaid and other expenses                      701,743          617,921
   Deferred taxes (Note 4)                265,000           74,000
   Income tax receivable                  152,428                -

        Total current assets           24,789,864       20,364,168

Other Assets
   Other receivable                             -          199,209
   Intangibles, less
    amortization of $126,000
    in 1999; $39,000 in 1998           1,559,867          142,197
   Deferred taxes (Note 4)               105,000          192,000
   Other                                  40,676           40,908

                                       1,705,543          574,314

Property, Equipment and Leasehold
 Improvements at Cost (Note 9)
   Land                                2,116,875          875,699
   Building                              816,376          812,867
   Machinery and equipment             6,423,234        5,969,052
   Office furniture and
    equipment                            929,913          734,299
   Data processing
    equipment                          1,465,077        1,493,463
   Leasehold improvements                975,038          977,998
   Construction in
    progress (Note 8)                    814,735                -

                                      13,541,248       10,863,378

   Less accumulated depreciation       6,733,372        6,384,546

                                       6,807,876        4,478,832

                                     $33,303,283      $25,417,314
</TABLE>

See Notes to Consolidated Financial Statements.

AULT INCORPORATED AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
May 30, 1999 and May 31, 1998

<TABLE>
<CAPTION>
LIABILITIES AND
STOCKHOLDERS' EQUITY                      1999             1998
<S>                                  <C>              <C>

Current Liabilities
  Notes payable to bank (Note 3)      $1,427,614         $236,468
  Current maturities of
   long-term debt                        401,910          213,233
  Accounts payable                     5,557,255        3,426,989
  Accrued expenses:
     Compensation                        416,693          391,670
     Commissions                         536,105          475,886
     Other                                85,956          118,810
  Income tax payable                           -          197,554

      Total current liabilities        8,425,533        5,060,610

Long-Term Debt, less
 current maturities   (Note 3)         1,187,364          413,510

Deferred Rent Expense                     14,032           70,162

Retirement and Severance
 Benefits (Note 1                        234,374          244,911

Commitments and
Contingencies (Note 8)

Stockholders' Equity
(Notes 3, 5, 6, and 7)
  Preferred stock, no par
   value; authorized
   1,000,000 shares; none issued              -                -
  Common stock, no par
   value; authorized
   10,000,000 shares; issued
   and outstanding
   4,372,789 shares in 1999;
   4,161,758 shares in 1998           19,827,000       18,358,797
  Deduct notes receivable
   arising from the
   sale of common stock                 (145,000)        (203,750)
  Accumulated other
   comprehensive loss                   (599.337)        (898,127)
  Retained earnings                    4,359,317        2,371,201

                                      23,441,980       19,628,121

                                     $33,303,283      $25,417,314
</TABLE>


AULT INCORPORATED AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Years Ended May 30, 1999, May 31, 1998 and June 1, 1997
<TABLE>
<CAPTION>
                                          1999       1998        1997
<S>                                <C>         <C>         <C>

Net sales (Note 10)                $50,938,193 $41,136,232 $40,011,790

Cost of goods sold                  36,919,753  30,375,684  29,489,141
     Gross profit                   14,018,440  10,760,548  10,522,649

Operating expenses:
 Marketing                           4,375,893   3,707,267   3,306,320
 Design engineering                  2,425,303   1,788,736   1,582,046
 General and administrative          4,625,370   3,387,120   3,052,244
                                    11,426,566   8,883,123   7,940,610

     Operating income                2,591,874   1,877,425   2,582,039

Nonoperating income (expense):
 Interest expense                     (146,016)   (148,415)   (489,931)
 Interest income                       292,308     299,271      89,845
 Other                                 109,950    (101,563)     93,126
     Income before income taxes      2,848,116   1,926,718   2,275,079

Income taxes (benefit) (Note 4)        860,000     609,000     (90,000)
     Net income                     $1,988,116  $1,317,718  $2,365,079

Earnings per share (Note 1):
 Basic                                   $0.47       $0.32       $0.79
 Diluted                                  0.45        0.31        0.72
</TABLE>

See Notes to Consolidated Financial Statements

AULT INCORPORATED AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Years Ended May 30, 1999, May 31, 1998 and June 1, 1997
<TABLE>
<CAPTION>
                                              Notes
                                              Receivable              Accumulated
                                              From Sale  Retained    Other         Total
                         Common Stock         of Common  Earnings    Comprehensive Stockholders'
                       Shares      Amount        Stock   (Deficit)   Income (Loss) Equity
<S>                     <C>       <C>         <C>        <C>           <C>        <C>

Balance, June 2, 1996   2,119,776  $6,966,779        $- $(1,311,596)   $(83,928)  $5,571,255
Comprehensive income:
 Net income                    -            -         -   2,365,079           -    2,365,079
 Net change in foreign
  currency translation
  adjustment                   -            -         -           -     114,716      114,716
    Total comprehensive
     income                                                                        2,479,795)
Issuance of 115,957
 shares of common
 stock in accordance
 with stock purchase
 plan and stock option
 plan  (Notes 5 and 6)    115,957     336,717  (230,750)          -           -      132,967
Sale of company stock
 net of offering
 expenses of $442,109   1,840,000  10,620,794         -           -           -   10,620,794
Income tax benefit
 from stock options
 exercised (Note 4)            -      131,000         -           -           -      131,000

Balance June 1, 1997    4,075,333  18,055,290  (203,750)  1,053,483      30,788   18,935,811
Comprehensive income:
  Net income                   -            -         -   1,317,718           -    1,317,718
  Net change in
   foreign currency
   translation adjustment      -            -         -           -    (928,915)    (928,915)
     Total comprehensive
       income                                                                        388,803
Issuance of 86,025 shares
 of common stock in
 accordance with stock
 purchase plan and
 stock option plan
 (Notes 5 and 6)           86,025     303,507         -           -           -      303,507

Balance, May 31, 1998   4,161,758  18,358,797  (203,750)  2,371,201    (898,127)  19,628,121
Comprehensive income:
  Net income                    -           -         -   1,988,116           -    1,988,116
  Net change in foreign
   currency translation
   adjustment                   -           -         -           -     298,790      298,790
    Total comprehensive
     income                                                                        2,286,906
Issuance of 132,166
 shares of common
 stock in accordance
 with stock purchase
 plan and stock option
 plan (Notes 5 and 6)     132,166     636,203         -           -           -      636,203
Issuance of 78,895
 shares of common
 stock in connection
 with acquisition
 of LZR Electronics,
 Inc. (Note 1)             78,865     500,000         -           -            -     500,000
Repayment of note
 receivable from sale
 of common stock                -           -    58,750           -            -      58,750
Income tax benefit
 from stock options
 exercised (Note 4)             -     332,000         -           -            -      332,000

Balance, May 30, 1999   4,372,789 $19,827,000 $(145,000) $4,359,317    $(599,337) $23,441,980
</TABLE>

See Notes To Consolidated Financial Statements.



AULT INCORPORATED AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended May 30, 1999, May 31, 1998 and June 1, 1997
<TABLE>
<CAPTION>
                                   1999          1998            1997
<S>                                   <C>             <C>           <C>

Cash Flows From Operating Activities
  Net income                          $1,988,116     $1,317,718     $2,365,079
  Adjustments to reconcile net
  income to net cash provided by
  (used in) operating activities:
  Depreciation                           620,805        528,193        489,950
  Amortization                           191,576         36,306          3,025
  Loss (gain) on disposal of
   equipment                               1,437         28,830         (4,117)
  Deferred taxes                          71,198        415,000       (681,000)
  Changes in assets and
   liabilities, net effect
   of acquisition:
    (Increase) decrease in:
      Trade receivables               (4,024,584)     2,640,944     (1,550,600)
      Inventories                       (253,329)       645,568         10,867
      Prepaid and other expenses         (17,715)        42,479       (200,322)
      Trading securities                  16,260        (17,475)      (848,699)
    Increase (decrease) in:
      Accounts payable                   583,830       (103,926)      (981,624)
      Accrued expenses                  (117,863)      (500,231)       120,091
      Income tax payable                (188,830)      (232,597)       536,151
      Net cash provided by
       (used in)
       operating activities           (1,129,099)     4,800,809       (690,389)

Cash Flows From Investing Activities
 Purchase of property and
  equipment                           (1,988,716)    (1,467,732)    (1,204,925)
 Acquisition of LZR
  Electronics, Inc.                   (2,554,509)             -              -
 (Increase) decrease in
  intangibles and other assets            39,645         82,739       (163,846)
    Net cash used in
     investing activities             (4,503,580)     (1,384,993)   (1,368,771)

Cash Flows From Financing Activities
 Net borrowings (payments) on
  revolving credit agreement             729,133        (519,228)   (4,862,124)
  Proceeds from long-term
   borrowings                          1,490,724         300,000       524,140
  Proceeds from issuance of
   common stock                          636,203         303,507       132,967
  Payments received from notes
   receivable arising from
   sale of common stock                   58,750               -             -
  Principal payments on long-
   term borrowings                      (170,246)       (313,475)   (1,206,650)
  Proceeds from sale of common
   stock, net of $442,109 of
   expenses                                    -               -    10,620,794
     Net cash provided by
      (used in)
      financing activities             2,744,564        (229,196)    5,209,127
</TABLE>

(continued)

See Notes to Consolidated Financial Statements.

AULT INCORPORATED AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
Years Ended May 30, 1999, May 31, 1998 and June 1, 1997
<TABLE>
<CAPTION>
                                         1999              1998         1997
<S>                                   <C>             <C>           <C>

Effect of Foreign Currency
 Exchange Rate Changes on Cash           256,598        (928,915)      114,716
   Increase (decrease) in cash
    and cash equivalents              (2,631,517)      2,257,705     3,264,683

Cash and Cash Equivalents
 Beginning                             5,934,794       3,677,089       412,406
 Ending                               $3,303,277      $5,934,794    $3,677,089

Supplemental Schedule of
 Noncash Investing and
 Financing Activities
  Acquisition of LZR
   Electronics, Inc.:
    Fair value of assets
     purchased:
      Inventories                     $1,863,260             $ -           $ -
      Prepaid expenses                    48,366               -             -
      Property and equipment             193,298               -             -
      Goodwill                         1,400,000               -             -

       Total assets purchased          3,504,924               -             -

    Liabilities assumed
     and debt issued:
      Accounts payable                  (421,080)              -             -
      Accrued expenses                   (29,335)              -             -
      Convertible note payable          (500,000)              -             -
       Cash purchase price            $2,554,509             $ -           $ -

    Construction payable
     for new facility                   $734,972             $ -           $ -

Supplemental Disclosures
 of Cash Flow Information
  Cash payments for:
    Interest                            $145,588        $147,149      $534,803
    Taxes                                971,063         420,370        59,433
</TABLE>


See Notes to Consolidated Financial Statements.

AULT INCORPORATED AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 1.  Nature of Business and Significant Accounting Policies

Nature of business:  The Company and its subsidiary operate in one
business segment which includes the design, manufacturing, and
marketing of power conversion products, principally to original
equipment manufacturers of data communications equipment,
microcomputers and related peripherals, telecommunications equipment,
and portable medical equipment.  Sales are to customers worldwide, and
credit is granted based upon the credit policies of the Company.

A summary of the Company's significant accounting policies follows:

Principles of consolidation:  The accompanying consolidated financial
statements include the accounts of Ault Incorporated, its wholly owned
subsidiary, Ault Korea Corporation, and its wholly owned subsidiary,
Ault Xianghe Co. Ltd. (located in China), which commenced operations
in May 1997.  All significant intercompany transactions have been
eliminated.  The foreign currency translation adjustment represents
the translation into United States dollars of the Company's investment
in the net assets of its foreign subsidiary in accordance with the
provisions of Statement of Financial Accounting Standards No. 52.

Acquisition:  On December 1, 1998, the Company acquired the power
supply division of LZR Electronics, Inc., a manufacturer, developer,
and seller of power supplies, for approximately $3,050,000.  The
purchase method has been used to account for this transaction, with
results of operations included in the financial statements from the
date of acquisition.

Unaudited pro forma results of operations for the years ended May 30,
1999, and May 31, 1998, as though the Company acquired LZR
Electronics, Inc. as of June 2, 1997, are as follows:
<TABLE>
<CAPTION>
                               1999                  1998
<S>                            <C>                   <C>

Revenues                       $54,050,000           $47,577,000
Net income                       2,018,000             1,285,000
Basic earnings per share              0.48                  0.31
Diluted earnings per share            0.46                  0.30
</TABLE>

Use of estimates in the preparation of financial statements:  The
preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period.  Actual results
could differ from those estimates.

Reclassifications:  Certain 1998 and 1997 amounts have been
reclassified to be consistent with the 1999 presentation.

Cash and cash equivalents: The Company maintains its cash in bank
deposit accounts which, at times, may exceed federally insured limits.
The Company has not experienced any losses in such accounts.

For purposes of reporting cash flows, the Company considers all highly
liquid debt instruments purchased with a maturity of three months or
less to be cash equivalents.  Cash equivalents consist primarily of
short-term commercial paper.

Inventories:  Inventories are stated at the lower of cost (first-in,
first-out method) or market.

Investment in trading securities:  Trading securities are held for
resale in anticipation of short-term (generally 90 days or less)
fluctuations in market prices.  Trading securities, consisting of
preferred stock, are stated at fair value, which approximates cost at
May 30, 1999, and May 31, 1998.  Realized and unrealized gains and
losses are included in income, and have been immaterial.

Prepaid and other expenses: Prepaid and other expenses at May 30,
1999, and May 31, 1998, include refundable value-added tax and
refundable custom duties relating to the Korean operations of
approximately $168,000 and $236,000, respectively.

AULT INCORPORATED AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1.     Nature of Business and Significant Accounting Policies
(continued)

Intangibles:  Intangibles consist primarily of goodwill, which is
being amortized using the straight-line method over its economic
useful life, which has been estimated to be 15 years.

Depreciation: Depreciation is based on the estimated useful lives of
the individual assets.  The methods and estimated useful lives are as
follows:

<TABLE>
<CAPTION>
                                      Method                   Years
<S>                              <C>                           <C>

Building                         Straight-line                   36
Machinery and equipment          Straight-line                 3-10
Office furniture
 and equipment                   Straight-line                 5-15
Data processing                  Double declining balance
 equipment                        and straight-line             3-5
Leasehold improvements           Straight-line                 Life of lease

</TABLE>

Retirement  and severance benefits: Retirement and severance  benefits
represents  the accrual of compensation expense, net of deposits,  for
the  Korean operations' employees that is payable upon termination  of
employment.

The Company does not fund the retirement and severance benefits
accrued, but rather provides for the estimated accrued liability under
the plans as of the balance sheet date.  Under the National Pension
Scheme of Korea, the Company is required to transfer a certain portion
of the retirement allowances of employees to the National Pension
Fund.  The amount transferred reduces the retirement and severance
benefit liability recorded in the accompanying financial statements.

Revenue recognition:  Revenue from product sales is recognized when
shipped.

Design engineering: Design engineering costs are those incurred for
research, design, and development of new products and redesign of
existing products.  These costs are expensed currently.

Advertising expense: The Company expenses advertising costs as
incurred.  Advertising expenses of approximately $229,000, $294,000,
and $106,000 were charged to operations during the years ended May 30,
1999, May 31, 1998, and
June 1, 1997, respectively.

Income taxes:  Deferred taxes are provided on a liability method
whereby deferred tax assets are recognized for deductible temporary
differences and operating loss and tax credit carryforwards, and
deferred tax liabilities are recognized for taxable temporary
differences.  Temporary differences are the differences between the
reported amounts of assets and liabilities and their tax bases.
Deferred tax assets are reduced by a valuation allowance when, in the
opinion of management, it is more likely than not that some portion or
all of the deferred tax assets will not be realized.  Deferred tax
assets and liabilities are adjusted for the effects of changes in tax
laws and rates on the date of enactment.

Investment tax credits, research and development credits, and job
credits are accounted for by the flow-through method whereby they
reduce income taxes currently payable and the provision for income
taxes in the period the assets giving rise to such credits are placed
in service.  To the extent such credits are not currently utilized on
the Company's tax return, deferred tax assets, subject to
considerations about the need for a valuation allowance, are
recognized for the carryforward amount.

Long-lived assets:  In accordance with Statement of Financial
Accounting Standards No. 121, Accounting for the Impairment of Long-
Lived Assets and for Long-Lived Assets to Be Disposed Of, the Company
reviews its long-lived assets and intangibles related to those assets
periodically to determine potential impairment by comparing the
carrying value of the long-lived assets outstanding with estimated
future cash flows expected to result from the use of the assets,
including cash flows from disposition.  Should the sum of the expected
future cash flows be less than the carrying value, the Company would
recognize an impairment loss.  An impairment loss would be measured by
comparing the amount by which the carrying value exceeds the fair
value of the long-lived assets and intangibles.  To date, management
has determined that no impairment of long-lived assets exists.
AULT INCORPORATED AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note  1.      Nature  of Business and Significant Accounting  Policies
(continued)

Fair value of financial instruments:  The following methods and
assumptions were used to estimate the fair value of certain financial
instruments:

Cash equivalents:  The carrying amount approximates fair value.

Investments in trading securities:  The fair value of these
investments is based on quoted market prices.  The carrying amount
approximates fair value.

Long-term debt:  The fair value of the long-term debt is estimated
based on interest rates for the same or similar debt offered to the
Company having the same or similar remaining maturities and collateral
requirements.  The carrying value of the long-term debt approximates
fair value.

Earning per share:  Basic earnings per share is computed by dividing
income available to common shareholders by the weighted-average number
of common shares outstanding during the period.  Diluted earnings per
share is computed by dividing income available to common shareholders
by the weighted-average number of common shares outstanding during the
period adjusted by common share equivalents related to stock options
(when dilutive), warrants, and the employee stock purchase plan.
Options to purchase 227,413, 217,435, and 31,250 shares of common
stock were outstanding during the years ended May 30, 1999, May 31,
1998, and June 1, 1997, respectively, but were excluded from the
computation of common stock equivalents because they were anti-
dilutive.

The following table reflects the calculation of basic and diluted
earnings per share:
<TABLE>
<CAPTION>
                                              May 30,     May 31,     June 1,                                         31,       1,
                                                1999        1998        1997
<S>                                        <C>         <C>         <C>

Numerator:
 Income available to common
  shareholders                             $1,988,116  $1,317,718  $2,365,079
Denominator:
 Basic-weighted-average
  shares outstanding                        4,195,849   4,136,059   3,011,062
 Effect of dilutive shares:
   Stock options outstanding                  218,443     118,113     263,488
   Warrants outstanding                           173           -       5,159
 Diluted-weighted-average
  shares outstanding                        4,414,465   4,254,172   3,279,709

Basic earnings per share                        $0.47       $0.32       $0.79

Diluted earnings per share                      $0.45       $0.31       $0.72
</TABLE>

Comprehensive income: The Financial Accounting Standards Board has
issued Statement of Financial Accounting Standards No. 130, Reporting
Comprehensive Income.  This statement requires reporting items which
are components of other comprehensive income, such as foreign currency
translation adjustments and unrealized gains and losses on certain
investments in debt and equity securities, and is presented in the
statements of stockholders' equity.  The adoption of Statement No. 130
had no impact on total stockholders' equity.

The Company initially applied Statement No. 130 for the year ended May
30, 1999.  Prior-year financial statements have been reclassified to
conform to the requirements of Statement No. 130.

AULT INCORPORATED AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note  1.      Nature  of Business and Significant Accounting  Policies
(continued)

Fiscal year: The Company operates on a 52- to 53-week fiscal year.
The fiscal years for the financial statements presented end May 30,
1999, May 31, 1998, and June 1, 1997, all of which contain 52 weeks.

Note 2.   Inventories

The components of inventory at May 30, 1999, and May 31, 1998, are as
follows:
<TABLE>
<CAPTION>
                                        1999                1998
<S>                               <C>                 <C>

Raw materials                     $4,958,646          $3,743,940
Work in process                      216,341             277,943
Finished goods                     3,875,618           2,594,476
                                  $9,050,605          $6,616,359

</TABLE>

Note 3.   Financing Arrangement and Long-Term Debt

Financing arrangement:  On June 2, 1999, the Company entered into a
new financing agreement which includes a $4,000,000 revolving line-of-
credit agreement through December 1, 1999.  Interest on advances is at
the bank's reference rate less one-half percent, 7.75 percent at May
30, 1999.  All advances are due on demand and are secured by
substantially all assets of the Company.  In addition, the agreement
contains certain reporting and operating covenants, one of which is a
restriction on the payment of any dividends.  Advances outstanding on
the revolving line of credit were $729,133 at May 30, 1999.  Also, the
Company's Korean subsidiary maintains a facility agreement to cover
bank overdrafts, short-term financing, and export financing.  Advances
outstanding relating to the Korean facility were $698,481 and $236,468
at May 30, 1999, and May 31, 1998, respectively.

<TABLE>
<CAPTION>
Long-term debt:
                                              May 30, 1999        May 31, 1998
<S>                                           <C>                   <C>

7.97% term loan, due in monthly
 installments of $7,320, including
 interest to November 2001, secured
 by equipment                                    $198,501            $267,502
8.0% term loan, due in monthly
 installments of $7,340, including
 interest to February 2001,
 secured by equipment                             143,221             215,665
7.2% term loan, due in monthly
 installments of $7,978, including
 interest to December 2003,
 secured by equipment                             371,199                   -
7.5% note payable, quarterly
 interest payments until August 1999,
 thereafter due in quarterly
 principal installments of $46,588,
 plus interest, through November 2001,
 secured by Korean Government-funded agency       372,702                   -
7.5% note payable, quarterly
 interest payments until April 2000,
 thereafter due in quarterly
 principal installments of $52,464
 plus interest, through April 2002,
 secured by Korean
 Government-funded agency                         419,709                   -
8.0% note payable, due in quarterly
 installments of $20,985 plus interest,
 through April 2000, secured by land,
 buildings, and Korean
 Government-funded agency                          83,942                   -
6.5% note payable                                       -             143,576
Total                                           1,589,274             626,743

Less current maturities                           410,910             213,233
                                               $1,187,364            $413,510
</TABLE>

AULT INCORPORATED AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 3.  Financing Arrangement and Long-Term Debt (continued)

Approximate maturities of long-term debt for years subsequent to May
30, 1999, are as follows:

<TABLE>
    <C>                                                   <C>

    2000                                                    $402,000
    2001                                                     618,000
    2002                                                     428,000
    2003                                                      88,000
    2004                                                      53,000
                                                          $1,589,000
</TABLE>

Note 4.     Income Taxes

Pretax income (loss) for domestic and foreign operations was as
follows:
<TABLE>
<CAPTION>
                                       May 30,       May 31,         June 1,
                                        1999          1998            1997
<S>                                 <C>           <C>             <C>

Domestic                            $2,729,229    $1,516,396      $2,394,204
Foreign                                118,887       410,322        (119,125)
Total                               $2,848,116    $1,926,718      $2,275,079
</TABLE>

The components of the provision (benefit) for income taxes are as follows:

<TABLE>
<CAPTION>
                                       May 30,       May 31,         June 1,
                                        1999          1998            1997
<S>                                     <C>          <C>            <C>

Current:
    Domestic (a)                      $699,000      $129,000        $543,000
    Foreign                             10,000        21,000               -
    State                               74,000        44,000          48,000
Deferred                                77,000       415,000        (681,000)
                                      $860,000      $609,000        $(90,000)
</TABLE>

<TABLE>
<CAPTION>
                                       May 30,       May 31,         June 1,
                                        1999          1998            1997
<S>                                   <C>           <C>             <C>

Domestic tax expense before
 application of tax credits and
 net operating loss and
 tax credit carryforwards             $903,000      $346,000        $811,000
Federal net operating loss                   -             -         (65,000)
Tax credits                           (204,000)     (217,000)       (203,000)
Domestic tax expense                  $699,000      $129,000        $543,000

</TABLE>

AULT INCORPORATED AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 4.     Income Taxes (continued)

The income tax provision differs from the amount of income tax
determined by applying the U.S. federal income tax rate to pretax
income for the years ended May 30, 1999, May 31, 1998, and June 1,
1997, due to the following:
<TABLE>
<CAPTION>
                                        1999          1998             1997
<S>                                   <C>           <C>              <C>

Computed expected tax
 provision (benefit)                  $968,000      $655,000         $774,000
Increase (decrease) in income
 taxes resulting from:
  Nondeductible expenses                 8,000         9,000           28,000
  State income taxes, net
   of federal benefit                   67,000        39,000           82,000
  Foreign taxes at higher
   (lower) rates                       (30,000)      (66,000)          12,000
Utilization of net operating loss
 and tax credit carryforwards                -             -         (303,000)
Current year R&D tax credits:
 Domestic                              (80,000)            -                -
 State                                 (79,000)            -                -
Reduction in valuation allowance             -       (28,000)        (711,000)
Nonutilization of foreign tax benefit        -             -           28,000
Other                                    6,000             -                -
                                      $860,000      $609,000         $(90,000)
</TABLE>

Net deferred taxes consist of the following components as of May 30,
1999 and May 31, 1998:

<TABLE>
<CAPTION>
                                               1999              1998
<S>                                                 <C>              <C>

Deferred tax assets:
 Tax credit carryforwards                            $49,000         $124,000
 Allowance for doubtful accounts                      12,000           13,000
 Future income tax benefit from
  stock options exercised                            181,000                -
 Accrued vacation                                     42,000           28,000
 Accrued warranty                                     30,000           33,000
 Equipment and leasehold improvements                 56,000           68,000
                                                    $370,000         $266,000
</TABLE>

The components giving rise to the net deferred tax asset described
above have been included in the accompanying consolidated balance
sheet as of May 30, 1999, as follows:

<TABLE>
<S>                                                                  <C>

Current assets                                                       $265,000
Noncurrent assets                                                     105,000

</TABLE>

At June 1, 1997, the Company reduced the valuation allowance to
reflect the deferred tax assets utilized in 1997 to reduce current
income taxes and to recognize net deferred tax assets of $681,000 at
June 1, 1997.  The recognized deferred tax assets results from the
expected utilization of net operating losses and tax credit
carryforwards and reversal of certain temporary differences.

The Company has assessed its past earnings history and trends,
budgeted sales, and expiration of dates of carryforwards and has
determined that it is more likely than not that the $370,000 of
deferred tax assets at May 30, 1999, will be realized.

AULT INCORPORATED AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 4.  Income Taxes (continued)

At May 30, 1999, the Company had research and development tax credit
carryforwards of approximately $49,000 available to reduce future
income taxes in Minnesota for income tax purposes.  These credits
expire in varying amounts as follows:
<TABLE>
                <C>                    <C>

                2009                    $9,000
                2010                    14,000
                2011                     1,000
                2014                    25,000
                                       $49,000
</TABLE>

Note 5.   Employee Benefit Plans

Profit sharing plan:  The Company has a profit sharing plan covering
substantially all U.S. employees. The Company is required to match 25
percent of the employees' first 6 percent of contributions and may
make additional contributions to the plan to the extent authorized by
the Board of Directors.  The contribution amounts charged to operating
expenses in the years ended May 30, 1999, May 31, 1998, and June 1,
1997, approximated $45,000, $39,000, and $37,000, respectively.

Stock purchase plan:  On March 10, 1996, the Company established a
stock purchase plan in which up to 100,000 shares of common stock may
be purchased by employees.  The purchase price is equal to the lesser
of 85 percent of the fair market value of the shares on the date the
phase commences or 85 percent of the fair market value of the shares
on the termination date of the phase.  Each phase is one year from the
commencement date of a phase.  There were 11,766, 10,825, and 13,957
shares purchased under this plan during the years ended May 30, 1999,
May 31, 1998, and June 1, 1997, respectively.

Note 6.   Stock Option Plan

The Company's 1986 and 1996 stock option plan has reserved 600,000 and
500,000 common shares, respectively, for issuance under qualified and
nonqualified stock options for its key employees and directors.
Option prices are the market value of the stock at the time the option
was granted.  Options become exercisable as determined at the date of
grant by a committee of the Board of Directors.  Options expire ten
years after the date of grant unless an earlier expiration date is set
at the time of grant.

The Company has adopted the disclosure-only provisions of Statement of
Financial Accounting Standards No. 123, Accounting for Stock-Based
Compensation.  Accordingly, no compensation cost has been recognized
for the stock option plan.  Had compensation cost for the Company's
stock option plans been determined based on the fair value at the
grant date for awards in 1999, 1998, and 1997 consistent with the
provisions of SFAS No. 123, the Company's net income and net income
per share would have changed to the pro forma amounts indicated below:
<TABLE>
<CAPTION>

                                         1999           1998            1997
<S>                                  <C>            <C>             <C>

Net income, as reported              $1,988,116     $1,317,718      $2,365,079
Net income, pro forma                 1,305,841        700,698       1,969,063
Net income per share,
 basic, as reported                        0.47           0.32            0.79
Net income per share,
 diluted, as reported                      0.45           0.31            0.72
Net income per share,
 basic, pro forma                          0.31           0.17            0.65
Net income per share,
 diluted, pro forma                        0.29           0.17            0.60

</TABLE>

AULT INCORPORATED AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 6.     Stock Option Plan (continued)

The fair value of each option grant is estimated on the date of grant
using the Black-Scholes option-pricing model with the following
weighted-average assumptions used for grants in 1999, 1998, and 1997:

<TABLE>
<CAPTION>
                                         1999       1998      1997
<S>                                   <C>        <C>       <C>

Expected dividend yield                   $ -        $ -       $ -
Expected stock price volatility        71.51%     63.14%    67.68%
Risk-free interest rate                 5.24%      6.04%     6.18%
Expected life of options              4 years    4 years   5 years

</TABLE>

The pro forma effect on net income in 1999, 1998, and 1997 is not
representative of the pro forma effect in future years because it does
not take into consideration pro forma compensation expense related to
grants made prior to 1996.

Additional information relating to all outstanding options as of May
30, 1999, May 31, 1998, and June 1, 1997, is as follows:

<TABLE>
<CAPTION>
                              1999              1998                   1997
                           Weighted-          Weighted-              Weighted-
                             Average          Average                 Average
                            Exercise          Exercise               Exercise
                       Shares     Price    Shares   Price        Shares    Price
<S>                   <C>         <C>     <C>       <C>          <C>       <C>

Options outstanding at
 beginning of year    512,550     $5.86   426,750   $4.44        345,250   $2.37
Options exercised    (120,400)     4.79   (75,200)   3.30       (102,000)   2.68
Options expired       (18,000)     8.50    (2,500)   7.75              -       -
Options granted       301,100      3.98   163,500    8.43        183,500    7.35
Options outstanding
 at end of year       675,250     $5.14   512,550   $5.86        426,750   $4.44
Options exercisable
 at end of year       352,300     $5.02   283,175   $4.65        204,750   $3.16
Weighted-average
 fair value of options
 granted during
 the year                         $3.14             $4.66                  $4.34

</TABLE>

The following table summarizes information about stock options
outstanding at May 30, 1999:
<TABLE>
<CAPTION>
                           Options Outstanding             Options Exercisable
                          Weighted-
                Number    Average       Weighted-         Number       Weighted-
 Range of    Outstanding   Remaining    Average       Exercisable     Average
 Exercise     at May 30,  Contractual   Exercise       at May 30,      Exercise
 Prices         1999      Life (Years)   Price            1999         Price
<C>            <C>            <C>         <C>           <C>             <C>

$1.19-$1.63     29,000        5.0         $1.20          29,000         $1.20
 2.13- 2.75     91,000        5.2          2.37          91,000          2.37
 3.25- 3.875   270,250        8.8          3.77          60,925          3.72
 5.06- 6.53     71,000        7.4          6.28          55,375          6.24
 7.75- 8.625   214,000        7.6          8.20         116,000          8.14
$1.19-$8.625   675,250        7.7         $5.14         352,300         $5.02

</TABLE>

Note 7.  Stockholders' Equity
The Board of Directors is empowered to establish and to designate
classes and series of preferred shares and to set the terms of such
shares, including terms with respect to redemption, dividends,
liquidation, conversion, and voting rights.  The Restated Articles of
Incorporation provide that the preferred shares are senior to the
common shares with respect to dividends and liquidation.  No preferred
shares have been issued.
AULT INCORPORATED AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 7.     Stockholders' Equity (continued)

The Company has a shareholders' rights plan.  Under this plan, a Class
A, Junior Participating Preferred Stock with no par value was created.
In addition, a dividend of one right was declared for each share of
common stock at an exercise price of $36 per right and a redemption
price of $0.001 per right.  Each right is equal to a right to purchase
one one-hundredth of a share of the Class A, Junior Participating
Preferred Stock. 100,000 shares of preferred stock are reserved for
the exercise of the rights.  No rights were exercised during the years
ended May 30, 1999, May 31, 1998, and June 1, 1997.

The Company has notes receivable from certain officers of the Company
arising from the sale of common stock recorded as an offset to
stockholders' equity.  The notes are due in September 2001.

In December 1996, the Company completed a secondary stock offering of
1,840,000 shares of common stock.  In connection with this offering,
warrants to purchase 112,000 shares of common stock were issued.
These warrants are exercisable at $7.80 per share through December
2001.


Note 8.     Commitments and Contingencies
Operating leases:  The Company leases its United States plant under an
operating lease through August 1999.  In addition, certain equipment
and motor vehicles are leased under operating leases with terms of
approximately 36 months.

Approximate minimum annual rental commitments at May 30, 1999, are as
follows:
<TABLE>
                   <C>                      <C>

                   2000                     $225,000
                   2001                      138,000
                   2002                      126,000
                   2003                      128,000
                   2004                       84,000
                                            $701,000
</TABLE>

Total rental expense for the years ended May 30, 1999, May 31, 1998,
and June 1, 1997, was approximately $511,000, $391,000, and $456,000,
respectively.

Long-term financing:  In connection with the construction of the new
manufacturing/office facility, the Company obtained a short-term
advancing term note up to $3,200,000 through January 1, 2000.  No
advances were outstanding on this term note as of May 30, 1999.  Total
costs to construct this facility are estimated at $5,000,000.  The
Company plans to obtain long-term financing for this facility during
fiscal 2000.


Note 9.  Segment Information and Foreign Operations
The Financial Accounting Standards Board has issued Statement No. 131,
Disclosures About Segments of an Enterprise and Related Information.
This statement requires disclosure of certain information for each
reportable segment, including general information, profit and loss
information, segment assets, etc.  The Company initially applied
Statement No. 131 for the year ended May 30, 1999.

AULT INCORPORATED AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 9.  Segment Information and Foreign Operations (continued)

The Company conducts its business within one reportable segment: the
power conversion product industry.  Foreign manufacturing is done by
the Korean subsidiary, including its wholly owned subsidiary located
in China, and certain nonaffiliated companies in China and Thailand.
All United States manufacturing is done by Ault Incorporated.  A
summary of the Company's revenues, net income, and identifiable assets
by geographic area is presented below:

<TABLE>
<CAPTION>
                                 May 30,        May 31,           June 1,
                                  1999           1998              1997
<S>                           <C>            <C>                <C>

Revenues:
 Domestic operations          $49,366,148    $39,849,215        $39,022,322
 Korean and Chinese
  operations-customers          1,572,045      1,287,017            989,468
 Korean and Chinese
   operations-parent            8,310,867      9,056,631          7,965,817
 Eliminations                  (8,310,867)    (9,056,631)        (7,965,817)
 Consolidated                 $50,938,193    $41,136,232        $40,011,790

Net income (loss):
 Domestic operations           $1,879,164       $964,396         $2,473,815
 Korean and Chinese
   operations                      44,812        419,261           (165,190)
 Eliminations                      64,140        (65,939)            56,454
 Consolidated                  $1,988,116     $1,317,718         $2,365,079

Identifiable assets:
 Domestic operations          $31,287,114    $24,381,633        $24,231,186
 Korean and Chinese
   operations                   8,770,190      7,108,449          7,435,977
 Eliminations                  (6,754,021)    (6,072,768)        (5,572,702)
 Consolidated                 $33,303,283    $25,417,314        $26,094,461

</TABLE>

Sales from the subsidiary to the parent company are based upon profit
margins which represent competitive pricing of similar products.

Export sales:  The Company also had foreign export sales amounting to
14.3, 27.1, and 20.4 percent of total sales for the years ended May
30, 1999, May 31, 1998, and June 1, 1997, respectively.

Other foreign production:  In addition to the manufacturing done by
the Korean subsidiary, the Company has subcontracting agreements for
the purchase of finished assemblies from certain manufacturers in
China and Thailand.  Total purchases under these agreements were
approximately $20,525,000, $15,340,000, and $15,248,000 for the years
ended May 30, 1999, May 31, 1998, and June 1, 1997, respectively.

Note 10.  Major Customer

The Company had a major customer during the years ended May 30, 1999,
May 31, 1998, and June 1, 1997, as follows:

<TABLE>
<CAPTION>
                                          For the Years Ended
                                         May 30,   May 31,   June 1,
                                            1999      1998      1997
<S>                                        <C>        <C>       <C>

Customer A:
 Sales percentage                          13.3%      2.3%      3.3%
 Accounts receivable percentage             9.2%      8.3%      5.3%

</TABLE>

ITEM 8 (b) SUPPLEMENTAL FINANCIAL INFORMATION

                       QUARTERLY FINANCIAL DATA
                              (Unaudited)
             (Amounts in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
                                             FISCAL
                                                QUARTERS

                                        1ST      2ND        3RD         4TH

                                               (Unaudited)
<S>                                   <C>      <C>        <C>        <C>

1999

Net Sales (Note 10)                   $11,337  $11,046    $13,965    $14,590

Gross Profit                            3,062    3,051      3,806      4,099

Income Before Income Taxes                718      656        942        532

Net Income                                475      463        606        444

Earnings Per Share (Note 1)
  Basic                                 $0.11    $0.11      $0.14      $0.10
  Diluted                                0.11     0.11       0.14       0.10

1998

Net Sales                              $9,423  $10,954    $10,294    $10,465

Gross Profit                            2,208    2,868      2,673      3,010

Income Before Income Taxes                146      753        361        666

Net Income                                 87      509        282        439

Net Income Per Share:
  Basic                                 $0.02    $0.12      $0.07      $0.11
  Diluted                                0.02     0.12       0.07       0.10

</TABLE>

See NOTE TO CONSOLIDATED FINANCIAL STATEMENTS

ITEM 9.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE

Not Applicable.

                               PART III.

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

Information called for by Item 405 under Registration S-K with respect
to the Company's executive officers is contained under Item 1,
Narrative Description of The Business -- Executive Officers of the
Registrant.  The information required by this item with respect to
directors will be presented under the caption "Election of Directors"
in the Company's definitive proxy statement for its Annual Meeting to
be held on September 30, 1999 and is expressly incorporated herein by
reference.  Such proxy statement will be filed with the Securities and
Exchange Commission not later than 120 days from the end of the
Company's 1999 fiscal year.

Information called for by item 405 under Regulation S-K with respect
to the information relating to compliance with 16(a) of the Exchange
Act is presented under the caption "Compliance with Section 16(a) of
the Securities Exchange Act 1934" in the Company's definitive proxy
statement for its Annual Meeting to be held on September 30, 1999 and
is expressly incorporated herein by reference.

ITEM 11.  EXECUTIVE COMPENSATION

The information called for by Item 403 under Regulation S-K, to the
extent applicable, will be set forth under the caption "Executive
Compensation and Other Information" under "General" in the  Company's
definitive proxy materials for its September 30, 1999 Annual Meeting
to be filed within 120 days from the end of the Company's fiscal 1999
which information is expressly incorporated herein by reference.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

The information called for by Item 403 under Regulation S-K, to the
extent applicable, will be set forth under the caption "Security
Ownership of Principal Shareholders and Management" in the Company's
definitive proxy statement for its September 30, 1999 Annual Meeting
to be filed within 120 days from the end of the Company's fiscal year
1999, which information is expressly incorporated herein by reference.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Not Applicable.

                               PART IV.

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT, SCHEDULES AND REPORTS

(a)(1) The following financial statements are included in Part II, Item 8:
<TABLE>
<CAPTION>
                                                                   Page
<S>                                                                 <C>

          Independent Auditor's Report                              19

          Consolidated Financial Statements

          --Balance Sheets, May 30, 1999 and May 31, 1998           20

          --Consolidated Statements of Income for the Years
            Ended May 30, 1999, May 31, 1998 and June 1, 1997       22

          --Consolidated Statements of Stockholders' Equity
            for the Years Ended May 30, 1999, May 31, 1998
            and June 1, 1997                                        23

          --Consolidated Statements of Cash Flows for the
            Years Ended May 30, 1999, May 31, 1998 and
            June 1, 1997                                            24

          --Notes to Consolidated Financial Statements              26

(2)  The following financial statements schedule for the years
     ended May 30, 1999, May 31, 1998 and June 1, 1997 are
     submitted herein following the signature page of this report.

          --Independent Auditor's Report on the Supplementary
            Information Schedule                                    41

          --Schedule II - Valuation and Qualifying Accounts         42
</TABLE>

     All other Schedules are omitted because they are not applicable or the
     required information is shown in the financial statements of notes
     thereto.


(3)  Exhibits

     The Exhibits required to be filed with this report or incorporated by
     reference are listed in the Exhibit Index, which follows the Financial
     Statements Schedules.

     (b)  Reports on Form 8-K during 3 months ended May 30, 1999 - None



                                        SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, Ault Incorporated has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

AULT INCORPORATED


/s/ Frederick M. Green                                     August 20, 1999
Frederick M. Green
President, Chief Executive Officer and Director

Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed by the following persons on behalf of the Registrant
in the capacities and on the dates indicated.

                              Power of Attorney

Each person whose signature appears below constitutes and appoints FREDERICK
M. GREEN and CARLOS S. MONTAGUE as his true and lawful attorneys-in-fact and
agents, each acting alone, with full power of substitution and resubstitution,
for him and in his name, place and stead, in any and all capacities, to sign
any or all amendments to this Annual Report on Form 10-K and to file the same,
with all exhibits thereto, and other documents in connection therewith, with
the Securities and Exchange Commission, granting unto said attorneys-in-fact
and agents, each acting alone, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all said attorneys-in-fact and agents,
each acting along, or his substitute or substitutes, may lawfully do or
cause to be done by virtue thereof.

<TABLE>
<CAPTION>

Signature                       Title                           Date
<C>                           <C>                            <C>    <C> <C>

/s/Frederick M. Green         President, Chief               August 25, 1999
Frederick M. Green            Executive Officer and
                              Director

/s/Carlos S. Montague         Vice President,                August 25, 1999
                              Treasurer, Chief
                              Financial Officer,
                              Assistant Secretary and
                              Controller*

/s/Matthew A. Sutton          Director                       August 25, 1999
Matthew A. Sutton

/s/Frank L. Sims              Director                       August 25, 1999
Frank L. Sims

/s/Delbert W. Johnson         Director                       August 25, 1999
Delbert W. Johnson

/s/John G. Kassakian          Director                       August 25, 1999
John G. Kassakian

/s/David P. Larkin            Director                       August 25, 1999
David P. Larkin

/s/James M. Duddleston        Director                       August 25, 1999
James M. Duddleston

</TABLE>


*Principal Financial Officer and Principal Accounting Officer

****************************************************************************
                  SECURITIES AND EXCHANGE COMMISSION

                          Washington, D.C.  20549

                                 FORM 10-K



              ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

                 OF THE SECURITIES EXCHANGE ACT OF 1934

                                    OF

                             AULT INCORPORATED

                                   FOR

                           YEAR ENDED MAY 30, 1999




*****************************************************************************


                         FINANCIAL STATEMENT SCHEDULES


*****************************************************************************



                          INDEPENDENT AUDITOR'S REPORT
                        ON THE SUPPLEMENTARY INFORMATION



To the Board of Directors
Ault Incorporated and Subsidiary
Minneapolis, Minnesota


Our audits were made for the purpose of forming an opinion on the basic
consolidated financial statements taken as a whole.  The consolidated
supplemental schedule II is presented for purposes of complying with the
Securities and Exchange Commission's rules and is not a part of the basic
consolidated financial statements.  This schedule has been subjected to the
auditing procedures applied in our audits of the basic consolidated
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic consolidated financial statements taken
as a whole.

McGladrey & Pullen, LLP



Minneapolis, Minnesota
July 9, 1999



AULT INCORPORATED AND SUBSIDIARY                                     SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS

Years Ended May 30, 1999, May 31, 1998 and June 1, 1997
<TABLE>
<CAPTION>
                                  Balance at   Charged to             Balance at
                                  Beginning     Costs and                 End of
                                  of Period      Expenses  Deductions     Period
<S>                                 <C>           <C>       <C>          <C>

Year ended May 30, 1999:
 Allowance for doubtful accounts    $31,000       $47,000   $48,000 (a)  $30,000
 Reserve for warranties              83,000        32,000    41,000       74,000

Year ended May 31, 1998:
 Allowance for doubtful accounts    120,000        95,000   184,000 (a)   31,000
 Reserve for warranties              81,000        97,000    95,000       83,000

Year ended June 1, 1997:
 Allowance for doubtful accounts    116,000        50,000    46,000 (a)  120,000
 Reserve for warranties              77,000        72,000    68,000       81,000

<FN>

(a) Represents charge-off of accounts receivable, net of recoveries.

</TABLE>



*****************************************************************************

                      SECURITIES AND EXCHANGE COMMISSION

                           Washington, D.C.  20549

                                  FORM 10-K



               ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

                OF THE SECURITIES AND EXCHANGE ACT OF 1934

                                   OF

                            AULT INCORPORATED

                                  FOR

                           YEAR ENDED MAY 30, 1999


******************************************************************************

                                 EXHIBITS


******************************************************************************



                           AULT INCORPORATED

                           EXHIBIT INDEX TO
                      FORM 10-K FOR THE YEAR ENDED
                                May 30, 1999


Required Registration S-K
Exhibit Items

SK Reference

<TABLE>
<CAPTION>
            Title of Documents          Location
<S>         <C>                         <C>

3(a)        Restated Articles of        Filed as Exhibit 3(a) to Form 10-K for
            Incorporation, as amended   fiscal 1988 and incorporated herein by
                                        reference

3(b)        Bylaws, as amended          Filed as Exhibit 3(b) to Registration
                                        Statement No. 2-85224 and incorporated
                                        herein by reference

3(c)        Amendment to Articles       Filed herewith as Exhibit 3(c)
            of Incorporation

4.1         Rights Agreement            Filed electronically on Form 8-K for
                                        March 1996 and herein incorporated by
                                        reference

10.1        Management Incentive        Filed as Exhibit 10(b) to Registration
            Compensation Plan           Statement 2-85224 and incorporated
                                        herein by reference

10.2        1986 Employee Stock         Filed as Exhibit 10(c) to Form 10-K for
            Option Plan                 fiscal 1987 and incorporated herein
                                        by reference

10.3        Ten Year Building Lease     Filed as Exhibit 10(c) to Form 10-L for
            Contract                    fiscal 1987 and incorporated herein
                                        by reference

10.4        Financing Agreement on      Filed as Exhibit 10(f) to Form 10-K for
            Credit Facility             fiscal 1995 and incorporated herein
                                        by reference

10.5        First and Second            Filed electronically as Exhibit 10(g) to
            Amendments to Financing     Form 10-K for fiscal 1996 and herein
            Agreement on Credit         incorporated by reference
            Facility

10.6        Employee Stock Purchase     Filed electronically Commission File
            Plan                        #333-4609 and herein incorporated by
                                        reference

10.7        Amended and Restated        Filed herewith as Exhibit 10(h)
            Letter Loan Agreement
            (Replaced former 10.7)

10.8        1986 Employee stock         Filed electronically.  Commission File
            Option plan, Amended        #333-4609 and herein incorporated by
                                        reference

10.9        1996 Employee stock         Filed electronically.  Commission File
            Option plan                 #333-4609 and herein incorporated by
                                        reference

10.10       Cost Plus Construction      Filed herewith as Exhibit 10(i)
            Contract

11          Computation of Per Share    Filed herewith at page 45
            Earnings

21          Subsidiary of Registrant    Filed as Exhibit 21 to Form 10-K for
                                        fiscal 1997 and incorporated herein
                                        by reference

23          Consent of Independent      Filed herewith at page 87
            Auditors

27          Financial Data Schedule     Filed electronically

</TABLE>

Pursuant to provisions of Item 601(b)(A)(iii)(a) of Regulation S-K, copies of
instruments defining the rights of holders of long-term debt of the Company
are not being filed and in lieu thereof, Company agrees to furnish copies
thereof to the Securities and Exchange Commission upon request.