U.S. SECURITIES AND EXCHANGE COMMISSION
                          	WASHINGTON, D.C. 20549
                                	FORM 10-KSB
  (Mark One)
  [X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) of the SECURITIES
	     EXCHANGE ACT OF 1934
	             For the fiscal year ended  DECEMBER 31, 1997  
 
  [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE	SECURITIES
      ACT OF 1934
             	For the transition period              to              

                      	Commission file number   2-92949-S    
                      	ELECTRONIC SYSTEMS TECHNOLOGY, INC.
                 	(Name of small business issuer in its charter)

  		     			 Washington                        			   91-1238077          
				   (State or other jurisdiction of   (I.R.S. Employer Identification No.)
				    incorporation or organization)

          415 N. Quay St., Kennewick , Washington              99336   
         (Address of principal executive offices)       	 	  (Zip Code)

      								         Issuer's telephone number  (509) 735-9092 

     Securities registered under Section 12(b) of the Exchange Act:  None
     Securities registered under Section 12(g) of the Exchange Act:  None
      	Check whether the issuer (1) filed all reports required by Section 13 
     or 15(d) of the Exchange Act during the past 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 [   ]

    	Check if there is no disclosure of delinquent filers in response to 
     Item 405 of Regulations S-B is met contained in this form, and no 
     disclosure will be contained, to the best of the registrant's 
     knowledge, in definitive proxy or information statements incorporated 
     by reference in Part III of this Form 10-KSB or any amendment to this 
     Form 10-KSB. [   ]  Not applicable [X]

    	State issuer's revenues for its most recent fiscal year. $1,476,487.
                                                              ----------
    	On January 29, 1998 the aggregate market value, based on the average 
     of the bid and asked Price, of the voting stock held by nonaffiliates 
     of the registrant was $1,611,275.

   	 The number of shares outstanding of the registrant's common stock as 
     of January 29, 1998:  4,953,667 shares.

    	DOCUMENTS INCORPORATED BY REFERENCE
    	The following documents are incorporated by reference into Parts I, 
     II, III, and IV of this report:  (1) Form S-18, effective Nov. 5, 1984, 
     Commission File No. 2-92949-S; (2) Form 8-K, filed March 15, 1985, 
     Commission File No. 2-92949-S; Forms 8-K dated July 12, 1991, December 
     14, 1992, December 10, 1993, Form 8-K/A, dated February 3, 1995, and 
     Forms 8-K, dated February 9, 1996, February 7, 1997, and February 6, 
     1998.
     Transitional Small Business Disclosure Format:  Yes [   ]   No [X]
<PAGE>
                                       PART I

                                       ITEM 1

FORWARD LOOKING STATEMENTS:

When used in this Annual Report and the documents incorporated herein by 
reference, the words "believes", "anticipates", "expects" and similar 
expressions are intended to identify in certain circumstances, forward-
looking statements.  Such statements are subject to a number of risks and 
uncertainties that could cause actual results to differ materially from 
those projected, including the risks described in this Annual Report.  
Given these uncertainties, readers are cautioned not to place undue 
reliance on such statements.  The Company also undertakes no obligation 
to update those forward-looking statements.
  
                                    BUSINESS  

Electronic Systems Technology, Inc. ("EST" or the "Company") specializes 
in the manufacturing and development of wireless modem products.  The 
Company uses its research and development, manufacturing, and marketing 
efforts to produce and market the Company's line of ESTeem (TM) Wireless 
Modem products and accessories.  The Company offers a product line which 
provide innovative communication solutions for applications not served by 
existing conventional communication systems.  The product line is offered 
in the growing markets for process automation in commercial, industrial, 
and government arenas domestically, as well as internationally.  The 
Company's product line is marketed through direct sales, sales 
representatives, Original Equipment Manufacturers (OEM's), and domestic, 
as well as foreign, resellers. 

The Company was incorporated in the State of Washington in February, 
1984, and was granted a U.S. Patent for the "Wireless Computer Modem" in 
May 1987, and the Canadian patent in October 1988.  In the past three 
years, the Company has continued to improve its products to incorporate 
the latest technology and respond to customer needs and market 
opportunities. Most recently and significantly, the Company developed a 
new generation of faster, more flexible, ESTeem products, the ESTeem 192 
series, which were released in the fourth quarter of 1996, and available 
for volumes sales in 1997.  The Company has continually expanded its 
customer base, particularly in the industrial controls arena with efforts 
to team with all major programmable logic controller (PLC) hardware 
vendors.  The Company has also been involved as a hardware provider for 
Government programs such as the Core Automated Maintenance System (CAMS) 
for the U.S. Air Force, and Automatic Identification  Technology  (AIT) 
for the U.S. Army.  In 1997, the Company continued to participate in 
foreign and domestic Supervisory Control and Data Acquisition (SCADA), 
Industrial Controls, and Government marketplaces.  
 
                               PRODUCTS AND MARKETS

EST's products provide communication links between computers, 
peripherals, and instrumentation controls using radio frequency waves. 
The Company's products are a family of narrow band, packet burst, VHF & 
UHF FM radio modems, operating in radio frequency bands between 72 to 76 
Megahertz (MHz), 406 to 420 MHz, and 450 to 470 MHz.

The ongoing revolution of computer applications in business and 
industrial environments is constantly redefining the boundaries of 
<PAGE>
automation and network capabilities and continuously increasing the 
requirements on data transfer.  Prior to the invention of the ESTeem 
modem, the majority of data transfers used telephone modems or direct 
cable connections.  These alternatives both had  costly side effects.  
When utilizing telephone modems, there is a monthly charge for the use of 
telephone lines.  When using direct cable connections, the cost of 
installing cable systems usually costs as much or more than the cost of 
the communication system.  ESTeem wireless modem products provide a 
"Wireless Solution" by eliminating the need for conventional hardwiring 
and leased phone lines. 

All of the ESTeem models  ("ESTeems")  come with the industry standard 
asynchronous communications ports to give the user a new dimension to 
"Local Area Networking".  As many as 253 devices can be interfaced on a 
single frequency.  ESTeem wireless modems have over one hundred internal 
software commands to allow the user to easily configure the unit for any 
application or use.  The ESTeem setup parameters are saved in its own 
non-volatile memory.

ESTeem Modems work on a packet burst communications concept.  Packet 
systems, whether hardwired or radio, share the same principle of 
operation: data is taken from a standard RS-232C or RS-422 asynchronous 
port and is transmitted in "Electronic Packets" (i.e. electronic packets 
of information).  The size of the packet can be defined by the user from 
1 to 1010 bytes of information.  Once a packet of data is formed, it is 
transmitted in a "burst," from one ESTeem modem to another ESTeem modem, 
hence the term "packet burst communications." ESTeem Modems provide data 
accuracy of greater than one part in 100 million.  The ESTeems have 
frequency agility in the VHF and UHF frequency ranges.  Internal 
Digi-Repeater features allow the user to increase operating range by 
relaying transmission through a maximum of three ESTeems to reach the 
destination ESTeem. An ESTeem can operate as an operating node, a 
repeater node, or both simultaneously, for added flexibility.  Secure 
data communication is provided in the ESTeem products through the use of 
proprietary technology and techniques, providing users of the products 
four definable security codes.  If higher security is required, the 
ESTeem is compatible with asynchronous Data Encryption Standard (DES) 
encryption devices.

                             PRODUCT APPLICATIONS

Some of the major applications and/or industries for which the ESTeem 
products are being utilized are as follows:

	 Water and Waste Water Industry     	Overhead Crane Control	
  Industrial Process Control					    	Shop Floor Manufacturing					
		Remote Data Acquisition (SCADA)		  	Intra-Office/Building Computer Networking
 	Law Enforcement/Public Safety				

 	Power Utility 		            			 				Federal
	  	Oil/Gas Pipeline						             	Ground Mobile Communications
		  Material Handling						            	Ship to Shore Communications
												                           	Flight Line Maintenance
		





<PAGE>
                                PRODUCT LINES

VHF RADIO MODEM PRODUCTS: The ESTeem VHF radio modem products are the 
ESTeem Model 95 and Model 192V which operate in the mid 60-70 MHz band of 
the VHF RF spectrum. 

		The standard production units of the ESTeem Model 95 and 192V are 
  configured to operate in the lower 70 MHz spectrum. The frequency and 
  receiver sensitivity of the ESTeem 95 are software selectable, and 
  includes a device for examining the received signal strength of the 
  radio. The ESTeem 192V has a data rate of 19,200 bits per second 
  (bps), which is four times faster than the ESTeem 95 data rate.  The 
  ESTeem 192V also features infrared and optional telephone interfaces 
  which are not available on the ESTeem 95 products.  Listed below 
  are the major markets for these products:

  	Domestic:     	Industrial process control, SCADA, inventory control, 
                  water/waste water, overhead crane, shop floor manufacturing.
  	International:	Telephone by-pass, industrial control, and SCADA.
  	Federal:     		Inventory and command control.

UHF RADIO MODEM PRODUCTS: Operating in the lower 400 MHz federal radio 
band, and the mid to upper 400 MHz  commercial radio band of the UHF RF 
spectrum.  The ESTeem UHF radio modem products are the ESTeem Model 192C, 
192F, 96F, and 96C. 

		The UHF radio modem products, ESTeem Models 192C, 192F, 96F, and 96C, 
  have the same features as the VHF radio modem products, but were 
  designed to operate in the lower 400 and upper 400 MHz areas of the 
  UHF RF spectrum. The ESTeem 192C and 192F product lines  are  
  differentiated from the other ESTeem 96C and 96F products by having a 
  data rate of 19,200 bps, which is four times faster than the data  
  rates of the 96C and 96F products, the 192C and 192F products contain 
  infrared and optional telephone interfaces not available on the 96C 
  and 96F products.  The ESTeem 192C and 96C were designed to operate 
  in business radio bands of upper 400 MHz.  The ESTeem Model 192F and 
  96F were designed to operate in U.S. Government radio bands of lower 
  400 MHz. All of the UHF radio modem products have the additional 
  capability of RF output power from two to four watts depending on 
  customer licensing.  Listed below are the major markets for these 
  products:

  	Domestic:     	Industrial control, SCADA, inventory control, water/waste 
                  water, power utility, oil/gas pipeline, law enforcement
                  and public safety.
	  International:	Telephone by-pass, industrial control and SCADA.
	  Federal:     		Inventory and command control.
	
SPECIALTY MODEM PRODUCTS: Network enhancing products using ESTeem modem 
technology.  The ESTeem specialty modem products are the ESTeem Model 
84SP, 85SP and Port Expansion Module. 

		The ESTeem Models 84SP and 85SP are special purpose version 
  developments of the ESTeem Model 95 without the radio transceiver 
  circuitry.  In place of the transceiver card is a universal interface 
  card that allows the use of a customer's full- or half-duplex radio 
  transceiver, turning it into a packet burst communications device.  
  The Model 85SP is a lower cost version of the 84SP and contains only 
  the necessary circuitry for interfacing to direct digital modulated 
<PAGE>
  radios. The major market for these products are civilian SCADA and 
  public safety applications.

		The ESTeem Port Expansion Module (PEM) is designed to allow a single 
  ESTeem model 95 or 96 product to have up to eight independent RS-
  232/422 communications ports.  The PEM is designed with interfaces to 
  be cascaded to additional PEM modules to increase the communications 
  ports in multiple groups of eight.  The major market for this product 
  is main frame to remote terminal applications in the Domestic, 
  Foreign, and Federal markets.

ADDITIONAL PRODUCTS AND SERVICES 

		The Company sells various accessories which support its EST 
  product lines.  Accessories are purchased from other 
  manufacturers and resold by EST to support the application of 
  ESTeem  modems.  Antennas, power supplies and cable assemblies 
  are examples of such items. The Company also provides Factory 
  Services, such as repair and upgrade of ESTeem products.  To 
  assist in the application of ESTeem wireless modems the Company 
  provides professional services, site survey testing, system 
  start-up, and custom engineering services.

                RESEARCH AND DEVELOPMENT AND NEW PRODUCTS

The Company's products compete in the rapidly changing technology 
environment of the communications industry, where standards and 
technologies are subject to rapid and unexpected changes. This 
environment results in it being necessary for the Company to be 
continually updating and enhancing existing products, as well as 
developing new products in order to remain competitive.  Research and 
Development expenditures for new product development and improvements of 
existing products by the Company for 1997 and 1996 were $128,110 and  
$135,468, respectively.  None of the Company's research and development 
expenses are directly paid for by any of the Company's customers.  In 
1997, the Company continued to contract with an independent, 
nonaffiliated, engineering company specializing in radio design, when 
that expertise was required.  

During 1997, the Company completed development of the ESTeem 192V radio 
modem, which is an evolution of the ESTeem 192C and 192F radio modems 
developed during 1996, and brought to market during 1997.  The ESTeem 
192V is designed to be a higher data rate complement in the VHF radio 
frequency spectrum, comparable to the ESTeem 192C and 192F radio modems 
in the UHF radio frequency spectrum.  Development has commenced on the 
ESTeem 192M product line, which will have features similar to previous 
ESTeem 192 models, but for operation in the mid range VHF spectrum not 
covered by the Company's existing products.  The Company has undertaken 
an investigation as to the feasibility of the development of a radio 
modem product using spread spectrum technology as a complement to 
existing products offered by the Company.  The Company plans on 
continued research and development expenditures and to undertakes new 
development and improvement projects as they become necessary. 






<PAGE>
                   MARKETING, CUSTOMERS AND SUPPORT

The majority of the Company's products are sold and distributed directly 
from the Company's facility through direct sales to end users of the 
ESTeem products.  The remainder of the Company's sales are through non-
exclusive, non-stocking Resellers, and Original Equipment Manufacturers 
(OEM's).  Normally, seventy-one percent of the Company's products are 
distributed through direct sales and twenty-nine percent are through 
Reseller and OEM entities.  Customers generally place orders on an "as 
needed basis".  Shipping dates for most products are generally within 5 
working days after receipt of an order.  As of December 31, 1997, the 
Company had a backlog of $181,000, for orders placed late in December.  
The majority of these orders were shipped during January, 1998.

During 1997, the Company continued to advertise in trade publications 
specifically targeted at users of control, instrumentation, and 
automation systems worldwide.  The Company's advertising is targeted 
toward customers using Programmable Logic Controllers (PLCs).  There are 
approximately twenty-five major PLC manufacturers worldwide.  The Company 
also attends tradeshows each year specifically targeted toward the 
customers and markets in which it sells products.  During 1998, the 
Company intends to implement marketing plans specifically targeted at the 
high growth potential market segments of the recently deregulated power 
utility marketplace, and Mobile Data Computers for public safety 
networks.  The Company maintains an Internet web site to provide easy 
access to product and technical information for both present and 
potential customers of the Company's products.  The Company provides 
technical support and service for its products through phone support, 
field technicians, and Internet sources.  The Company believes high 
quality customer and technical support is necessary and vital to its 
business and the markets in which it competes.  To maintain this high 
level of customer support the Company has in the past, and will continue 
in the future, to make investments and expenditures in support of its 
customer service programs. 

The Company is continuing its Government sales activities which are 
directed towards all branches of the United States Armed Services.  
Examples of projects the Company's products are included in are;  flight-
line maintenance for the United States Air Force,  flight-line lighting 
for the United States Navy, command and inventory control for the United 
States Marine Corps, and the Automatic Identification Technology program 
for the United States Army.  

For the year ended December 31, 1997, the largest sales concentration 
were to entities of the United States Government, which amounted to 18% 
of total product sales for the year.  Foreign sales were 24% of total 
revenues for 1997.  No other sales to a single customer comprised 10% or 
more of total product sales as of December 31, 1997. See "Management's
Discussion and Analysis of Financial Condition and Results of 
Operations", and "Financial Statements".

The Company has a General Services Administration (GSA) contract to sell 
goods to the U.S. Government.  This contract is a fixed price, indefinite 
quantity and delivery agreement.  The current contract runs through March 
31, 1998.  A renewal of the Company's GSA contract is being negotiated. 

The Company participates in a Government program with contracts 
administered by the Intermec Corporation.  The contract is a fixed price, 
<PAGE>
indefinite quantity and delivery agreement.  The current Intermec 
contract expires September 30, 1999.

                                  COMPETITION

The Company's competition varies according to the market in which the 
Company's products are competing.  All of the markets in which the 
Company's products are sold are highly competitive.  Listed below are the 
markets the Company's products compete in and competition in those 
markets:

             Major Market                        Major Competitors
             ------------                        ----------------- 
   Remote Data Acquisition, Industrial    Aerotron Repco Systems, Data-Linc,
   Control,  Shop Floor Manufacturing,    GRE America, E.F. Johnson, Maxon, 
   Overhead Crane Control                 Microwave Data Systems, Motorola,
                                          Metricom, and Proxim 
 
   Computer Networking, inter and         Aironet Wireless Communications,
   intra building                         Cylink, Digital Wireless, Metricom,
                                          and Proxim
 
   Radio Area Networking of hand held     Intermec, LXE, Norand, Symbol 
   data collection terminals and bar      Technologies, and Telxon
   coding                                
 
   Federal applications                   Data Radio, Datron Technology,
                                          Harris Computer Systems, Lockheed
                                          Martin, Magnavox, Motorola, Siemens,
                                          Watkins-Johnson, and California
                                          Microwave

Management believes the ESTeem products compete favorably in the market 
because of performance, price, and adaptability of the products to a wide 
range of applications.  The Company's major limitation in competing with 
other manufacturers is its limited marketing budget.

                PATENTS, TRADEMARKS, AND PROPRIETARY INFORMATION

EST was granted a United States patent in 1987 for a "Wireless Computer 
Modem".  In 1988, EST was granted a Canadian Patent for a "Wireless 
Computer Modem".  Both patents have lives of 17 years.  Trademark for the 
ESTeem Wireless Modem was granted in 1985. 

To protect the Company against unauthorized disclosure of proprietary 
information belonging to the Company, all employees, dealers, 
distributors, original equipment manufacturers, sales representatives and 
other persons having access to confidential information regarding Company 
products or technology are required to sign non-disclosure agreements.

                            GOVERNMENT REGULATION

For operation in the United States, the ESTeem Radio Modems require 
Federal Communications Commission (FCC) Type Acceptance. The FCC Type 
Acceptance is granted for devices which demonstrate operation within 
performance criteria mandated, observed, and tested by the FCC.  All of 
the Company's products requiring FCC Type Acceptance have been granted 
such acceptance. 
<PAGE>
For operation in Canada, the ESTeem RF Modems require Industry Canada 
Type Acceptance.  The Type Acceptance is granted for devices which 
demonstrate operation within performance criteria mandated, observed, and 
tested by Industry Canada.  Of the Company's current production  line, 
the ESTeem Models 96C, 192F, 192C, and 192V have applied for and have 
been granted type acceptance in Canada.  

All ESTeem radio modem products require consumer licensing under Part 90 
of the FCC Rules and Regulations, which must be applied for by the end 
user of the Company's products.  The Company cannot guarantee its 
customers that they will receive FCC consumer licenses in the VHF or UHF 
frequency spectrum for any particular application.  The Company provides 
information to its customers to assist in the application for FCC 
consumer licenses.

At the time of this filing the Company is unaware of any existing or 
proposed FCC regulation that would have an materially adverse effect on 
the Company's operations, but there can be no assurance that future FCC 
regulations will not have materially adverse effects on the operations of 
the Company.

                      SOURCE OF SUPPLY AND MANUFACTURING

The Company purchases certain components necessary for the production of 
its products from sole suppliers.  Key components for the Company's 
products are supplied by the Motorola Corporation and Toko America Inc., 
as purchased through a number of distributors.  The components provided 
by Motorola and Toko America could be replaced or substituted by other 
products, if it became necessary to do so.  If this action became 
necessary, a material interruption of production and/or material cost 
expenditures involved with locating and qualifying replacement components 
could take place. 

Approximately 10% of the Company's inventory at December 31, 1997 
consisted of parts having lead times ranging from 12 to 20 weeks. Some of 
these parts are maintained at high levels to assure availability to meet 
production requirements, and accordingly, account for a significant 
portion of the inventory dollar amount.  Based on past experience with 
component availability, current distributor relationships, and current 
inventory levels, the Company foresees no anticipated shortages of 
materials used in production.

The Company contracts with Manufacturing Services, Inc., in Kennewick, 
Washington, for assembly of the Company's products, using material 
purchased by the Company.  By contracting with Manufacturing Services, 
Inc., the Company is able to avoid staff fluctuations associated with 
operating its own manufacturing operation.  The President of 
Manufacturing Services, Melvin H. Brown, is a Director of the Company.  
Management believes all prices for services, provided by Manufacturing 
Services, Inc., were as favorable as could be obtained from comparable 
manufacturing services companies. See "Management's Discussion and 
Analysis of Financial Condition and  Results of Operations", and 
"Financial Statements".

                               EMPLOYEES

As of December 31, 1997, the Company employed a staff of 11 persons on a 
full time basis, 2 in marketing, 2 in technical support, 5 in 
engineering/manufacturing, and 2 in Finance and Administration.  The 
<PAGE>
Company's operations are dependent upon key members of its Engineering 
and Management personnel.  In the event services of these key individuals 
were lost to the Company, an adverse effect on the Company's operations 
may be felt.  The Company employs part-time labor on an "as needed" 
basis, usually in engineering/manufacturing.  At year end 1997 the 
Company employed 3 part-time employees.  None of the Company's employees 
are represented by a labor union and the Company believes it has good 
relations with its employees.

                                   ITEM 2. 
                                 PROPERTIES

EST does not own any real property, plants, mines, or any other 
materially important physical properties.  The Company's administrative 
offices and laboratories are located in leased facilities at 415 N. Quay 
Street, Kennewick, Washington.  The Company leases its office and 
laboratory space in a lease agreement with The Port of Kennewick in 
Kennewick, Washington for approximately 6,300 square feet of office and 
laboratory space.  The total monthly lease cost is $2,265.83, including a 
leasehold tax of $257.83.  The lease covers a period of three years which 
expires November 30, 1999.  

The Company also owns miscellaneous assets, such as computer equipment, 
laboratory equipment, and furnishings.  The Company does not have any 
real estate holdings, nor investments in real estate.  The Company 
maintains insurance in such amounts and covering such losses, 
contingencies and occurrences that the Company deems adequate to protect 
its property.  Insurance coverage includes a comprehensive liability 
policy covering legal liability for bodily injury or death of persons, 
and for property owned by, or under the control of the Company, as well 
as damage to the property of others.  The Company maintains key man life 
insurance protecting the Company in the event of the death of its 
President.  The Company also maintains fidelity insurance which provides 
coverage to the Company in the event of employee dishonesty.

                                    ITEM 3.  
                               LEGAL PROCEEDINGS

No proceedings are identified to which involve a claim for damages, 
exclusive of interest and costs, that exceed 10% of the current assets of 
the Company.  The Company's Form 8-K/A dated February 9, 1996, as filed 
with the Securities and Exchange Commission, is incorporated herein by 
reference. 

The Company was notified on March 8, 1995 that it was included in a class 
action against Piper Jaffray, the manager of the Company's marketable 
securities fund investment which experienced losses as described in Note 
13 to the financial statements.  This litigation was an amended 
consolidated class action complaint originally filed on October 5, 1994, 
as Civ. File No. 3-94-587, in the United States District Court, District 
of Minnesota.  In February 1996,  the Company received the first payments 
pursuant to the settlement of this litigation, and as of December 31, 
1997 had received settlement payments amounting to a total of $12,921.  
The Company expects to receive the final settlement payment in 1998. 

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

The Company did not submit any matters for shareholder approval during 
the fourth quarter of 1997 fiscal year. 
<PAGE>
                                   PART II

                                   ITEM 5. 
 MARKET INFORMATION FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

There is no established market for trading the Common Stock of the 
Company.  The Common Stock is not regularly quoted in the automated 
quotation system of a registered securities system or association.  The 
Common Stock of the Company is traded on the "over-the-counter" market 
and is listed on the electronic bulletin board under the symbol of 
"ELST".  The following table illustrates the average high/low price of 
the Common Stock for the last two (2) fiscal years.  The "over-the-
counter" quotations do not reflect inter-dealer prices, retail mark-ups, 
commissions or actual transactions.

        							        										         	 Bid                Ask
                                            ---                --- 
                                       High     Low       High      Low
                                       ----     ---       ----      ---
Fiscal year ended December 31, 1997
    First Quarter						          					  1/4     1/4       5/16      1/4 
    Second Quarter				                  1/4    7/32       5/16      1/4 
    Third Quarter				             			   1/4    7/32       5/16     7/32 
    Fourth Quarter						           			 9/32    5/32       0.34     3/16

Fiscal year ended December 31, 1996
    First Quarter	      				 								  7/16   11/32        1/2     7/16
    Second Quarter					          					15/32     1/4       9/16    15/32
    Third Quarter					          				 	 7/16    5/16       9/16    15/32
    Fourth Quarter					           				11/32    3/16        3/8     5/16

The above data was compiled from information obtained from the National 
Quotation Bureau, Inc. daily quotation service.

The approximate number of record holders of common stock of the Registrant 
as of January 29, 1998 was 649 persons/entities.

Electronic Systems Technology Inc. paid a one-time, non cumulative, cash 
distribution on July 11, 1997,  equivalent to $0.01 per outstanding 
share.  The Company's Form 8-K dated June 5, 1997 as filed with the 
Securities and Exchange Commission is included herein by reference.  The 
Company has never paid a cash dividend, and any such dividend undertaken 
by the Company will be at the discretion of the Board of Directors.  

                                    ITEM 6.
   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS 
                                OF OPERATIONS

Management's discussion and analysis is intended to be read in 
conjunction the Company's audited financial statements the integral notes 
thereto.  The following statements may be forward-looking in nature and 
actual results may differ materially.

RESULTS OF OPERATIONS

GENERAL:  The Company specializes in the manufacturing and development 
of wireless modem products.  The Company offers a product line which 
provide innovative communication solutions for applications not served by 
existing conventional communication systems.  The Company offers its 
<PAGE>
product lines in the growing markets for process automation in 
commercial, industrial, and government arenas domestically, as well as 
internationally.  The Company markets its products through direct sales, 
sales representatives, Original Equipment Manufacturers (OEM's), and 
domestic, as well as foreign, resellers.  Operations of the Company are 
sustained solely from revenues received through sales of its products and 
services.   

FISCAL YEAR 1997 vs. FISCAL YEAR 1996

GROSS REVENUES:  Total revenues for the fiscal year 1997 were $1,476,487 
reflecting a 2% increase from the $1,443,549 gross revenues for fiscal 
year 1996.  The increase is attributable primarily to increased product 
sales in 1997, of $1,337,303 as compared to 1996 sales of $1,190,304, 
representing an increase of 12%. During 1997 the Company experienced 
increased commercial sales to both domestic and foreign customers, and a 
slight decrease in sales revenues to the U.S. Government (See Note 6 to 
Financial Statements.) Management believes the increase in sales revenues 
to domestic and foreign customers is primarily a result of commercial 
market acceptance of the Company's ESTeem 192 modems which were available 
for volume sales from the end of the first quarter of 1997, and enhanced 
sales contributions from increased number of EST distributors.

In 1997, a majority of the Company's domestic sales were for Supervisory 
Control and Data Acquisition (SCADA) applications and Industrial Controls 
applications.  An example of a SCADA system is a city's water treatment 
operation.  An example of an Industrial Control system is a 
manufacturer's remote control crane operation.  It is Management's 
opinion that these applications will continue to provide the largest 
portion of the Company's revenues in the foreseeable future.  

In 1997,  the Company had $340,423 in foreign export sales, amounting to 
24% of gross product and service sales for the year.  For year end 1996, 
foreign export sales were $222,239, or 17% of gross product sales for the 
year.  It is Management's belief that foreign sales increased due to 
comparatively large orders to customers in Brazil, and orders placed with 
new EST distributors in the Philippines and Malaysia.  Products purchased 
by foreign customers were used primarily for use in SCADA projects.  
Management believes the majority of the Company's foreign sales are the 
result of EST distributor efforts and the Company's Internet website 
presence.  The geographic composition of the Company's foreign export 
sales for 1997 and 1996 are shown in Note 6 to the Financial Statements. 
(See Note 6 to Financial Statements.)

In 1997 products purchased by U.S. Government agencies or by U.S. 
Government contractors amounted to $250,840 or 18%, of gross product 
sales compared with 1996 levels of $262,326, or 22%, of gross product 
sales.  Management believes the decrease in U.S. Government sales is the 
result of a general contraction of the military infrastructure in which 
the Company's products are used.  Management believes this contraction 
will continue and may possibly increase in the foreseeable future.  
Products purchased by the U.S. Government continue to be utilized in 
three main categories:  Inventory Control, PC/PC (Personal Computer) 
networking, and Command Control.  Due to the uncertain nature of U.S. 
Government purchasing in general, and specifically the Automatic 
Identification Technologies (AIT), Core Automated Maintenance System 
(CAMS), and other programs the Company's products are involved in, 
Management does not base liquidity, profitability, or material purchase 
projections on anticipated U.S Government sales.  
<PAGE>
As of December 31, 1997, the Company had a backlog of $181,000, for 
orders placed late in December, 1997.  The majority of these orders were 
shipped during January, 1998.  The Company's customers generally place 
orders on an "as needed basis".  Shipment for most of the Company's 
products is generally made within 5 working days after receipt of 
customer orders. 

COST OF SALES:  Cost of Sales, as a percentage of gross sales, for the 
years of 1997 and 1996 was 43% and 41%, respectively.  Cost of Sales 
variations that occur are attributed to the type of product sold and the 
size of orders processed.  Larger orders grant lower sales prices, 
reducing the profit margin.

INVENTORY:  The Company's year-end inventory values for 1997 and 1996 
were as follows:
                                               
                              1997           1996
                              ----           ----
        Parts             $218,263       $260,397
        Work in Progress    26,582         68,555
        Finished goods      74,282         72,353
                          --------       --------         
        TOTAL             $319,127       $401,305
                          ========       ========

The Company's objective is to maintain inventory levels as low as 
possible to provide maximum cash liquidity, while at the same time, meet 
production and delivery requirements.  If the Company's sales are less 
than anticipated, inventory over-stocking can occur. Based on past 
experience with component availability, current distributor 
relationships, and current inventory levels, the Company foresees no 
anticipated shortages of materials used in production, however component 
availability cannot be assured.

For year end 1997, purchases and costs allocated to cost of goods sold 
were $492,985 as compared to $595,119 in 1996.  This decrease is a result 
of lower purchasing by the Company in 1997 when compared with the 
purchasing undertaken to support the introduction of the ESTeem 192 
products during 1996.  Increased sales volume during 1997 also resulted 
in the Company reducing existing inventory stocks at year end  1997.

OPERATING EXPENSES:  Operating expenses, prior to allocation of expenses 
to Cost of Sales and Engineering Services, decreased to $813,364 in 1997, 
from 1996 levels of $865,162.  Material changes in expenses is comprised 
of the following components:   Advertising expenses decreased to $51,935 
in 1997 from 1996 levels of $54,969 due to reduced advertising by the 
Company in 1997 in as contrasted with the marketing campaign in 1996 for 
the ESTeem 192 products.   Supplies and materials expenses decreased to 
$22,079 in 1996, from $26,060 in 1996 due to decreased research and 
development projects requiring such material. Office and Administration 
expenses decreased from 1996 levels of $18,517 to $11,371 at year end 
1997 due to an overall reduction in mailing and postage expenses from 
expenses incurred in 1996 related to mailings associated with tradeshows 
and the release of the ESTeem 192 products.  Professional services 
decreased from 1996 levels of $77,795 to $56,215 at year end 1997 due to 
decreased subcontracted engineering services for research and development 
<PAGE>
projects when compared with 1996.  Repair and maintenance expenses 
decreased in 1997 to $10,759 as compared to $13,080 in 1996, due to an 
absence of abnormal equipment repairs, as contrasted with the Company's 
experience in 1996. 

Salaries decreased to $408,840 in 1997, from 1996 levels of $413,920.  
The salaries decrease is primarily a result of decreased wage bonuses 
paid during 1997, which were based on the Company's reduced financial 
performance figures in 1996.  Travel expenses for the Company decreased 
from 1996 levels of $54,837 to $36,804 in 1997 primarily due to reduced 
requests for engineering services from the Company's customers, resulting 
in reduced frequency and amount incurred travel expenses.  The Company 
did not incur bad debt expenses during 1997 or 1996. 

FISCAL YEAR 1996 vs. FISCAL YEAR 1995 RESULTS

Total revenues for the fiscal year 1996 were $1,443,549 reflecting a 17% 
decrease from the $1,731,949 total revenues for fiscal year 1995.  The 
decrease is attributable primarily to decreased sales in 1996, of 
$1,190,304 as compared to 1995 sales of $1,535,071, representing a 
decrease of 22%.  During 1996,  the Company experienced decreases in 
sales revenues in all of the Company's major customer categories; 
domestic, foreign and U.S. Government.  Management believes the reduction 
in sales revenues was a result of several factors, including increased 
competition from other types of wireless products, postponement of 
customer projects employing the Company's products, and customers' 
purchase decision uncertainty generated from delays in the releasing the 
Company's ESTeem 192 product line.
 
For year end 1996, purchases and costs allocated to cost of goods sold 
were $595,119 as compared to $475,691 in 1995.  This increase is a 
primary result of increased specific and specialized inventory stocks for 
production of the Company's EST 192 product line.  The additional 
inventory requirements was also reflected in the increase in inventory 
value at year end 1996 to $401,305 from 1995 year end levels of $297,037.

Operating expenses, prior to allocation of expenses to Cost of Sales and 
Engineering Services, during 1996 increased to $865,162 from 1995 levels 
of $839,793.  Material changes in expenses were comprised of the 
following components:  Advertising expenses increased to $54,969 in 1996 
from 1995 levels of $50,619 due to expanded advertising exposure in 
preparation of the release of the ESTeem 192 product line, as well as 
increased fees charged by publishers for the Company's advertising.  
Sales commissions decreased from 1995 levels of $31,974 to $22,972 in 
1996 due to decreased sales to the U.S. Government.  Depreciation expense 
on the Company's assets increased from 1995 levels of $25,379 to $30,303 
in 1996 due to increased depreciable assets acquired by the Company for 
manufacturing and research and development use.  Supplies and materials 
expenses increased to $26,060 in 1996, from 1995 levels of $12,383 due to 
increased requirements primarily from research/development projects.  
Professional services increased from 1995 levels of $46,113 to $77,795 at 
year end 1996 due to increased amounts paid for engineering services to 
outside third parties for research and development in association with 
the ESTeem 192 product line.  Repair and maintenance expenses increased 
in 1996 to $13,080 as compared to $6,992 in 1995, due to increased 
equipment calibration costs, and higher than normal necessary repairs on 
the Company's manufacturing and analysis equipment. 

<PAGE>
Salaries increased to $413,920 in 1996, increased from 1995 levels of 
$391,826.  This increase was a result of increased wages and benefits 
costs, as well as higher accrued vacation benefits from a more tenured 
employee base accruing an increased amount of vacation benefits in 1996, 
as compared with figures for 1995.  Trade show expenses increased from 
1995 levels of $8,688 to $17,682 in 1996, due to increased trade show 
attendance on the part of the Company.

The Company did not incur bad debt expense during 1996 as compared with 
the $54,474 recognized for amounts owed to the Company by Diversified 
Engineering for 1995.  Amounts expensed as bad debt in 1995 for amounts 
owed to the Company by Diversified Engineering were recovered by the 
Company from Diversified Engineering in the second quarter of 1996.    

The Company's cash resources at December 31, 1996, including cash in the 
bank and cash equivalent liquid assets, were $1,413,182, reflecting an 
increase from cash resources of $1,162,726 for year end 1995.  Cash flows 
from operating activities were provided by the Company's net income of 
$158,735, a decrease in accounts receivable of $119,609, and depreciation 
of $30,303.  Cash flows were offset by increases in inventory of 
$104,268, decreasing federal income taxes payable of $58,665, and 
repurchase of the Company's common stock in the amount of $23,981 during 
1996. 

LIQUIDITY AND CAPITAL RESOURCES

The Company's revenues and expenses equated to a net income of $166,120 
for 1997, reflecting a 5% increase from the $158,735 net income of 1996. 
At December 31, 1997, the Company's working capital was $1,988,266 
compared with $1,861,527 at December 31, 1996.  The increase is primarily 
attributable to the Company's 1997 after-tax profit of $166,120.  The 
Company's operations rely solely on the income generated from sales.  The 
Company's major capital resource requirement is for maintaining adequate 
inventory levels.  Long lead times for some of the critical components, 
ranging from 12 to 20 weeks, force the Company to maintain high inventory 
levels.  It is Management's opinion that the Company's working capital as 
of December 31, 1997 is adequate for expected resource requirements for 
the next twelve months. 

The Company's current asset to current liability ratio at December 31, 
1997 was 26.7:1 compared to 61.5:1 at December 31, 1996.  The decreased 
ratio is attributable to the Company having increased trade accounts 
payable and federal income tax liabilities at year end 1997 when compared 
with year end 1996.  

The Company's cash resources at December 31, 1997, including cash in the 
bank and cash equivalent liquid assets, were $1,466,760, reflecting an 
increase from cash resources of $1,413,182 for year end 1996.  Cash flows 
from operating activities were provided by net income of $166,201, and 
depreciation of $30,303.  Cash flows were also increased from decreased 
inventory levels, increased accounts payable and other accrued 
liabilities, and increased federal income tax liabilities at year end 
1997 when compared with the same period of 1996.  Cash flows were offset 
primarily by increases in accounts receivable of $230,668, additions to 
property plant and equipment of $24,497,  cash distributions paid by the 
Company of $49,537. 

The Company's trade accounts receivable, adjusted for allowance for 
uncollectible accounts, at December 31, 1997 were $268,980, compared to 
<PAGE>
$38,311 at year end 1996.  The increase is attributable to increased 
sales in the fourth quarter of 1997 and an abnormally low sales amount in 
the fourth quarter of 1996 with which to compare.  No bad debt expense 
was recorded during 1997. The Company is experiencing delayed payment on 
the part of one of the Company's distributors due to unexpected delays in 
the end customers project, but the Company expects payment in full to be 
forthcoming from the distributor in the first quarter of 1998. Management 
believes that all of the Company's accounts receivable as of December 31, 
1997 are collectible.

The Company believes it's level of risk associated with customer receipts 
on export sales is minimal.  Foreign shipments are made only after 
payment has been received, irrevocable letter of credit terms have been 
pre-arranged, or on Net 30 terms to foreign offices of domestic companies 
with which the Company has an existing relationship.  Foreign orders are 
generally filled as soon as they are received, therefore, foreign 
exchange rate fluctuations do not impact the Company.  Due to the cash or 
letter of credit terms for the Company's foreign sales, the Company is 
not aware of any material negative impacts on the Company by the downturn 
experienced in the Asian economy during late 1997. 

Inventory levels as of December 31, 1997 were $319,127, which is a 
decrease from December 31, 1996 levels of $401,305.  This decrease is the 
result of increased sales activity during 1997 thereby reducing existing 
inventory stocks.  

Outlays for capital expenditures during fiscal year 1997 amounted to 
$24,497.  These expenditures were primarily for manufacturing and 
research/development equipment and computer upgrades.  The Company 
intends on investing in additional capital equipment as it is deemed 
necessary to support development and/or manufacture of the ESTeem Modem.

As of December 31, 1997, the Company's current liabilities were $77,213, 
an increase of $46,438 from 1996 year end levels of $30,775.  The 
increase is a result of increased carrying levels of trade accounts 
payable and increased federal income taxes payable based on increased 
Company profitability at year end 1997.  All of the Company's accounts 
payable at year end were current.

The Company's subcontract, dated December 23, 1993, with UNISYS was an 
indefinite delivery, indefinite quantity, fixed price contract which 
expired in September 1997.  The Company had not received any sales 
revenues pursuant to the contract prior to expiration for year to date 
1997.  It is Management's opinion that the UNISYS contract has not been 
renewed by UNISYS due to a perceived shift in corporate focus on the part 
of UNISYS. 
 
The Company's AIT subcontract administered by INTERMEC, dated July 26, 
1994, is a five year indefinite delivery, indefinite quantity, fixed 
price contract through September 1999.  Based on the terms of the AIT 
contract, and contracts of this type in general, Management does not 
base liquidity, profitability, or material purchase projections on 
anticipated sales.  The Company's economic position allows it to 
respond to AIT orders on an as needed basis.  It is Management's 
opinion that sales under the AIT contract are impossible to predict due 
to the uncertain nature of U.S. Government purchasing. 



<PAGE>
The Company has a General Services Administration (GSA) contract to sell 
goods to the U.S. Government.  This contract is a fixed price, indefinite 
quantity and delivery agreement.  The current contract runs through March 
31, 1997.  A renewal GSA contract is being negotiated.  If awarded the 
new GSA contract period would extend through March 31, 1998.  Management 
expects its GSA contract to be renewed.  Based on previous years 
activity, the Company expects the majority of U.S. Government purchases 
to be placed under the Company's GSA contract.  Projections regarding 
liquidity, profitability, and material purchases are based on past 
history of annual purchases.  Historically, Federal Government sales 
have averaged approximately 18% of annual sales.  Due to the uncertain 
nature of Federal Government purchasing, procurement of material and 
production planning is adjusted quarterly based on demand.  It is 
Management's opinion that the majority of Federal Government purchases 
in 1998 will be under this GSA contract. 
 
With the possible exception of orders from the Company's AIT or GSA 
contracts, and the impact of planned research and development 
expenditures, Management is unaware of any known trend which would 
reasonably be likely to have a material effect on the Company's 
liquidity, results of operations, or financial condition.

The Company's operations were not adversely effected by inflation during 
1997.  No adverse affect is anticipated during 1998.

FORWARD LOOKING STATEMENTS:  The above discussion may contain forward-
looking statements that involve a number of risks and uncertainties.  In 
addition to the factors discussed above, among other factors that could 
cause actual results to differ materially are the following:  competitive 
factors such as rival wireless architectures and price pressures; 
availability of third party component products at reasonable prices; 
inventory risks due to shifts in market demand and/or price erosion of 
purchased components; change in product mix, and risk factors that are 
listed in the Company's reports and registrations statements filed with 
the Securities and Exchange Commission.

                                    ITEM 7. 
                             FINANCIAL STATEMENTS

See Exhibit 1, Financial Statements and Financial Statement Schedules.  
Such Financial Statements and Schedules are incorporated herein by 
reference.

                                    ITEM 8.
  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL 
                                  DISCLOSURE.

                                     None











<PAGE>
                                   PART III

                                    ITEM 9. 
          DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; 
                COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

IDENTIFICATION OF DIRECTORS:
 
The following table sets forth the names and ages of all directors of the 
Company as of December 31, 1997;  as well as term in office and principal 
occupation of each director. 

     Name of Director    Term in Office       Age     Principal  Occupation
     ----------------    --------------       ---     ---------------------
     T.L. Kirchner      06/05/93 - 06/04/99    49    President of the Company

     Melvin H. Brown    06/06/97 - 06/06/00    67    President of Manufacturing
                                                     Services, Inc.

     Arthur Leighton    06/06/97 - 06/06/00    74    Consultant
                                             
     Robert Southworth  06/04/97 - 06/06/00    54    Patent Attorney for U.S.
                                                     Dept. of Energy
                                            
     John H. Rector     06/05/93 - 06/04/99    81    Consultant
                                              
     John L. Schooley   06/02/95 - 06/05/98    58    President of Remtron, Inc.

Management believes that there are no agreements or understanding between 
the directors and suppliers or contractors of the Company, except the 
agreement with Manufacturing Services, Inc. as described elsewhere in 
this report.

IDENTIFICATION OF EXECUTIVE OFFICERS

The following table sets forth the names and ages of all executive 
officers of the Company as of December 31, 1997; all positions by such 
persons; term of office and the period during which he has served as 
such; and any arrangement or understanding between him and any other 
person(s) pursuant to which he was elected as an officer:

   Name of  Officer     Age    Position   Term of Office  Period of Service
   ----------------     ---    --------   --------------  -----------------
   T. L. Kirchner        49    President      3 Years     02/10/84- Present

   Robert Southworth     54    Sec/Treas      3 Years     12/11/92- Present

There are no family relationships, whether by blood, marriage, or adoption,
between any of the Directors or Executive Officers of the Company.


The following is a brief description of the business experience during the
last five years of each director and/or executive officer of the Company.

T.L. KIRCHNER.  Mr. Kirchner is founder, President and a Director of the 
Company.  During the last five years Mr. Kirchner devoted 100% of his 
time to the Management of the Company.  His primary duties are to oversee 
the Management and Marketing functions of the Company.  Mr. Kirchner does 
<PAGE>
not serve as a director for any company registered under the Securities 
Exchange Act.

MELVIN H. BROWN.  Mr. Brown is a Director of the Company.  During the 
last five years Mr. Brown has been the owner and president of 
Manufacturing Services, Inc.  Manufacturing Services provides services in 
packaging design, printed circuit board layout, prototyping, production 
runs, verification of documentation testing, burn-in, quality control, 
and repetitive volume production. Manufacturing Services provides 
electronic manufacturing and quality control testing services for 
Electronic Systems Technology.  Mr. Brown does not serve as a director 
for any company registered under the Securities Exchange Act.

ROBERT SOUTHWORTH.  Mr. Southworth is a Director and the 
Secretary/Treasurer of the Company.  Since 1980, Mr. Southworth has been 
employed with the U. S. Department of Energy as a Senior Patent Attorney 
in Richland, Washington.  His primary duties with the Department of 
Energy include the preparation and prosecution of domestic and foreign 
patent applications in such fields as nuclear reactors, fuel 
reprocessing, waste management and energy related fields of solar, wind, 
and fossil fuels.  Mr. Southworth does not serve as a director of any 
company which is registered under the Securities Exchange Act.

ARTHUR LEIGHTON.  Mr. Leighton is a  Director of the Company.  Mr. 
Leighton served as President of Kraft Industries through mid 1986.  Since 
then he has been working as an independent Management Consultant.  Mr. 
Leighton was critically injured in 1997..Currently, Mr. Leighton is 
recovering from his injuries at his home in Southern California, where he 
is expected to make a full recovery.  Mr. Leighton does not serve as 
director of any company which is registered under the Securities Exchange 
Act.

JOHN H. RECTOR.  Mr. Rector is a Director of the Company.  Mr. Rector 
founded Western Sintering, located in Richland, Washington.  Western 
Sintering, a powdered metal parts manufacturer, is an Original Equipment 
Manufacturer (OEM).  Mr. Rector is the former  President of Western 
Sintering, Inc.  Mr. Rector currently serves as President of Plastic 
Injection Molding, Inc., a plastic injection parts manufacturer.  Mr. 
Rector does not serve as director of any company which is registered 
under the Securities Exchange Act.

JOHN L. SCHOOLEY.  Mr. Schooley is a Director of the Company.  During the 
past five years, Mr. Schooley has been the owner and President of 
Remtron, Inc. in San Diego, California.  Remtron, Inc. is a manufacturer 
of advanced radio control and telemetry systems for the industrial 
market.  Remtron, Inc. has provided research and development services for 
Electronic Systems Technology. Mr. Schooley does not serve as director of 
any other company which is registered under the Securities Act.

The Company is not registered under the Securities Exchange Act of 1934 
and is therefore not subject to the requirements of section 16 (a) of the 
Securities Exchange Act of 1934.







<PAGE>
                                ITEM 10.  
                          EXECUTIVE COMPENSATION

The Company's named compensated executive officer is T.L. Kirchner, President
and CEO.  The Company had no other compensated executive officers as of
December 31, 1997.                                        
 
The information specified concerning the compensation of the named executive
officers for each of the Registrant's last three completed fiscal years is
provided in the following Summary Compensation Table:
<TABLE>
<CAPTION>
                      	SUMMARY COMPENSATION TABLE

         					                                  Long Term Compensation
      Annual Compensation                        Awards              Payouts
    (a)          (b)      (c)     (d)      (e)       (f)        (g)        (h)         (i)
    	                                                         Securities          
 Name and                                Other    Restricted   Options                 All
 Principal                               Annual     Stock     Underlying  LTIP        Other
 Position       Year    Salary   Bonus Compensation Awards      SARs      Payouts   Compensation 
		                       	($)   ($)(1)    ($)(2)     ($)        (#)        ($)      ($)(3)(4)
 -----------------------------------------------------------------------------------------------
 <S>             <C>     <C>      <C>     <C>        <C>         <C>         <C>      <C>   
 T. L. Kirchner  1997    74,580   5,081   1,615      0           25,000      0        5,524    
 President &     1996    74,015   8,748   1,185      0           25,000      0        5,368
 CEO	            1995    67,800   5,356   1,406      0           25,000      0        5,025
</TABLE>
(1)	Includes amounts paid under the Non-qualified Employee Profit Sharing Bonus
(2)	Other Annual Compensation includes Accrued Vacation Pay
(3)	All Other Compensation consists of premiums paid for Group Health Insurance
    and Key Man Insurance
(4) Amount does not reflect proceeds of $0.01 per share cash distribution
    received during 1997, totaling to $4035.  Receipt of cash distribution was
    based solely on capacity as a shareholder. 

The information specified concerning the stock options of the named executive
officers during the fiscal year ended December 31, 1997 is provided in the
following Option/SAR Grants in the Last Fiscal Year Table:
<TABLE>
<CAPTION>
                       OPTION/SAR GRANTS IN LAST FISCAL YEAR

                      					    Individual Grants (5)                     
         (a)              (b)           (c)             (d)             (e)
                      Number of      % of Total
                     Securities     Options/SARs 
                     Underlying      Granted to   
                    Options/SARs    Employees in   Exercise or base  Expiration
        Name         Granted # (5)   Fiscal Year     Price($/Sh)        Date   
   ----------------------------------------------------------------------------
   <S>                  <C>            <C>              <C>            <C>         
   T.L. Kirchner        25,000         11.6%            0.28           2/8/00
</TABLE>
(5) 	This table does not include Stock Options granted previously.  Forms 8-K
     dated 2/9/96 and 2/7/97, respectively, are incorporated herein by
     reference.


<PAGE>
The information specified concerning the stock options of the named 
executive officers during the fiscal year ended December 31, 1997 is 
provided in the following Aggregated Option/SAR Exercises in Last Fiscal 
Year and Fiscal Year-End Options/SAR Values Table:
<TABLE>
<CAPTION>
             	AGGREGATED OPTION/SAR EXERCISES IN LAST FISCAL YEAR
                     	AND FISCAL YEAR END OPTION/SAR VALUES

         (a)                (b)           (c)          (d)             (e)
                                                    Number of                
                                                   Securities       Value of 
                                                   Underlying     Unexercised
                                         	 					   Unexercised   in-the-money
                                          							  Options/SARs   Options/SARs
                                         							   at FY-End (#)  at FY-End ($)
                         Number of                  
                      Shares Acquired    Value  	  Exercisable/   Exercisable/
         Name          on Exercise     Realized($) Unexercisable  Unexercisable
    ----------------------------------------------------------------------------
      <S>                 <C>             <C>        <C>             <C>       
      T.L. Kirchner       0               0          75,000          0
</TABLE>
The Company does not currently have a Long-Term Incentive Plan ("LTIP").

Compensation to outside directors is limited to reimbursement of out-of-pocket
expenses that are incurred in connection with the directors duties associated
with the Company's business.  There is currently no other compensation
arrangements for the Company's directors.  (See "Security Ownership of Certain
Beneficial Owners and Management" for Stock Options granted in previous years.)

The Company currently does not hold any Employment Contracts nor Change of
Control Arrangements with any parties.

                                  ITEM 11.
      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

The following table sets forth, as of December 31, 1997, the amount and 
percentage of the Common Stock of the Company, which according to 
information supplied by the Company, is beneficially owned by each person 
who, to the best knowledge of the Company, is the beneficial owner (as 
defined below) of more than five (5%) of the outstanding common stock.
                                                                         
                                            Amount &
                                           Nature of
       Title         Name & Address        Beneficial          Percent
         of               of                   of                 of
       Class       Beneficial Owner (1)   Ownership (2)         Class 
   --------------------------------------------------------------------
      Common         T.L. Kirchner         403,488 (3)            8.1%
                    415 N. Quay Street.
                   Kennewick, WA 99336
   ---------------------------------------------------------------------

(1)	Under Rule 13d-3, issued by the Securities and Exchange Commission, 
    a person is, in general, deemed to "Beneficially own" any shares if 
    such person directly or indirectly, through any contract, 
<PAGE>
    arrangement, understanding, relationship or otherwise, has or shares 
    (a) voting power, which includes the power to vote or to direct the 
    voting of those shares and/or (b) investment power, which included 
    the power to dispose, or to direct the disposition of those 
    securities.  The foregoing table gives effect to shares deemed 
    beneficially owned under Rule 13d-3 based on the information 
    supplied to the Company.  The persons named in the table have sole 
    voting power and investment power with respect to all shares of 
    Common Stock beneficially owned by them.

(2)	The beneficial owner listed above has stock options giving the right 
    to acquire 75,000 shares of Electronic Systems Technology, Inc. 
    Common Stock: Options for 25,000 shares were granted February 9, 
    1996; Options for 25,000 shares were granted February 7, 1997; 
    Options for 25,000 shares were granted February 6, 1998.  Forms 8-K,
    dated February 9, 1996, February 7, 1997, and February 6, 1998,   
    respectively, are incorporated herein by reference.

(3)	Does not include options granted.  See footnote (1) above.

SECURITY OWNERSHIP OF MANAGEMENT

The following table sets forth, as of January 29, 1998, amount and 
percentage of the Common Stock of the Company, which according to 
information supplied by the Company, is beneficially owned by Management, 
including officers and directors of the Company.

        Title             Name              Amount & Nature        Percent 
          of               of                     of                  of
        Class       Beneficial Owner     Beneficial Ownership       Class
     ----------------------------------------------------------------------
       Common        T.L. Kirchner            403,488 (1)            8.1%
                     (Officer & Director)

       Common        Robert Southworth          4,000 (1)            0.1%
                     (Officer & Director)       

       Common        Melvin H. Brown           76,500 (1)            1.5%
                     (Director)
 
       Common        Arthur Leighton           84,000 (1)            1.7%
                     (Director)

       Common        John H. Rector             6,000 (1)            0.1%

(1)	Does not include stock options.  See below.













<PAGE>
On various dates, the Company's Board of Directors has approved Stock 
Option Bonuses for Directors and Employees.  The following is a summary 
of the Stock Option bonuses currently outstanding:  Options are 
exercisable at fixed prices.  Options may not be exercised in blocks of 
less than 5,000 shares.  Options not exercised expire three years after 
approval date or 90 days following termination of employment/board 
membership, whichever occurs first.  In the event of acquisition, merger, 
recapitalization or similar events of the Company, the optionee will 
receive equivalent shares or will have a 10-day window in which to 
exercise the options.  Option grants are not transferable or assignable 
except to the optionee's estate in the event of the optionee's death.  

The information below does not include stock options granted in February 1998.

Recipients of Stock Options currently unexpired as of 12/31/97 were as follows:

                                                     Exercise Price
          Name                  Option Shares           per Share ($)  
    -----------------------------------------------------------------------

     	APPROVAL DATE: 2-7-97

     	David B. Strecker             15,000                 0.28
     	Eric P. Marske                15,000                 0.28
     	Jon A. Correio	               15,000	                0.28
    		Alan B. Cook                  15,000	                0.28
    		Debra Vaughn        	          5,000	                0.28
    		Melvin Brown                  25,000                 0.28
      Tom Kirchner                  25,000                 0.28
     	Arthur Leighton               25,000                 0.28
     	Robert Southworth             25,000                 0.28
    		John H. Rector	               25,000    	            0.28
    		John L. Schooley	             25,000	                0.28	

    		APPROVAL DATE: 2-9-96

     	David B. Strecker             25,000                 0.42
     	Eric P. Marske                25,000                 0.42
     	Jon A. Correio       	        25,000	                0.42
    		Alan B. Cook                  25,000	                0.42	
    		Melvin Brown                  25,000                 0.42
      Tom Kirchner                  25,000                 0.42
     	Arthur Leighton               25,000                 0.42
     	Robert Southworth             25,000                 0.42

     	APPROVAL DATE: 2-3-95

     	George M. Stoltz              25,000                 0.31
     	David B. Strecker             25,000                 0.31
     	Eric P. Marske                25,000                 0.31
     	Melvin Brown                  25,000                 0.31
      Tom Kirchner                  25,000                 0.31
     	Arthur Leighton               25,000                 0.31
     	Robert Southworth             25,000                 0.31

Stock options must be exercised within 90 days after termination of 
employment/board membership.  During 1997, no options expired nor were 
exercised.  At December 31, 1997 there were 590,000 shares reserved for 
future exercise.
<PAGE>
                                   ITEM 12. 
              CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

TRANSACTIONS WITH MANAGEMENT AND OTHERS

During fiscal year 1997, the Company contracted for services from 
Manufacturing Services, Inc. in the amount of $82,490.  Manufacturing 
Services, Inc. is owned and operated by Melvin H. Brown, who is a 
Director of Electronic Systems Technology, Inc.  Management believes all 
prices for services, provided by Manufacturing Services, Inc., were as 
favorable as could be obtained from comparable manufacturing services 
companies.















































<PAGE>
                                     PART IV

                                     ITEM 13.  
                        EXHIBITS AND REPORTS ON FORM 8-K

Exhibits filed as part of the Company's 10KSB report for 1997 are listed 
below.  Certain exhibits have been previously filed with the Securities 
and Exchange Commission and are incorporated by reference.

        EXHIBIT                                                  
         NUMBER                          DESCRIPTION
   ---------------    ----------------------------------------------------
           1.        	Report of Independent Certified Public Accountant
                    		Financial Statements/Financial Statement Schedules 
                    		Balance Sheets
                    		Statement of Operations
                    		Statement of Changes in Stockholders Equity
                    		Statement of Cash Flows
                    		Notes to Financial Statements

           2.        	Reports on Form 8-K 
                      2.1  Form 8-K dated October 31, 1997
                      2.2  Form 8-K dated November 4, 1997
                      2.3  Form 8-K dated November 7, 1997
                      2.4  Form 8-K dated November 12, 1997

          	3.        	Articles of Incorporation and By-Laws filed as Exhibit
                      2.1 to Form S-18, Registration Statement No. 2-92949-S,
                      Exhibit (c) to Form 8-K, filed March 15, 1985, and
                      Amendments to By-Laws adopted by Shareholders on
                      January 14, 1985 are incorporated herein by reference.

         		4.        	Instrument defining the rights of security holders
                      including indentures.  Exhibit II Form S-18 Registration
                      Statement No. 2-92949-S is incorporated herein by
                      reference.	Forms 8-K dated February 9, 1996,
                      February 7, 1997, February 6, 1998, and Form 8-K/A dated
                      February 3, 1995, are incorporated herein by reference.
		
         	11.        	Statement re-computation of per share earnings.         

         	13.        	Annual report to security holders, Form 10-Q or quarterly
                      report to security holders.                        N/A

         	22.        	Published report regarding matters submitted to vote of 
                      security holders.                                  N/A

          24.        	Consents of experts and counsel                     
                                
          27.        	Financial Data Schedule

          99.        	Additional Exhibits                        								N/A
		
		    	





<PAGE>
                                     SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant has
caused this Report to be signed on its behalf by the undersigned, thereunto
duly authorized.

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

By:   /s/ T.L. KIRCHNER

      T.L. Kirchner, Director/President
      (Principal Executive Officer)

Date: March 20, 1998

In accordance with the Exchange Act, this Report has been signed below by 
the following persons on behalf of the Registrant and in the capacities 
and on the dates indicated.

              Signature   					            Title                 Date
            -------------              --------------        -------------
     /s/    T.L. KIRCHNER           Director/President       March 20, 1998
     T.L. Kirchner

     /s/    ROBERT SOUTHWORTH       Director/Secretary/      March 20, 1998  
     Robert Southworth     					    Treasurer

     /s/    MELVIN H. BROWN         Director                 March 20, 1998
     Melvin H. Brown

                                    Director    
     Arthur Leighton

     /s/    JOHN RECTOR             Director                 March 20, 1998    
     John H. Rector

                                    Director     
     John L. Schooley