SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C.  20549
                               
                           FORM 10-K
                               
(Mark One)
[X]ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
   SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

   For the fiscal year ended: March 31, 1997

  [ ]   Transition report pursuant to section 13 or 15(d) of
   the Securities Exchange Act of 1934.

                Commission File Number:  0-8125
                     _____________________

                    DETECTION SYSTEMS, INC.
    (Exact name of registrant as specified in its charter)

     State of New York                            16-0958589
     (State or other jurisdiction            (I.R.S. Employer
     of incorporation or organization)       Identification Number)

     130 Perinton Parkway, Fairport, New York            14450
     (Address of principal executive offices)          (Zip Code)

                        (716) 223-4060
     (Registrant's telephone number, including area code)
                     _____________________

  Securities registered pursuant to Section 12(b) of the Act:
                             None
                     _____________________

  Securities registered pursuant to Section 12(g) of the Act:
                               
            Common Stock, Par Value $.05 Per Share
                       (Title of Class)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to the filing
requirements for the past 90 days.  Yes   x    No

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

As of June 13, 1997 the aggregate market value of the voting
stock held by non-affiliates of the registrant was
approximately $65,301,302.

As of June 13, 1997 there were outstanding 4,709,003 shares of
the registrant's common stock, par value $.05 per share.

              DOCUMENTS INCORPORATED BY REFERENCE
Proxy Statement for 1997 Annual Meeting of Shareholders -- See
Part III of this Form 10-K Annual Report for portions
incorporated by reference.


PART I
ITEM l.  BUSINESS

GENERAL

Detection Systems, Inc. ("Company") designs, manufactures and
markets electronic detection, control and communication
equipment for the security, fire protection, access control and
CCTV (closed circuit television) industries. The Company's
product line includes a broad line of security, fire, access
control and CCTV components and systems.  These products are
used worldwide by professional installation and service
companies to protect life and property in commercial,
industrial, institutional and residential environments.

Since its founding in 1968, Detection Systems has established a
reputation for outstanding performance, quality and service.
Until the early 1990's, the Company was primarily a niche
provider of intrusion detection devices for the domestic
market.  In 1995, the Company's management adopted a strategy
which focused on expanding its product offering through
internal development and acquisitions, establishing an
international sales presence, increasing its manufacturing
capacity and improving its manufacturing cost structure.  In
furtherance of this strategy, the Company has had five
acquisitions, opened sales offices in seven countries and
successfully established a manufacturing facility in Southeast
Asia.  These activities have allowed the Company to
significantly expand its product catalog and market scope while
growing from $34 million in sales to $101 million in sales in a
two-year period.

The Company significantly expanded its product catalog by
adding:  (i) control and communication equipment with its
purchases of Radionics, Inc. ("Radionics") in February 1996 and
Digital Audio Limited ("DA Systems") in May 1997, (ii) wireless
radio network products with its purchase of the certain assets
of Senses International ("Senses") in July 1996, (iii) in-
building wireless radio technology with its purchase of DA
Systems in May 1997, and (iv) an additional line of security
control panels with its acquisition of Seriee, SA ("Seriee") in
June 1997.  In addition to acquisitions, the Company has been
able to supplement its product catalog with a number of
security, fire, access control and CCTV products by entering
into a number of strategic alliances with partners that have
technological capabilities that supplement and complement the
Company's internal capabilities.

The Company sells its products through a number of subsidiaries
as well as under a number of different brand names, which
include Detection Systems (DS), Radionics (Radx), Security
Escort, Safecom, and DS Vision.

An electronic alarm system consists of intrusion and fire
detectors as well as control and communication equipment.  An
alarm system is turned on by setting the control instrument.
When a break-in or fire occurs, the intrusion or fire detector
senses the incident and activates the control instrument, which
in turn triggers the communication equipment and, in most
cases, a bell or siren to provide a local alarm.  Communication
equipment may consist of an automatic telephone dialer, a
leased telephone line transmitter or a radio transmitter and is
used to transmit the alarm signal to a remote central alarm
monitoring service or directly to the police.

On May 8, 1997, Detection Systems acquired all of the
outstanding stock of Digital Audio Limited, more commonly known
as DA Systems, a leading U.K. manufacturer of security control
equipment, a wholly owned subsidiary of Numerex Corp. (NMRX).
This acquisition provides the Company with a line of controls
and communication devices that are approved for sale in the
U.K. market, and an important new in-building wireless radio
technology that is believed to be superior to competitive
offerings. DA Systems sells its products to a national
dealer/installer network which combines its products with other
components from other suppliers, including Detection Systems,
to form complete systems.

On February 12, 1996, Detection Systems acquired all of the
outstanding stock of Radionics, Inc., a leading U.S.
manufacturer of security, fire and access control systems, from
Expamet, Inc., a wholly-owned subsidiary of Expamet
International PLC, a United Kingdom corporation. This
acquisition more than doubled the sales rate of the Company.
Radionics designs and manufactures keypads,
control/communicators and central station receivers for the
intrusion alarm, fire alarm and access control markets.
Specifically, Radionics' product line includes basic
residential to complex high security control communication
systems; small to large specified fire systems; single to multi-
thousand user door access systems and integrated fire,
intrusion and access control systems.  These products are
complementary to the Detection Systems' product line.

In addition to selling its own manufactured products, Radionics
buys and resells certain access control products manufactured
by PAC, its former U.K. affiliate, and certain sensors
manufactured by third parties.  Radionics sells its products to
a national dealer/installer network which combines its products
with other components from other suppliers, including Detection
Systems, to form complete systems.

The acquisitions of DA Systems and Radionics were accounted for
as a purchase for financial reporting purposes and accordingly,
the assets and liabilities were restated to reflect their fair
market value as of the acquisition date.

On July 11, 1996, the Company acquired the assets of Senses,
International Inc.  Senses manufactured long range wireless
alarm transmission equipment which it marketed under the name
of "Safecom".  This acquisition provides the Company with an
important new technology, a patent covering transmission of
alarm signals from a digital communicator through a radio
network, and access to dealers who have installed 150 Safecom
radio networks. Safecom networks are operating in 19 countries
around the world, with the greatest penetration in the South
American market.

The Company has several subsidiaries other than DA Systems and
Radionics. During fiscal 1995, the Company provided an equity
investment of $100,000 to its Detection Systems International,
Inc. ("DSII") subsidiary  for the purpose of marketing
international opportunities for its electronic security and
fire protection products.  As a result of this investment, two
foreign subsidiaries were established, one in Hong Kong and the
other in Sydney, Australia.  The Company provided an equity
investment of $300,000 each to Detection Systems (HK) Limited
and Detection Systems (AUST) Pty. Ltd. ("DS Australia").
Control of Hong Kong changes from British rule to Chinese rule
as of July 1, 1997.  The Company does not believe it is
possible to determine the impact this change will have on its
operations.

During fiscal 1996, DS Australia established branch offices in
Melbourne and Brisbane.  In addition, DSII established a branch
office in Paris, France, and opened a branch office in the
United Kingdom during the first quarter of 1997.  Also, a
manufacturing facility was leased in Southeast Asia.  The
Company began manufacturing operations and product shipments to
customers from that facility during the third fiscal quarter of
1996 and supplied approximately 40% of its manufactured volume
from this facility during fiscal 1997.  The Company owns 100
percent of the common stock of DSII and its foreign
subsidiaries.

The Company maintains a separate Security Escort"  subsidiary,
Emergency Communications, Inc. ("ECI"), to facilitate joint
ventures in the help call market, where there may be financial
requirements in excess of the Company's internal financing
capability.  The Company initiated a promotional campaign of
its Security Escort" multiple user help call system in fiscal
1996 to engineered system companies, for use in diverse
environments such as apartment complexes, condominiums,
retirement communities, hospitals, correctional institutions,
government facilities and manufacturing facilities. Sales have
been made in Australia for use in correctional facilities and
total coverage systems are operational in two U.S. colleges.

The Company purchased all of ECI's common stock through an
initial equity investment of $100,000 and subsequently awarded
a portion of the shares to certain directors and employees.
During fiscal 1997, the Company repurchased all of the
outstanding shares held by directors and employees and as of
March 31, 1997, the Company owned approximately 99.3% of ECI's
common stock. At June 1, 1997, the Company had provided ECI
with approximately $1.1 million in loans.

During fiscal 1996, the Company's DSII subsidiary entered into
a joint venture agreement with the Chinese government for the
purpose of designing, manufacturing and distributing security
products internationally.  The Company does not believe this
agreement will have a material impact on revenues and earnings
in fiscal 1998.


PRODUCT LINE

The Company's product lines consist of its traditional
security/fire detection line, its Radionics control system
line (which greatly expanded its historic  control system
line), its newly acquired
DA Systems control, communicator and in-building wireless radio
system, and the Company's Security Escort multiple user help
call system.

The Company's security detectors operate on five basic
principles (1) passive infrared body heat detection, (2)
photoelectric beam interruption, (3) combination passive
infrared/microwave detection ("duals"), (4) acoustic glass
break detection and (5) vibration detection. These five types
of detectors complement each other in their system applications
and the types of environments in which they function best.
Several different types of detectors are often used in a single
alarm system.  The Company's intrusion detection products
include both self-contained detectors which are connected both
directly (wired) and/or indirectly (wireless) to the alarm
system controller and detectors that are connected to other
detectors and to a detection zone control, which is in turn
connected to the system controller.  The Company's products are
used in new alarm systems as well as to upgrade existing alarm
systems.

Many of the Company's security detectors feature enhanced
signature recognition techniques. The Company's newest duals
can be used in residential or commercial environments where
animals may be present.

During the past several years the Company has worked with
outside contractors for special purpose limited volume devices
important to its catalog that are sold under both the Detection
Systems and Radionics names.

The Company's fire detection product line includes beam smoke
detectors, photoelectric spot smoke detectors and ionization
spot smoke detectors.  The photoelectric spot and ionization
spot detectors are available in both direct wire and separate
head and base configurations, where the separate head and base
units have interchangeable 2- and 4-wire bases.  The Company's
smoke detector line is comprised of detectors for both
residential and commercial applications.  The acquisition of
Radionics adds fire control panels to the Company's product
line.

The Company has a family of microprocessor-based alarm control
equipment for use in security/fire system applications.  The
Company's control line is comprised of controls for both
residential and commercial applications including multiplex
systems used to monitor large security system applications.
The acquisition of DA Systems  provides the Company with a
control system product line that is approved for sale in the
U.K. market as well as other select geographic markets.
Radionics and DA Systems have each been considered one of the
leading U.S. and U.K. based manufacturers of control and
communication equipment in their respective markets, partially
due to their success in marketing their products to dealer
networks.

The Company continues to work with a national customer to
provide long-range transmissions of security and fire alarm
signals over the ARDIS radio network.  ARDIS, an acronym for
Advanced Radio Data Information Service, offers an alternative
to telephone lines as the means for contacting a central
monitoring station, and ultimately the police or fire
department.  The use of ARDIS increases alarm system
reliability and reduces vulnerability to tampering.

During fiscal 1997, the Company signed a licensing agreement
with UPLINK Security Inc. to incorporate BellSouth's new
Cellemetry data service into its Radionics brand security
control panels for the wireless transmission of alarm signals
to a central station.  The patented Cellemetry technology is
both affordable and reliable because it enables alarm equipment
to use existing cellular networks for its data communication.
Because it is deployed at the main cellular switch (MTSO)
rather than at cell sites, Cellemetry requires minimal up-front
investment from the cellular provider for deployment.

Detection Systems' Security Escort multiple user help call
system uses a digital micro-cellular architecture to provide
its subscribers with 24 hour protection.  A hand-held Security
Escort transmitter enables an individual to simultaneously
trigger a strobe, sound a siren alarm and alert the appropriate
security personnel as to the subscriber's name, location,
address and any handicap.  A unique test feature allows the
subscriber to test the system at any time and receive visual
confirmation that it is functioning properly.

MARKETING

The Company's products are installed in industrial, commercial,
institutional and residential buildings. The Company engages in
wholesale marketing and partnering to promote its security and
fire detection products.  The Company markets directly to
professional installation and service companies through its
District Sales Managers, who are compensated on a salary plus
commission basis.  The Company also sells its security products
to independent stocking distributors, who in turn sell to alarm
installation and service companies.  The Company sells security
and fire detection products directly to several companies who
market electronic security and fire alarm systems under their
own "private label."

Radionics and DA Systems sell their products to national
dealer/installer networks which combine their products and
other supplier components to form complete systems.  From its
inception, Radionics has sold its products to installation
companies in the high-end commercial, retail and governmental
markets.  More recently, Radionics has broadened its product
offering by supplying lower-end products suitable for the
residential market where there is considerable growth.
Conversely DA Systems has sold its products to installation
companies and distributors in the small commercial and
residential markets where there is considerable growth.

Detection Systems is actively promoting the Security Escort"
multiple user help call system throughout North America and in
Australia.  While the system was initially designed for the
protection of individuals on college and university campuses,
the technology is also suitable for other applications. The
Company is exploring additional distribution relationships to
expand its market coverage for the system to other
environments, such as apartment complexes, condominiums,
retirement communities, hospitals, correctional facilities,
governmental facilities and manufacturing facilities.

The Company continues to develop and expand partnering and
working relationships with its national and international
customers.  Large regional and national accounts are supported
directly by Regional Sales and Service Managers.  The Company's
sales managers provide technical support to customers regarding
system design, installation and service.  The Company also
conducts regular training programs for its  customers' as well
as technical seminars at national and regional shows.   A call
to the Company's 800 sales number typically results in same day
shipment of most standard products from two warehouses.  To
support the on-site installer or service person, toll-free 800
lines connect directly to the Technical Service Department.

For the Company's international program, sales offices have
been opened in Australia, China, France, Hong Kong and the
United Kingdom. Each office is staffed with qualified
professionals with extensive security industry sales
experience.  They are charged with the responsibility of
promoting the Company's products in the targeted countries,
determining future customer needs and providing technical
support. In addition, the Company has established distributors
and/or sales representatives in over 40 additional countries.

The Company's sales strategy includes providing its customers
with a full product catalog to fulfill the majority of their
electronic security and fire protection detector and system
needs. Examples of this strategy were the Radionics and DA
Systems acquisitions.  In other cases, this will be
accomplished through strategic alliances with other vendors to
allow the Company to be a full-line supplier. Foreign sales
(including sales to Canada) accounted for approximately 16% of
net sales in fiscal 1997.  See Note 10 to the Company's
consolidated financial statements for more detailed information
about foreign operations and export sales.

Domestically, the combined companies of Detection Systems and
Radionics maintain regional sales/training personnel in
Arizona, California, Georgia, Florida, Illinois, Indiana,
Massachusetts, Nebraska, Pennsylvania, Ohio, Tennessee, Texas,
Virginia and Washington.  In addition, Detection Systems
maintains stock at the Radionics' facility in Salinas,
California.  Some of the Company's international sales efforts
are handled out of the corporate office in Fairport; however,
distribution centers have been established in Australia, the
U.K. and Hong Kong.

Although the Company has a broad customer base, it does have
several customers who individually account for substantial
amounts of business.  In fiscal 1997, sales to the Company's
largest customers accounted for 11.9% and 10.4%, respectively,
of net sales.  No other customer accounted for more than 10% of
the Company's net sales.  In fiscal 1996, sales the Company's
largest customers were 14% and 10%, respectively, of net sales.
In fiscal 1995, sales the Company's largest customers were 23%
and 22%, respectively, of net sales.  Although the Company's
business is not seasonal, a significant change in purchases by
one of these customers could result in fluctuations in sales
and profit.  The Company believes that the combination of its
five acquisitions since February 1996, its international
initiative and its increased use of distributors have reduced
the effect of sales fluctuations associated with the Company's
largest customers.

MANUFACTURING

The Company manufactures electronic products intended primarily
for the security and fire protection industries at its
Fairport, New York, facility. It designs and prepares
specifications for the component parts used in its products,
including circuit boards, transistors, integrated circuits and
cabinetry, all of which it purchases from outside sources.
These components are assembled into finished products at the
Fairport facility.  Emphasis on technological innovation and
reliability has resulted in the Company's products having an
excellent field reputation.  Many units manufactured in the
1970's are still in active service today.

Before product assembly, components are sample tested for
compliance with quality control standards and critical
components are individually tested.   The assembly of circuit
boards is accomplished by Company personnel with the aid of
both automatic and semi-automatic assembly equipment.
Assembled circuit boards are flow soldered and cleaned.
Intermediate quality control processes are used to evaluate
components and products being transferred between assembly
departments.  Completed circuit boards are tested on a
computerized circuit board evaluator and they are calibrated
against performance standards.

The Company established a second manufacturing facility in
Southeast Asia during fiscal 1996.  Manufacturing operations
and first product shipments began in October 1995.  Detection
Systems initially duplicated in its Southeast Asia facility the
same proven manufacturing procedures and processes used in its
Fairport facility. During the intervening time, the Company's
Southeast Asia manufacturing management has fine tuned the
process to take advantage of local conditions.  The Company is
currently transitioning products from Detection Systems and
Radionics to the Southeast Asia manufacturing facility to take
advantage of lower production costs at this facility.  During
fiscal 1997, approximately 40% of the Company's production
volume was manufactured in Southeast Asia.

The Radionics' manufacturing facility also utilizes the same
quality proven technology as used in Fairport.  During fiscal
1997, the Company steadily transitioned production out of this
facility. Since year-end, the Company has ceased using this
facility for regular product manufacturing and is currently
using the production area for product configuration.

COMPETITION

The Company believes it is in the top five of security industry
manufacturers in the United States market.   The U.S. security
systems industry consists of approximately 40 manufacturers
providing a wide range of products, from simple sensor
components to complete systems. The Company believes its three
major competitors are Pittway Corporation, the Berwind Group
and C&K Systems.  Professional installation and service
companies consider product reliability, both in performance and
testing, as well as the incorporation of advanced technological
features, ease of installation, sales support and price when
selecting intrusion and fire detection equipment. The Company
competes on the bases of performance, features, quality,
reliability and delivery of its products; its customer
technical support services offered; and on the basis of price.
Although the Company's principal method of competition is not
price, competitive market conditions have caused average sales
prices to decrease steadily since the Company's founding.

RESEARCH AND DEVELOPMENT

During the fiscal years ended March 31, 1995, 1996 and 1997,
the Company expended approximately $4,070,000, $4,700,000 and
$8,115,000, respectively, on research and development
activities relating to the development of new products and the
improvement of existing products.

The Company has continually placed significant emphasis on
research and development activities through internal efforts.
The acquisitions of Radionics, Safecom and DA Systems has
provided additional technologies to those it already possessed.
It is the Company's intent to continue with its development
efforts to keep pace with technological advances in the
security and fire protection industries by either further
internal efforts or by additional acquisitions.
The Company has been granted over 25 patents related to its
products.  While the Company obtains patents as appropriate and
considers certain of its patents valuable, it does not believe
patents to be of material importance in the successful conduct
of its business.  Trademarks, licenses, franchises and
concessions are not material factors in the Company's business.

EMPLOYEES

At March 31, 1997, the Company employed approximately 744
persons worldwide.  None of the Company's employees is
represented by a collective bargaining organization, and the
Company's management believes employee relations are good.

BACKLOG, RAW MATERIALS, ENVIRONMENTAL AND OTHER MATTERS

Backlog is not significant in the business of the Company.   In
general, orders are processed from inventory on a relatively
current basis.  It is the Company's practice to maintain four
weeks of finished goods inventory for all products in order to
meet customer requirements.

Raw materials and components essential to the Company's
business are readily available and the Company is not
materially dependent upon any one source.  The Company sources
raw materials and components internationally, including several
Pacific Rim countries.

Compliance with federal, state and local laws and regulations
which have been enacted or adopted regulating the discharge of
materials into the environment, or otherwise relating to the
protection of the environment, have not had and are not
expected to have a material effect upon the capital
expenditures, earnings or competitive position of the Company.

A number of municipalities have enacted or are considering
enacting legislation which penalizes false alarms which trigger
responses by police or fire departments.  The Company is unable
to quantify the effect such legislation will have on the
security and fire protection markets as a whole, but believes
false alarm legislation is causing many installation companies
to be more inclined toward the use of high quality equipment.


ITEM 2. PROPERTIES.

The Company's manufacturing, research and general office
operations are conducted at its 92,000 square foot facility at
130 Perinton Parkway, Fairport, New York.  This plant was re-
financed as part of the Radionics acquisition and the mortgage
loan is secured by a lien on the land and building.

Radionics' manufacturing, research and general office
operations are conducted at its leased 156,000 square foot
facility located in Salinas, California.  The lease extends to
July of 1999.

Internationally, the Company has leased a 70,000 square foot
manufacturing facility in Southeast Asia and has offices /
distribution centers located in Australia, France, Hong Kong
and the United Kingdom, as well as a manufacturing facility in
the United Kingdom.


ITEM 3. LEGAL PROCEEDINGS.

     Not applicable


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

     There were no matters submitted to a vote of security
holders during the Company's fourth quarter ending March 31,
1997.

                            PART II

ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED
       SECURITY HOLDER MATTERS.

The Company's common stock trades on The Nasdaq National Market
tier of The Nasdaq Stock Market under the symbol:  DETC.  On
June 13, 1997, the closing price, as reported by The Nasdaq
Stock Market, was $17.50 per share, and the number of
shareholders was approximately 3,200.  Certain information
regarding the price range of the Company's Common Stock
(quarterly high and low) is presented below:

PRICE RANGE OF COMMON STOCK

The quarterly high and low bid of the Company's common stock during
the past
three years (in dollars):
<TABLE>
<S>        <C>     <C>     <C>       <C>     <C>      <C>       <C>    <C>
           Fiscal          Fiscal            Fiscal             Fiscal
           1998*           1997**            1996**             1995**
           High  / Low     High  /   Low     High  /  Low       High / Low

First 
Quarter
ended 
June 30    20-1/4  12-1/2  12-5/16   6-5/16   5-3/16   4-5/16   7      4

Second 
Quarter
ended 
Sept 30                    13-13/16  9-11/16  5-3/16   5-3/8    6-5/16 4-1/16

Third 
Quarter
ended 
Dec 31                     20-7/8    10-3/4   5-1/4    3-15/16  6-1/4  3-11/16

Fourth 
Quarter
Ended 
March 31                   25-1/2    14-1/2   6-1/2    3-11/16  5-5/16 3-3/16

* Through June 17, 1997
** Restated to reflect the three-for-two stock split
  distributed December 17, 1996.

In May of 1997, the Company acquired Digital Audio Limited from
Numerex Corp. in exchange for 226,168 shares of the Company's
common stock valued at $3.9 million.  These shares are
callable, at the Company's option, at $17 per share plus
interest at 8.25% until June 30, 1998, and may be put by
Numerex to the Company at that price after that date.  These
securities have not been registered with the Securities and
Exchange Commission in reliance upon exemption by Section 4(2)
of the Securities Act of 1933.

The Company has never paid cash dividends on its Common Stock.
The Company presently intends to retain all future earnings, if
any, for the operation and expansion of its business and does
not expect to pay any cash dividends on its common stock in the
foreseeable future.


ITEM 6. SELECTED FINANCIAL DATA.

The fiscal 1997 and the fourth quarter fiscal 1996 results are
not comparable to the earlier periods due to the acquisition of
Radionics on February 12, 1996. Interim quarterly results for
the Company over the past three years were as follows
(thousands of dollars, except per share data)(unaudited):
data):

Fiscal Year Ending    NET       GROSS      NET     INCOME
March 31,           SALES      MARGIN   INCOME PER SHARE*
------------------  -----      ------   ------  ---------
1997
Fourth Quarter    $26,765     $11,159   $1,233        .24
Third Quarter      26,442       9,075    1,074        .22
Second Quarter     24,866       8,288      794        .17
First Quarter      23,178       7,813      624        .13

1996
Fourth Quarter    $15,204      $4,359  ($7,353 )   ($1.72 )
Third Quarter       8,564       2,572     (596 )     (.14 )
Second Quarter      9,299       3,380      (69 )     (.01 )
First Quarter       8,791       3,568      163        .04



1995
Fourth Quarter     $8,075      $3,193    $  27         --
Third Quarter       9,416       3,759      569       $.13
Second Quarter      8,672       3,362      460        .11
First Quarter       8,173       3,192      458        .11

* Restated to reflect the three-for-two stock split
distributed December 17, 1996


The Company's five year summary of operations is presented
below:

</TABLE>
<TABLE>
<S>                         <C>            <C>           <C>
Year Ended March 31,        1997           1996*         1995*
                            ----           ----          ----
Net Sales                   $101,251,000   $41,858,000   $34,336,000
Income (Loss) Before Taxes
 and Cumulative Effect of
 a Change in Accounting
 Principle                     5,250,000   (10,665,000)    2,592,000
Provision (Benefit) 
  for Taxes                    1,525,000    (2,810,000)    1,078,000
Net Income (Loss)              3,725,000    (7,855,000)    1,514,000

AT YEAR END
Current Assets               $50,501,000   $28,426,000   $17,953,000
Current Liabilities           19,434,000    12,714,000     2,990,000
Working Capital               31,067,000    15,712,000    14,963,000
Total Assets                  68,276,000    45,897,000    24,745,000
Long term Debt and
 Obligations under
 Capital Lease                28,086,000    17,936,000       746,000
Deferred Compensation          1,751,000     1,746,000     1,528,000
Shareholders' Equity          17,831,000    11,569,000    19,194,000
Number of Employees                  744           595           320
Number of Shareholders             4,000         3,200         3,000

PER SHARE AMOUNTS
Net Income (Loss)                   $.76        ($1.83)         $.35
Shareholders' Equity               $3.99         $2.75         $4.59

RATIOS/PERCENTAGES
Gross Profit (Loss) + Sales        35.9%         33.2%         39.3%
Pre-Tax Profit (Loss) + Sales       5.2%        (25.5%)         7.5%
Net Income (Loss) + Sales           3.7%       ( 18.8%)         4.4%
Current Ratio                   2.6 to 1      2.2 to 1      6.0 to 1
</TABLE>
*Per share amounts have been restated to reflect the three-for-
two stock split distributed December 17, 1996.

<TABLE>
<S>                             <C>                 <C>
Year Ended March 31,            1994*               1993 *
                                ----                ----
Net Sales                       $31,355,000         29,431,000
Income Before Taxes
 and cumulative effect of
 a change in Accounting             131,000
 Principle                        1,571,000          2,356,000
Provision for Taxes                 427,000            919,000
Cumulative Effect of a
 Change in Accounting
 Principle                          131,000
Net Income                        1,275,000          1,437,000

AT YEAR END
Current Assets                  $15,836,000        $15,764,000
Current Liabilities               2,389,000          3,559,000
Working Capital                  13,447,000         12,205,000
Total Assets                     22,780,000         22,543,000
Long-term Debt and
 Obligations under
 Capital Lease                    1,145,000          1,149,000
Deferred Compensation             1,424,000          1,229,000
Shareholders' Equity             17,492,000         16,059,000
Number of Employees                     354                389
Number of Shareholders                3,000              2,800


PER SHARE AMOUNTS
Net Income                             $.30               $.34
Shareholders' Equity                  $4.33              $3.99

RATIOS/PERCENTAGES
Gross Profit + Sales                  37.7%              38.7%
Pre-Tax Profit + Sales                 5.0%               8.0%
Net Income + Sales                     4.1%               4.9%
Current Ratio                      6.6 to 1               4.4 to 1
</TABLE>
*Per share amounts have been restated to reflect the three-for-
two stock split distributed December 17, 1996.


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

Overview

     The Company designs, manufactures and markets electronic
detection, control and communication equipment for the
security, fire protection, access control and CCTV industries.
From its inception in 1968 until the early 1990s, the Company
was primarily a niche provider of  intrusion detection devices
for the domestic market.  In 1995, the Company adopted a
strategy which focused on expanding its product offerings,
establishing an international sales presence, increasing its
manufacturing capacity and improving its manufacturing cost
structure.  The Company has since made five acquisitions,
opened sales offices in seven countries and successfully
established a manufacturing facility in China. These
initiatives have enabled the Company to significantly expand
its product catalog and market scope and to increase its net
sales from $34.3 million in fiscal 1995 to $101.3 million in
fiscal 1997.

     The Company more than doubled its annualized net sales
with its purchase of Radionics, Inc. ("Radionics") in February
1996.  The Radionics acquisition had a significant impact on
the comparative information for fiscal 1996 and 1997 with
respect to both the results of operations as well as asset and
liability balances.  Radionics had annual net sales of $45.1
million for its year ended December 31, 1995. The Radionics
acquisition was funded by borrowings under a commercial credit
facility which has resulted in a significant increase in
interest expense for the periods following the acquisition.

     In April 1995, the Company commenced development of a
manufacturing facility in China which became operational  in
October 1995. This facility has significantly increased the
manufacturing capacity of the Company.  The Company has
realized manufacturing efficiencies by transitioning to its
China facility a portion of its domestic manufacturing
operations, including substantially all of the manufacturing
operations previously conducted by Radionics.  The Company
believes that these efficiencies, coupled with the volume
generated by its expanded product catalog and sales network,
will enable it to reduce its unit manufacturing costs and
increase its operating and gross profit margins.

     The Company has recently completed four additional
acquisitions: (i) the purchase of certain assets of Senses
International, Inc. ("Senses") in October 1996 which had annual
net sales of approximately $2.0 million, (ii) the purchase of
Digital Audio Limited ("DA Systems") in May 1997 which had
annual net sales of approximately $10.8 million, (iii) the
purchase of Seriee, SA ("Seriee") in June 1997 which had annual
net sales of approximately $6.3 million, and (iv) the purchase
of Radio-Active Systems nv ("RAS") in June 1997 which had
annual net sales of approximately $10.0 million.

     The Company recognizes net sales upon shipment of products
to customers.  Production expenses include materials, direct
labor and overhead as well as an allocated portion of indirect
overhead.  Outgoing freight, customs and other costs associated
with delivery of the product to customers are classified under
marketing, administrative and general expenses.  Research and
development expenses include costs associated with salaries,
benefits and travel-related expenses for certain engineering
employees, supplies, agency approvals, depreciation and
telephone, as well as charges for independent testing and
independent contractors engaged for specific projects.
Marketing, administrative and general expenses include costs
related to the Company's sales efforts and corporate and
general administrative functions, including costs of executive,
administrative and sales personnel, marketing/selling supplies,
advertising, depreciation and professional fees.

     The following table sets forth, for the periods indicated,
the percentages which certain items of income and expense bear
to net sales:
<TABLE>
<S>                               <C>         <C>         <C>
Fiscal Year Ended March 31,        1995        1996        1997  
                                   ----        ----        ----  
Net sales                         100.0%      100.0%      100.0%
Costs and Expenses:                                              
 Production                        60.7        66.8        64.1  
 Research and development          11.9        11.2         8.0  
Purchased in - process research                                   
and development                      --        22.3          --
Marketing, administrative &        19.8        25.1        21.1  
general                           -----       -----       -----  
                                   92.3       125.5        93.3  
                                  -----       -----       -----  
Operating income (loss)             7.7      ( 25.5 )       6.7  
                                                                 
Interest income                     0.3         0.8         0.2  
Interest expense                    0.5       ( 0.8 )     ( 1.7 )
                                  -----       -----       -----  
Income (loss) before income                                       
taxes and cumulative effect of                                
a change in accounting              7.5      ( 25.5 )       5.2
principle
Provision (benefit) for income      3.1       ( 6.7 )       1.5  
taxes
                                  -----       -----       -----  
Income (loss) before cumulative                                   
effect of a change in                                         
accounting principle                4.4      ( 18.8 )       3.7
                                   -----       -----       -----  
Net income (loss)                   4.4 %    ( 18.8 )%      3.7%  

                                   =====       =====       =====  
</TABLE>

Year Ended March 31, 1997 Compared to Year Ended March 31, 1996

The Company's net sales increased 141.9% to $101.3 million in
fiscal 1997 from $41.9 million in fiscal 1996.  The acquisition
of Radionics in February 1996 accounted for $45.6 million of
this increase, while international and domestic sales growth
accounted for $7.2 million and $6.5 million, respectively.  See
Note 10 of the Notes to the Consolidated Financial Statements
for information regarding the Company's sales information by
geographic area.

Production expenses increased 132.0% to $64.9 million in fiscal
1997 from $28.0 million in fiscal 1996.  As a percentage of net
sales, production expenses decreased to 64.1% in fiscal 1997
from 66.8% in fiscal 1996.  The increase in production expenses
was primarily due to a corresponding increase in the Company's
net sales.  The decrease in production expenses as a percentage
of net sales was primarily due to manufacturing efficiencies
achieved by transitioning a portion of its domestic
manufacturing to its China facility during fiscal 1997.  This
decrease was achieved despite the lower gross margins
experienced by the Company from certain of its initial
international sales.  The Company anticipates further cost
savings from the continued consolidation of its manufacturing
operations  during fiscal 1998 and 1999.

Research and development expenses increased 72.7% to $8.1
million in fiscal 1997 from $4.7 million in fiscal 1996.  As a
percentage of net sales, research and development expenses
decreased to 8.0% in fiscal 1997 from 11.2% in fiscal 1996.
The increase in research and development expenses was primarily
due to the addition of Radionics' research and development
expenses.  The decrease in research and development expenses as
a percentage of net sales was primarily due to synergies
achieved by the consolidation of certain research and
development efforts of Radionics and the Company.

Marketing, administrative and general expenses increased 103.6%
to $21.4 million in fiscal 1997 from $10.5 million in fiscal
1996.  As a percentage of net sales, marketing, administrative
and general expenses decreased to 21.1% in fiscal 1997 from
25.1% in fiscal 1996.  The increase in marketing,
administrative and general expenses was primarily due to the
addition of Radionics' operations.  The decrease in marketing,
administrative and general expenses as a percentage of net
sales was primarily due to savings derived from the
consolidation of Radionics into the Company's organization

Interest expense increased to $1.8 million in fiscal 1997 from
$0.3 million in fiscal 1996.  This increase was primarily due
to the debt financing associated with the Radionics
acquisition.  Interest income decreased to $0.2 in fiscal 1997
from $0.3 in fiscal 1996.

Income before income taxes was $5.2 million in fiscal 1997
compared to a loss of $10.7 million for fiscal 1996.  The
fiscal 1996 results included a $9.4 million non-recurring
charge related to in-process research and development
associated with the Radionics acquisition. The remainder of the
improvement was due to the other factors described above.

The Company's effective income tax rate for fiscal 1997 was
29.0% compared to a benefit rate of 26.4% in fiscal 1996.  The
fiscal 1997 effective rate reflects the benefits of certain
lower foreign tax rates used to promote economic growth and the
utilization of certain loss carryforwards from fiscal 1996.

Year Ended March 31, 1996 Compared to the Year Ended March 31,
1995

The Company's net sales increased 21.9% to $41.9 million in
fiscal 1996 from $34.3 million in fiscal 1995.  The acquisition
of Radionics in February 1996 accounted for $6.0 million of
this increase.  In addition, international sales grew by $4.9
million in fiscal 1996 as a result of the Company's
international sales initiative.  This increase was partially
offset by a $3.4 million decline in domestic sales primarily
attributable to reduced sales to a single domestic customer.
See Note 10 of the Notes to the Consolidated Financial
Statements for information regarding the Company's sales
information by geographic area.

Production expenses increased 34.3% to $28.0 million in fiscal
1996 from $20.8 million in fiscal 1995.  As a percentage of net
sales, production expenses increased to 66.8% in fiscal 1996
from 60.7% in fiscal 1995.  The increase in production expenses
was primarily due to a corresponding increase in the Company's
net sales.  The increase in production expenses as a percentage
of net sales was primarily due to the expensing of startup
costs associated with the Company's China manufacturing
facility.

Research and development expenses increased 15.5% to $4.7
million in fiscal 1996 from $4.1 million in fiscal 1995.  As a
percentage of net sales, research and development expenses
decreased to 11.2% in fiscal 1996 from 11.9% in fiscal 1995.
The increase in research and development expenses was primarily
due to the addition of Radionics' research and development
expenses.

Marketing, administrative and general expenses increased 54.9%
to $10.5 million in fiscal 1996 from $6.8 million in fiscal
1995.  As a percentage of net sales, marketing, administrative
and general expenses increased to 25.1% in fiscal 1996 from
19.8% in fiscal 1995.  The increase in marketing,
administrative and general expenses, both in dollars and as a
percentage of net sales, was primarily due to costs associated
with the startup of foreign operations and the addition of
Radionics' operations.

Interest expense increased to $0.3 million in fiscal 1996 from
$0.2 million in fiscal 1995, and interest income increased to
$0.3 in fiscal 1996 from $0.1 in fiscal 1995.

The Company incurred a loss before income taxes of $10.7
million in fiscal 1996 compared to income of $2.6 million for
fiscal 1995.  The fiscal 1996 results included a $9.4 million
non-recurring charge related to in-process research and
development associated with the Radionics acquisition. The
remainder of the decline was due to the other factors described
above.

The Company's effective income tax rate for fiscal 1996 was a
benefit of 26.4% compared to a tax rate of 41.6% in fiscal
1995. The benefit rate for fiscal 1996 resulted from the
Company's inability to fully recognize tax benefits associated
with certain subsidiary losses and certain other items not
deductible for tax purposes. The fiscal 1995 corporate tax rate
was consistent with domestic, federal and state effective rates
at that time.

Liquidity and Capital Resources

The Company considers liquidity to be its ability to meet its
long- and short-term cash requirements.  Prior to 1996, those
requirements were primarily met by cash generated by the
Company's operating activities and cash reserves.  Since the
implementation of the Company's strategy designed to enhance
the Company's product offerings, manufacturing capacity and
international operations, particularly the acquisition of
Radionics and the development of the Company's China
manufacturing facility, the Company has required external
sources of financing to satisfy its liquidity needs.

Year Ended March 31, 1997.  During fiscal 1997, the
Company's operating activities used $6.6 million.  The primary
factor contributing to this use of cash was a $15.9 million
increase in inventories which resulted from the transition of the
manufacturing of the Company's products to the China facility.
Sources of operating cash from net income, depreciation and
amortization totalled $6.5 million.  Other balance sheet
changes contributed $2.9 million to operating cash flow.  The
Company believes that the consolidation of its manufacturing
operations will enable the Company to reduce future inventory
levels.

During fiscal 1997, cash used for investing activities was $4.0
million which was expended for capital equipment for the
expansion of the Company's international operations and
production tooling relating to the Radionics' product lines.

During fiscal 1997, cash flows provided by financing activities
were $11.9 million.  The two primary sources of this cash were:
(i) $10.0 million of borrowings under the Company's revolving
line of credit and (ii) receipt of $2.0 million from a private
placement of Common Stock which the Company completed with five
corporate pension funds in October 1996.

Year Ended March 31, 1996.  During fiscal 1996, the
Company's operating activities used $3.4 million.  The primary
factors contributing to this use of cash were a $7.9 million
loss from operations and an increase in inventories of $4.3
million during the year.  Sources of operating cash included
depreciation and amortization of $2.0 million and a $9.4
million non-cash charge related to the write-off of in-process
research and development associated with the Radionics
acquisition.  Other balance sheet changes used $2.7 million of
cash.

During fiscal 1996, cash used for investing activities was
$18.9 million, consisting of the purchase of Radionics for
$18.0 million and capital expenditures of $3.4 million, offset
by liquidation of short-term investments of $2.4 million.

During fiscal 1996, cash flows provided by financing activities
were $18.7 million.  The source of this cash was $18.9 million
of borrowings under the Company's commercial credit facility,
offset by principal payments on capital lease obligations.

Capital Resources.  On March 31, 1997, the
Company had cash balances of $2.2 million.  On such date, the
Company has a $11.5 million bank commitment for a revolving
line of credit that was fully drawn upon.  Subsequently, this
commitment has been increased to $17.0 million, a portion of
which was used for recent acquisitions.  This commitment
extends into fiscal 1999 and includes an interest rate based on
the London Interbank Offered Rate plus applicable points based
on the Company's performance.  The balance becomes fully due
and payable on the Revolving Line Termination Date of May 31,
1998.

The Company expects to continue expenditures on acquisitions
and the development of new products and markets.  These
expenditures will include continued investment in security
detection, fire detection, security, fire and access control
products as well as several wireless projects.  The Company
also plans to continue its efforts to market its products
internationally.  The Company has budgeted $3.0 million for
capital expenditures during fiscal 1998.

The Company believes that the combination of  its current cash
balances, cash flows from operations and existing credit
facilities will be sufficient to fund its planned operations
during fiscal 1998.

Dividend Policy.  The Company is dedicated to
promoting shareholder value through long term profitability and
growth and believes that continued investments in future
product development are essential to this goal.  For this
reason, it has been the Company's policy to not pay cash
dividends.

Inflation.  During fiscal 1997, 1996,
and 1995, inflation did not have a significant impact on the
Company's business.

Forward-Looking Statements

The foregoing discussion and analysis contain certain
"forward-looking statements" within the meaning of Section 27A
of the Securities Act, which represent the Company's
expectations or beliefs, including, but not limited to,
statements concerning the Company's operations, performance,
financial condition, growth and acquisition strategies, margins
and growth in sales of the Company's products.  For this
purpose, any statements contained therein that are not
statements of historical fact may be deemed to be
forward-looking statements.  These statements by their nature
involve substantial risks and uncertainties, certain of which
are beyond the Company's control, and actual results may differ
materially depending on a variety of important factors.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The financial statements and supplementary data required in
this section are included as Exhibit 13 of this Form 10-K.


ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

     Not applicable.
                               
                           PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

The officers of the Company are as follows:

Name and Age             Position, Offices Held and Year Appointed
Karl H. Kostusiak (58)   President (1968)

David B. Lederer (57)    Executive Vice President (1968)

George E. Behlke (39)    Vice President, Engineering (1995)

Gary Holroyd (38)        Vice President, Manufacturing (1996)

Frank J. Ryan (43)       Vice President, Secretary and Treasurer (1982)

Lawrence R. Tracy (50)   President, Radionics and Detection
                         Systems Inc.International, Inc., subsidiaries 
                         of Detection Systems, Inc. (1995)

Each officer is elected to serve until the first meeting of the
Board of Directors held after the next annual meeting of
shareholders and until his successor is elected and has
qualified.  There is no family relationship between any of the
above officers.

Messrs. Kostusiak and Lederer have been President and Executive
Vice President of the Company since it was formed in 1968. Mr.
Ryan has been employed by the Company in various financial
positions since 1980 and was promoted to Vice President in
1989.  Mr. Holroyd has been employed by the Company since the
acquisition of Radionics in February 1996 and was promoted to
Vice President of Detection Systems in November 1996.  Mr.
Tracy was hired in February 1995 as President of the Company's
Detection Systems International, Inc. subsidiary and was named
President of Radionics, Inc. on February 13, 1996.  Mr. Behlke
has been employed by the Company in various engineering
positions since 1977 and was promoted in May 1995 to Vice
President.

The Company's Proxy Statement for the 1997 Annual Meeting of
Shareholders contains the other information required by Item 10
of Form 10-K.  That information is incorporated by reference to
this Form 10-K.


ITEM 11. EXECUTIVE COMPENSATION.

The "Executive Compensation" section of the Company's Proxy
Statement for its 1997 Annual Meeting of Shareholders contains
the information required by Item 11, and is incorporated by
reference to this Form 10-K.


ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT.

The Company has stock purchase agreements with Messrs.
Kostusiak and Lederer which could in the future result in a
change of control of the registrant. These agreements are
included in Exhibit 10 of this Form 10-K.

The Company's Proxy Statement for its 1997 Annual Meeting of
Shareholders contains the information required by Item 12, and
is incorporated by reference to this Form 10-K.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

The Company's Proxy Statement for its 1997 Annual Meeting of
Shareholders contains the information required by Item 13, and
is incorporated by reference to this Form 10-K.

                               
                            PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
ON FORM 8-K.

(a)(I) 
and (2)        The required financial statements and
               schedules are contained herein or as exhibits.

(a)(3)         See Exhibit Index attached to this Report on
               Form 10-K.

(b)            There were no Form 8-K filings during the last
               quarter of the period covered by this report

                          SIGNATURES

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

                                   DETECTION SYSTEMS, INC.
                                   (Registrant)



Date:  June 27, 1997               By: /s/ Karl H. Kostusiak
                                   Karl H. Kostusiak
                                   President


Pursuant to the requirements of the Securities Exchange
Act of 1934, 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/ Karl H. Kostusiak    President and Director June 27, 1997
Karl H. Kostusiak        (Principal Executive
                         Officer)

/s/ Frank J. Ryan        Vice President         June 27, 1997
Frank J. Ryan
Secretary/Treasurer
                         (Principal Financial
                         Officer and Principal
                         Accounting Officer)

Donald R. Adair          Director

Mortimer B. Fuller, III  Director

David B. Lederer         Director


By: s/s Karl H. Kostusiak, Attorney-in-Fact     June 27, 1997
Karl H. Kostusiak

                         EXHIBIT INDEX
                               
                               
Item     Exhibits                     Location
No.                                           
2(a)  Definitive Stock          Incorporated by reference as
      Purchase                  Exhibit 2 to the Company's
      Agreement, dated          Form 8K/A filed April 29,
      February 12, 1996, for    1996
      purchase of stock of
      Radionics, Inc.
      
2(b)  Asset Purchase            Included as Exhibit 2(b) of
      Agreement, dated July     this Annual Report on Form
      22, 1996, for the         10-K
      purchase of the assets
      of Senses
      International
      
2(c)  Stock Purchase            Incorporated by reference as
      Agreement, dated May      Exhibit 2-1 to the Company's
      7, 1997, for the          Form-8K filed May 21, 1997
      purchase of the stock
      of Digital Audio
      Limited
      
3(a)  Detection Systems,        Included as Exhibit 3(a) of
      Inc. Certificate of       this Annual Report on Form
      Incorporation             10-K
                                
3(b)  Detection Systems,        Included as Exhibit 3(b) of
      Inc.                      this Annual Report on Form
      By-Laws as amended        10-K
                                
4     Rights of Holders of      Incorporated by reference to
      common                    Exhibit 4 of the Company's
      stock - 1981 plan         1993 Annual Report on Form
                                10-K
                                
10    Non-employee director     Incorporated by reference to
(a)   stock                     Exhibit 10(a) of the
      option plan (warrant      Company's 1994 Annual Report
      plan)                     on Form 10-K
                                
10    Medical reimbursement     Included as Exhibit 10(b) of
(b)   plan                      this Annual Report on Form
                                10-K
                                
10    Employee stock            Incorporated by reference to
(c)   purchase plan             Exhibit 10 of the Company's
                                1994 Annual Report on Form
                                10-K
                                
10    Fleet Amended &           Incorporated by reference to
(d)   Restated Credit           Exhibit 10(d) of the
      Facility Agreement        Company's 1996 Annual Report
      dated February 12,        on Form 10-K
      1996                      
10                              Included as Exhibit 10(d) of
(d)   Amended and Restated      this Annual Report on Form
      Credit Facility           10-K
      Agreement (Amendment      
      #1) dated May 31, 1996    
                                
10    Amended and Restated      Included as Exhibit 10(d) of
(d)   Credit Facility           this Annual Report on Form
      Agreement (Amendment      10-K
      #2) dated February 13,
      1997
      
10    Deferred Compensation     Included as Exhibit 10(e) to
(e)   Plan and Deferred         this Annual Report on Form
      Bonus Plan, both          10-K
      amended January 1997.     
      
10    1992 Restated Stock       Incorporated by reference to
(f)   Option                    Exhibit 22 of the Company's
      Plan                      1995 Annual Report on Form
                                10-K
                                
10    Detection Systems,        Included as Exhibit 10(g) of
(g)   Inc. Executive Bonus      this Annual Report on Form
      Plan                      10-K
                                
10    Executive employment      Incorporated by reference to
(h)   contract with Karl H.     Exhibit 10(h) of the
      Kostusiak.                Company's 1996 Annual Report
                                on Form 10-K
                                
10    Executive employment      Incorporated by reference to
(i)   contract with David B.    Exhibit 10(i) of the
      Lederer.                  Company's 1996 Annual Report
                                on Form 10-K
                                
10    Executive employment      Incorporated by reference to
(j)   contract with Lawrence    Exhibit 10 of the Company's
      R. Tracy.                 1995 Annual Report on Form
                                10-K.
                                
10    ECI Amended License       Incorporated by reference to
(k)   and Mfg. Agreement &      Exhibit 10(k) of the
      Amendment No. 1           Company's 1996 Annual Report
                                on Form 10-K
                                
10    Shareholders              Incorporated by reference to
(l)   Agreements w/             Exhibit 10 of the Company's
      ECI                       1994 Annual Report on Form
                                10-K
                                
10    Stock Purchase            Included as Exhibit 10(n) of
(n)   Agreements with Karl      this Annual Report on Form
      H. Kostusiak and David    10-K
      B. Lederer                
      
10    Joint Venture             Incorporated by reference to
(o)   Agreement for             Exhibit 10(o) of the
      Establishment of D.S.     Company's 1996 Annual Report
      First Systems             on Form 10-K
      (Beijing) Limited
      
11    Statement re:             Included as Exhibit 11 of
      Computation of Per        this Annual Report on Form
      Share Earnings            10-K
      
13    Excerpts from Annual      Included as Exhibit 13 of
      Report                    this Annual Report on Form
      to Security Holders       10-K
                                
22    Proxy Statement           To be filed within 120 days
                                of the Company's fiscal year
                                end.
                                
23    Consent of Independent    Included as Exhibit 23 of
      Accountants               this Annual Report on Form
                                10-K
                                
24    Powers of Attorney        Included as Exhibit 24 of
                                this Annual Report on Form
                                10-K
                                
27    Financial Data            Included as Exhibit 27 of
      Schedule                  this Annual Report on Form
                                10-K