SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549
                                  FORM 10-K

             ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 1995  Commission File Number - 1-10184

                         ABATIX ENVIRONMENTAL CORP.
          (Exact name of registrant as specified in its charter)

DELAWARE			                                         75-1908110
(State or other jurisdiction of       (I.R.S. Employer Identification Number)
incorporation or organization)

8311 EASTPOINT DRIVE, SUITE 400, DALLAS, TEXAS           7522		
(Address of principal executive officers)	            	(Zip Code)

Registrant's telephone number, including area code:   (214) 381-1146		

Securities registered pursuant to Section 12 (b) of the Act:

TITLE OF EACH CLASS		       				NAME OF EACH EXCHANGE ON WHICH REGISTERED
Common Stock					                           Boston Stock Exchange

Securities registered pursuant to Section 12 (g) of the Act:		NONE			

Indicate by check mark whether the registrant (1) has filed all reports to be 
filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during 
the preceding twelve months (or for such shorter period that the registrant 
was required to file such reports) and (2) has been subject to such filing 
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]

2,123,964 shares of common stock, $.001 par value were issued and outstanding 
<PAGE>
on February 29, 1996.

The aggregate market value of the Registrant's common stock held by 
nonaffiliates of the Registrant as of the close of business on February 29, 
1996 (an aggregate of 1,126,764 shares out of a total of 2,123,964 shares 
outstanding at that time) was $4,366,211 computed by reference to the closing 
bid price of $ 3 7/8 on February 29, 1996.

Portions of the Registrant's proxy statement for its 1996 annual meeting of 
stockholders are incorporated into Part III, herein, by this reference thereto.

                                    PART I

ITEM 1. BUSINESS

(a)	DEVELOPMENT OF BUSINESS

Abatix Environmental Corp. ("Abatix" or the "Company") markets and 
distributes personal protection and safety equipment, and durable and 
nondurable supplies to the asbestos and lead abatement, industrial safety and
hazardous materials industries.  In addition to these products, the Company 
also distributes tools and tool supplies to the construction industry.  
During 1995, the Company sold over 9,000 products consisting of equipment and 
supplies to over 4,000 customers from its eight distribution centers in Texas,
California, Arizona, Colorado, Washington and Nevada.  Currently, approximately
63 percent of the Company's sales are to the asbestos and lead abatement 
industries, and approximately 13 percent, 12 percent and 12 percent of its
sales are to the industrial safety, construction and hazardous materials 
industries, respectively.  The Company believes a majority of its sales for 
the forseeable future will continue to be made to asbestos and lead abatement 
contractors, project organizers and managers.  At present, the Company 
estimates its share of the asbestos abatement supply market to be 
approximately 15 to 20 percent in the geographic markets served by the Company.

The Company began operations in May 1983 as an industrial safety supply 
company located in Dallas, Texas, and was originally incorporated in Texas as 
T&T Supply Company, Inc. ("T&T") in March 1984.  T&T expanded its operations 
to become a supplier to the asbestos abatement industry in January 1986.  
Abatix was incorporated in Delaware on December 5, 1988 to effect and 
complete an Agreement and Plan of Merger with T&T on December 9, 1988.  
Unless the context provides otherwise, all references to the Company include 
T&T and the Company's wholly owned subsidiary, International Enviroguard 
Systems, Inc. ("IESI").

The Company opened its Nederland, Texas sales office in May 1988 and its 
Hayward, California distribution location in December 1988.  During 1989, the 
Company expanded its customer base to supply the hazardous materials 
remediation industry.

In March 1989, the Company completed its initial public offering of its 
securities with the sale of 300,000 units, each consisting of two shares of 
common stock and one redeemable common stock purchase warrant, at a price of 
$5.00 per unit.  Net proceeds of $1,135,251 were realized from the offering. 
Pursuant to provisions of the initial public offering, the Company issued, on 
March 2, 1990, a notice of redemption to the warrantholders in respect of all 
of its outstanding redeemable common stock purchase warrants which were
exercisable at $3.00 per share.  An aggregate of 231,983 of such warrants was 
exercised pursuant to the notice.  In total, 290,983 warrants were exercised, 
8,917 were redeemed and 100 were not presented, resulting in net proceeds of 
$805,616.  Proceeds from the exercise of the warrants enabled the Company to 
<PAGE>
increase its capital base and expand its operations.

In February 1990, the Company expanded its Hayward location and opened its 
Houston, Texas office/warehouse location.  In August 1991, the Company opened 
its Santa Fe Springs, California office/warehouse location and, in April 1992, 
the Nederland, Texas location was converted to a warehouse location.  In 
August 1992, sales and administrative staff were added to the Santa Fe Springs 
facility to initiate distribution services to the construction tools supply 
industry.

On October 5, 1992, the Company entered into and consummated an Asset 
Purchase Agreement with International Enviroguard Systems, Inc. ("IES"), a 
Texas corporation, pursuant to which the Company assumed the operation of 
this company and issued 250,000 shares of the Company's $.001 par value 
common stock.  IES, based in Corpus Christi, Texas, was a manufacturer of 
sorbents, primarily for the hazardous materials industry.  The Company 
transferred the assets purchased and liabilities assumed to IESI, a Delaware 
corporation wholly owned by the Company.

In response to improved competitive conditions, the Company began asbestos 
abatement supply distribution operations in Phoenix and Denver in January and 
February of 1993, respectively, and Seattle in January 1994.  The Company 
opened a distribution center in Corpus Christi, Texas in June 1994 as an 
attempt to more fully utilize the IESI facilities.

During 1994, because of increased purchasing power, the Company, through IESI, 
began to import certain products sold through not only the Company's 
distribution channels, but other distribution companies not in direct 
competition with Abatix.  The Company will continue to review the direct 
importation of products to obtain lower costs.  

In December 1994, because of the significant use of cash, the negative impact 
on earnings and the limited potential for progress towards profitability, the 
Company announced plans to discontinue the sorbent manufacturing business of 
IESI.  This process was completed during the second quarter of 1995.  IESI 
continues to import products utilizing the Dallas facility.

The Corpus Christi location was closed as of September 30, 1995 primarily 
because the projected costs to operate the facility exceeded the market 
potential.  As was done prior to opening the Corpus Christi location, 
Abatix's Houston facility will serve the central and south Texas area.

In October 1995, the Company expanded its Phoenix location to initiate 
distribution services to the construction tools supply industry.  In December 
1995, the newest facility opened in Las Vegas.  Although the Las Vegas 
operation will handle the entire product line, its primary focus is the 
construction tool industry.  

The Company, based on local market conditions, intends to expand and 
diversify the revenue base by developing its full product line in all 
locations.  Acquisitions and the hiring of experienced personnel are two 
alternatives that will continue to be explored to accomplish this goal.

(b)	FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS

The Company is considered to be in one industry segment for financial 
reporting purposes; therefore, no financial information is presented 
regarding industry segments.

(c)	NARRATIVE DESCRIPTION OF BUSINESS
<PAGE>
ASBESTOS ABATEMENT INDUSTRY BACKGROUND

Between 1900 and the early 1970's, asbestos was extensively used for 
insulation and fireproofing in industrial, commercial and governmental 
facilities as well as private residences in the United States and in other 
industrialized countries.  It is estimated that in the United States, 
approximately 20 percent of all buildings, excluding residences and schools, 
contain friable asbestos-containing materials that are brittle, readily 
crumble and are susceptible to the release of asbestos dust.  Various diseases 
such as asbestosis, lung cancer and mesothelioma, linked to the exposure to 
airborne asbestos, and the presence of asbestos in insulation, service 
applications and finishing materials have given rise to the concern about 
exposure to asbestos.  Public awareness of the health hazards posed by 
asbestos has increased as the results of continuing medical studies have 
become widely known.  Business and other publications and studies have listed 
asbestos abatement as one of America's critical problems, and legislation 
previously introduced to the U.S. Congress refers to asbestos as "one of the 
most dangerous substances known to science."  A study performed a few years 
ago, predicted that as many as 225,000 Americans will die of asbestos related 
ailments before the year 2000 and that there are currently 65,000 known cases 
of asbestosis.  Litigation involving claimants exposed to asbestos has forced 
several firms to seek the protection of the bankruptcy courts, and the volume 
of pending claims has inundated state and Federal courts throughout the 
country thus prompting many commentators to propose legislative solutions.

The United States Environmental Protection Agency ("EPA") estimates, in a 
survey conducted in 1984, that asbestos is present in 30 percent of the 
nation's 110,000 schools and in 20 percent of the nation's 3.6 million 
government and commercial buildings.  Maintenance, repair, renovation or 
other activities can disturb asbestos-containing material and, if disturbed 
or damaged, asbestos fibers become airborne and pose a hazard to building 
occupants and the environment.

Prompted by such concerns, Congress, in 1984, authorized the EPA to spend 
$800 million for asbestos abatement in schools under the Asbestos School 
Hazard Abatement Act.  In October 1986, Congress passed the Asbestos Hazard 
Emergency Response Act ("AHERA") which mandates inspections for asbestos, the 
adoption of asbestos abatement plans and the removal of asbestos from schools 
and facilities scheduled for demolition. In addition, state and local 
governments have also adopted asbestos-related regulations.

Notwithstanding such legislative impetus and continued awareness of health 
related hazards associated with asbestos, the budgetary constraints and the 
lack of improvement in the industrial sectors continue to limit the number 
and scope of asbestos abatement projects.  However, as the U.S. economy 
improves and commercial real estate demand increases, the Company believes 
the overall industry will also improve on a limited basis.

LEAD ABATEMENT INDUSTRY BACKGROUND 

The hazards of lead-based paint have been known for many years, however, the 
federal and state regulations requiring identification, disclosure and cleanup 
have been minimal.  In early 1996, the EPA and the Department of Housing and 
Urban Development unveiled new rules regarding lead-based paint in the 
residential markets.  The new rules give home buyers the right to test for 
lead-based paint before any contracts are signed.  In addition, although a 
landlord or home seller is not required to test for lead-based paint, the 
rules do require disclosure of a know lead hazard.

Many asbestos abatement contractors added lead abatement to their portfolios 
<PAGE>
in an attempt to enter a market considered to be in its infancy.  The 
asbestos abatement contractors bring experience, working in a regulatory 
environment.  Although the Company does not anticipate these new rules to 
result in an onslaught of lead abatement projects, management is encouraged 
by these new rules and their opportunities, as such rules could create a 
long-term positive impact on the Company.

SAFETY AND HAZARDOUS MATERIALS INDUSTRIES BACKGROUND 

The EPA and the Occupational Safety and Health Administration ("OSHA"), 
together over time, have established numerous rules and regulations governing 
environmental protection and worker safety and health.  The demand for 
supplies and equipment by U.S. businesses and governments to meet these rules 
and regulations has resulted in the creation of a multi-billion dollar 
industry.

As research identifies the degree of environmental or health risk associated 
with various substances and working conditions, new rules and regulations can 
be expected.  These actions inevitably will require more expenditures for 
supplies and equipment for handling, remediation and disposal of hazardous 
substances and the creation of safe living and working conditions.

CONSTRUCTION TOOLS SUPPLY INDUSTRY BACKGROUND

Besides the normal hand and power tools, and associated consumable parts, 
supplied to the construction industry, the EPA and OSHA have also established 
certain rules and regulations governing the protection of the environment and 
the protection of workers in this industry.

Currently, the Company supplies to the construction tools industry in its 
Santa Fe Springs, Phoenix and Las Vegas facilities.  This industry is 
directly tied to the local economies and more specifically, the real estate 
conditions within the markets served by Abatix.  The real estate market in 
the Las Vegas and Phoenix areas are strong with vacancy rates for commercial 
properties low and rental rates high.  The condition of the real estate 
industry in the Los Angeles area has stabilized from a decline over the past
several years. 

GEOGRAPHIC DISTRIBUTION OF BUSINESS

The Company distributes over 9,000 personal protection, safety, hazardous 
waste remediation and construction tool products to over 4,000 customers 
primarily located in the Southwest, Midwest and Pacific Coast.  Approximately 
63 percent of its products are sold to asbestos and lead abatement firms, 21 
percent of its products are sold to manufacturing, chemical and petrochemical 
firms while the remaining 16 percent of its products are sold to hazardous 
materials and general construction contractors.  The Company estimates that at 
present, approximately 85 percent of asbestos abatement related sales are made 
directly to abatement project organizers and managers.  During 1995 and 1994, 
the Company did not have a customer that aggregated 10 percent or more of its 
sales.  The Company considers its relationship with its customers to be 
excellent and does not believe the loss of any one particular customer would 
have a material adverse effect on the business.

The Company maintains 24-hours-a-day/7-days-a-week telephone service for its 
customers and typically delivers supplies and equipment within two or three 
days of receipt of an order.  A substantial amount of asbestos abatement is 
performed after working hours, on weekends and on holidays.  The Company is 
prepared to provide products on an expedited basis in response to requests 
from abatement contractors who require immediate deliveries because their 
<PAGE>
work is often performed during non-business hours, involves substantial costs 
because of the specialized labor crews involved or may arise on short notice 
as a result of exigent conditions.

The Company maintains sales, distribution and warehouse centers in Santa Fe 
Springs and Hayward, California, Dallas and Houston, Texas, Phoenix, Arizona, 
Las Vegas, Nevada, Denver, Colorado, and Kent, Washington.  The Company 
expanded its distribution operations in 1995 by opening the Las Vegas 
facility, as well as, hiring additional salespeople at some of our existing 
locations.

EQUIPMENT AND SUPPLIES

The Company buys products from manufacturers based on orders received from 
its customers as well as anticipated needs based on prior buying patterns, 
customer inquiries and industry experiences.  The Company maintains an 
inventory of disposable products and commodities as well as lower cost 
equipment items.  Approximately 85 percent of the Company's sales for 1995 
and 1994 are of disposable items and commodity products which are sold to 
customers at prices ranging from under $1.00 to $50.00.  The balance of sales 
is attributable to items consisting of lower priced equipment beginning at 
$20.00 to major product assemblies such as decontamination trailers which 
retail for approximately $15,000.  The Company does not manufacture or lease 
any products and does not perform any repairs thereon.  The Company 
distributes on a limited basis, disposable items and equipment under its own 
private label.

Except with regard to certain specialty equipment associated with asbestos 
abatement activities such as filtration, vacuum and pressure differential 
systems, many of the Company's products can be used interchangeably within 
many of the industries it supplies. Equipment distributed by the Company 
includes manufacturers' product descriptions and instructions pertaining to 
use.

MARKETING

The Company's marketing program is conducted by its sales representatives, 
as well as by senior management and the general managers at each of its 
operating facilities.  These sales representatives are compensated by a 
combination of salary and/or commission which is based upon negotiated sales 
standards.  The Company's personnel participate in training programs at 
various universities and training schools which enhance the Company's 
reputation and recognition of its name, personnel and services.

BACKLOG

Substantially all the Company's products are shipped to customers within 48 
hours following receipt of the order, therefore backlog is not material to 
the Company's operations.

INFLATION

As the inflation of the U.S. economy has averaged approximately 3 percent 
annually, the Company believes inflation has not been a substantial concern 
nor will inflation have a material impact to the Company's operations or 
profitability in the near term if inflation remains constant.  The Company 
anticipates it would be able to pass along increases in product costs to its 
customers in the form of higher selling prices, thereby having no effect on 
product margins.

<PAGE>
ENVIRONMENTAL IMPACT

The Company distributes a variety of products in the asbestos abatement 
industry all of which require the Company to maintain on file Material Safety 
Data Sheets ("MSDS") that inform all purchasers and users of any potential 
hazards which could occur if the products spilled or leaked.  Although the 
Company provides no assurance, the Company reviews all products that could 
have a potential for environmental hazards and tries to ensure the products 
are safe for on site storage and distribution.  The Company currently 
distributes no products it believes would create an environmental hazard if 
leaked or spilled.

SEASONALITY

Historically, the asbestos abatement services and supply business has been 
seasonal as a result of the substantial number of abatement contracts that 
were performed in educational facilities during the summer months or during 
other vacation periods.  The Company believes the non-educational or private 
sector, which includes the industrial, commercial and residential markets, is 
an area of potential growth, and that seasonality is not a major 
characteristic of these markets.  In addition to the private sector asbestos 
business, the Company's expansion of the hazardous material remediation, 
industrial safety and construction tools supply markets have mitigated any 
seasonal impacts of government asbestos projects.

GOVERNMENT REGULATION

As a supplier of products manufactured by others to the asbestos and lead 
abatement, industrial safety and hazardous materials industry, the Company is 
not subject to federal laws and regulations including those promulgated by 
the EPA and OSHA.  However, most of the contractors and other purchasers of 
the Company's equipment and supplies are subject to various government 
regulations, and developments in legislation and regulations affecting 
manufacturers and purchasers of the Company's products could have a 
substantial effect on the Company.

COMPETITION

The asbestos and lead abatement, industrial safety, hazardous materials and 
construction tools supply businesses are highly competitive.  These markets 
are served by a limited number of large national firms as well as many local 
firms, none of who can be characterized as controlling the market.  The 
Company competes on the basis of price, delivery, credit arrangements and 
product variety and quality.  The Company's business is not characterized by 
substantial regulatory or economic barriers to entry.  Additional companies 
could enter the asbestos and lead abatement, industrial safety, hazardous 
materials and construction tools supply industries and may have greater 
financial, marketing and technical resources than the Company.

EMPLOYEES

As of February 29, 1996, the Company employed a total of 73 full time 
employees including 3 executive officers, 8 managers, 36 administrative and 
marketing personnel and 26 clerical and plant personnel.  The Company 
believes relations with its employees are excellent.

ITEM 2.  DESCRIPTION OF PROPERTIES

The Company's headquarters are located in Dallas, Texas and occupy 
<PAGE>
approximately 3,200 square feet of leased general office space in conjunction 
with the Dallas branch.  This lease expires in July 1999.  The eight 
distribution facilities lease a total of 119,840 square feet of general 
office and warehouse space.  These facilities range in size from 6,875 square 
feet to 18,680 with leases expiring between August 1996 and November 2000.

Pursuant to the acquisition of certain operating assets of IESI in October 
1992, the Company entered into seven-year leases for both its manufacturing 
plant and office/warehouse facilities in Corpus Christi, Texas.  In December 
1994, the Company negotiated the termination of the manufacturing plant lease 
effective February 15, 1995, for a cash payment equivalent to one year's 
rent.  The Company continues to pay lease obligations for the 
office/warehouse facility, however, no operations are performed and no assets 
are located at that facility.  This lease expires in September 1999 and 
includes a purchase option.  The Company is currently negotiating for a sale 
or lease of this facility which, if completed, would relieve the Company from 
its lease obligation.

ITEM 3. LEGAL PROCEEDINGS

The Company was named as a defendant in a product liability lawsuit filed in 
the Superior Court of the State of California for the County of Los Angeles - 
Central District (Placido Alvarez vs. Abatix Environmental Corp., et al, Case 
No. BC133537).  The Company has requested and received (1) indemnification 
under the manufacturer's product liability insurance and (2) legal 
representation at the cost of the manufacturer.  As of February 29, 1996, no 
depositions have been taken, therefore management is not able to assess the 
merit of the plaintiff's case.  However, the Company does not anticipate any 
material impact on its financial statements as a result of this litigation. 

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

In September 1995, the Company mailed to each of its registered shareholders 
a copy of an information statement informing them that the Company was 
applying to the State of Delaware for a reduction in its authorized capital.  
Effective October 6, 1995, the Company's Certificate of Incorporation with 
the State of Delaware was changed to reduce the Company's authorized 
preferred stock from 2,000,000 shares to 500,000 shares and to reduce the 
Company's authorized common stock from 20,000,000 shares to 5,000,000 shares.  
Since the Company had a written consent from stockholders owning 51.6 percent 
of the then outstanding common stock, this action did not require a vote by 
all of the Company's stockholders.

                                   PART II

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

(a)	The Company's common stock is traded on The Nasdaq SmallCap Market tier 
of The Nasdaq Stock Market under the symbol "ABIX".  The following table sets 
forth the high and low bid quotations for the common stock for the periods 
indicated.  These quotations reflect prices between dealers, do not include 
retail mark-ups, mark-downs or commissions and may not necessarily represent 
actual transactions.
<TABLE>
<CAPTION>
                                        Common Stock Price
                                        -------------------
                    1994                 High          Low
                --------------          ------       ------
<PAGE>
                <S>                     <C>          <C>
                First Quarter           $3 3/4       $2 1/2
                Second Quarter           2 3/4        1 7/8
                Third Quarter            2 1/4        2 1/8
                Fourth Quarter           2 1/4        1 3/4

                    1995
                --------------
                First Quarter           $3 3/8       $2 1/16
                Second Quarter           3 5/8        2 1/4
                Third Quarter            4            2 5/8
                Fourth Quarter           4 1/8        2 3/8
</TABLE>
On February 29, 1996, the closing bid price for the common stock was $ 3 7/8.

The Company's common stock is also listed on the Boston Stock Exchange under 
the symbol "ABIX.B".  No sales were reported by the Boston Stock Exchange for 
1994 or 1995.

(b)	As of February 29, 1996, the approximate number of holders of record of 
the Company's common stock was 700.

(c)	The Company has never paid cash dividends on its common stock.  The 
Company presently intends to retain future earnings, if any, to finance the 
expansion of its business or repay borrowings on its lines of credit and does 
not anticipate that any cash dividends will be paid in the foreseeable 
future.  Future dividend policy will depend on the Company's earnings, capital 
requirements, expansion plans, financial conditions and other relevant 
factors.  Although the Company's notes payable to bank do not restrict the 
payment of dividends, they do require the Company maintain a minimum net 
worth, which increases each year through 1997.  The notes payable to bank 
also require the Company maintain minimum net income levels through 1997.

(d)	Since November 1994, the Board of Directors has authorized management to 
purchase up to 326,500 shares of the Company's common stock.  As of December 
31, 1995, the Company has purchased 207,100 shares.  Of the 180,600 shares 
purchased during 1995, 90,000 shares were purchased from a former officer and 
director of the Company in a privately negotiated transaction in February 1995.

(e)	During 1994, warrants and options were exercised totaling 43,830 shares, 
resulting in an increase to stockholders' equity of $122,000.  In 1995, 
options totaling 46,566 shares were exercised, resulting in an increase to 
stockholders' equity of $86,000.

(f)	In October 1995, the Company amended its Certificate of Incorporation to 
reduce its authorized capital from 5,000,000 shares to 500,000 shares of 
preferred stock, and from 20,000,000 shares to 5,000,000 shares of common 
stock.

ITEM 6. SELECTED FINANCIAL DATA

The tables below set forth, in summary form, selected financial data of the 
Company.  This data, which is not covered by the independent auditors' report, 
should be read in conjunction with the consolidated financial statements and 
notes thereto which are included elsewhere herein (amounts in thousands 
except per share amounts).
<TABLE>
<CAPTION>
                                            Year Ended December 31,
                             ------------------------------------------------
<PAGE>
                                1995      1994      1993      1992      1991
                              -------   -------   -------   -------   -------
<S>                           <C>       <C>       <C>       <C>       <C>
Selected Operating Results:
Net sales                     $27,632   $25,982   $19,085   $11,362   $10,601
Gross profit                  $ 7,977   $ 7,164   $ 5,354   $ 3,053   $ 2,865

Earnings from continuing 
  operations                  $   813   $   580   $   283   $    28   $   212
Loss from discontinued 
  operations, net of 
  income taxes                      -      (363)     (144)      (55)        -
Cumulative effect of change 
  in accounting principle           -         -        20         -         -
                              -------   -------   -------   -------   -------
Net earnings (loss)           $   813   $   217   $   159   $   (27)  $   212
                              =======   =======   =======   =======   =======

Earnings (loss) per common 
  and common equivalent share:
  Earnings from continuing 
    operations                $   .36   $   .25   $   .12   $   .01   $   .10
  Loss from discontinued 
    operations                      -      (.16)     (.06)     (.02)        -
  Cumulative effect of change 
    in accounting principle         -         -       .01         -         -
                              -------   -------   -------   -------   -------
Net earnings (loss)           $   .36   $   .09   $   .07   $  (.01)  $   .10
                              =======   =======   =======   =======   =======

Weighted average common 
  and common equivalent 
  shares outstanding            2,238     2,330     2,304     2,074     2,148
                              =======   =======   =======   =======   =======
</TABLE>
<TABLE>
<CAPTION>
                                             As of December 31,
                              -----------------------------------------------
                                1995      1994      1993      1992      1991
                              -------   -------   -------   -------   -------
<S>                           <C>       <C>       <C>       <C>       <C>
Selected Balance Sheet Data:
Current assets                $ 8,230   $ 7,426   $ 6,605   $ 4,055   $ 3,742
Current liabilities             4,659     4,208     3,669     1,898     1,013
Total assets                    8,977     8,184     7,341     4,959     4,185
Total liabilities               4,659     4,283     3,724     1,928     1,013
Retained earnings               2,488     1,674     1,457     1,299     1,325
Stockholders' equity            4,318     3,901     3,618     3,031     3,138
</TABLE>
ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 1995 COMPARED TO YEAR ENDED DECEMBER 31, 1994

RESULTS OF CONTINUING OPERATIONS

Net sales from continuing operations for the year ended December 31, 1995 
increased 6 percent to $27,632,000 from $25,982,000 in 1994.  The increase in 
sales is due to efforts to further expand and diversify revenues without 
<PAGE>
sacrificing product margins.  The increase is a result of recovery in the 
general economic conditions in the southwest and the expansion of business 
along the pacific coast region.  In addition, the Company expanded its 
Phoenix and Las Vegas facilities in October and December, 1995, respectively.  
The improved economic conditions, if maintained, and the expansion should 
provide the ability for the Company to grow its revenues and maintain its 
margins, thereby promoting continued profitability in 1996.  In addition, 
these efforts should provide the groundwork for broadening the Company's 
revenues among its different markets, thereby decreasing its dependence on 
any one of its markets.

Industry-wide sales of asbestos abatement products are expected to remain 
relatively flat in 1996.  However, the Company's sales and share of the 
asbestos abatement market are expected to continue to increase primarily 
because of the marketplace's recognition of the Company as a reliable and 
stable supplier.  Several of the Company's competitors have ceased operations 
or significantly reduced their presence over recent years in the Company's 
geographic locations.

Spending on asbestos abatement has dropped in the U.S. over the past several 
years due largely to the lack of full recovery in the commercial real estate 
industry.  Concerns raised about the comparative health risks of removing 
asbestos and the costs related to such removal, as opposed to leaving it in 
place, also have resulted in the delay or cancellation of some projects.  The 
Company also believes that as the U.S. economy continues its economic 
rebound, it will have a positive impact on its operations.  Notwithstanding 
the above, the asbestos abatement industry will likely diminish over time as 
asbestos containing materials, last used in construction during 1977-1980, 
ultimately are removed from schools, office buildings, homes and factories.  
A 1992 estimate by an industry analyst predicted that as much as $80 billion 
may be spent nationwide over the next 20 years for asbestos removal, of which 
the Company estimates $8 billion relates to abatement supplies.  Approximately 
$2 billion in abatement supplies will be spent during this 20 year period in 
the geographic areas served by the Company's eight distribution centers.  At 
this potential rate of expenditure, and at a presently estimated 15 to 20 
percent market share of the asbestos abatement markets served by the Company, 
the current and intermediate term effects of the diminishing market are not 
expected to have a material adverse impact on the Company based on its 
historical ability to increase its share of this market.

Sales to the hazardous materials remediation, industrial safety and 
construction tools supply markets are increasing both in absolute amounts and 
as a percentage of revenues to the Company.  The Company plans to expand its 
customer base in these areas through additional salespeople and expects these 
revenues to increase at a faster rate than the asbestos abatement revenues.  
In addition, using the Company's financial strength to expand geographically, 
it has diversified its geographical risk allowing the Company to better 
serve its regional and national customers.

Gross profit in 1995 of $7,977,000 increased 11 percent from gross profit in 
1994 of $7,164,000 due to increased revenues and increased margins.  Gross 
profit margins, expressed as a percentage of sales, increased to 29 percent 
for 1995 compared to 28 percent for 1994.  As expected, margins varied 
somewhat from location to location due to sales mixes and local market 
conditions.  Gross margins on sales of construction tools and industrial 
safety products typically were higher than the Company's average margins, 
while gross margins on sales of asbestos abatement and hazardous material 
remediation products varied from one market to the next and generally were 
lower than those of the Company's other products.  Overall margins are 
expected to remain at their current levels in 1996 as continued efforts to 
<PAGE>
increase sales of construction tools and the focus of management on profit 
margins of all product lines should offset any competitive pressures.

Selling, general and administrative expenses for 1995 of $6,342,000 increased 
7 percent over 1994 expenses of $5,933,000.  The increase was attributable 
primarily to the higher employment costs as a result of additional personnel.  
Selling, general and administrative expenses were 23 percent of sales for 
both 1995 and 1994.  These expenses are expected to remain in their current 
range for 1996.

In the third quarter of 1995, the Company incurred a special charge of 
$80,000 to accrue for future lease commitments resulting from the closure of 
its distribution center in Corpus Christi, Texas.  The noncancelable lease 
expires September 1999.  The Company's lease agreement on the building that 
was occupied by both the operations of IESI and the Corpus Christi branch 
includes an option enabling the Company to purchase the building.  The 
Company is currently negotiating a sale of this facility which, if completed, 
would relieve the Company from its lease obligation.

Other expense, net, of $248,000 in 1995 decreased 4 percent over 1994 expense 
of $258,000.  This decrease is primarily due to decreased interest expense 
resulting from lower borrowings on the Company's lines of credit.  Since the 
Company's lines of credit are tied to the prime rate, any increases in the 
prime rate would negatively affect the Company's earnings.

See note 5 to the consolidated financial statements for a description of 
income taxes.

The Company's credit policies remain stringent, and charge-offs are 
significantly below industry experience.  Days of sales in net accounts 
receivable improved 5 days from 1994 to 1995.  In August 1995, the Company 
added another employee to the credit department to improve the collection 
cycle.  The Company believes the reserve for doubtful accounts is adequate.

RESULTS OF DISCONTINUED OPERATIONS

The Company experienced no impact from discontinued operations to its 1995 
financial statements because an estimate of $139,000, net of taxes, was 
recorded in 1994 to accrue for the losses from the discontinuance of the 
sorbent manufacturing business.  This amount included an estimate of a loss 
from operations from the date of discontinuance through the expected date of 
disposal.  The Company ceased the sorbent manufacturing business in the 
summer of 1995.  The remainder of the reserve relates to the obligation under 
a noncancelable operating lease which expires September 1999.  The lease on 
this facility, which was shared with the Corpus Christi branch, included a 
purchase option.  The Company is currently negotiating a sale of this 
facility which, if completed, would relieve the Company from its lease 
obligation.

NET RESULTS

Net earnings in 1995 of $813,000 or $.36 per share increased $596,000 from 
net earnings of $217,000 or $.09 per share in 1994.  The 275 percent increase 
in net earnings is due to the growth in revenues and product margins, and the 
losses recorded in 1994 related to the discontinuance of the sorbent 
manufacturing business, partially offset by the charge in 1995 to close the 
Corpus Christi branch office.

NEW ACCOUNTING STANDARDS

<PAGE>
The Financial Accounting Standards Board recently issued Statement of 
Financial Accounting Standards No. 121, "Accounting for the Impairment of 
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of."  This 
statement must be adopted in the first quarter of 1996.  Implementation of 
this statement is not expected to have a material effect on the Company's 
financial position or results of operations.

YEAR ENDED DECEMBER 31, 1994 COMPARED TO YEAR ENDED DECEMBER 31, 1993

RESULTS OF CONTINUING OPERATIONS

Net sales from continuing operations for the year ended December 31, 1994 
increased 36 percent to $25,982,000 from $19,085,000 in 1993.  The increase 
in sales is due to efforts to further expand and diversify revenues without 
sacrificing product margins.  The increase is a result of (i) the opening of 
the Seattle location in January 1994, (ii) the continued development in Santa 
Fe Springs of the asbestos abatement and construction tools supply businesses, 
(iii) the development of the Phoenix and Denver distribution locations, and 
(iv) the impact for the entire year of additional key sales and marketing 
personnel in the Houston and Santa Fe Springs distribution locations.

Gross profit in 1994 of $7,164,000 increased 34 percent from gross profit in 
1993 of $5,354,000 due to increased revenues.  Gross profit margins, 
expressed as a percentage of sales, remained relatively flat at 28 percent 
for 1994 when compared to 1993.  As expected, margins varied somewhat from 
location to location due to sales mixes and local market conditions.  Gross 
margins on sales of construction tools and industrial safety products 
typically were higher than the Company's average margins.  As in prior years, 
gross margins on sales of asbestos abatement and hazardous material 
remediation products varied from one market to the next and generally were 
lower than those of the Company's other products.

Selling, general and administrative expenses for 1994 of $5,933,000 increased 
24 percent over 1993 expenses of $4,774,000.  The increase was attributable 
primarily to the inclusion of the Seattle branch operation, established early 
in 1994 and the carryover of acquisition, installation and training for the 
new computer and telecommunication systems.  Selling, general and 
administrative expenses for 1994 were 23 percent of sales compared to 25 
percent of sales for 1993.

Other expense, net of $258,000 in 1994 increased 85 percent over 1993 expense 
of $139,000.  This increase is primarily due to increased interest expense 
resulting from higher borrowings on the Company's lines of credit to finance 
its growth and higher interest rates.

See note 5 to the consolidated financial statements for a description of 
income taxes.

RESULTS OF DISCONTINUED OPERATIONS

Sales at IESI were $426,000 for the year ended December 31, 1994 compared to 
sales of $412,000 for 1993.  The 1994 loss from discontinued operations of 
IESI, net of taxes, of $224,000 was higher than the loss in 1993 of $144,000, 
net of taxes.  The higher loss in 1994 is primarily due to the writedown of 
fixed assets to net realizable value.

The results from discontinued operations include an estimate of $139,000, net 
of taxes, to accrue for the losses from the discontinuance of the sorbent 
manufacturing business and includes an estimate of a loss from operations 
from the date of discontinuance through the expected date of disposal.
<PAGE>
NET RESULTS

Net earnings in 1994 of $217,000 or $.09 per share increased $58,000 from net 
earnings of $159,000 or $.07 per share in 1993.  The 36 percent increase in 
net earnings is due to the growth in revenues and lower selling, general and 
administrative expenses relative to the revenue increase, partially offset by 
higher interest expense and the losses related to the sorbent manufacturing 
business.

LIQUIDITY AND CAPITAL RESOURCES

The Company's working capital requirements historically result from the 
growth of its accounts receivable and inventories, offset by increased 
accounts payable and accrued expenses, associated with increases in sales 
volume and the addition of new locations.  Net cash provided by operations 
during 1995 of $1,188,000 resulted principally from increases in the net 
earnings of the Company and the increases in accounts payable and accrued 
expenses, partially offset by the increase in inventory.

Cash requirements for non-operating activities during 1995 resulted primarily 
from the purchases of property and equipment amounting to $233,000 and the 
repurchases of the Company's common stock totaling $482,000.  The equipment 
purchases in 1995 were primarily computer and telecommunications equipment 
and delivery vehicles.  The Company repurchased its common stock because of 
the Board of Directors' belief that it was undervalued in the marketplace.  
The Board of Directors has committed to continue supporting the stock price 
in the marketplace as long as it remains undervalued.  The purchases of 
property and equipment, repurchase of common stock and the repayment of 
borrowings from the bank were funded by cash from operations.

Although cash flow from operations at any given point in 1996 may be 
negative, the entire year is expected to be positive.  Several factors 
contribute to this expectation.  The rate of revenue growth in 1996 is 
expected to be higher than 1995, but at a level that can be funded by cash 
flow from operations.  Also, the Company will not have to fund the operating 
losses at the Corpus Christi branch in 1996, and the capital expenditures for 
1996 are expected to be similar to 1995, as the Company will continue to 
replace delivery vehicles as needed.  The Company currently has no plans to 
expand geographically in 1996, however, the Company will continue to search 
for geographic locations that would complement the existing infrastructure.  
If another location were to be opened in 1996, the Company would fund the 
startup expenses through its lines of credit.  Anticipated cash requirements 
in 1996 will be satisfied from operations and borrowings on the lines of 
credit, as required.

In addition, the Company is committed to investing in technology to improve 
the productivity of employees and to enhance the level of customer service.  
This commitment will require an investment in additional computer hardware 
and software and additional telecommunications equipment, which will be 
funded by the Company's capital equipment line of credit.  The current excess 
capacity in the equipment line of credit should be sufficient to fund this 
investment.

The Company maintains a $4,100,000 working capital line of credit at a 
commercial lending institution that allows the Company to borrow up to 80 
percent of the book value of eligible trade receivables plus the lessor of 25 
percent of eligible inventory or $500,000.  As of February 29, 1996, there 
are advances outstanding under this credit facility of $2,721,000.  Based on 
the borrowing formula, the Company had the capacity to borrow an additional 
$1,150,000 as of February 29, 1996.  The Company also maintains a $350,000 
<PAGE>
capital equipment credit facility providing for borrowings at 80 percent of 
cost on purchases.  The advances outstanding under this credit facility as of 
February 29, 1996 were $215,000.  Both credit facilities are payable on 
demand and bear a variable interest rate of interest computed at the prime 
rate plus one-half of one percent.

Management believes, that based on its equity position, the Company's current 
credit facilities can be expanded during the next twelve months, if necessary, 
and that these facilities, together with cash provided by operations, will be 
sufficient for its capital and liquidity requirements for the next twelve 
months.

ITEM 8.  CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The consolidated financial statements and supplementary data are included 
under Item 14(a)(l) and (2) of this Report.

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

None

                                  PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

This Item 10 is incorporated herein by reference from the Company's definitive 
Proxy Statement to be filed with the Securities and Exchange Commission not 
later than one hundred twenty (120) days after December 31, 1995.

ITEM 11.  EXECUTIVE COMPENSATION

This Item 11 is incorporated herein by reference from the Company's definitive 
Proxy Statement to be filed with the Securities and Exchange Commission not 
later than one hundred twenty (120) days after December 31, 1995.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

This Item 12 is incorporated herein by reference from the Company's definitive 
Proxy Statement to be filed with the Securities and Exchange Commission not 
later than one hundred twenty (120) days after December 31, 1995.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

This Item 13 is incorporated herein by reference from the Company's definitive 
Proxy Statement to be filed with the Securities and Exchange Commission not 
later than one hundred twenty (120) days after December 31, 1995.

                                   PART IV

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

(a)  1 and 2. CONSOLIDATED FINANCIAL STATEMENTS AND FINANCIAL STATEMENT 
SCHEDULES

The consolidated financial statements and financial statement schedules 
listed on the index to consolidated financial statements on page F-l are 
filed as part of this Form l0-K.

<PAGE>
(b)  REPORTS ON FORM 8-K

None

(c)  EXHIBITS

(1)(a)      	Form of Underwriting Agreement (filed as Exhibit (1)(a) to the 
             Registration Statement on Form S-18, filed February 9, 1989).

(1)(b)      	Form of Selected Dealer Agreement (filed as Exhibit (1)(b) to the 
             Registration Statement on Form S-18, filed January 11, 1989).

(1)(c)      	Warrant Solicitation Agent and Exercise Fee Agreement (filed as 
             Exhibit (l)(c) to the Report on Form 10-K for the year ended 
             December 31, 1989).

(2)(a)      	Agreement of Merger (filed as Exhibit (2) to the Registration 
             Statement on Form S-18, filed January 11, 1989).

(2)(b)      	Asset Purchase Agreement (filed as Exhibit (2)(b) to the Report 
             on Form 8-K, filed October 19, 1992).

(3)(a)(1)   	Certificate of Incorporation (filed as Exhibit (3)(a)(1) to the 
             Registration Statement on Form S-18, filed January 11, 1989; 
             filed electronically as Exhibit 3(i)(a) to the Form 10-Q for the 
             quarter ended September 30, 1995, filed on November 9, 1995).

(3)(a)(2)   	Certificate of Amendment of Certificate of Incorporation (filed 
             as Exhibit (3)(a)(2) to the Registration Statement on Form S-18, 
             filed January 11, 1989; filed electronically as Exhibit 3(i)(b) 
             to the Form 10-Q for the quarter ended September 30, 1995, filed 
             on November 9, 1995).

(3)(a)(3)   	Certificate of Amendment of Certificate of Incorporation (filed 
             as Exhibit (3)(i)(c) to the Form 10-Q for the quarter ended 
             September 30, 1995, filed November 9, 1995; filed electronically 
             as Exhibit 3(i)(c) to the Form 10-Q for the quarter ended 
             September 30, 1995, filed on November 9, 1995).

(3)(b)      	Bylaws (filed as Exhibit (3)(b) to the Registration Statement on 
             Form S-18, filed January 11, 1989; filed electronically as 
             Exhibit 3(ii) to the Form 10-Q for the quarter ended September 
             30, 1995, filed November 9, 1995).

(4)(a)      	Specimen Certificate of Common Stock (filed as Exhibit (4)(a) to 
             the Registration Statement on Form S-18, filed January 8, 1989).

(4)(b)      	Specimen of Redeemable Common Stock Purchase Warrant (filed as 
             Exhibit (4)(b) to the Registration Statement on Form S-18, filed 
             February 9, 1989).

(4)(c)   	   Form of Warrant to be sold to Culverwell & Co., Inc. (filed as 
             Exhibit (4)(c) to the Registration Statement on Form S-18, filed 
             February 9, 1989).

(4)(d)   	   Warrant Agency Agreement between the Registrant and North 
             American Transfer Company (filed as Exhibit (4)(d) to the 
             Registration Statement on Form S-18, filed February 9, 1989).

(9)(a)(ii)  	Form of Escrow Agreement with State Street Bank and Trust 
<PAGE>
             Company (filed as Exhibit (9)(a)(ii) to the Registration 
             Statement on Form S-18, filed January 11, 1989).

(10)(a)     	Employment Agreement with Terry W. Shaver (filed as Exhibit 
             (10)(a) to the Registration Statement on Form S-18, filed 
             January 11, 1989).

(10)(a)(i)  	Employment Agreement with Terry W. Shaver effective January 2, 
             1991 (filed as Exhibit (10)(a)(i) to the Report on Form 10-K for 
             the year ended December 31, 1990).

(10)(a)(ii) 	Employment Agreement with Terry W. Shaver effective January 4, 
             1993 (filed as Exhibit (10)(a)(ii) to the Report on Form 10-K 
             for the year ended December 31, 1992).

(10)(a)(iii)	Employment Agreement with Terry W. Shaver effective January 1, 
             1995 (filed as Exhibit (10)(a)(iii) to the Report on Form 10-K 
             for the year ended December 31, 1994).

(10)(b)	     Employment Agreement with Gary L. Cox (filed as Exhibit (10)(b) 
             to the Registration Statement on Form S-18, filed 
             January 11, 1989).

(10)(b)(i)	  Employment Agreement with Gary L. Cox effective January 2, 1991 
             (filed as Exhibit (10)(b)(i) to the Report on Form 10-K for the 
             year ended December 31, 1990).

(10)(b)(ii) 	Employment Agreement with Gary L. Cox effective January 4, 1993 
             (filed as Exhibit (10)(b)(ii) to the Report on Form 10-K for the 
             year ended December 31, 1992).

(10)(b)(iii)	Employment Agreement with Gary L. Cox effective January 1, 1995 
             (filed as Exhibit (10)(b)(iii) to the Report on Form 10-K for 
             the year ended December 31, 1994).

(10)(c)	     Revolving Credit Agreement with Texas American Bank/Duncanville, 
             N.A. (filed as Exhibit (10)(c) to the Registration Statement on 
             Form S-18, filed January 11, 1989).

(10)(d)	     Demand Credit Facility with Comerica Bank-Texas dated 
             February 15, 1989 (filed as Exhibit (10)(d) to the Report on 
             Form 10-Q for the Quarter ended March 31, 1989, filed May 15,1989).

(10)(e)	     Demand Credit Facility with Comerica Bank-Texas dated June 15, 
             1989 (filed as Exhibit (10)(e) to the Report on Form 10-Q for 
             the Quarter ended June 30, 1989, filed August 11, 1989).

(10)(e)(i)	  Demand Credit Facility with Comerica Bank-Texas dated March 1, 
             1993 (filed as Exhibit (10)(e)(i) to the Report on Form 10-K for 
             the year ended December 31, 1992).

(10)(e)(ii) 	Demand Credit Facility with Comerica Bank-Texas extension, 
             renewal and increase dated June 1, 1993 (filed as Exhibit 
             (10)(e)(ii) to the Report on Form 10-K for the year ended 
             December 31, 1993).

(10)(e)(iii)	Demand Credit Facility with Comerica Bank-Texas extension, 
             renewal and increase dated September 22, 1994 (filed as Exhibit 
             (10)(e)(iii) to the Report on Form 10-K for the year ended 
             December 31, 1994).
<PAGE>
(10)(f)	     Employment Agreement with S. Stanley French effective October 1, 
             1992 (filed as Exhibit (10)(f) to the Report on Form 8-K, filed 
             October 19, 1992).

(11)	        Statement Re Computation of Per Share Earnings (Loss).*

(22)         Information Statement dated September 1, 1995.*

(23)	        Consent of Independent Auditors.*

(27)	        Financial Data Schedule for the twelve months ended December 31, 
             1995.*

*	Filed herewith as part of the Company's electronic filing.

                                  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, on the 13th day 
of March, 1996.

                     						ABATIX ENVIRONMENTAL CORP.



                          	By: /S/ TERRY W. SHAVER	
                               -----------------------
                              	Terry W. Shaver
                             		President, Chief Executive Officer
                             		and Director (Principal Executive Officer)

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 date indicated.

SIGNATURES	         	TITLE                                   DATE
-------------------  --------------------------------------- -------------

/S/ TERRY W. SHAVER 	President, Chief Executive Officer and  	March 13, 1996
-------------------  Director (Principal Executive Officer)
Terry W. Shaver


/S/ GARY L. COX	     Executive Vice President, Chief          March 13, 1996
-------------------  Operating Officer and Director
Gary L. Cox


/S/ LAMONT C. LAUE	  Director		                            			March 13, 1996
-------------------
Lamont C. Laue


/S/ FRANK J. CINATL 	Vice President and Chief Financial     		March 13, 1996
-------------------  Officer (Principal Accounting Officer)
Frank J. Cinatl, IV


<PAGE>
                   ABATIX ENVIRONMENTAL CORP. AND SUBSIDIARY

                   Index to Consolidated Financial Statements

                                                                  	PAGE
                                                                  ------
Independent Auditors' Report	                                       F-2

Financial Statements:
  Consolidated Balance Sheets as of December 31, 1995 and 1994     	F-3

  Consolidated Statements of Operations for the years ended 
    December 31, 1995, 1994 and 1993                               	F-4

  Consolidated Statements of Stockholders' Equity for the years 
    ended December 31, 1995, 1994 and 1993                         	F-5

  Consolidated Statements of Cash Flows for the years ended 
    December 31, 1995, 1994 and 1993                               	F-6

  Notes to Consolidated Financial Statements                       	F-7


Financial Statement Schedule:
  II - Valuation and Qualifying Accounts for the years ended 
       December 31, 1995, 1994 and 1993                            	F-16

All other schedules have been omitted as the required information is 
inapplicable or the information required is presented in the consolidated 
financial statements or the notes thereto.

                                     F-1

                       INDEPENDENT AUDITORS' REPORT


The Board of Directors and Stockholders
Abatix Environmental Corp.:


We have audited the consolidated financial statements of Abatix Environmental 
Corp. and subsidiary as listed in the accompanying index.  In connection with 
our audits of the consolidated financial statements we also have audited the 
consolidated financial statement schedule as listed in the accompanying index. 
These consolidated financial statements and financial statement schedule are 
the responsibility of the Company's management.  Our responsibility is to 
express an opinion on these consolidated financial statements and financial 
statement schedule based on our audits.

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

In our opinion, the consolidated financial statements referred to above 
<PAGE>
present fairly, in all material respects, the financial position of Abatix 
Environmental Corp. and subsidiary as of December 31, 1995 and 1994, and the 
results of their operations and their cash flows for each of the years in the 
three-year period ended December 31, 1995 in conformity with generally 
accepted accounting principles.  Also, in our opinion, the related financial 
statement schedule, when considered in relation to the basic consolidated 
financial statements taken as a whole, presents fairly, in all material 
respects, the information set forth therein.

As discussed in note 1 to the consolidated financial statements, the Company 
changed its method of accounting for income taxes in 1993.


                              /s/KPMG Peat Marwick LLP


Dallas, Texas
February 23, 1996

                                     F-2

                  ABATIX ENVIRONMENTAL CORP. AND SUBSIDIARY

                        Consolidated Balance Sheets
                        December 31, 1995 and 1994
<TABLE>
<CAPTION>
            ASSETS                                       1995         1994
           --------                                   ----------   ----------
<S>                                                   <C>          <C>
Current assets:
  Cash                                                $  415,867   $  150,727
  Trade accounts receivable, net of allowance for 
    doubtful accounts of $336,486 in 1995 
    and $163,233 in 1994 (note 4)                      4,370,595    4,428,853
  Inventories (note 4)                                 3,088,276    2,398,252
  Prepaid expenses and other assets                      218,187      210,585
  Deferred income taxes (note 5)                         136,719      146,205
  Net assets of discontinued operations (note 2)               -       91,249
                                                      ----------   ----------
     Total current assets                              8,229,644    7,425,871

Receivables from officers and employees                   70,577       58,685
Property and equipment, net (notes 3 and 4)              593,060      677,431
Deferred income taxes (note 5)                            39,657            -
Other assets                                              43,993       21,936
                                                      ----------   ----------
                                                      $8,976,931   $8,183,923
                                                      ==========   ==========

         LIABILITIES AND STOCKHOLDERS' EQUITY
         ------------------------------------
Current liabilities:
  Notes payable to bank (note 4)                      $2,631,828   $2,919,718
  Current maturities of obligations 
    under capital leases                                       -        3,487
  Accounts payable                                     1,031,481      792,663
  Other accrued expenses                                 845,782      403,355
  Accrued compensation                                    93,249       88,627
  Net liabilities of discontinued operations (note 2)     56,813            -
<PAGE>
                                                      ----------   ----------
     Total current liabilities                         4,659,153    4,207,850
                                                      ----------   ----------
Obligations under capital leases, less current maturities      -        1,232
Deferred income taxes (note 5)                                 -       74,005
                                                      ----------   ----------
     Total liabilities                                 4,659,153    4,283,087
                                                      ----------   ----------
Stockholders' equity (note 6):
  Preferred stock - $1 par value, 500,000 shares 
    authorized; none issued                                    -            -
  Common stock - $.001 par value, 5,000,000 shares 
    authorized; issued 2,366,314 shares in 1995 
    and 2,319,748 shares in 1994                           2,366        2,320
  Additional paid-in capital                           2,365,118    2,279,653
  Retained earnings                                    2,487,838    1,674,461
  Treasury stock at cost, 207,100 shares in 
    1995 and 26,500 shares in 1994                      (537,544)     (55,598)
                                                      ----------   ----------
     Total stockholders' equity                        4,317,778    3,900,836
                                                      ----------   ----------
Commitments and contingencies (note 10)
                                                      ----------   ----------
                                                      $8,976,931   $8,183,923
                                                      ==========   ==========
</TABLE>
See accompanying notes to consolidated financial statements.

                                     F-3

                  ABATIX ENVIRONMENTAL CORP. AND SUBSIDIARY

                    Consolidated Statements of Operations
                Years ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
                                         1995          1994          1993
                                      -----------   -----------   -----------
<S>                                   <C>           <C>           <C>
Net sales                             $27,632,245   $25,981,570   $19,085,467
Cost of sales                          19,654,858    18,817,805    13,731,422 
                                      -----------   -----------   -----------
     Gross profit                       7,977,387     7,163,765     5,354,045
Selling, general and 
  administrative expenses               6,342,241     5,933,246     4,773,929
Special charge (note 2)                    80,000             -             -
                                      -----------   -----------   -----------
     Earnings from operations           1,555,146     1,230,519       580,116
Other income (expense):
  Interest income                          15,311         6,540         2,751
  Interest expense                       (258,079)     (271,046)     (146,088)
  Other, net                               (5,487)        6,880         3,942
                                      -----------   -----------   -----------
     Earnings from continuing 
       operations before income taxes   1,306,891       972,893       440,721
Income tax expense (note 5)               493,514       392,684       157,520
                                      -----------   -----------   -----------
     Earnings from 
       continuing operations              813,377       580,209       283,201
Discontinued operations (note 2):
<PAGE>
  Loss from operations of discontinued 
    business, net of tax benefit of 
    $125,522 in 1994 and $47,939 in 1993        -      (223,746)     (144,073)
  Loss on discontinuance of business, 
    net of tax benefit of $71,857               -      (139,487)            -
                                      -----------   -----------   -----------
     Earnings before cumulative 
       effect of change in 
       accounting principle               813,377       216,976       139,128
Cumulative effect at January 1, 1993 
  of change in accounting for 
  income taxes                                  -             -        19,697
                                      -----------   -----------   -----------
     Net earnings                     $   813,377   $   216,976   $   158,825
                                      ===========   ===========   ===========

Earnings (loss) per common 
  and common equivalent share:
  Earnings from continuing operations $       .36   $       .25   $       .12
  Loss from discontinued operations             -          (.16)         (.06)
  Cumulative effect of change 
    in accounting for income taxes              -             -           .01
                                      -----------   -----------   -----------
     Net earnings                     $       .36   $       .09   $       .07
                                      ===========   ===========   ===========

Weighted average common and common 
  equivalent shares outstanding         2,238,312     2,330,074     2,304,359
                                      ===========   ===========   ===========
</TABLE>
See accompanying notes to consolidated financial statements.

                                     F-4

                 ABATIX ENVIRONMENTAL CORP. AND SUBSIDIARY

              Consolidated Statements of Stockholders' Equity
               Years ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
            Common Stock   Additional            Treasury Stock
         ----------------   Paid-in   Retained  -----------------    Total 
          Shares   Amount   Capital   Earnings  Shares    Amount     Equity
         --------- ------ ----------- --------- ------- --------- -----------
<S>      <C>       <C>    <C>         <C>       <C>     <C>       <C>
Balance at 
December 
31, 1992 2,540,983 $2,541 $2,179,717 $1,298,660 433,350 $(449,895) $3,031,023

Retirement 
of treasury 
stock     (433,350)  (433)  (449,462)        - (433,350)  449,895          -

Exercise of
stock options,
including 
$135,976 
income tax 
benefit    168,285    168    427,628         -       -         -      427,796

<PAGE>
Net earnings    -      -          -     158,825      -         -      158,825
         --------- ------ ---------- ---------- ------- ---------  ----------
Balance at 
December 
31, 1993 2,275,918  2,276  2,157,883  1,457,485      -         -    3,617,644

Purchase 
of treasury 
stock           -      -          -          -   26,500   (55,598)    (55,598)

Exercise of 
warrants    40,000     40    117,465         -       -         -      117,505

Exercise 
of stock 
options      3,830      4      4,305         -       -         -        4,309 

Net earnings    -      -          -     216,976      -         -      216,976
         --------- ------ ---------- ---------- ------- ---------  ----------
Balance at 
December 
31, 1994 2,319,748  2,320  2,279,653  1,674,461  26,500   (55,598)  3,900,836

Purchase 
of treasury 
stock           -      -          -          -  180,600  (481,946)   (481,946)

Exercise 
of stock 
options     46,566     46     85,465         -       -         -       85,511

Net earnings    -      -          -     813,377      -         -      813,377
         --------- ------ ---------- ---------- ------- ---------  ----------
Balance at 
December 
31, 1995 2,366,314 $2,366 $2,365,118 $2,487,838 207,100 $(537,544) $4,317,778
         ========= ====== ========== ========== ======= =========  ==========
</TABLE>
See accompanying notes to consolidated financial statements.

                                     F-5

                  ABATIX ENVIRONMENTAL CORP. AND SUBSIDIARY

                    Consolidated Statements of Cash Flows
                 Years ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
                                            1995         1994         1993
                                         ----------   ----------   ----------
<S>                                      <C>          <C>          <C>
Cash flows from operating activities:
Net earnings                             $  813,377   $  216,976   $  158,825
Adjustments to reconcile net earnings to 
  net cash provided by (used in) 
  operating activities:
    Depreciation and amortization           337,309      307,625      161,574
    Deferred income taxes                  (104,176)     (82,462)      92,389
    Gain on disposal of assets              (11,615)      (6,695)      (7,840)
Changes in assets and liabilities:
<PAGE>
  Receivables                                58,258     (970,740)  (1,353,927)
  Inventories                              (690,024)    (267,700)    (540,251)
  Refundable income taxes                         -      236,236       (6,088)
  Prepaid expenses and other                 (7,602)     (69,867)     (51,786)
  Net liabilities of discontinued 
    operations (note 2)                      91,627      336,853      (60,282)
  Accounts payable                          238,819       (6,629)      30,104
  Accrued expenses                          461,778      200,384       61,060
                                         ----------   ----------   ----------
Net cash provided by (used in) 
  operating activities                    1,187,751     (106,019)  (1,516,222)
                                         ----------   ----------   ----------
Cash flows from investing activities:
  Purchase of property and equipment       (232,980)    (359,205)    (385,971)
  Proceeds from sale of 
    property and equipment                   48,091       35,195       56,846
  Advances to officers and employees        (50,604)      (9,125)    (251,813)
  Collection of advances to 
    officers and employees                   38,712       12,130      228,615
  Other assets, primarily deposits          (22,057)      (2,000)      (1,496)
                                         ----------   ----------   ----------
Net cash used in investing activities      (218,838)    (323,005)    (353,819)
                                         ----------   ----------   ----------
Cash flows from financing activities:
  Exercise of stock options                  70,782      121,814       84,142
  Purchase of treasury stock               (481,946)     (55,598)           -
  Net (repayments) borrowings on 
    notes payable to bank                  (287,890)     344,888    1,899,830
  Principal payments on 
    capital lease obligations                (4,719)      (3,539)      (8,607)
                                         ----------   ----------   ----------
Net cash (used in) provided 
  by financing activities                  (703,773)     407,565    1,975,365
                                         ----------   ----------   ----------

Net increase (decrease) in cash             265,140      (21,459)     105,324
Cash at beginning of year                   150,727      172,186       66,862
                                         ----------   ----------   ----------
     Cash at end of year                 $  415,867   $  150,727   $  172,186
                                         ==========   ==========   ==========
</TABLE>
See accompanying notes to consolidated financial statements.

                                    F-6

                 ABATIX ENVIRONMENTAL CORP. AND SUBSIDIARY

                 Notes to Consolidated Financial Statements

(1)	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)  GENERAL

Abatix Environmental Corp. ("Abatix") and subsidiary (collectively, the 
"Company") market and distribute personal protection and safety equipment and 
durable and nondurable supplies predominantly, based on revenues, to the 
asbestos abatement industry.  The Company also supplies these products to the 
industrial safety and hazardous materials industries, and, combined with 
tools and tool supplies, to the construction industry.  At December 31, 1995, 
the Company operated eight distribution centers in six states.  The Company 
<PAGE>
discontinued the sorbent manufacturing business of its wholly owned 
subsidiary, International Enviroguard Systems, Inc. ("IESI"), a Delaware 
corporation, in December 1994 (see note 2).  However, IESI continues to import
disposable products sold primarily through the Company's distribution channels.

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

The accompanying consolidated financial statements include the accounts of 
Abatix and IESI.  All significant intercompany accounts and transactions have 
been eliminated in consolidation.  Certain amounts have been reclassified for 
consistency in presentation.

(b)  INVENTORIES

Inventories consist of materials and equipment for resale and are stated at 
the lower of cost, determined by the first-in, first-out method, or market.

(c)  PROPERTY AND EQUIPMENT

Property and equipment are stated at cost.  Depreciation for financial 
statement purposes is provided by the straight-line method over the estimated 
useful lives of the depreciable properties.  Accelerated depreciation methods 
are used for tax purposes.

(d)  REVENUE RECOGNITION

Revenue is recognized when the goods are shipped.

                                     F-7

(e)  EARNINGS (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE

Earnings (loss) per share is calculated using the weighted average number of 
common and, when dilutive, common equivalent shares outstanding during each 
year.  Common equivalent shares are comprised of dilutive stock options and 
warrants.  Fully diluted earnings per share are not presented as the effect 
is immaterial.

(f)  STATEMENTS OF CASH FLOWS

For purposes of the statements of cash flows, the Company considers all 
highly liquid debt instruments with original maturities of three months or 
less to be cash equivalents.  The Company held no cash equivalents at 
December 31, 1995 or 1994.

The Company paid interest of $263,707, $263,850 and $137,513 in 1995, 1994 
and 1993, respectively, and income taxes of $544,200, $155,472, and $3,145 in 
1995, 1994 and 1993, respectively.

Significant noncash transactions include the transfer of accrued compensation 
totaling $14,729 and $207,678 to additional paid-in capital upon exercise of 
stock options during 1995 and 1993, respectively.

(g)  INCOME TAXES

<PAGE>
In February 1992, the Financial Accounting Standards Board issued Statement 
of Financial Accounting Standards No. 109, "Accounting for Income Taxes" 
("Statement 109"), which requires enterprises to change from the deferred 
method to the asset and liability method of accounting for income taxes.  The 
asset and liability method establishes deferred income taxes for the 
temporary differences between the financial reporting basis and the tax basis 
of assets and liabilities at enacted tax rates expected to be in effect when 
such amounts are realized or settled.  The resulting deferred tax liabilities 
and assets are adjusted to reflect changes in tax laws or rates.

The Company adopted Statement 109 as of January 1, 1993. The cumulative 
effect of this change in accounting for income taxes of $19,697 is determined 
as of January 1, 1993 and is reported separately in the consolidated 
statement of operations for the year ended December 31, 1993.

                                    F-8

(2)	RESTRUCTURING

On December 15, 1994, the Company announced a formal plan to discontinue the 
sorbent manufacturing business of IESI.  The Company recorded an estimated 
loss on disposal of IESI at December 31, 1994 of $139,487, net of taxes.  
This estimated loss on disposal primarily included costs related to the 
leased facility, the writedown of fixed assets and inventory to net 
realizable value and the estimated loss from operations up to the expected 
disposal date.  As of December 31, 1995, the only remaining asset is the fully 
reserved accounts receivable and the only remaining liability is the reserve 
related to the discontinuance.  The balance of this reserve exists primarily 
to cover the remaining costs associated with the facility lease, which 
expires September 1999.  Actual costs through December 31, 1995 approximated 
management's December 1994 estimates.  Sales for the discontinued operations 
of IESI were $142,000, $426,000 and $412,000 in 1995, 1994 and 1993, 
respectively.

In the third quarter of 1995, the Company incurred a special charge of 
$80,000 to accrue for future lease commitments resulting from the closure of 
its distribution center in Corpus Christi, Texas.  The noncancelable lease 
expires September 1999.  Sales for the Corpus Christi branch were $294,000 
and $140,000 in 1995 and 1994, respectively.  The Corpus Christi branch also 
had operating losses of $55,000 and $17,000 in 1995 and 1994, respectively.

The Company's lease agreement on the building that was occupied by both the 
operations of IESI and the Corpus Christi branch includes an option enabling 
the Company to purchase the building.  The Company is currently negotiating a 
sale of this facility which, if completed, would relieve the Company from its 
lease obligation.

(3)	PROPERTY AND EQUIPMENT

A summary of property and equipment at December 31, 1995 and 1994 follows:
<TABLE>
<CAPTION>
                                   Estimated 
                                  Useful Life            1995         1994
                                  ------------        ----------   ----------
<S>                               <S>                 <C>          <C>
Furniture and equipment           5 - 10 years        $1,114,798   $  968,177
Transportation equipment          3 - 5 years            311,734      286,264
Leasehold improvements            3 - 5 years             53,650       41,831
                                                      ----------   ----------
                                                       1,480,182    1,296,272
<PAGE>
Less accumulated depreciation and amortization           887,122      618,841
                                                      ----------   ----------
Net property and equipment                            $  593,060   $  677,431
                                                      ==========   ==========
</TABLE>

                                     F-9

(4)	NOTES PAYABLE TO BANK

At December 31, 1995, the Company had two lines of credit with a bank that 
are due on demand.  A working capital facility allows the Company to borrow 
up to 80 percent of the book value of eligible trade receivables plus the 
lesser of 25 percent of eligible inventory or $500,000, up to a maximum of 
$4,100,000.  Under this formula, the Company had the capability to borrow 
$3,777,000 at December 31, 1995, of which $2,425,000 was used.  A capital 
equipment facility provides for individual borrowings, aggregating up to 
$350,000, at 80 percent of the purchased equipment's cost.  At December 31, 
1995, the Company had borrowed $206,000 on this facility.  Each borrowing 
under the capital equipment line is due on the earlier of demand or in terms 
ranging from thirty-six to sixty monthly installments of principal and 
interest.  During 1995, the Company negotiated a one-half of one percent 
reduction in its rate, thereby reducing the rate of interest on its 
agreements to prime plus one-half of one percent.  As of December 31, 1995 
and 1994, the Company's rate of interest on these agreements was 9 percent and 
9.5 percent, respectively.  These credit facilities are secured by accounts 
receivable, inventory and equipment

The Company's notes payable to bank contain certain financial covenants.  
These notes require the Company maintain a minimum net worth, which increases 
each year through 1997, and maintain minimum net income levels through 1997.

(5)	INCOME TAXES

Income tax expense (benefit) for the years ended December 31, 1995, 1994 and 
1993 consists of:
<TABLE>
<CAPTION>
                                            1995         1994         1993
                                         ----------   ----------   ----------
<S>                                      <C>          <C>          <C>
Continuing Operations:  
  Current:
    Federal                              $  542,681   $  320,141   $   48,405
    State                                    96,233       75,386       16,070
  Deferred:
    Federal                                (120,240)      (2,318)      78,252
    State                                   (25,160)        (525)      14,793
                                         ----------   ----------   ----------
     Income tax expense related
       to continuing operations             493,514      392,684      157,520
Discontinued operations:
  Current                                   (41,224)    (117,760)     (66,980)
  Deferred                                   41,224      (79,619)      19,041
                                         ----------   ----------   ----------
Total income tax expense                 $  493,514   $  195,305   $  109,581
                                         ==========   ==========   ==========
</TABLE>

                                     F-10
<PAGE>
A reconciliation of the normally expected federal income tax expense relating 
to continuing operations based on the U.S. corporate income tax rate of 34 
percent to actual expense for the years ended December 31, 1995, 1994 and 
1994 follows:
<TABLE>
<CAPTION>
                                            1995         1994         1993
                                         ----------   ----------   ----------
<S>                                      <C>          <C>          <C>
Expected income tax expense              $  444,343   $  330,784   $  149,845   
Nondeductible meals and 
  entertainment expense                       7,232        6,089        4,400
State income taxes, net of
  related federal tax benefit                46,908       49,408       20,370
Other                                        (4,969)       6,403      (17,095)
                                         ----------   ----------   ----------
Total income tax expense relating
  to continuing operations               $  493,514   $  392,684   $  157,520
                                         ==========   ==========   ==========
</TABLE>
The tax effects of temporary differences that give rise to significant
portions of the deferred tax assets and liabilities at December 31, 1995 and 
1994 follow:
<TABLE>
<CAPTION>
                                            1995         1994
                                         ----------   ----------
<S>                                      <C>          <C>
Deferred tax assets:
  Allowance for doubtful accounts        $  132,188   $   65,792
  Accrual for loss on branch closure         28,076            -
  Accrual for loss on the 
    discontinued operations                  20,393       74,565
  Property and equipment, principally 
    due to differences in depreciation       39,657            -
  Other                                           -        5,848
                                         ----------   ----------
Total gross deferred tax assets             220,314      146,205
                                         ----------   ----------
Deferred tax liabilities:
  Prepaid expenses                          (43,938)           -
  Property and equipment, principally 
    due to differences in depreciation            -      (74,005)
                                         ----------   ----------
Total gross deferred tax liabilities        (43,938)     (74,005)
                                         ----------   ----------
Net deferred tax asset                   $  176,376   $   72,200
                                         ==========   ==========
</TABLE>
Management has determined, based on the Company's history of prior operating 
earnings and its expectations for the future, that operating earnings will 
more likely than not be sufficient to realize the benefit of the deferred tax 
assets.  Accordingly, the Company has not provided a valuation allowance for 
deferred tax assets.

                                    F-11

(6) STOCKHOLDERS' EQUITY

Options to purchase the Company's common stock have been granted to officers 
<PAGE>
and employees under various stock option plans.  Compensation expense of 
$21,050 was recognized ratably over the three year vesting period for the 
options granted in 1992.  Options granted subsequent to December 31, 1993 were 
for exercise prices equal to or greater than the fair market value of the 
Company's common stock on the date of grant.  The options outstanding at 
December 31, 1995 expire at various dates between March 2, 1996 and 
December 31, 1997.
<TABLE>
<CAPTION>
                                            Number of
                                             Shares
                                             Under       Option Price
                                             Option        Per Share
                                            ---------    ------------
<S>                                         <C>          <C>
Outstanding at December 31, 1992              193,681    $    .50
  Exercised                                  (168,285)        .50
                                            ---------
Outstanding at December 31, 1993               25,396         .50
  Granted                                     150,000     2.25 - 2.75
  Exercised                                    (3,830)        .50
                                            ---------
Outstanding at December 31, 1994              171,566      .50 - 2.75
  Granted                                      20,000     3.00 - 3.875
  Exercised                                   (46,566)     .50 - 2.50
                                            ---------
Outstanding at December 31, 1995              145,000    $2.25 - 3.875
                                            =========

Shares exercisable:
  December 31, 1993                            14,131    $    .50
  December 31, 1994                            51,566      .50 - 2.25
  December 31, 1995                            75,000     2.25 - 3.00

Shares reserved for issuance under option     145,000
                                            =========
</TABLE>

                                     F-12

The Company has granted to various consultants warrants to purchase shares of 
common stock as part of an agreement to secure their services.  These warrants 
were granted with exercise prices equal to or greater than the fair market 
value of the Company's common stock on the date of grant and were exercisable 
immediately.  The warrants remaining at December 31, 1995 expired unexercised 
on January 11, 1996.  The activity of the warrants granted to various 
consultants is summarized in the following table:
<TABLE>
<CAPTION>
                                         Number of    Option Price
                                          Shares       Per Share
                                         ---------    ------------
<S>                                      <C>          <C>
Outstanding at December 31, 1992                 -    $     -
  Granted                                  155,000     2.75 - 4.50
  Expired                                 (125,000)       4.00
                                         ---------
Outstanding at December 31, 1993            30,000     2.75 - 4.50
  Granted                                   50,000     2.25 - 3.00
  Exercised                                (10,000)       2.75
<PAGE>
                                         ---------
Outstanding at December 31, 1994            70,000     2.25 - 4.50
  Expired                                  (10,000)       3.50
  Canceled                                 (50,000)    2.25 - 3.00
                                         ---------
Outstanding at December 31, 1995            10,000    $   4.50
                                         =========
</TABLE>
The Board of Directors has approved the repurchase of 326,500 shares of the 
Company's common stock in the open market.  During 1995, the Company purchased 
a total of 180,600 shares of stock, including 90,000 shares purchased from a 
former officer and director of the Company in February 1995.  The Company has 
purchased 207,100 shares since November 1994.

In October 1995, the Company amended its Certificate of Incorporation to 
reduce its authorized capital from 5,000,000 shares to 500,000 shares of 
preferred stock, and from 20,000,000 shares to 5,000,000 shares of common 
stock.

(7)	BENEFIT PLANS

The Company had a noncontributory Simplified Employee Pension - Individual 
Retirement Account Contribution Plan covering employees 21 years of age or 
older who had been employed by the Company at least three of the immediately 
preceding five years.  Plan contributions were discretionary and aggregated 
$20,269 in 1993.  During 1993, the Company replaced this plan with a 401(k) 
profit sharing plan.  Under the 401(k) plan, eligible employees may request 
the Company to deduct and contribute a portion of their salary to the plan.  
Contributions by the Company to the 401(k) plan aggregated $51,358, $25,657 
and $5,018 during 1995, 1994 and 1993, respectively.

                                    F-13

(8)	MAJOR CUSTOMERS AND CREDIT RISK

The Company's sales, substantially all of which are on an unsecured credit 
basis, are to various customers from its distribution centers in Texas, 
California, Arizona, Colorado, Washington and Nevada.  The Company evaluates 
credit risks on an individual basis before extending credit to its customers 
and it believes the allowance for doubtful accounts adequately provides for 
loss on uncollectible accounts.

During 1993, 1994 and 1995, no single customer accounted for more than 10 
percent of sales.

(9)	FAIR VALUE OF FINANCIAL INSTRUMENTS

The reported amounts of financial instruments such as cash, accounts 
receivable, accounts payable and accrued expenses approximate fair value 
because of their short maturity.  The carrying value of notes payable to bank 
approximates fair value because these instruments bear interest at current 
market rates.

(10)	COMMITMENTS AND CONTINGENCIES

The Company leases warehouse and office facilities under long-term 
noncancelable operating leases.  The following is a schedule of future 
minimum lease payments under these leases as of December 31, 1995:
<TABLE>
<CAPTION>
<PAGE>
                         <S>           <C>
                         1996          $  321,141
                         1997             191,612
                         1998             134,187
                         1999              76,950
                         2000              48,000
                         Thereafter             -
                                       ----------
                                       $  771,890
                                       ==========
</TABLE>
Rental expense for continuing operations under operating leases for the years 
ended December 31, 1995, 1994 and 1993 was $341,949, $320,867, and $237,741, 
respectively.   Rental expense for discontinued operations under operating 
leases for the years ended December 31, 1995, 1994 and 1993 was $16,479, 
$35,600, and $27,900, respectively.

The Company has employment agreements with four key employees.  The 
agreements provide for minimum aggregate cash compensation in each of the 
next four years as follows:
<TABLE>
<CAPTION>
                         <S>           <C>
                         1996          $  391,500
                         1997             138,000
                         1998             138,000
                         1999              80,500
                                       ----------
                                       $  748,000
                                       ==========

                                     F-14

</TABLE>
The Company was named as a defendant in a product liability lawsuit.  The 
Company has requested and received (1) indemnification under the 
manufacturer's product liability insurance and (2) legal representation at 
the cost of the manufacturer.  As of February 29, 1996, no depositions have 
been taken, therefore management is not able to assess the merit of the 
defendant's case.  However, the Company does not anticipate any material 
impact on its financial statements as a result of this litigation.

                                    F-15

                                                                  SCHEDULE II
                   ABATIX ENVIRONMENTAL CORP. AND SUBSIDIARY

                       Valuation and Qualifying Accounts
                 Years ended December 31, 1995, 1994 and 1993

<TABLE>
<CAPTION>
                                           Additions
                               Balance at  charged to               Balance
                               beginning   costs and                at end
                                of year     expenses   Deductions   of year
                               ----------   --------   ----------  ---------
<S>                            <C>          <C>        <C>         <C>
Year ended December 31:
Allowance for 
<PAGE>
  Doubtful Accounts:
    1995                       $  169,776    221,769     47,795 A  343,750 B
                               ==========    =======    =======    =======
    1994                       $   87,811    205,460    123,495 A  169,776 B
                               ==========    =======    =======    =======
    1993                       $  125,000     80,845    118,034 A   87,811 B
                               ==========    =======    =======    =======
Reserve for Loss on 
  Discontinuance of Business:
    1995                       $  193,344          -    139,294 C   54,050 D
                               ==========    =======    =======    =======
    1994                       $        -    211,344 E   18,000 F  193,344 G
                               ==========    =======    =======    =======
Reserve for Loss on 
  Closure of Branch Location:
    1995                       $        -     80,000      7,702 H   72,298
                               ==========    =======    =======    =======
</TABLE>
A  Represents the write-off of uncollectible accounts.
B	 Amounts include the allowance for doubtful accounts related to the 
   Company's discontinued operations, which had balances of $7,264, $6,543 and 
   $3,456 at December 31, 1995, 1994 and 1993, respectively.
C	 Represents the losses from operations, the loss on sale of fixed assets and 
   the payment of lease obligations.
D	 The balance is included in the net liabilities of discontinued operations 
   on the consolidated balance sheet.
E	 Represents the reserve established in December 1994 related to the 
   discontinued operations. See note 2 to the consolidated financial statements.
F	 Cash settlement in exchange for release from the lease on one of the 
   properties related to the discontinued operations.  See note 2 to the 
   consolidated financial statements.
G	 The balance is included in the net assets of discontinued operations on the 
   consolidated balance sheet.
H	 Amount is primarily the payment of lease obligations.

                                    F-16