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, 1998  

  [ ]	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. $1,631,298.

  On January 29, 1999 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 $1,365,212.

  The number of shares outstanding of the registrant's common stock as 
 of January 29, 1999:  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, February 9, 1996, February 7, 
<PAGE>
 1997, June 5, 1997, February 6, 1998, June 4, 1998, and February 12, 
 1999.

 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 product 
lines, which provide innovative communication solutions for applications 
not served by existing conventional communication systems.  The product 
lines are offered in markets for process automation in commercial, 
industrial, and government arenas both domestically and internationally, 
as well in the domestic markets for public safety communications 
infrastructure.  The Company's product lines are marketed through direct 
sales, sales representatives, Original Equipment Manufacturers (OEM's) 
and domestic and 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 a 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, the Company has developed an ESTeem product line built on 
spread spectrum, non-licensed radio frequency architecture for release in 
the first quarter of 1999 to augment the Company"s existing products, 
which use licensed radio frequency design.  The Company has continually 
expanded its customer base, particularly in the industrial control 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 1998, the Company started 
marketing ESTeem products to public safety entities for mobile data 
terminal communication applications, and 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 packet burst, VHF & UHF FM radio modems, 
operating in radio frequency bands between 72 to 76 Megahertz (MHz), 150 
to 170 MHz, 400 to 420 MHz, 450 to 470 MHz, and 2.4Gigahertz (GHz).
<PAGE>
The ongoing proliferation of computer applications in business and 
industry has created a dynamic environment of automation and networks 
which require increasing amounts of data transfer.  Prior to the 
invention of the ESTeem modem, the majority of data transfers used 
telephone modems or direct cable connections.  These latter methods both 
had costly side effects.  Telephone modems have a potentially expensive 
monthly charge for the use of telephone lines, and direct cable 
connections can have installation 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 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, which are saved in non-volatile memory, allowing users 
to easily configure the unit for any application. 

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, RS-422 or RS-485 
asynchronous port and is transmitted in "Electronic Packets".  The size 
of the packet can be user defined 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.  Internal Digi-Repeater features allow the user to 
increase operating range by relaying transmission through a maximum of 
three ESTeems to reach a 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
		
                                  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 and the ESTeem 192M which operates in the 150-174 MHz 
band of the VHF RF spectrum. 
<PAGE>
   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.  The ESTeem 192M operates in 
   the 150-174 MHz RF frequency spectrum with a data rate of 19,200 
   bps, and RF output power from two to four watts, depending on 
   customer licensing.  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, the mid to upper 400 MHz commercial radio band, and the 2.4 GHz 
unlicensed radio band, of the UHF RF spectrum.  The ESTeem UHF radio 
modem products are the ESTeem Model 192C, 192F, and 192S. 

   The ESTeem Models 192C and 192F, have the same features as the VHF 
   radio modem products, but are designed to operate in the lower and 
   upper 400 MHz areas of the UHF RF spectrum and have capability of RF 
   output power from two to four watts depending on customer licensing. 
   The 192C and 192F products contain infrared and optional telephone 
   interfaces not available on previous models.  The ESTeem 192C was 
   designed to operate in business radio bands of upper 400 MHz.  The 
   ESTeem Model 192F  was designed to operate in U.S. Government radio 
   bands of lower 400 MHz.  The ESTeem 192S is a low cost unlicensed 
   direct sequence spread spectrum product operating in the 2.4 GHz 
   radio spectrum, with a power output of 1 watt and a data rate of 
   171,000 bps, intended for domestic and foreign applications over 
   distances up to three miles.  All of the UHF radio modems are 
   applicable to uses in the following markets: 

	  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.
	
                       ADDITIONAL PRODUCTS AND SERVICES 

   The Company sells various accessories that 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.




<PAGE>
                   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 1998 and 1997 were $139,675 and  
$128,110, respectively.  None of the Company's research and development 
expenses are directly paid for by any of the Company's customers.  In 
1998, the Company continued to contract with an independent, 
nonaffiliated, engineering company specializing in radio design, when 
that expertise was required.  

During 1998, the Company completed development of the ESTeem 192M radio 
modem, which is a mid range VHF spectrum offering not covered by the 
Company's existing products.  The Company's development efforts were also 
directed toward revamping of the outer case structure of the ESTeem 
products for both cost savings and performance enhancement.  Development 
was commenced on the ESTeem 192S, using spread spectrum, nonlicensed 
radio architecture to augment the Company's existing products, and is 
expected for release in the first quarter of 1999.  The Company plans on 
continued research and development expenditures and to undertake new 
development and improvement projects, as they become necessary. 

                      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 percent of the Company's products are 
distributed through direct sales and thirty  percent are through Reseller 
and OEM entities.  Customers generally place orders on an "as needed 
basis".  Shipping dates for most products are generally 5 to 10 working 
days after receipt of a customer order.  As of December 31, 1998, the 
Company had minimal backlog.

During 1998, the Company continued to advertise in trade publications 
specifically targeted at users of control, instrumentation, and 
automation systems worldwide, as well as public safety entities 
domestically.  The Company's advertising is primarily targeted toward 
potential 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 1999, the 
Company intends to continue marketing strategies targeted at the 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 


<PAGE>
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 Government sales activities 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, 1998, the largest sales concentration 
were to entities and contractors of the United States Government, which 
amounted to 27% of total product sales for the year.  Foreign sales were 
14% of total revenues for 1998.  No other sales to a single customer 
comprised 10% or more of total product sales as of December 31, 1998.  
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 
February 2004. 

The Company participates in a Government program with contracts 
administered by the Intermec Corporation.  The contract is a fixed price, 
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     Data-Linc, GRE America,
   Control, Shop Floor Manufacturing,      Johnson, Maxon, Microwave Data 
   Overhead Crane Control                  Systems, Motorola, Metricom, and 
                                           Proxim

   Computer Networking, inter and intra    Aironet Wireless Communications, 
   building                                Cylink, Digital Wireless,        
                                           Metricom,  and Proxim 

   Radio Area Networking of hand held      Intermec, LXE, Norand, Symbol 
   data collection terminals and           Technologies,  and Telxon
   bar coding 
 
   Mobile Data Computer systems for        Data Radio, Coded Communications, 
   public safety applications              Motorola, various cellular       
                                           service providers using CDPD     
                                           architectures.


<PAGE>
   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 
mandated, observed, and tested performance criteria.  All of the 
Company's products requiring FCC Type Acceptance have been granted such 
acceptance. 

For operation in Canada, the ESTeem RF Modems require Industry Canada 
Type Acceptance.  Industry Canada grants the Type Acceptance for devices 
demonstrating operation within performance criteria mandated, observed, 
and tested.  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., 
<PAGE>
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, 1998 
consisted of parts having lead times ranging from 12 to 20 weeks.  Some 
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, 1998, the Company employed a staff of 12 persons on a 
full time basis, 3 in marketing, 2 in technical support, 5 in 
engineering/manufacturing, and 2 in Finance and Administration.  The 
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, adverse effects on the Company's operations may 
be realized.  The Company employs part-time labor on an "as needed" 
basis, usually in engineering/manufacturing.  At year-end 1998 the 
Company employed 4 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, 
expiring 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, 
<PAGE>
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 the Company 
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 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, 
1998 had received settlement payments amounting to a total of $15,132. 

                                   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 1998 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, 1998
    First Quarter                     3/8   0.26       0.44   0.32	 
    Second Quarter                   19/32   3/8      11/16   7/16     
    Third Quarter                     1/2    1/4       9/16   7/16     
    Fourth Quarter                   11/32   1/4       7/16  11/32     
          
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

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, 1999 was 650 persons/entities.

Electronic Systems Technology Inc. paid non-cumulative, cash 
distributions on July 9, 1998 and July 11, 1997, respectively, each 
equivalent to $0.01 per outstanding share. The Company's Forms 8-K dated 
June 4, 1998 and June 5, 1997, as filed with the Securities and Exchange 
Commission are 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 
<PAGE>
existing conventional communication systems.  The Company offers its 
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 1998 vs. FISCAL YEAR 1997

GROSS REVENUES:  Total revenues for the fiscal year 1998 were $1,631,298 
reflecting a 10% increase from the $1,476,487 gross revenues for fiscal 
year 1997.  The increase is attributable to increased product sales in 
1998, of $1,485,381 as compared to 1997 sales of $1,337,303, representing 
an increase of 11%.  During 1998 the Company had increased sales to U.S. 
Government contractors, which accounted for the majority of increased 
sales revenues.  Management believes the increase in U.S. Government 
sales revenues was the result of unexpected contract purchases, and due 
to the uncertain nature of U.S. Government purchasing patterns, that a 
continuation of U.S. Government sales revenues like those experienced in 
1998 cannot be guaranteed. 

In 1998, 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 1998, the Company had $214,396 in foreign export sales, amounting to 
14% of gross product and service sales for the year.  For year-end 1997, 
foreign export sales were $340,423, or 24% of gross product sales for the 
year.  It is Management's belief that foreign sales decreased due to the 
result of economic downturns experienced in Asia and South America, and 
1998 performance being compared with the strong 1997 foreign export year 
of $340,423, or 24% of product sales for the Company, which historically 
amounts to 15% to 20% of the Company's product sales.  Products purchased 
by foreign customers were used primarily for use in SCADA projects.  
Management believes the majority of foreign export sales are due to EST 
distributor efforts and the Company's Internet website presence.  The 
geographic compositions of the Company's foreign export sales for 1998 
and 1997 are shown in Note 6 to the Financial Statements.  (See Note 6 to 
Financial Statements.)

In 1998 products purchased by U.S. Government agencies or by U.S. 
Government contractors amounted to $423,923 or 27%, of gross product 
sales compared with 1997 levels of $250,840, or 18%, of gross product 
sales.  Management believes the increase in U.S. Government sales 
revenues was the result unexpected contract purchases, and due to the 
uncertain nature of U.S. Government purchasing patterns, that a 
continuation of U.S. Government sales revenues like those experienced in 
1998 cannot be guaranteed. Management does not base liquidity, 
profitability, or material purchase projections on anticipated U.S 
Government sales.  Products purchased by the U.S. Government were 
utilized in inventory control, PC/PC (Personal Computer) networking and 
command control. 

<PAGE>
As of December 31, 1998, the Company had minimal backlog.  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 to 10 working 
days after receipt of customer orders. 

COST OF SALES:  Cost of Sales, as a percentage of gross sales, for the 
years of 1998 and 1997 was 47% and 43%, respectively.  Cost of Sales 
variations that occur are attributed to the type of product sold and the 
size of orders processed.  The cost of sales variation for 1998 is the 
result of the Company having more discounted sales through distributors 
and U.S. Government contracts, and a product mix of items sold with a 
higher cost than 1997. 

INVENTORY:  The Company's year-end inventory values for 1998 and 1997 
were as follows:
                                    1998          1997
                                   -----         -----
              Parts               $229,903      $218,263
              Work in Progress        --          26,582
              Finished goods       155,462        74,282
                                  --------      --------
              TOTAL               $385,365      $319,127
                                  ========      ========   
     
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 1998, purchases and costs allocated to cost of goods sold 
were $758,870 as compared to $492,985 in 1997.  This increase is a result 
of increased purchasing by the Company in 1998 to respond to large U.S. 
Government orders late in the year, and increased manufacturing salaries 
and wages, when compared with 1997.

OPERATING EXPENSES:  Operating expenses, prior to allocation of expenses 
to Cost of Sales and Engineering Services, increased to $885,416 in 1998, 
from 1997 levels of $813,364.  Material changes in expenses are comprised 
of the following components: Advertising expenses decreased to $37,149 in 
1998 from 1997 levels of $51,935 due to reduced advertising frequency by 
the Company in 1998.  Supplies and materials expenses decreased to 
$15,568 in 1998, from $22,079 in 1997 due to decreased research and 
development projects requiring such material.  Professional services 
increased to $66,210 from 1997 levels of $56,215 due to increased 
subcontracted engineering services for research and development projects 
during 1998.  Repair and maintenance expenses increased in 1998 to 
$18,259 as compared to $10,759 in 1997, due to increased equipment 
repairs, and scheduled facilities maintenance. 

Salaries increased to $467,118 in 1998, from 1997 levels of $408,840, due 
to addition of manufacturing labor and a sales manager for the Company's 
Mobile Data Computer program.  Travel expenses for the Company increased 
to $50,847 from 1997 levels of $36,804 due to increased marketing trips 
by the Company.  The Company did not incur bad debt expense during 1998 
or 1997. 
<PAGE>
FISCAL YEAR 1997 vs. FISCAL YEAR 1996 RESULTS

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 was attributable 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 Management believed the 
increase in sales revenues to domestic and foreign customers was 
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, 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.  The geographic 
composition of the Company's foreign export sales for 1997 is shown in 
Note 6 to the 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.  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. 

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, 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 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. 
<PAGE>
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. 

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. 

LIQUIDITY AND CAPITAL RESOURCES

The Company's revenues and expenses resulted in net income of $162,927 
for 1998, reflecting a 2% decrease from the $166,120 net income of 1997. 
At December 31, 1998, the Company's working capital was $2,119,569 
compared with $1,988,266 at December 31, 1997.  The increase is primarily 
attributable to the Company's 1998 net income of $162,927.  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, 1998 is adequate for expected resource requirements for the next 
twelve months. 

The Company's current asset to current liability ratio at December 31, 
1998 was 25.3:1 compared to 26.7:1 at December 31, 1997.  The decreased 
ratio is attributable to the Company having increased trade accounts 
payable and deferred income liabilities at year end 1998.  

The Company's cash resources at December 31, 1998, including cash and 
cash equivalent liquid assets, were $1,426,381, reflecting an decrease 
from cash resources of $1,466,760 for year end 1997.  The decrease in 
cash resources at year end is the result of increased inventory 
expenditures by the Company, increased year end accounts receivable 
levels yet to be converted to cash, and deposits for ESTeem case mold 
manufacturing, when compared with year-end 1997.  Cash flows from 
operating activities were provided by net income of $162,927, and 
depreciation of $31,630.  Cash flows were offset primarily by increases 
in accounts receivable of $112,407, inventory of $66,238, deposits paid 
for ESTeem case molds of $26,250, additions to property plant and 
equipment of $11,021, cash distributions paid by the Company of $49,537. 






<PAGE>
The Company's trade accounts receivable, adjusted for allowance for 
uncollectible accounts, at December 31, 1998, were $381,386, compared to 
$268,980 at year-end 1997.  The increase is attributable to heavy late 
fourth quarter sales in 1998.  No bad debt expense was recorded during 
1998. Management believes that all of the Company's accounts receivable 
as of December 31, 1998, are collectible.

The Company believes the 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. 

Inventory levels as of December 31, 1998, were $385,365, which is an 
increase from December 31, 1997, levels of $319,127.  The increased 
inventory level is the result of increased purchasing by the Company in 
the fourth quarter of 1998 to prepare for production of the ESTeem 192S 
product, and meet heavy fourth quarter sales orders.  

Capital expenditures during year 1998 amounted to $11,021, primarily for 
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, 1998, the Company's current liabilities were $87,140, 
increased $9,927 from1997 year-end levels of $77,213.  The increase is a 
result of increased carrying levels of trade accounts payable.  All of 
the Company's accounts payable at year-end were current.   The Company 
recognized Deferred Income liability of $25,017 for a public safety 
communications contract project, with the liability representing the 
amount of the contract billed to the customer, but to be performed during 
the first quarter of 1999.

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. 

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 
February 2004.  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 1999 will be under this GSA contract. 
 

<PAGE>
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 has undertaken the process to identify anticipated costs, and 
implementation issues associated with transition of the Company's 
products and internal systems to operations during and after the Year 
2000. The Company expects to resolve any Year 2000 issues associated with 
the Company's internal and operations systems through planned replacement 
or upgrades of software applications, which are not currently deemed to 
have significant cost potential. All of the products supplied by the 
Company are Year 2000 compliant. Management does not expect Year 2000 
transition issues to have a material impact on its operations, but there 
can be no assurance that there will not be interruptions or disturbance 
of operations should negative transition issues arise. 

The Company's operations were not adversely effected by inflation during 
1998.  No adverse affect is anticipated during 1999.

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, 1998; as well as term in office and principal 
occupation of each director. 

   Name of  Director     Term in Office   Age  Principal Occupation
   -----------------     --------------   ---  --------------------
 
   T.L. Kirchner       06/05/96-06/04/99  50   President of the Company
 
   Melvin H. Brown     06/06/97-06/06/00  68   President of Manufacturing   
                                               Services, Inc.
 
   Arthur Leighton     06/06/97-06/06/00  75   Consultant
 
   Robert Southworth   06/04/97-06/06/00  55   Patent Attorney for U.S.     
                                               Dept. of Energy

   John H. Rector      06/05/96-06/04/99  82   Consultant
 
   John L. Schooley    06/05/98-06/05/01  59   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, 1998; 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      50   President      3 Years      02/10/84- Present
 
  Robert Southworth   55   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.






<PAGE>
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 
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 does not serve as director of any company that 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 that 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 that 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, 1998.                                        

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 1998    74,580   5,080    734           0           25,000   0        5,846 
President &    1997    74,580   5,081  1,615           0           25,000   0        5,524
CEO	           1996    74,015   8,748  1,185           0           25,000   0        5,368
</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)  Amounts do not reflect proceeds of $0.01 per share cash distribution 
     received during 1997 and 1998, totaling  $4035 and $4035,           
     respectively.  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, 1998 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 # (4) Fiscal Year      Price($/Sh)       Date     
------------------------------------------------------------------------------
<S>                <C>           <C>             <C>              <C>
T.L. Kirchner      25,000        11.6%           0.41             2/5/01
</TABLE>
(5)	This table does not include Stock Options granted previously.  Forms 
8-K dated 2/7/97 and 2/6/98, 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, 1998 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 or Change of 
Control Arrangements with any parties.

























<PAGE>
                                   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, 1998, 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, 
   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 7, 
   1997; Options for 25,000 shares were granted February 6, 1998, and 
   Options for 25,000 granted February 12, 1999.  Forms 8-K , dated 
   February 9, 1996, February 7, 1997, February 6, 1998, and February 
   12, 1999 respectively, are incorporated herein by reference.

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
















<PAGE>
SECURITY OWNERSHIP OF MANAGEMENT

The following table sets forth, as of January 29, 1999, 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 (Director)   76,500(1)          1.5%

   Common      Arthur Leighton (Director)   95,000(1)          1.9%

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

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

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 
1999.

Recipients of  Stock Options currently unexpired as of 12/31/98 were as 
follows:
                                               Exercise Price
      Name                  Option Shares       per Share ($)  
   --------------------------------------------------------------           
   APPROVAL DATE: 2-6-98
 
   David B. Strecker           15,000               0.41
   Eric P. Marske              15,000               0.41
   Jon A. Correio              15,000               0.41
   Alan B. Cook                15,000               0.41
   Debra Vaughn                 5,000               0.41
   Melvin Brown                25,000               0.41
   Tom Kirchner                25,000               0.41
   Arthur Leighton             25,000               0.41
   Robert Southworth           25,000               0.41
   John H. Rector              25,000               0.41
   John L. Schooley            25,000               0.41
<PAGE>

   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

Stock options must be exercised within 90 days after termination of 
employment/board membership.  During 1998, 175,000 options expired, and 
none were exercised.  At December 31, 1998 there were 630,000 shares 
reserved for future exercise.

                                   ITEM 12. 
              CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

TRANSACTIONS WITH MANAGEMENT AND OTHERS

During fiscal year 1998, the Company contracted for services from 
Manufacturing Services, Inc. in the amount of $106,166.  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 1998 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 November 17, 1998
       2.2  Form 8-K, dated February 12, 1999

     	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 February 12, 1999.
		
	    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 25, 1999

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 25, 1999
        T.L. Kirchner

 /s/   ROBERT SOUTHWORTH       Director/Secretary/        March 25, 1999 
        Robert Southworth           Treasurer

 /s/   MELVIN BROWN                Director               March 25, 1999    
        Melvin H. Brown

 /s/   ARTHUR LEIGHTON             Director               March 25, 1999    
        Arthur Leighton

 /s/   JOHN RECTOR                 Director               March 25, 1999
        John H. Rector

 /s/   JOHN SCHOOLEY               Director               March 25, 1999
        John L. Schooley