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<FONT SIZE=2><P ALIGN="CENTER">U.S. SECURITIES AND EXCHANGE COMMISSION</P>
<P ALIGN="CENTER">Washington, DC 20549</P>
<P ALIGN="CENTER">FORM 10-KSB</P>
<P>(Mark One)</P>
<P>		[X]	ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE</P>
<P>			SECURITIES EXCHANGE ACT OF 1934 [Fee Required]</P>
<P>					For the fiscal year ended July 31, 1997</P>

<P>	[  ]	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE</P>
<P>		SECURITIES EXCHANGE ACT OF 1934 [No Fee Required]</P>
<P>					For the transition period from    to</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Commission file number:  0-8289</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">The Rovac Corporation</P>
<P ALIGN="CENTER">(Name of small business issuer in its charter)</P>
<P ALIGN="CENTER">Delaware                                                 59-1461320</P>
<P ALIGN="CENTER">(State or other jurisdiction of                      (I.R.S. Employer</P>
<P ALIGN="CENTER">incorporation or organization)                     Identification No.)</P>
<P ALIGN="CENTER">1030 Stafford Street, Rochdale MA 01542</P>
<P ALIGN="CENTER">(Address of principal executive offices)</P>
<P ALIGN="CENTER">Issuer's telephone number:  (508) 892-1121</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Securities registered pursuant to Section 12(b) of the Act:  None</P>
<P ALIGN="CENTER">Securities registered pursuant to Section 12 (g) of the Act:</P>
<P ALIGN="CENTER">Common Stock, par value $0.01 per share</P>
<P ALIGN="CENTER">(Title of class)</P>

<P ALIGN="JUSTIFY"> </P>
<P>Check whether the issuer (1) filed all reports required to be for such shorter period that the Registrant was
required to file reports, and (2) been subject to such filing requirement for the past 90 days.</P>
<P>Yes_____No__X__</P>

<P>Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B is not
contained in this form, and no disclosure will be contained, to the best of the registrant's knowledge, in
definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB.  [ X ]</P>

<P>State issuer's revenues for its most recent fiscal year:  $15,231</P>

<P>The aggregate market value of the voting stock held by non-affiliates computed by reference to the price at
which the stock was sold within the past 60 days was $ 1,426,927 as of January 31, 2000.</P>
<P ALIGN="CENTER">(APPLICABLE ONLY TO CORPORATE REGISTRANTS)</P>
<P>The number of shares outstanding of each of the issuer's classes of common equity, as of the latest
practicable date, January 31, 2000, was 39,943,073 shares of Common Stock, $0.01 par value.</P>
<P ALIGN="CENTER">DOCUMENTS INCORPORATED BY REFERENCE</P>
<P>If the following documents are incorporated by reference, briefly describe them and identify the part of the
Form 10-KSB into which the document is incorporated:  (1) any annual report to security holders; (2) any
proxy of information statement; and (3) any prospectus filed pursuant to Rule 424 (b) or (c) of the
Securities Act of 1933 ("Securities Act").  NONE.</P>
<P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">PART I</P>
<P>Item 1.	Description of Business</B>.</P>

<P>	<B>(a)	General Development of Business</P>
</B>
<P>	The ROVAC Corporation ("the Company") is a Delaware corporation, which was organized in
1972 and has been involved in the research and development of a variety of mechanical devices.  During
the last three years, the Company continued to be engaged in activities leading up to the manufacture and
marketing of new type of mechanical pipe connectors.  The Company's patented CinchLock<FONT FACE="Symbol">â</FONT>
pipe connectors consist of mechanical devices, which join pipes and joints of assorted size and shapes without
glue or solder to permit the flow of fluid under different conditions and amounts of pressures.  The
Company plans to produce key CinchLock<FONT FACE="Symbol">â</FONT>
pipe connector components in its existing facilities in Rochdale, Massachusetts.  The Company has only one business segment.</P>

<P>	<B>(b)	Business of Issuer</P>
</B>
<P>	During the fiscal year ending July 31, 1997, the Company received consulting fees from
customers for field testing the Company's CinchLock<FONT FACE="Symbol">â</FONT>
pipe connectors pursuant to field testing contracts.  One of the Company's potential customers successfully completed field testing of the CinchLock<FONT FACE="Symbol">â</FONT>
pipe connectors and the Company received favorable test results.  The company has started negotiations to allow
some of its pipe connector technology to be commercialized.  The company also contacted and secured
other potential customers to conduct field tests of CinchLock<FONT FACE="Symbol">â</FONT>
pipe connectors.  At the close of the fiscal year, the Company was engaged in field testing with the several additional customers and, while there can
be no assurance, the Company's management expects that all of the field testing results will be favorable
and produce future sales.</P>

<P>	During the most recent fiscal year, ROVAC produced and sold key CinchLock<FONT FACE="Symbol">â</FONT>
pipe connector components to customers for field testing.  The Company continued to contact potential customers to enter
into discussions for test marketing programs.  ROVAC identified a number of markets for its CinchLock<FONT FACE="Symbol">â</FONT>
connectors and has supplied metal and plastic samples of the connectors to potential manufacturers,
wholesalers and distributors for evaluation.  The Company plans on producing key pipe connector
components in its existing facilities in Rochdale, Massachusetts.  The sources and availability of raw
materials and the names of principal suppliers for components of the pipe connectors have been identified
and management believes that adequate raw materials and suppliers are available.</P>

<P>	At the end of the fiscal year, The ROVAC Corporation had four (4) employees who worked full
time for the Company.  The company has numerous domestic and foreign patents issued as well as
a number of other patent applications pending for its CinchLock<FONT FACE="Symbol">â</FONT>
pipe connectors.  The Company has a number of patents both pending and granted which cover the Company's technology.</P>

<P>	Research and development expenses for the years ended July 31, 1997 and July 31, 1996 were </P>
<P>$ 49,726 and $ 41,516, respectively.  This increase of $ 8,210 is due to the Company's increased
expenditures on research efforts and testing.</P>

<P> </P>
<B><P>Item 2.	Description of Property</B>.</P>

<P>	The Company's product development facilities and administrative offices are located in Rochdale,
Massachusetts and occupy approximately 6,520 square feet.  ROVAC rents the space which it occupies
from its controlling shareholder, Stafford Industries, Inc., ("Stafford").</P>

<P> </P>
<B><P>Item 3.	Legal Proceedings.</P>
</B>
<P>	There are no pending or threatened legal proceedings against the Registrant.</P>

<P> </P>
<B><P>Item 4.	Submission of Matters to a Vote of Security Holders</P>
</B>
<P>	None.</P>

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<P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">PART II</P>
</B>
<B><P>Item 5.	Market for Common Equity and Related Stockholder Matters</P>
</B>
<B><P>Common Stock</P>
</B>
<P>	The Company has authorized 40,000,000 shares of Common Stock ($0.01 par value per share), of
which 39,943,073 shares of Common Stock were reported issued and outstanding as of July 31, 1997.  In
addition, there are 40,000 shares of Common Stock issuable as of July 31, 1997.  All of the issuable shares
will have restrictions against transfer pursuant to Regulation D and/or will be exempt from registration
under the Securities Act of 1933, as amended.</P>

<B><P>Market for Common Stock</P>
</B><P>	</P>
<P>	The Company's Common Stock has been traded in the over-the-counter market since 1974, and is
presently listed in the "pink sheets" by approximately six (6) broker-dealers.  The following is the range of
low and high bid prices for a share of the Company's stock for quarters ended:</P>
<P>	</P></FONT>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=590>
<TR><TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>July 31, 1997</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>$ 0.26-$0.29</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>July 31, 1996</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>$ 0.26-$0.30</FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>April 30, 1997</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>$ 0.19-$0.23</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>April 30, 1996</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>$ 0.20-$0.26</FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>January 31, 1997</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>$ 0.16-$0.20</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>January 31, 1996</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>$ 0.18-$0.24</FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>October 31,  1996</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>$ 0.23-$0.25</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>October 31, 1995</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>$ 0.125-$0.17</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2>
<P>	During the fiscal year, the range of low and high bid price for the Company's Common Stock was
between $ 0.16 and $ 0.29 per share.  Prices represent quotations from the "pink sheets" without adjustment
for retail mark-ups, markdowns, or commissions and do not represent actual transactions.  The number of
stockholders of record as of July 31, 1997 was approximately 3,685.  The Company has paid no dividends
on its Common Stock for the last three fiscal years and does not expect to pay any dividend during the
coming fiscal year.</P>

<P>	As of July 31, 1997, Stafford held of record 22,792,500 shares of the Common Stock ($0.01 par
value per share) of the Company and 12,000 shares of Preferred Stock ($100 par value per share) of the
Company.</P>

<P>	There is no trading market contemplated for the preferred shares and the conversion value of the
preferred shares shall not exceed par value.  The company, by action of its Board of Directors, may call or
redeem the whole or any part of the Preferred Stock, at any time, or from time to time, at $100 per share
plus a sum equal to all accumulated and unpaid dividends thereon to the date fixed for redemption.  In the
event that the Board of Directors calls or redeems the whole or any part of the Preferred Stock, the Board
shall be required to take such action on or within ten (10) years from issue.</P>

<P> </P>
<B><P>Item 6.	Management's Discussion and Analysis or Plan of Operation</P>
</B>
<P>	<B>(a)	Plan of Operation</P>
</B>
<P>	The Company's operations in the past several years have been focused on designing and
developing its CinchLock<FONT FACE="Symbol">â</FONT>
pipe connectors.  This activity has not generated significant revenues and the Company has been dependent on cash advances from licensing income and loans from officers of the
Company and its affiliate to meet working capital and liquidity needs.  There can be no assurance that
officers and/or affiliate will continue to provide loans and capital to the Company.</P>

<P>	The Company continued to explore potential capital sources in order to continue its operations.
The company has been involved in activities to obtain financing and capital sources in order to meet its
working capital requirement needs so that it may implement the proposed CinchLock<FONT FACE="Symbol">â</FONT>
pipe connector project.  The Company's preliminary financing plan includes securing working capital through an isolated
sale of Common Stock to qualified investors in private placement.  There can be no assurance that the
Company will be able to implement its financing plans.</P>
<P>	</P>
<P>	During the fiscal year, the Company received limited revenues through initial sales of its
CinchLock<FONT FACE="Symbol">â</FONT>
pipe connectors and field testing contracts.  Management has been able to satisfy cash
requirements in past years through isolated private placement of Common Stock and loans from the officers
and/or affiliate.  However, there can be no assurance that such sources of funding will continue.  At the
close of and for the fiscal year ending on July 31, 1997, officers made net loans to the Company in the
amount of $ 12,000.  At the close and for the fiscal year ending on July 31, 1997, net advances from the
affilate increased by approximately $115,000.</P>

<P> </P>
<P>	<B>(b)	Management's Discussion and Analysis of Financial Condition</P>
</B>
<P>		<B>(1)	Results of Operations for the year ended July 31, 1997</P>
</B>
<P>	The total operating expenses were $177,324 for the year ending July 31, 1997 as compared to
$170,459 for the year ending 1996.  The majority of expenses for both years were similar as the company
continued to develop its pipe connecting technology.  The retroactive rent adjustment (decrease) of $30,000
from 1996 was offset by a reduction of approximately $36,000 in amortization.</P>

<P>		</P><DIR>
<DIR>

<B><P>(2)	Results of Operations for the year ended July 31, 1996</P>
</B></DIR>
</DIR>

<P>	General and Administrative Costs were $80,721 for the fiscal year ending July 31, 1996
compared to $219,120 for fiscal year 1995, a decrease of $138,399.  The decrease of 63% was due
primarily to reduced overhead.  Research and Development Costs were $41,516 for fiscal year ending July
31, 1996 compared to $32,373 for fiscal 1995, an increase of $9,143.  This increase is due to the
Company's research efforts and purchases of tooling and materials.</P>

<P> </P>
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<B><P>Item 7.	Financial Statements</P>
</B>
<P> </P>
<P> </P>
</FONT><B><U><FONT FACE="Arial"><P ALIGN="CENTER">INDEX TO FINANCIAL STATEMENTS					PAGE</P>
</B></U></FONT><FONT SIZE=2>
<P> </P>
<P> </P>
<P> </P>
<P>Financial Statements</P>

<P>         Report of Independent Auditors						 F-1</P>

<P>         Balance Sheets - July 31, 1997 and July 31, 1996	 F-2, F-3</P>

<P>         Statements of Operations for the Years Ended</P>
<P>            July 31, 1997, 1996	 F-4</P>

<P>         Statements of Stockholders' Deficit for the Years</P>
<P>             Ended July 31, 1997, 1996	 F-5</P>

<P>         Statements of Cash Flows for the Years Ended</P>
<P>             July 31, 1997, 1996	 F-6, F-7</P>

<P>         Notes to Financial Statements	 F-8 to F-10</P>

<P> </P>
<P> </P>
<P> </P>
<B><P>Item 8.		NONE</B>.</P>

<P> </P>
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<P> </P>
<P ALIGN="CENTER">THE REMAINDER OF THIS PAGE IS INTENTIONALLY OMITTED</P>
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</B></FONT><FONT SIZE=3><P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">	REPORT OF INDEPENDENT AUDITORS</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">The Board of Directors and Stockholders</P>
<P ALIGN="JUSTIFY">The ROVAC Corporation</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">We have audited the accompanying balance sheets of The ROVAC Corporation as of July 31, 1997
and 1996, and the related statements of operations, stockholders' deficit, and cash flows for the
years then ended.  These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based on our audits.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">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.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of The ROVAC Corporation as of July 31, 1997 and 1996, and the results of its
operations and its cash flows for the years then ended, in conformity with generally accepted
accounting principles.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The accompanying financial statements have been prepared assuming that the Company will
continue as a going concern.  As discussed in Note 1 to the financial statements, the Company has
suffered recurring losses from operations and has a net capital deficiency.  These conditions raise
substantial doubts about the Company's ability to continue as a going concern.  Management's plan
in regard to these matters are described in Note 1.  The financial statements do not include any
adjustments that might arise from the outcome of this uncertainty.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">	MOTTLE McGRATH BRANEY & FLYNN, P.C.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Worcester, Massachusetts</P>
<P ALIGN="JUSTIFY">February 17, 2000</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
</FONT><FONT SIZE=2><P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">	THE  ROVAC  CORPORATION</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	Balance Sheets</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	July 31, 1997 and 1996</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">               <U>Assets</U> 	<U>1997</U> 	<U>1996</U>   </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Current assets:</P>
<P ALIGN="JUSTIFY">  Cash	$      -      	$      9,747 </P>
<P ALIGN="JUSTIFY">  Accounts receivable	833 	1,845 </P>
<P ALIGN="JUSTIFY">  Loan receivable - officer	<U>2,705</U> 	<U>935</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">          Total current assets	<U>      3,538</U> 	<U>      12,527</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Property and equipment:</P>
<P ALIGN="JUSTIFY">  Machinery and equipment	72,112 	72,112 </P>
<P ALIGN="JUSTIFY">  Furniture and fixtures	 30,283 	30,283 </P>
<P ALIGN="JUSTIFY">  Leasehold improvements	<U>      28,121</U> 	<U>      28,121</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	130,516 	     130,516 </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">  Less accumulated depreciation	<U>     118,018</U> 	<U>     115,335</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">         Net property and equipment	<U>       12,498</U> 	<U>       15,181</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Patents and patent applications, net of</P>
<P ALIGN="JUSTIFY"> accumulated amortization of $9,029 in 1997</P>
<P ALIGN="JUSTIFY"> and $6,971 in 1996 	<U>       61,433</U> 	<U>       51,557</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">          Total assets	<U>$     77,469</U> 	<U>$    79,265</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">See accompanying notes to financial statements.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
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</FONT><FONT SIZE=2><P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">	THE  ROVAC  CORPORATION</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	Balance Sheets (continued)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	July 31, 1997 and 1996</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">          <U>Liabilities and Stockholders' Deficit</U>	<U>1997</U>	<U>1996</U>   </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Current liabilities:</P>
<P ALIGN="JUSTIFY">  Cash overdraft	$        2,944	$         -       </P>
<P ALIGN="JUSTIFY">  Notes payable - officer (note 3)	    660,341 	    648,141 </P>
<P ALIGN="JUSTIFY">  Notes payable - other	11,250 	3,250 </P>
<P ALIGN="JUSTIFY">  Accounts payable:</P>
<P ALIGN="JUSTIFY">    Trade	107,580 	103,602 </P>
<P ALIGN="JUSTIFY">    Parent company	594,535 	479,970 </P>
<P ALIGN="JUSTIFY">  Accrued expenses (note 4)	<U>      734,895</U> 	<U>      635,080</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">       Total current liabilities	<U>   2,111,545</U> 	<U>   1,870,043</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Commitments and contingencies (note 1)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Stockholders' deficit (note 5):</P>
<P ALIGN="JUSTIFY">  8%, nonvoting preferred stock, $100 </P>
<P ALIGN="JUSTIFY">   par value.  Authorized 25,000 shares,</P>
<P ALIGN="JUSTIFY">   issued and outstanding 12,000 shares</P>
<P ALIGN="JUSTIFY">   each year	1,200,000 	1,200,000 </P>
<P ALIGN="JUSTIFY">  Common stock, $.01 par value.  Authorized</P>
<P ALIGN="JUSTIFY">   40,000,000 shares, issued and outstanding</P>
<P ALIGN="JUSTIFY">   39,943,073 shares in 1997 and 39,546,681</P>
<P ALIGN="JUSTIFY">   shares in 1996 	399,431 	399,431 </P>
<P ALIGN="JUSTIFY">  Common stock issuable, $.01 par value,</P>
<P ALIGN="JUSTIFY">   40,000 shares in 1997 and 277,500 shares</P>
<P ALIGN="JUSTIFY">   in 1996	400 	400 </P>
<P ALIGN="JUSTIFY">  Additional paid-in capital	8,269,432 	8,269,432 </P>
<P ALIGN="JUSTIFY">  Accumulated deficit	<U>  ( 11,903,339</U>)	<U>  (11,660,041</U>)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">       Total stockholders' deficit	<U>     (2,034,076</U>)	<U>    (1,790,778</U>)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">       Total liabilities and stockholders' deficit	<U>$          77,469</U> 	<U>$      79,265</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">See accompanying notes to financial statements.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
</FONT><FONT SIZE=2><P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">	THE  ROVAC  CORPORATION</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	Statements of Operations</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	Years ended July 31, 1997 and 1996</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">	<U>1997</U>   	<U>1996</U>   </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Revenues:</P>
<P ALIGN="JUSTIFY">  Contract income	$    10,000 	$    18,000 </P>
<P ALIGN="JUSTIFY">  Product	<U>     5,231</U> 	<U>        12,905</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">          Total revenues	<U>     15,231</U> 	<U>     30,905</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Operating expenses:</P>
<P ALIGN="JUSTIFY">  Cost of sales	11,315 	7,238       </P>
<P ALIGN="JUSTIFY">  General and administrative	111,542 	80,721 </P>
<P ALIGN="JUSTIFY">  Research and development	49,726 	41,516 </P>
<P ALIGN="JUSTIFY">  Depreciation 	2,683 	2,614 </P>
<P ALIGN="JUSTIFY">  Amortization	<U>      2,058</U> 	<U>      38,370</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">          Total operating expenses	<U>    177,324</U> 	<U>    170,459</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">          Operating loss	<U>   (162,093</U>)	<U>   (139,554</U>)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Other income (expense):</P>
<P ALIGN="JUSTIFY">  Interest expense	<U>(81,205)</U>	<U>(80,546)</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">          Net loss	<U>$(243,298</U>)	<U>$(220,110</U>)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Loss per share of common stock	<U>$         (.01</U>)	<U>$         (.01</U>)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">See accompanying notes to financial statements.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
</FONT><FONT SIZE=2><P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
</FONT><FONT SIZE=1><P ALIGN="CENTER">THE  ROVAC  CORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Statements of Stockholders' Deficit</P>
<P ALIGN="CENTER">Years ended July 31, 1997 and 1996</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">                                                                               <U>      Preferred Stock     </U>                <U>         Common  Stock          </U>              <U>Common Stock Issuable</U>           Additional
                          </P>
<P ALIGN="JUSTIFY">                                                                                 Number                                       Number                                                Number                                     Paid-in
          Accumulated                </P>
<P ALIGN="JUSTIFY">                                                                               <U>of Shares</U>     <U>Par Value</U>                <U>of Shares</U>             <U>Par value</U>                 <U>of Shares</U>      <U>Par Value</U>
        <U>  Capital </U>                    <U>Deficit    </U>                     <U>Total</U>    </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">Balance at July 31, 1995                                         12,000        $1,200,000              39,546,681           	$395,467                277,500  	       $2,775  	            $8,243,276             	$(11,439,941)
	            $(1,598,423) </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Issuance of common stock</P>
<P ALIGN="JUSTIFY"> Previously considered issuable                                   -                      -        	                  275,000        	         2,750                (252,500)        (2,525)                       (225)
        - 	                             -	         			                       </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Stock issued in exchange for</P>
<P ALIGN="JUSTIFY"> Services                                                                        -                      -                            54,725 	                   547                          -                  -         	
   14,498                         -         	                       15,045   </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Proceeds from sale                                                        -                      -                           66,667                     667                    15,000              150                    11,883
            -                                12,700 </P>
<P ALIGN="JUSTIFY">          	</P>
<P ALIGN="JUSTIFY">Net loss                                                                    <U>      -       </U>        <U>       -        </U>	            <U>           -       </U> 	        <U>       -       </U>             <U>          -
 </U>  	      <U>     -       </U>             <U>           -       </U>  	          <U>      (220,100</U>)	             <U>     (220,100</U>)  </P>
<P ALIGN="JUSTIFY">Balance at July 31, 1996                                            12,000       1,200,000             39,943,073             	399,431                    40,000              400               8,269,432                (11,660,041)	
              (1,790,778) </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Net loss                                                                    <U>      -          </U>     <U>       -       </U> 	                <U>       -       </U>          <U>       -       </U>  	            <U>        -
 </U>       <U>      -       </U>             <U>          -       </U>               _<U>   (243,298</U>)	                <U>  (243,298</U>)  </P>
<P ALIGN="JUSTIFY">Balance at July 31, 1997                                            <U>12,000</U>     <U>$1,200,000</U>             <U>39,943,073</U> 	          <U>$399,431</U>           <U>        40,000</U>     	<U>$       400</U>  	
 <U>$8,269,432</U>  	           <U>$(11,903,339</U>)	             <U>$(2,064,076</U>)  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P>See accompanying notes to financial statements.</P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">	THE  ROVAC  CORPORATION</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	Statements of Cash Flows</P>
<P ALIGN="JUSTIFY">	Years ended July 31, 1997 and 1996</P>
<P ALIGN="JUSTIFY">	Increase (Decrease) in Cash</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	<U>1997</U>   	<U>1996</U>   </P>
<P ALIGN="JUSTIFY">Cash flows from operating activities:</P>
<P ALIGN="JUSTIFY">  Net loss	<U>$(243,298</U>)	<U>$(220,100</U>)</P>
<P ALIGN="JUSTIFY">  Adjustments to reconcile net loss to</P>
<P ALIGN="JUSTIFY">   net cash used in operating activities:</P>
<P ALIGN="JUSTIFY">    Depreciation and amortization	4,741 	40,984 </P>
<P ALIGN="JUSTIFY">    Services in exchange for common stock or note payable	8,000 	15,045 </P>
<P ALIGN="JUSTIFY">  (Increase) decrease in assets:</P>
<P ALIGN="JUSTIFY">    Accounts and loan receivable	(758)	(882)</P>
<P ALIGN="JUSTIFY">    Inventory	- 	475 </P>
<P ALIGN="JUSTIFY">    Prepaid expenses	- 	7,150      </P>
<P ALIGN="JUSTIFY">  Increase (decrease) in liabilities:</P>
<P ALIGN="JUSTIFY">    Accounts payable	118,543 	70,818 </P>
<P ALIGN="JUSTIFY">    Accrued expenses	<U>       99,815</U>  	<U>        90,782</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">          Total adjustments	<U>     230,341</U> 	<U>      224,372</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">          Net cash provided by (used in) </P>
<P ALIGN="JUSTIFY">           operating activities:	<U>         (12,957)</U> 	<U>       4,272</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Cash flows from investing activities:</P>
<P ALIGN="JUSTIFY">  Capital expenditures	-	(3,018)</P>
<P ALIGN="JUSTIFY">  Costs of patents and patent applications	(11,934)	(7,266)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">          Net cash used in investing activities	<U>      (11,934</U>)	<U>      ( 10,284</U>)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Cash flows from financing activities:</P>
<P ALIGN="JUSTIFY">  Proceeds from sale of stock	- 	12,700 </P>
<P ALIGN="JUSTIFY">  Proceeds from notes payable - officers	____<U>12,200</U> 	   _____<U>1,120</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">          Net cash provided by financing activities	<U>       12,200</U> 	<U>        13,820</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Net change in cash	(12,691) 	7,808 </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Cash, beginning of year	<U>         9,747</U> 	<U>           1,939</P>
</U><P ALIGN="JUSTIFY"></P>
</FONT><FONT SIZE=2><P ALIGN="JUSTIFY">Cash (cash overdraft), end of year	<U>$       (2,944)</U> 	<U>$       9,747</U> </P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
</FONT><FONT SIZE=2><P ALIGN="CENTER"> </P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">	THE  ROVAC  CORPORATION</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	Statements of Cash Flows (continued)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	Years ended July 31, 1997 and 1996</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	Increase (Decrease) in Cash</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	<U>1997</U>   	<U>1996</U>   </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">Supplemental disclosures of cash flow information:</P>
<P ALIGN="JUSTIFY">  Cash paid during the year for:</P>
<P ALIGN="JUSTIFY">    Interest	$           	$    48 </P>
<P ALIGN="JUSTIFY">Supplemental disclosure of noncash investing and</P>
<P ALIGN="JUSTIFY"> financing activities:</P>
<P ALIGN="JUSTIFY">  Common stock issued for services	- 	15,045 </P>
<P ALIGN="JUSTIFY">  Note payable issued for services	8,000       	- </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">See accompanying notes to financial statements.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
</FONT><FONT SIZE=2><P ALIGN="CENTER"> </P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">	THE  ROVAC  CORPORATION</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	Notes to Financial Statements</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> (1)	<U>Basis of Presentation</P>
</U><P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY">	The ROVAC Corporation (Company) is a majority-owned subsidiary of Stafford Industries
Inc. (Parent).  The Parent owned approximately 57% of the Company at July 31, 1997 and
1996.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	The Company is primarily a research and development firm engaged principally in
designing, building and testing a number of products.  The Company is currently in a
transition phase which will allow the introduction of some of its pipe connecting technology
to reach commercial markets.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	The Company's financial statements have been presented on a going concern basis which
contemplates the realization of assets and liabilities in the normal course of business.  The
Company has reported net losses of $243,298 and $220,110 for the years ended July 31,
1997 and 1996, respectively.  As a result, a stockholder's deficit of $2,034,076 was reported
and the Company's current liabilities exceed its current assets by $2,108,007 at July 31,
1997.  These conditions raise substantial doubts about the Company's ability to contnue as a
going concern.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	No significant revenues have been generated in the past two years.  During this time the
Company has been primarily dependent upon officer loans and advances from the Parent
company to fund expenses.  Continued operations of the Company are dependent upon the
Company's ability to successfully secure customers for its new products and the ability to
secure additional equity or debt financing. There can be no assurance that the Company's
efforts will be successful.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	The Company is pursuing a market for its new mechanical pipe connector.  The Company's
ability to recover the recorded amounts of its assets, particularly the unamortized cost of
patents and patent applications of $61,433 is dependent on the success of its ventures.</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

<P ALIGN="JUSTIFY"> (2)	<U>Summary of Significant Accounting Policies</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	(a)	<U>Property and equipment</P>
</U><P ALIGN="JUSTIFY"></P><DIR>
<DIR>
<DIR>

<P ALIGN="JUSTIFY">		Property and equipment are stated at cost.  Depreciation is computed using the straight-
line method over useful lives of two to ten years.</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>
</DIR>

<P ALIGN="JUSTIFY">	(b)	<U>Patent applications</P>
</U><P ALIGN="JUSTIFY"></P><DIR>
<DIR>
<DIR>

</FONT><FONT SIZE=2><P ALIGN="JUSTIFY">		</FONT><FONT SIZE=3>Patent applications are stated at cost until a patent is granted, at which time the costs
are amortized over the life of the patent.  Patent applications subsequently determined
to be not commercially feasible are charged to income at the time of such determination.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
</FONT><FONT SIZE=2><P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P></DIR>
</DIR>
</DIR>

</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">	THE  ROVAC  CORPORATION</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	Notes to Financial Statements</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> (2)	<U>Summary of Significant Accounting Policies</U> (continued)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	(c)	<U>Income taxes</P>
</U><P ALIGN="JUSTIFY"></P><DIR>
<DIR>
<DIR>

<P ALIGN="JUSTIFY">		Deferred income tax assets and liabilities are computed annually for differences
between the financial statement and tax bases of assets and liabilities that will result in
taxable or deductible amounts in the future based on enacted tax laws and rates
applicable to the periods in which the differences are expected to affect taxable income.
Valuation allowances are established when necessary to reduce deferred tax assets to
the amount expected to be realized.  Income tax expense is the tax payable or
refundable for the period plus or minus the change during the period in deferred tax
assets and liabilities.</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>
</DIR>

<P ALIGN="JUSTIFY">	(d)	<U>Loss per share of common stock</P>
</U><P ALIGN="JUSTIFY"></P><DIR>
<DIR>
<DIR>

<P ALIGN="JUSTIFY">		Loss per share of common stock as computed is based on the weighted average of the
number of shares outstanding and issuable during the years (39,943,073 in 1997 and
39,882,819 in 1996). </P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>
</DIR>

<P ALIGN="JUSTIFY"> (3)	<U>Notes Payable - Officer</P>
</U><P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY">	Notes payable to officer consist of several demand notes to an officer who is also a director
and shareholder of the Company.  The notes carry interest rates of 12%.</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

<P ALIGN="JUSTIFY"> (4)	<U>Accrued Expenses</P>
</U><P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY">	Accrued expenses consist of:</P></DIR>
</DIR>

<P ALIGN="JUSTIFY">				<U>1997</U>  	<U>1996</U>  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">			Interest to officer	$573,517 	$492,868 </P>
<P ALIGN="JUSTIFY">			Professional fees	14,000 	10,000 </P>
<P ALIGN="JUSTIFY">			Payroll taxes	20,182 	18,754 </P>
<P ALIGN="JUSTIFY">			Directors' fees	24,300 	24,300 </P>
<P ALIGN="JUSTIFY">			Salaries	98,521 	85,922 </P>
<P ALIGN="JUSTIFY">			Other	<U>      4,375</U> 	<U>      3,236</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">				<U>$734,895</U> 	<U>$635,080</U> </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
</FONT><FONT SIZE=2><P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">	THE  ROVAC  CORPORATION</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">	Notes to Financial Statements</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> (5)	<U>Capital Stock Activity</P>
</U><P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY">	The Company issued 48,725 shares of common stock for professional services with an
estimated fair market value of $15,045 and $9,545 in 1996.  All of the common stock
issuable shares will have restrictions against transfer pursuant to Regulation D and/or will be
exempt from registration under the Securities Act of 1933, as amended.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P></DIR>
</DIR>

<P ALIGN="JUSTIFY"> (6)	<U>Income Taxes</P>
</U><P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY">	At July 31, 1997, the Company has net operating loss carryforwards approximating
$4,501,000 which are available to offset future taxable income.  The carryforwards expire as
follows:</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

<P ALIGN="JUSTIFY">				<U>Year</U>	<U>Amount</U>  </P>
<P ALIGN="JUSTIFY">				1999	$979,000</P>
<P ALIGN="JUSTIFY">				2000	436,000</P>
<P ALIGN="JUSTIFY">				2001	566,000</P>
<P ALIGN="JUSTIFY">				2002	368,000</P>
<P ALIGN="JUSTIFY">				2003	444,000</P>
<P ALIGN="JUSTIFY">				2004	388,000</P>
<P ALIGN="JUSTIFY">				2005	265,000</P>
<P ALIGN="JUSTIFY">				2006	68,000</P>
<P ALIGN="JUSTIFY">				2007	146,000</P>
<P ALIGN="JUSTIFY">				2008	273,000</P>
<P ALIGN="JUSTIFY">				2009	52,000</P>
<P ALIGN="JUSTIFY">				2010	236,000</P>
<P ALIGN="JUSTIFY">				2011	130,000</P>
<P ALIGN="JUSTIFY">				2012	150,000</P>
<P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY">	The loss carryforward is fully reserved for deferred tax purposes.</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

<P ALIGN="JUSTIFY"> (7)	<U>Related Party Transactions</P>
</U><P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY">	The Company leases its space from its parent company as a tenant-at-will.  The lease
expense was $19,560 for 1997.  A retroactive rent adjustment was made in 1996 which
resulted in a credit of $30,000 for the year ended July 31, 1996.</P>
</FONT><FONT SIZE=2><P ALIGN="CENTER"></P></DIR>
</DIR>

<B><P ALIGN="CENTER">PART III</P>
</B>
<B><P>Item 9.	Directors, Executive Officers, Promoters and Control Person, Compliance with Section 16(a) of the Exchange Act.</P>
</B>
<P>	The last Annual Meeting of the Shareholders of the Company was held on March 31, 1989, when
Mr. Shea, Sr., Mr. Riesner, Mr. Spillane, and Mr. Shea, Jr., were re-elected as directors and Mr. Loscocco
was elected a new director of the Company.  These directors were elected by the shareholders to serve until
the next annual meeting or until their successors are elected and qualified.  The following information is
furnished with respect to current directors and officers of the Company.</P>

<P>Name					Age		Position			Period of Service</P>

<P>Raymond E. Shea, Sr.			 79 		Chief Executive 		May, 1984</P>
<P>							Officer, Director		to date</P>

<P>Robert Riesner				 68 		Secretary,		September, 1982</P>
<P>							Director			to date</P>

<P>S. John Loscocco				 73 		Director			March, 1989</P>
<P>										to date</P>

<P>John W. Spillane				 66		Director			May, 1984</P>
<P>										to date</P>

<P>Raymond E. Shea, Jr.			 38		Vice President		April, 1985</P>
<P>							Treasurer, Director	to date</P>

<P> </P>
<P>	Raymond E. Shea, Sr., is the Chairman of the Board of Directors and Chief Executive Officer of the Company.  Mr. Shea has been an officer and director of the Company since 1984.  Mr. Shea is an entrepreneur and inventor.  He is a businessman
associated with the commercialization of technical products and business turnarounds.</P>

<P>	Robert Riesner, Secretary and Director of the Company, is a financial consultant and workout specialist supervising various corporate transactions and reorganizations.  Mr. Riesner has been an officer and director of the Company since 1982.  Since
April 1983, he has been a principal of PBR Financial Services.</P>

<P>	S. John Loscocco is a Director who is an investor with extensive experience in the field of venture capital.  Mr. Loscocco has served as President of Acquivest Group, Inc., a venture management organization for more than the past eight years.  Mr.
Loscocco is also a director of Seatrain Lines, Inc. and Hermitage Group, Inc.</P>

<P>	John W. Spillane is a Director of the Company and serves the Company as its General Counsel.  Mr. Spillane has been a Director of the Company since 1984.  He is a member of the Massachusetts State and Federal Bar, and has been a practicing attorney
in Worcester, Massachusetts for 39 years.</P>

<P>	Raymond E. Shea, Jr. is Vice President, Treasurer and Director of the Company and is the son of Raymond E. Shea, Sr.  He has been an officer and director of the Company since April 1985 and has served the Company in a variety of key operating and
managerial positions during the past nine years.  Mr. Shea is also a Treasurer and Director of Stafford Industries, Inc.</P>

<P>	</P>

<P> </P>
<B><P>Item 10.		Executive Compensation</P>
</B>
<P>	All officers and directors of the Company received the following compensation (both cash and
deferred) during fiscal year 1997:</P>

<P>Summary Compensation Table</P>

<P>	The chief executive officer has not drawn a salary in the three year period ending July 31, 1997.</P>

<P>No officer or director earned in excess of $100,000 in the three year period ending July 31, 1997.</P>

<P>The aggregate amount of other compensation paid to each officer and director during the last fiscal
year did not exceed the lesser of $25,000 or 10% of cash compensation.  There are no plans in effect or
proposed under which the issuer paid or will pay cash, non-cash, or other compensation to any person,
including the above named individuals and group specified in this Item.  Notwithstanding the foregoing,
directors accrue $300.00 of compensation for their services in attending each directors' meeting.</

<P> </P>
<B><P>Item 11. 	Security Ownership of Certain Beneficial Owners and Management</B>.</P>

<P>A change in control of the Registrant was approved on May 14, 1984 when Stafford Industries,
Inc., of Rochdale, Massachusetts ("Stafford") acquired a majority of shares of common stock of the
Company.  As of July 31, 1997, Stafford owned 22,792,500 shares of common stock of the Company and
12,000 shares of preferred stock of the Company.  The identity of the officers and directors of Stafford is as
follows:</P>

<P>	Raymond E. Shea, Sr., President and Director,</P>
<P>	342 Silver Lane</P>
<P>	Royal Palms, Boca Raton, FL 33432;</P>

<P>	Raymond E. Shea, Jr., Treasurer and Director,</P>
<P>	175 Southbridge Road</P>
<P>	North Oxford, MA 01537;</P>

<P>	John W. Spillane, Clerk and Director</P>
<P>	11 Dennison Road</P>
<P>	Worcester, MA 01609</P>

<P>Raymond E. Shea, Sr., President and Chairman of the Board of Stafford, is the controlling
stockholder of Stafford.  Mr. Shea, Sr. owns 5,157 shares of common stock of Stafford, which is 31.25% of
the number of shares of Stafford issued and outstanding.  Mr. Shea, Sr. owned the same number of shares
of Stafford common stock at the close of the fiscal year ending July 31, 1997.</P>

<P>The authorized capital stock of the Company consists of 40,000,000 shares of common stock, par
value $0.01 per share, and 25,000 shares of preferred stock, $100 per share.  As of July 31, 1997, Stafford
owned 57% of the common stock of the Company and all of the preferred stock issued by the Company.</P>

<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P>The following table shows the amount of common stock of the Company owned of record and
beneficially as of July 31, 1997 by each Director and all Directors and Officers as a group, consisting
of five persons:</P>

<P> </P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=590>
<TR><TD WIDTH="25%" VALIGN="TOP" HEIGHT=37>
<U><FONT SIZE=2><P> </P>
<P>Title of Class</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 HEIGHT=37>
<U><FONT SIZE=2><P>Name and Address of</P>
<P>Beneficial Owner</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 HEIGHT=37>
<U><FONT SIZE=2><P>Amount and Nature</P>
<P>Of Beneficial Owner</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 HEIGHT=37>
<U><FONT SIZE=2>
<P>Percent of Class</U></FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>Common Stock</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Raymond E. Shea, Sr.</P>
<P>342 Silver Lane</P>
<P>Boca Raton, FL 33432</P>
</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>7,251,579</P>
<P>Shares (1)</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>18.15%</FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>Common Stock</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Robert Riesner</P>
<P>51 S. Keswick Ave</P>
<P>Glenside, PA 19038</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>414,409</P>
<P>Shares (2)</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>1.04%</FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>Common Stock</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>John W. Spillane</P>
<P>11 Dennison Road</P>
<P>Worcester, MA 01609</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>317,204</P>
<P>Shares (3)</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>0.79%</FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Common Stock</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Raymond E. Shea, Jr.</P>
<P>175 Southbridge Road</P>
<P>No. Oxford, MA 01537</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>2,520,988</P>
<P>Shares (4)</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>6.31%</FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Common Stock</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>S. John Loscocco</P>
<P>Bayview Ave.</P>
<P>Portsmouth, RI 02871</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>165,763</P>
<P>Shares (5)</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>0.41%</FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
</TABLE>

<FONT SIZE=2>
<P>(<I>1)  Mr. Shea, Sr. owns 31.25% of all of the shares of common stock of Stafford, which holds 22,792,500
shares of common stock of ROVAC.</P>
<P>(2)  Mr. Riesner owns 1.81% of all of the shares of common stock of Stafford and thus has a beneficial
interest in 22,792,500 shares of common stock of the Company held by Stafford.</P>
<P>(3)  Mr. Spillane owns 0.91% of the issued and outstanding shares of common stock of Stafford which holds
22,792,500 shares of common stock of ROVAC.</P>
<P>(4)  Mr. Shea, Jr. owns 11.06% of all of the shares of common stock of Stafford, which holds 22,792,500
shares of common stock of the Company.</P>
<P>(5)  Mr. Loscocco has previously disclaimed ownership in 120 shares of common stock of Stafford which
were issued to Mr. Loscocco and subsequently transferred to Acquivest Holding II, Ltd., with which Mr.
Loscocco is affiliated.  The 120 shares of common stock of Stafford represents 0.72% of the issued and
outstanding shares of Common Stock of Stafford and represents 165,763 shares of Common Stock of the
Company held by Stafford</I>.</P>

<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<B><P>Item 12.  Certain Relationships and Related Transactions</P>
</B>
<P>	There were no transactions in excess of $120,000 with related parties.</P>

<B><P>Item 13.  Exhibits and Reports on Form 8-K</P>

<P>	(a)  Exhibits</P>

</B><P>		None.</P>
<B>
<P>	(b)  Reports on Form 8-KSB</P>

</B><P>		None.</P>
<B>
<P>	(c)  Exhibits</P>
<DIR>
<DIR>

</B><P>1.  Contracts, Leases and Agreements.</P></DIR>
</DIR>

<P>		         None.</P>

<P>		2.  Subsidiaries</P>
<P>		         None.</P>

<P>	</P>

<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P ALIGN="CENTER">THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY OMITTED.</P>

<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
</FONT><B><FONT FACE="Arial" SIZE=4><P ALIGN="CENTER">SIGNATURES</P>
</B></FONT><FONT SIZE=2>
<P>	In accordance with Section 13 or 15 (d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned.</P>

<P>(Registrant)					THE ROVAC CORPORATION</P>

<P> </P>
<P>By (Signature and Title)				Raymond E. Shea, Sr.</P>
<P>						Raymond E. Shea, Sr., President</P>

<P> </P>
<P>Date February 29, 2000</P>

<P> </P>
<P>	In accordance with the Exchange Act, this report has been signed below by the following persons
on behalf of the registrant and in the capacities and on the dates indicates.</P>

<P> </P>
<P> </P></FONT>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=590>
<TR><TD WIDTH="33%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">Signature</U></FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">Title</U></FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">Date</P>
<P ALIGN="CENTER"></U></FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2><P> </P>
<P>__________________________</P>
<P>(Raymond E. Shea, Sr.)</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2><P>Chief Executive Officer and Director</P>
</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2><P> </P>
<P>____________________</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2><P> </P>
<U><P>S. John Loscocco</P>
</U><P>(S. John Loscocco)</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2>
<P> </P>
<P>Director</P>
</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2><P> </P>
<P>____________________</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2>
<U><P>Robert Riesner</P>
</U><P>(Robert Riesner)</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2>
<P> </P>
<P>Secretary and Director</P>
</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2><P> </P>
<P>____________________</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2>
<U><P>John W. Spillane</P>
</U><P>(John W. Spillane)</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2>
<P> </P>
<P>Director</P>
</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2><P> </P>
<P>____________________</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2>
<U><P>Raymond E. Shea, Jr.</P>
</U><P>(Raymond E. Shea, Jr.)</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2>
<P> </P>
<P>Treasurer and Director</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=2>
<P>____________________</FONT></TD>
</TR>
</TABLE>

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