<PAGE> 1 
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              SECURITIES AND EXCHANGE COMMISSION  
                                 
                   Washington, D. C.   20549  
              ----------------------------------   
                           FORM 10-Q  
  
[ x ]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934  
          For the quarterly period ended December 31, 1998. 
  
[   ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934  
          For the transition period from:   
  
                    ------------------------------
                    Commission file number 0-27094
                    ------------------------------
 
                   FIRST AMERICAN SCIENTIFIC CORP.
      (Exact name of Registrant as specified in its charter.)  
  
      NEVADA                                 88-0338315 
(State of other jurisdiction of              (IRS Employer  
incorporation or organization)               Identification No.)  
  
                   409 Granville Street, Suite 1003
                Vancouver, British Columbia   V6C 1T2
   (Address of principal executive offices, including zip code.)  
                                 
                           (604) 681-8656  
        Registrant's telephone number, including area code.  
  
Indicate by check mark whether the Registrant (1) has filed all  
reports required to be filed by Section 13 or 15(d) of the  
Securities Act of 1934 during the preceding 12 months (or for  
such shorter period that the Registrant was required to file such 
reports), and (2) has been subject to such filing requirements  
for the past 90 days.  
  
                    YES            NO x
  
The number of shares outstanding of the Registrant's Common  
Stock, no par value per share, at December 31, 1998 was 54,946,018
shares.  
 
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<PAGE> 2 
                              PART I  

ITEM 1.   FINANCIAL STATEMENTS.  
                                  
                   FIRST AMERICAN SCIENTIFIC CORP
                           BALANCE SHEET
                      See Notes to Financials
                            (Unaudited)
<TABLE>
<CAPTION>
                                   Six Months ending   Year ending
                                   December 31         June 30
                                   1998                1998
<S>                                <C>                 <C>
ASSETS
Current Assets;
  Cash                             $   10,766          $    1,133
  Accounts receivable                   5,500              32,915
  Inventory                                -                5,500
  Prepaid expenses                         -                   -
                                   ----------          ----------
                                       16,266              39,548
                                   ----------          ----------
PROPERTY AND EQUIPMENT
  Kinetic Disintegrator equipment     872,246             872,246
  Plant assets and equipment        1,359,161           1,359,161
  Office equipment                     24,272              23,916
  Leasehold Improvements                5,476               5,476
                                   ----------          ----------
                                    2,261,155           2,260,799
Less: Accumulated depreciation       (200,142)           (200,142)
                                   ----------          ----------
                                    2,061,013           2,060,657
                                   ----------          ----------
OTHER ASSETS
  Technology licenses - net of 
    amortization                    1,756,775           1,765,775
  Patent and Manufacturing 
   Rights - net of amortization       234,931             234,931
  Deposits                             13,735              13,735
                                   ----------          ----------
                                    2,005,441           2,005,441
                                   ----------          ----------
                                   $4,082,720          $4,105,646
                                   ==========          ==========
</TABLE>



          See accompanying notes to financial statements.
                                  
                                F-1a
<PAGE> 3
                                  
                   FIRST AMERICAN SCIENTIFIC CORP
                           BALANCE SHEET
                      See Notes to Financials
                            (Unaudited)
<TABLE>
<CAPTION>
                                                       
                                   Six Months ending   Year ending
                                   December 31         June 30
                                   1998                1998
<S>                                <C>                 <C>
LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
  Bank overdraft                   $       -           $    6,061
  Accounts payable                    301,565             322,366
  Short term loans payable             14,777              80,000
  License agreement payable           502,000             537,000
                                   ----------          ----------
                                      818,342             945,427
                                   ----------          ----------
Stockholders' Equity
 Common stock - $,001 Par Value
  100,000.000 shares authorized
  54,946,018 shares issued             51,196              49,326
 Additional paid in capital         6,119,001           6,027,370
 Stock subscriptions and options 
  receivable                                              (45,500)
 Deficit accumulated during the 
  development stage                (2,905,819)         (2,870,977)
                                   ----------          ----------
     Total Stockholders' Equity     3,264,378           3,160,219
                                   ----------          ----------
                                   $4,082,720          $4,105,646
                                   ==========          ==========

</TABLE>















          See accompanying notes to financial statements.
                                  
                                  
                                F-1b
<PAGE> 4
     

                   FIRST AMERICAN SCIENTIFIC CORP
             STATEMENT OF LOSS AND ACCUMULATED DEFICIT
                       See Notes to Financial
                            (Unaudited)
                                                       
<TABLE>
<CAPTION>
                                   Six Months ending   Year Ending
                                   December 31         June 30
                                   1998                1998
<S>                                <C>                 <C>
INCOME                             $    238,288        $    665,638
COST OF SALES                            77,488             290,086
                                   ------------        ------------
GROSS PROFIT                            160,800             375,552
OPERATING EXPENSES                      195,642           1,290,783
                                   ------------        ------------
NET INCOME (LOSS)                  $    (34,842)       $   (915,231)
LOSS ON ABANDONMENT                          -              157,691
                                   ------------        ------------
NET LOSS                                (34,842)          1,072,922
ACCUMULATED DEFICIT 
  BEGINNING OF PERIOD                (2,870,977)          1,798,055
                                   ------------        ------------        
ACCUMULATED DEFICIT
  END OF PERIOD                    $ (2,905,819)       $ (2,870,977)
                                   ============        ============

NET INCOME (LOSS) PER SHARE        $     (0.006)       $      (0.05)
                                   ============        ============
</TABLE>
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
          See accompanying notes to financial statements.
                                  
                                  
                                F-2
<PAGE> 5

                  FIRST AMERICAN SCIENTIFIC CORP.
                                  
                 STATEMENT OF STOCKHOLDERS' EQUITY
                      See Notes to Financials
                            (Unaudited)
                Six months ending December 31, 1998
<TABLE>
<CAPTION>
                                             Additional
                         Common Stock        Paid-In   Retained
                    Shares         Amount    Capital   Earnings
<S>                 <C>            <C>       <C>       <C>
Balance                  
 June 30, 1998      49,329,018     49,326    6,027,370 2,870,977

Add:
 Settlement of debt 
 of $80,000 and 
 financial fees of 
 $13,500 for 
 1,870,000 shares 
 of common stock     1,870,000      1,870       91,630

Net Loss for the s
 six month period 
 ending December 
 31, 1998                                                (34,842)
                    ----------     ------    --------- ---------
                    51,199,018     51,196    6,119,000 2,836,135
                    ==========     ======    ========= =========
</TABLE>




















          See accompanying notes to financial statements.
                                  
                                F-3
<PAGE> 6
                  FIRST AMERICAN SCIENTIFIC CORP.
                      STATEMENT OF CASH FLOWS
                      See Notes to Financials
                            (Unaudited)
<TABLE>
<CAPTION>
                                        Six Months          
                                        ending         Year Ending
                                        December 31         June 30
                                        1998                1998
<S>                                     <C>            <C>
CASH FLOWS PROVIDED (USED) IN OPERATIONS
  Net Income (ion)                      $  (34,842)         $ (1,072,922)
  Adjustment to year end deficit
  Depreciation and amortization                      -           323,041
  Adjustment to reconcile net loss to net 
   cash used by operations;
  Financing fees paid by issuance of stock           -                -
  Office services paid by issuance of stock          -            13,5OO
  (Increase) decrease in accounts receivable     72,915           (5,475)
  Decrease In inventory                           5,500           49,876
  Decrease in prepaid expenses                       -            18,836
  (Decrease) in accounts payable and 
   accrued expenses                             (20,801)         (63,683)
  Decrease in litigation reserve                     -           (62,061)
  (Decrease) in accrued interest                     -                -
                                             ----------     ------------
                                                 22,772         (798,888)
                                             ----------     ------------
CASH FLOWS PROVIDED (USED) IN INVESTING ACTIVITIES
  Purchase of plant, property and equipment        (355)              -
                                             ----------     ------------
  Deposits                                           -             1,833
                                             ----------     ------------
                                                   (355)           1,833
CASH FLOWS PROVIDED (USED) IN FINANCING ACTIVITIES
  Short Term borrowings                          14,777          789,977
  Retirement of debt                            (80,000)              -
  Payments on short-term borrowings             (41,061)        (200,000)
  Proceeds from sales of stock                   93,500          200,000
                                             ----------     ------------
                                                (12,784)         780,977
                                             ----------     ------------
NET INCREASE (DECREASE) IN CASH              $    9,633     $     (7,078)
CASH - Beginning of period                        1,133            8,211
                                             ----------     ------------
CASH - End of period                         $   10,766     $      1,133
                                             ==========     ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
  Cash paid during the period for:
  Interest                                   $       -      $    8,787     
  Income taxes                               $       -      $       -
NON-CASH INVESTING ACTIVITIES
  Common stock issued for payment an 
   royalty agreements                        $       -      $   170,315
NON-CASH FINANCING ACTIVITIES
  Common stock issued for payment on patents 
   and manufacturing rights                  $       -      $   250,000
  Common stock issued for exchange of debt   $   80,000     $ 1,634,187
  Common stock issued for commissions        $   13,500     $    13,500
</TABLE>
                                  
          See accompanying notes to financial statements.
                                  
                                F-4
                                  
<PAGE> 7
                   FIRST AMERICAN SCIENTIFIC CORP
                 NOTES TO THE FINANCIAL STATEMENTS
                         December 31, 1998
                      See Notes to Financials
                            (Unaudited)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization:  
First American Scientific Corp. (the Company) was Incorporated on
April 12, 1995 under the laws of the State of Nevada. has a year end
of June 30. The Company, originally organized to become it
manufacturer of rubber powder for industrial fillers, has acquired
the rights to process and sell industrial products such as gypsum,
limestone. and sulphur. Because of the speculative nature of the
Company. there are significant risks, some of which arc summarized as
follows:       

-    Newly formed company with limited sales and operating history.
-    Limited funds available for expansion, operations, and debt
     repayment.
-    Assets principally consisting of technology. licenses. and
     related equipment, with patents granted.

The Company was formed April 12, 1995 and was in the development
stage (as defined in Statement of Financial Accounting Standards No
7) through the year ended June 30, 1996. Operations commenced May 1,
1997.

Summary of Significant Accounting Policies:  
Depreciation began May 1, 1997 when the Company's property, plant and
equipment were placed in service. The cost of property, plant and
equipment is being depreciated over the estimated useful lives of the
related assets. The cost of leasehold improvements will be
depreciated over the lesser of the length of the related assets or
the estimated useful lives of the assets. Depreciation will be
computed on the straight-line method for financial reporting purposes 
and for income tax purposes.

Amortization of the Company's technology licenses began May 1, 1997
when the Company's property, plant and property, plant and equipment
(which directly originate from the licensed technology) were placed
in service. The cost of the Company's technology licenses is being
amortized over the estimated economic life of fifteen years.

Organization costs, which are deemed immaterial, were expensed when
paid.








                                F-5
<PAGE> 8
     
                   FIRST AMERICAN SCIENTIFIC CORP
                 NOTES TO THE FINANCIAL STATEMENTS
                         December 31, 1998
                      See Notes to Financials
                            (Unaudited)

1.   ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES . .
     continued

Provision for Taxes:          
At June 30, 1998. the Company had not operating loss carry forwards
of approximately $2,870,978 that may be offset against future taxable
income. No tax benefit has been reported in the financial statements
as the Company believes there's a 50% or greater chance the net
operating loss carry forwards will expire unused. Accordingly, the
potential tax benefits of the net operating loss carry forwards are
offset by a valuation allowance of the same amount.

Recently Issued Accounting Standards 
In March 1995 the Financial Accounting Standards Board issued a new
statement titled "Accounting for Impairment of Long-Lived Assets."
This new standard is effective for years beginning after December 15,
1995. In complying with this new standard, the Company his reviewed
its long-lived assets at June 30, 1998 and concluded that no events
or changes in circumstances have transpired which indicate that the
carrying value of its assets may not be recoverable. The Company does
not believe that adoption of the new standard will have a material
effect on its financial statements in the current fiscal year.

In October 1995, the Financial Accounting Standards Board issued a
new statement titled "Accounting for Stock Based Compensation' (FAS
123). The new statement is effective for fiscal years beginning after
December 15, 1995. FAS 123 encourages, but does not require,
companies to recognize compensation expense for grants of stock,
stock options, and other equity instruments to employees based on
fair value. The Company has adopted the fair value accounting rules
to record all transactions in equity instruments for goods and
services.


2. STOCKHOLDERS EQUITY

Common Stock:       
All shares have been adjusted for a 6-for-10 reverse stock split on
August 14, 1995.









                                F-6
<PAGE> 9
                   FIRST AMERICAN SCIENTIFIC CORP
                 NOTES TO THE FINANCIAL STATEMENTS
                         December 31, 1998
                      See Notes to Financials
                            (Unaudited)

3. GOING CONCERN

The Company's financial statements have been presented on a going
concern basis that contemplates the realization of assets and the
satisfaction of liabilities in the normal course of business. The
liquidity of the Company has been adversely affected by net losses in
fiscal year ends June 30, 1996, 1997 and 1998.

The Company has reported a loss of $34,842 for the period ending
December 31, 1998 bringing accumulated losses to $2,905,819, At
December 31, 1998 the Company had a working capital deficit of
$802,076, down from $905,879 at June 30, 1998.

Management has taken a number of steps to reduce expenses and develop
a profitable revenue stream. This includes an R & D program to
develop a commercially viable rubber processing machine and to find a
joint venture partner for the industrial minerals plant in
California. The Company also intends to aggressively market it's
technology for other recycling applications, e.g. biosolids and
wallboard. Management intends to seek new capital either by debt or
equity issuances to provide funds needed to implement its business
plan.

4. TECHNOLOGY LICENSE

On June 22,1995. the Company executed a license agreement with
Spectrasonic Corp, (hereinafter "Spectrasonic") for the worldwide
license to its patented Kinetic Disintegrator System (KDS) for use in
rubber and glass recycling and disposal for a period of ninety nine
years. The purchase price of this license and one KDS machine was
$550,000 and the license rights are valued at $250,000. Since this
initial agreement, modifications have been made to the machine,
bringing its cost to $440,740, at December 31, 1998.

On February 22, 1996, the Company entered into an additional license
agreement with Spectrasonic for the worldwide license to its now
patented Kinetic Disintegrator System for exclusive use in gypsum
disintegration, disintegration, disposal, recycling, re-manufacturing
or manufacturing of used or new raw materials. The purchase price of
this license and one KDS Machine for gypsum-related use was $775,000
with the parties agreeing that the technology license is valued at
$425,000 and the gypsum KDS machine is valued at $350,000. Certain
modifications have been made to the machine, bringing its cost at
December 31, 1998 to $431,506.
                                  
                                  
                                  
                                  
                                  
                                F-7
<PAGE> 10

                   FIRST AMERICAN SCIENTIFIC CORP
                 NOTES TO THE FINANCIAL STATEMENTS
                         December 31, 1998
                      See Notes to Financials
                            (Unaudited)

4.   TECHNOLOGY LICENSE . . . continued

On May 17, 1996, the Company executed another agreement with
Spectrasonic for the worldwide licenses to equipment developed by
Spectrasonic for use in disintegration, disposal, recycling,
manufacturing and remanufacturing of "any kinds of materials" for a
period of ninety-nine years. The purchase price of this license was
$1,230,000, which consisted of the Company issuing to Spectrasonic
1,000,000 shares of First American common stock (with an aggregate
deemed value of $500,000 U.S.), and agreeing to pay $730,000 in
varying amounts between June 30, 1996 and January 2, 1997. The
Company issued 1,000,000 common shares to Spectrasonic in July 1996.
The Company has made payments to Spectrasonic in the amount of
$193,000, but is in default on this agreement by its failure to make
remaining installments totaling $502,000.

On July 2, 1997, the Company finalized negotiations with Spectrasonic
for all patents issued, to be issued or pending including all data
pertaining to the patent process with respect to the KDS machine
whose worldwide rights had been previously acquired by the Company.
In addition the Company acquired all manufacturing rights applicable
to the KDS machine technology. The Company has sole right and
responsibility for manufacturing the machinery. Consideration to
Spectrasonic will be the issuance of 1,000,000 common shares of the
Company's stock at $0.25 per share plus payment of $500,000. The cash
payment to Spectrasonic will be made at $50,000 per machine
manufactured and sold by the Company.

5. TRANSLATION OF FOREIGN CURRENCY

The Company has adopted Financial Accounting Standard No. 52. Because
the Canadian foreign exchange rate has remained approximately the
same since inception, there are no material exchange rate transaction
gains or losses.

Common stock issued for the payment on license agreements was
recorded in U.S. dollars.











                                F-8
<PAGE> 11
                   FIRST AMERICAN SCIENTIFIC CORP
                 NOTES TO THE FINANCIAL STATEMENTS
                         December 31, 1998
                      See Notes to Financials
                            (Unaudited)

6. STOCK COMPENSATION PLANS

The Company has adopted it consultant and employee stock compensation
plan. The total number of shares included in the Plan is 350,000. Any
shares issued as a result of the exercise of option will be
"restricted securities." Options may only be granted to employees and
consultants of the Company. The Board of Directors is vested with
authority and discretion to prescribe, amend and rescind rules and
regulations relating to the plan. No options have been Issued its of
December 31, 1998.

The Company has alto adopted a directors and officers' stock option
plan. Directors have approved a plan wherein 1,000,000 shares are
eligible for distribution.  In September 1998, the directors approved
a new plan for 15,000,000 shares. As of December 31, 1998, 4,300,000
options had been approved and issued to officers. directors and
consultants. Form S-8s have been filed for both plans.

7. LOANS

On November 15, 1996, the Company entered into a loan agreement with
Huntingdon Limited in the amount of $100,000. In March 1998, this
loan plus accrued interest was converted into shares of common stock
in the Company.

On February 20, 1997, the Company entered into a loan agreement with
834968 Ontario, Inc. in the amount of $200.000. This short-term loan
was fully repaid on August 20, 1997.

During the year ended June 30, 1997, the Company entered into a
short-term loan agreement with Magic Trading in the amount of
$171,414, This uncollateralized loan plus additional loans during the
year were converted into common stock in the Company.

During the year ended June 30, 1997, the Company entered into a
short-term loan agreement with Meraloma Club in the amount of
$36,500. This loan, plus accrued interest was converted into shares
of common stock in the Company.

On April 30, 1996, the Company entered into a loan Agreement with
Knowlton Capital Inc, wherein the lender agreed to provide a
revolving line of credit.  The loan agreement has been extended over
the past two years, and in March, 1998 the Knowlton Capital Inc, all
loans outstanding were converted into shares of common stock.
                                  
                                  
                                  
                                  
                                  
                                F-9
<PAGE> 12

                   FIRST AMERICAN SCIENTIFIC CORP
                 NOTES TO THE FINANCIAL STATEMENTS
                         December 31, 1998
                      See Notes to Financials
                            (Unaudited)

7.  LOANS . . . continued

On January 21, 1997. the Company entered into a loan agreement with
Jacqueline Lovelock in the amount of $82,000. This was a secured
loan, whose terms have been extended and the amounts increased. These
loans were converted into shares of common stock in the Company.

During the year, certain loans totalling $135,816 were obtained in
regard to the financing of the mine site in Blythe CA. These loans
were to have been repaid by a royalty arrangement but in March 1998,
all royalty agreements in the amount of $135,816 were converted into
shares of common stock in the Company.

Short term loan of $80,000 at June 30. 1998 have been converted to
shares of common stock and at December 31, 1998 short term loans
outstanding amounted to $11,000.

8. RELATED PARTY TRANSACTIONS

Spectrasonic Corp. is owned and controlled by Mssr's Martin and Sand,
each of whom own 50% of its outstanding stock. Spectrasonic, a
shareholder in the Company with 1,250,000, is a creditor of the
Company. (See Note 4.)

9. LEASES

The Company owns no real property. It leases 800 square feet of
office space at Suite 1003 - 409 Granville Street, Vancouver, British
Columbia VTC IT2. Payment amounts to $1,000 per month.

In May 1996, the Company signed a lease to rent facilities in
Bakersfield, California for the industrial processing of gypsum,
limestone and specialty products. The lease, which requires payments
of $1,500 per month, expires on April 14, 1999.














                                F-10
<PAGE> 13
     
                   FIRST AMERICAN SCIENTIFIC CORP
                 NOTES TO THE FINANCIAL STATEMENTS
                         December 31, 1998
                      See Notes to Financials
                            (Unaudited)

10. ROYALTY AGREEMENT

On October 15, 1995, the Company entered into a gross royalty
agreement with Strategic International Inc. The Agreement grants to
Strategic International Inc, a gross perpetual royalty of $0.015 per
pound on all glass or rubber which is processed through, by or under
the license granted on June 22, 1995, to First American Scientific
Corp. by Spectrasonic Corp. Strategic International Inc. was
instrumental in arranging the licensing agreements with Spectrasonic
Corp. No royalties were payable at December 31, 1998.

11. EARNINGS (LOSS) PER SHARE

The net income (loss) per share is computed using the weighted
average number of shares outstanding and amounts to $(0.006) and
$(0.05) per share for the period ending December 31, 1998 and June
30, 1998.



   






















                                  
                                  
                                  
                                  
                                  
                                F-11
<PAGE> 14

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Quarter - Ending December 31, 1998

LIQUIDITY AND CAPITAL RESOURCES

The Company was incorporated on April 12, 1995, to acquire the
licensing rights to development, market, manufacture, distribute, and
sell equipment using the Kinetic Disintegrator System technology, a
highly defined micronizing process using kinetic energy and standing
sound waves. The Company was a development stage company until May 1997
when a plant in Bakersfield, California commenced production of gypsum
and limestone. This proceeded until the plant operation was suspended
July 1, 1998 as the company felt it needed to raise additional working
capital in order to properly finance the operations. The operations
confirmed that the technology successfully created a fine grind of
commercial value. This technology has many other applications,
including rubber, sludge, wallboard, and glass. These applications are
all in various stages of research development. As well, the Company has
sold a Disintegrator System in California where they are processing
contaminated wood waste.

     In the six months ending December 31, 1998, sales amounted to
$238,288, which was primarily derived from the sale of a Disintegrator
System. This system was fully paid for prior to delivery.

     At December 31, 1998, the Company had a bank balance of $10,766.
Accounts receivable totaled $5,500. Accounts payable at September 30,
1998 amount to $301,565. The Company will continue to raise funds
either from sale of common stock or from private loans, until it can
generate its cash requirements internally. The Company recognizes a
need for additional working capital as it also has a current obligation
in regard to the balance owing on its acquisition of the patent rights
etc attached to its technology in the amount of $502,000.

     During the first six months of operation, the Company raised
$93,500 from the sale of common stock. These funds were used to retire
loans outstanding at June 30, 1998 and commissions on funds raised. The
working capital position continues to improve as it amounts to
$(802,076) vs. $(905,879) at June 30, 1998. Management is aware that it
must continue to seek new capital to complete the research on items it
wishes to market.

     The Company has sufficient liquidity to maintain its operation
while it continues to seek additional funding.
 









<PAGE> 15

RESULTS OF OPERATIONS

     During the six months ending December 31, 1998, the Company
incurred an operating loss of $34,842. This compares favorably with
operating results for the previous fiscal wherein the loss for the year
amounted to in excess of $1,000,000. The company continues to expend
funds on research, $25,575 for the year to date, primarily in the
sludge process that affects every municipality in North America. The
Company is optimistic that the processing of sludge can be done
significantly cheaper as well as creating a marketable by-product. It
will continue to seek financing to complete this aspect of the
technology.

     The Company has reconfigured the machine for biowaste and
completed an onsite-testing program for biowaste. Test results from the
biowaste test site are very positive and the Company was very pleased
with the Pathogen count and the moisture reduction in the test site. It
is expected that a more extensive test will be conducted in the next
three to six months prior to proceeding to its first commercial
application.

     The Bakersfield plant suspended operations on July 1, 1998 as the
company lacked sufficient working capital to operate the plant
effectively. The company is currently seeking a joint venture partner
capable of operating the plant facilities. Discussions are in progress
with a prospective partner.

INFLATION

     Inflation has not been a factor in the six months ending December
31, 1998. This is consistent with the fiscal year ending June 30, 1998.
There are no capital projects underway and the only expenditures are
operational, which are not adversely affected by inflation.

QUARTER ENDED DECEMBER 31, 1998

     In the fall of 1998, the Company reached agreement with Greenleaf
Fibre Company Ltd of Northern Ireland to conduct research and
development on the commercial viability of the KDS as it relates to the
disintegration of rubber and rubber related products. A KDS system was
shipped to Northern Ireland and installed on their premises. After
studies of the basic technology are completed and any modification of
the basic technology completed, Green Leaf intends to commence pilot
plant testing and it is expected that testing will be complete by the
end of June 1999.










<PAGE> 16

     The Company also shipped a KDS unit to a military site in Utah, 
to be used by the U.S. military as part of a system for disposal of
contaminated wood products. The unit exceeded the standards for
throughput and particle size during acceptance testing. Installation of
the complete system is scheduled by June 30, 1999.

     All operating results are reflected in U.S. dollars and any
foreign exchange loss or gain is nominal in that the value of the
Canadian dollar to the U.S. dollar has only changed moderately and most
expenses and funds and funds raised are in U.S. dollars. The conversion
rate over the past quarter has varied between US$0.64 and US$0.66 to
CDN$1.00. 

FOREIGN OPERATIONS

     The Company is conducting its biowaste testing in the state of
Washington, having moved its equipment from Chilliwack, British
Columbia, Canada. The Company is currently testing a KDS machine near
Tonasket, Washington. The focus of the testing, in the quarter ending
December 31, 1998, is biowaste and the preparation of the machine for
commercial applications. Corporate and administrative offices are
maintained in Vancouver, British Columbia, Canada.

                          EXHIBIT INDEX 
 
Exhibit 
  No.                Description 
  
 27                  Financial Data Schedule 
     

























<PAGE> 17
 
                           SIGNATURES  
  
Pursuant to the requirements of the Securities Exchange Act of  
1934, the Registrant has duly caused this report to be signed on  
its behalf by the undersigned, thereunto duly authorized.  
  
Dated this 23rd day of April, 1999.
  

FIRST AMERICAN SCIENTIFIC CORP.  
(the "Registrant")  
  
BY:  /s/ Robert G. Dinning 
     Robert G. Dinning, Secretary/Treasurer, 
     Chief Financial Officer and 
     a Member of the Board of Directors.