EXHIBIT 2.3 - Form 8-K dated December 6, 1996

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


                                FORM 8-K



                             CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 


                    Date of Report:  December 6, 1996




                  ELECTRONIC SYSTEMS TECHNOLOGY INC.
                      (A Washington Corporation)

                      Commission File no. 2-92949-S
                IRS Employer Identification no. 91-1238077

                           415 N. Quay St. #4
                          Kennewick  WA  99336
               (Address of principal executive offices)


Registrant's telephone number, including area code:(509) 735-9092




























<PAGE>
ITEM 5.  OTHER EVENTS

On December 6, 1996, the Company issued a letter to shareholders discussing   
quarter results for the quarter ended September 30, 1996 results, and other 
informational issues.  This shareholder letter is incorporated by reference and 
is attached hereto as Exhibit 20.7.

ITEM 7.  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS, AND EXHIBITS. 

         Exhibit 20.7 - Letter to Shareholders published DECEMBER 6, 1996.

















































<PAGE>
                               SIGNATURES

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

ELECTRONIC SYSTEMS TECHNOLOGY, INC.

T. L. KIRCHNER
  

By: T.L. Kirchner
President
Date: DECEMBER 6, 1996













































<PAGE>
      EXHIBIT 20.7-Letter to Shareholders

To Our Shareholders:

Gross revenues decreased to $310,993 for the third quarter of 1996 as
compared to $452,620 in the third quarter of 1995.  This has resulted in a
decrease in our net income before tax to $30,902 from $160,339 for the
3rd quarter of 1995.  

Our third quarter year gross revenues have decreased from $1,308,030 in 1995
to $1,113,248 in 1996 for the same period. Third quarter year net profit before 
tax was $211,750 as compared to $355,545 for the same period of 1995.

(see appendix item no. 2 for description of graphic content not    
displayed in electronic format)

In Management's opinion the overall reduction in sales revenue is due
primarily to cancellation or postponements of industrial automation projects by
both foreign and domestic customers, less than expected customer orders,
as well as increased competition from other wireless systems and hardware
providers.  This downward sales trend in conjunction with increased 
Research and Development and Marketing expenditures by the Company, has
resulted in a lower net income before tax for 1996 when compared with the same 
period of 1995.  Management's opinion is this trend will continue through the 
calendar year ending December 31, 1996.  

It is Management's opinion the Company's increased marketing efforts in
conjunction with the release of the new ESTeem product line, as well as an
increase in the number of EST distributors in the second half of 1996,
may lead to a reverse in the downward trend in sales revenue in 1997.

The development of the new 192 ESTeem product line has been on-going
for 1996.  The ESTeem Model 192C, developed for our industrial automation
market, was released at a trade show in October.  The Federal Communications
Commission (FCC) type acceptance for the 192C products has been applied
for and the company is awaiting approval.  In Canada, communications type
acceptance for the 192C was approved in November.  The Model 192F 
operates on federal frequencies in the United States, and government and
civilian frequencies in foreign countries. 

As stated at our Annual Shareholder Meeting in June, it is Management's
opinion that the Company's stock is under valued.  A stock buy-back plan was 
implemented in 2nd quarter of and was extended through the 3rd quarter
of 1996.  Over this period the Company purchased 53,000 shares at an average
price of $0.45 per share.

As a reminder for our shareholders, all EST's filing data to the Security
Exchange Commission (SEC) is now available from the SEC information archive
on the Internet (http://www.sec.gov).  In addition, EST has an Internet web
site (www.esteem.com) which provides technical and sales information. 




T.L. Kirchner
President


<PAGE>
<TABLE>
                          SELECTED FINANCIAL DATA
                         (as prepared by Management)
                                  (Unaudited)
<CAPTION>
Nine months ended                     	Sept 30          		Sept 30
                                    			  1996           		  1995	
                                        =====               =====
<S>                                  <C>                 <C>
Sales                                $   905,680         $ 1,154,290
Other revenue                        $   207,568         $   153,740
Gross Profit                         $   545,166         $   707,353
Income (Loss) before
provisions for income taxes          $   211,750         $   355,545

Earnings per common
share before taxes
        Primary                      $       .04         $       .07
        Fully diluted                $       .04         $       .07

Earnings per common
share after taxes	
         Primary                     $       .03         $       .04
         Fully diluted               $       .03         $       .04

Weighted average number of 
common shares and common stock 
equivalents outstanding for use in 
determining Earnings Per Share:

         Primary                       5,475,339           5,396,256
         Fully diluted                 5,475,339           5,396,256

Total assets                         $ 2,047,304         $ 1,955,667

Long-term debt 
and capital lease
obligations                          $         0         $         0

Shareholder's equity                 $ 1,991,756         $ 1,827,893
Shareholder's equity
per share                            $       .40         $       .37

Working Capital                      $ 1,835,750         $ 1,708,249

Equity to total assets                       97%                 93%
                       

</TABLE>










<PAGE>
SHAREHOLDER INFORMATION



HEADQUARTERS

Electronic Systems Technology, Inc.
415 N. Quay Street
Kennewick, WA 99336
Office: (509)  735-9092 
Facsimile: (509)  783-5475 
Internet Web Site: www.esteem.com 



INDEPENDENT AUDITOR

Robert Moe & Associates, P.S.
305 IBM Building
W.  201 N. River Drive
Spokane, WA 99201



TRANSFER AGENT

TranSecurities International, Inc.
2510 North Pines, Suite 202
Spokane, WA  99206
Phone: (800) 762-8233




























<PAGE>
APPENDIX:

Item no. 1: (graphic material not included in electronic filing format)

Located at the top left of the document was the Electronic Systems 
Technology, Inc. trademarked company logo, showing a black square 
field containing the stylized letters E S T.

Item no. 2: (graphic material not included in electronic filing format)

Located between the second and third paragraphs of the first page 
of the shareholder letter was a bar graph showing the comparison of 
third quarter revenues and net profit (rounded to the nearest 
thousand dollars) for the third 
quarters of 1994, 1995, and 1996.  
The data presented was as follows:  
1994 third quarter gross revenues: $997,000
1994 third quarter net profit: $206,000
1995 third quarter gross revenues: $1,308,000
1995 third quarter net profit: $356,000
1996 third quarter gross revenues: $1,113,000
1993 year end gross revenues: $212,000