UNITED STATES SECURITIES AND EXCHANGE COMMISSIONS      
                         WASHINGTON D.C. 20549 
                               FORM 10-QSB 
 
 
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  
    EXCHANGE ACT OF 1934. 
 
            For the quarterly period ended:  JUNE 30, 1997 
 
                   Commission File Number:  2-92949-S 
 
 
 
                   ELECTRONIC SYSTEMS TECHNOLOGY, INC. 
          (Exact name of registrant as specified in its charter) 

                 Washington                      91-1238077 
       (State of incorporation)     (I.R.S. Employer Identification No.) 
     
          415 N. Quay St., #4  Kennewick WA         99336
       (Address of principal executive offices)   (ZIP Code)   
                                                                     
    Registrant's telephone number, including area code: (509) 735-9092 
 
 
 
  Check whether the issuer (1) has filed all reports required to be filed 
  by Section 13 or 15(d) of the Exchange Act during the past 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  [ X ]     No [    ] 
 
	 
  The number of shares outstanding of common stock as of June 30, 1997 was 
  4,953,667. 
 





















<PAGE>
                     PART I - FINANCIAL INFORMATION 
 
Item 1.  FINANCIAL STATEMENTS. 
<TABLE>
<CAPTION>
                    ELECTRONIC SYSTEMS TECHNOLOGY, INC. 
                        (as prepared by Management) 
                                (Unaudited) 
 
SELECTED FINANCIAL DATA 
Six months ended	                       June 30,	            June 30, 
                                          1997	                1996 
                                       ==========	          ========== 
  <S>                                 <C>                  <C>
  Sales                              	$   546,894         	$   645,760 
  Other revenue	                           53,928             	156,495
  Gross profit	                           307,390             	390,948 
 
  Net income before taxes                 	34,389             	180,848 
             after taxes                  	22,696             	118,162
 
  Earnings per share before taxes 
             Primary                 	$     0.006         	$      0.03 
             Fully diluted                 	0.006                	0.03 
 
  Earnings per share after taxes 
             Primary                 	$     0.004                	0.02 
             Fully diluted                 	0.004                	0.02 
  Weighted average shares outstanding 
             Primary                   	5,469,897           	5,463,948 
             Fully diluted             	5,469,897           	5,463,948 
 
  Total assets                       	$ 2,095,827         	$ 2,052,710 
 
  Long-term debt and capital
       lease obligations             	$         0         	$         0 
 
  Shareholders' equity	               $ 1,985,092	         $ 1,985,521 
 
  Shareholders' equity per share     	$      0.40         	$      0.39 
 
  Working Capital                    	$ 1,836,862         	$ 1,824,258 
 
  Current ratio                           	17 : 1              	28 : 1 
 
  Equity to total assets                     	95%                 	97%
</TABLE>











<PAGE>
<TABLE>
<CAPTION>
                       ELECTRONIC SYSTEMS TECHNOLOGY, INC. 

                             CONDENSED BALANCE SHEET 
                           (as prepared by Management) 
                                    (Unaudited) 

                                              June 30,           	December 31, 
                                                1997                  1996 
                                             ===========          ===========
  <S>                                       <C>                 <C>
  CURRENT ASSETS 
  Cash and cash equivalents                	$  1,378,899       	$  1,413,182
  Accounts receivable, net of allowance for
      uncollectibles of $1,284                  	144,781             	38,311 
  Inventory                                     	394,670            	401,305 
  Accrued Interest                                	6,545              	2,707
  Prepaid Expenses                                	7,629             	10,031 
  Deferred tax asset                                	411                	411 
  Prepaid federal Income Taxes                   	14,662             	26,355 
                                            	___________           ____	_____
  Total Current Assets                     	$  1,947,597        	$ 1,892,302 

  PROPERTY & EQUIPMENT, net of depreciation 
     of $201,267 at June 30, 1997
     and $185,384 at Dec. 31, 1996              	138,932            	141,210
  OTHER ASSETS                          	          9,298	              9,197
                                             -----------           ----------
  TOTAL ASSETS                             	$  2,095,827        	$ 2,042,709 

  LIABILITIES AND STOCKHOLDERS' EQUITY 

  CURRENT LIABILITIES 
  Accounts payable                         	$     36,535	        $    15,035 
  Accrued Liabilities                            	18,514             	15,740 
  Refundable Customer Deposits                    	6,149                  	0	
  Cash Distributions Payable                     	49,537	                  0
                                             -----------           ----------
  Total Current Liabilities               	 $    110,735         $    30,775 

  STOCKHOLDERS' EQUITY 
  Common stock, $.001 par value	 	           
     50,000,000 shares authorized, 
     shares issued and outstanding: 
     4,953,667-Dec. 31, 1996 and
     June 30, 1997                         	$      4,954         $      4954 
  Additional Paid-in Capital                    	894,129            	894,129
  Retained earnings	                           1,086,009	          1,112,851 
                                             -----------           ----------
                                           	$  1,985,092	        $ 2,011,934 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 	$  2,095,827        	$ 2,042,709 
</TABLE>
 (See "Notes to Financial Statements") 




<PAGE>
<TABLE>
<CAPTION>
                         ELECTRONIC SYSTEMS TECHNOLOGY, INC. 

                          CONDENSED STATEMENT OF OPERATIONS 
                             (as prepared by Management) 
                                      (Unaudited) 

                                       Three Months Ended            Six Months Ended 
                                     June 30,       June 30,       June 30,     June 30, 
                                       1997           1996           1997         1996
                                    ==========      =========      =========    =========
  <S>                              <C>            <C>            <C>          <C>
  SALES                           	$   230,866   	$   293,704   	$   546,894	 $   645,760 

  COST OF SALES 
  Beginning Inventory             	$   396,382   	$   279,740   	$   401,305 	$   297,037 
  Purchases & allocated costs	         116,029       	192,204	       232,869     	299,205 
                                    ----------      ---------      ---------    ---------                                    
                                  	$   512,411   	$   471,944   	$   634,174	 $   596,242 
  Ending Inventory	                    394,670       	341,430	       394,670     	341,430 
                                    ----------      ---------      ---------    ---------
  Total Cost of Sales             	$   117,741   	$   130,514	   $   239,504	 $   254,812 
                                    ----------      ---------      ---------    ---------
  Gross Profit                    	$   113,125   	$   163,190   	$   307,390	 $   390,948 

  OPERATING EXPENSES 
  Finance/Administration          	$    35,223   	$    39,185   	$   103,647	 $   122,813 
  Research & Development               	29,550        	31,487        	69,607      	62,133 
  Marketing                            	41,277        	56,963        	95,912      	97,349 
  Customer Service	                     20,259        	15,889	        36,968	      24,399 
                                    ----------      ---------      ---------    ---------
  Total Operating Expense         	$   126,309   	$   143,524   	$   306,134	 $   306,694 
                                    ----------      ---------      ---------    ---------
  OPERATING INCOME                	$(   13,184)  	$    19,666   	$     1,256 	$    84,254 
                                    ----------      ---------      ---------    ---------
  Other Income (Expenses) 
  Interest Income                 	$    15,748   	$    15,588   	$    30,334	 $    32,142
  Loss-Marketable Securities	                0             	0	             0	    (  3,522)
  Recovery from Marketable 
    Securities Litigation	                   0             	0             	0       	3,700 
  Uncollectibles Accounts 
    Recovered	                               0        	57,204             	0      	57,204
  Engineering Services                 	11,987        	23,722        	23,583      	63,450 
  Engineering Support	                 ( 9,997)	     ( 20,951)	     ( 20,784)	   ( 56,380) 
                                    ----------      ---------      ---------    ---------
  Net Other Income                	$    17,738    $    75,563   	$    33,133	 $    96,594 
                                    ----------      ---------      ---------    ---------
  NET INCOME BEFORE TAX           	$     4,554   	$    95,229   	$    34,389 	$   180,848  
  Provision for income tax	              1,549        	32,378	        11,693      	62,686 
                                    ----------      ---------      ---------    ---------
  Net Income                      	$     3,004   	$    62,851   	$    22,696  $   118,162 
                                    ==========      =========      =========    =========
Earnings per Share 
          Primary                 	$    0.0005   	$      0.01   	$     0.004 	$      0.02 
          Fully Diluted                	0.0005          	0.01         	0.004        	0.02 
</TABLE>
(See "Notes to Financial Statements") 
  
<PAGE>
<TABLE>
<CAPTION>
                         ELECTRONIC SYSTEMS TECHNOLOGY, INC. 
                                                   
                               STATEMENT OF CASH FLOWS 
                             (as prepared by Management) 
                                     (Unaudited) 

  SIX MONTHS ENDED                                     	June 30,1997   	June 30, 1996
                                                        ============    ============	
  <S>                                                   <C>             <C>
  CASH FLOWS PROVIDED (USED) IN OPERATING ACTIVITIES: 
  Net income                                           	$   22,696     	$   118,162

  Noncash expenses included in income: 
     Depreciation                                          	15,883          	14,556
     Amortization                                           	1,289             	918
     Realized Loss on Marketable Securities                     	0           	3,522
 
  DECREASE (INCREASE) IN CURRENT ASSETS: 
     Accounts receivable, net                           	( 106,470)         	36,525
     Inventory	                                              6,635        	( 44,393)
     Prepaid expenses                                       	2,402        	(  3,895)
     Accrued interest                                   	(   3,838)          	1,692
     Prepaid income taxes                                  	11,693        	( 13,514)
      
  Increase (Decrease) in Current Liabilities: 
     Accounts payable, accrued expenses 
          and other current liabilities	                    30,423        	(  7,738)
     Accrued federal income taxes	                               0	        ( 58,665)
                                                         ---------        ---------
                                                      	$ (  19,287)    	$    47,170 
                                                         ---------        ---------
  CASH FLOWS PROVIDED (USED) IN INVESTING ACTIVITIES: 
     Additions to property and equipment        	      $ (  13,606)    	$  ( 23,380)
     Capitalized Software                               	(     790)               0
     Deposits                                           	(     600)               0
     Certificate of Deposit classified as   
          cash equivalent	                                       0         	102,000
     Proceeds, sale of Marketable Securities	                    0          117,595
                                                         ---------        ---------
                                                      	$  ( 14,996)     	$  196,215  
                                                         ---------        ---------
  CASH FLOWS PROVIDED (USED) IN FINANCING ACTIVITIES: 
     Proceeds from Note Receivable                              	0           	3,449
     Repurchase of Common Stock	                                 0        	(  9,821)
                                                         ---------        ---------
                                                      	$         0      	$ (  6,372) 
                                                         ---------        ---------

  Net increase in cash and cash equivalents           	$ (  34,283)	     $  237,013
 
  Cash and cash equivalents at beginning of period      	1,413,182       	1,162,726
                                                         ---------        --------- 
  Cash and Cash equivalents at end of period           	$1,378,899      	$1,399,739 
                                                         =========        =========


</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                       ELECTRONIC SYSTEMS TECHNOLOGY, INC. 
                                                   
                       STATEMENT OF CASH FLOWS (continued) 
                           (as prepared by Management) 
                                    (Unaudited) 

  SIX MONTHS ENDED                         	June 30, 1997     	June 30, 1996
                                            =============	     =============	
  <S>                                       <C>                <C>
  SUPPLEMENTAL DISCLOSURES OF CASH FLOWS 
  INFORMATION: 
 
  Cash paid year to date: 
     Interest	                              $           0     	$           0
     Federal income taxes                  	$           0     	$     134,865
                                             ============       ============
  Cash allocated for Cash Distribution     	$      49,537     	$           0
                                             ============       ============
  Cash and Cash Equivalents: 
     Cash                                  	$       5,550     	$      11,115
     Money market accounts                       	441,512           	470,774
     Certificates of Deposit                     	331,837           	517,850
     Commercial Paper	                            600,000           	400,000
                                             ------------       ------------
                                           	$   1,378,899	     $   1,399,739 
                                             ============       ============
</TABLE>
(See "Notes to Financial Statements") 





























<PAGE>
                        ELECTRONIC SYSTEMS TECHNOLOGY, INC. 
                                                   
                           NOTES TO FINANCIAL STATEMENTS
                            (as prepared by Management)
                                     (Unaudited)
 
NOTE 1 - BASIS OF PRESENTATION 
 
  The condensed financial statements of Electronic Systems Technology, Inc. 
  (the "Company"), presented in this Form 10Q are unaudited and reflect, in 
  the opinion of Management, a fair presentation of operations for the three 
  and six month periods ending June 30, 1997 and June 30, 1996. Certain 
  information and footnote disclosure normally included in financial 
  statements prepared in accordance with generally accepted accounting 
  principals have been condensed or omitted pursuant to the applicable rules 
  and regulations of the Securities and Exchange Commission. In preparation 
  of the condensed financial statements, certain amounts and balances have 
  been restated from previously filed reports to conform with the condensed 
  format of the 1997 presentation.   These condensed financial statements 
  should be read in conjunction with the audited financial statements and 
  notes thereto included in the Company's Form 10K for the year ended 
  December 31, 1996 as filed with Securities and Exchange Commission.

  The results of operation for the three and six month periods ended June 30, 
  1997 and June 30, 1996, are not necessarily indicative of the results 
  expected for the full fiscal year or for any other fiscal period.

NOTE 2 - INVENTORIES

  Inventories are stated at lower of cost or market with cost determined 
  using the FIFO (first in, first out) method.  Inventories consist of the 
  following:
 
                                June 30,         December 31, 
                                  1997               1996 
                              	=========        ============
         Parts              	$   239,789        	$   260,397
         Work in progress        	37,564             	68,555
         Finished goods	         117,317	             72,353
                               ---------        ------------
                            	$   394,670        	$   401,305 
                               =========        ============

NOTE 3 - EARNINGS PER COMMON SHARE

  Primary earnings per common share are based on the weighted average 
  number of shares outstanding during the period after consideration of the 
  dilutive effect on stock options and restricted stock awards.  The 
  primary weighted average number of common shares outstanding was 
  5,469,897 and  5,463,948  for the quarters ended June 30, 1997 and June 
  30, 1996, respectively.  Also, fully diluted earnings per common share 
  assume conversion of derivative securities when the result is dilutive. 
 






<PAGE>
NOTE 4 - STOCK OPTIONS

  As of June 30, 1997, the Company had outstanding stock options which have 
  been granted periodically to individual employees and directors with no 
  less than three years of continuous tenure with Company.  On February 7, 
  1997, additional stock options to purchase shares of the Company's common 
  stock were granted to individual employees and directors with no less than 
  three years continuous tenure.  The options granted on February 7, 1997 
  totaled 215,000 shares under option and have an exercise price of $0.28 per 
  share. The options granted on February 7, 1997 may be exercised any time 
  during the period from February 7, 1997 through February 7, 2000.  The 
  Company's Form 8-K dated February 7, 1997, as filed with the Securities and 
  Exchange Commission is included herein by reference.  All outstanding stock 
  options must be exercised within 90 days after termination of employment.  
  During the 12 month period from June 30, 1996 to June 30, 1997, 150,000 
  shares under option expired, no shares under option were exercised, and  
  215,000 shares under option were granted.  At June 30, 1997 there were 
  590,000 shares under option reserved for future exercises.

NOTE 5 - RELATED PARTY TRANSACTIONS 
 
  For the six month period ended June 30, 1997, services in the amount of 
  $37,177, were contracted with Manufacturing Services, Inc., of which the 
  owner/president is a member of the Board of Directors of the Company. 
 
NOTE 6 - CASH DISTRIBUTION

  On June 5, 1997, the Company declared a one-time, non-cumulative, cash 
  distribution to shareholders of record as of June 20, 1997, of $0.01 per 
  share of common stock, with a payable date of July 11, 1997.  The payment 
  of the cash distribution was completed by July 11, 1997.  For the quarter 
  ended June 30, 1997, the Company recognized a current liability in the 
  amount of $49,537, reflecting the total dollar value of the cash 
  distribution.  The Company's Form 8-K dated June 5, 1997, as filed with 
  the Securities and Exchange Commission is included herein by reference.
























<PAGE>
                                   ITEM II
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
                   CONDITION AND RESULTS OF OPERATIONS 
 
  MANAGEMENT'S DISCUSSION AND ANALYSIS IS INTENDED TO BE READ IN CONJUNCTION 
  WITH THE COMPANY'S UNAUDITED FINANCIAL STATEMENTS AND THE INTEGRAL NOTES 
  THERTO FOR THE QUARTER ENDING JUNE 30, 1997.  THE FOLLOWING STATEMENTS MAY 
  BE FORWARD LOOKING IN NATURE AND ACTUAL RESULTS MAY DIFFER MATERIALLY.

  A.  Results of Operations 
 
  REVENUES:

  Total revenues from the sale of the Company's ESTeem(tm) wireless modem 
  systems, accessories, and services decreased to $242,853 for the second 
  quarter of 1997 as compared to $317,426 in the second quarter of 1996, 
  reflecting a decrease of 23%.  Gross revenues decreased to $258,601 for 
  the quarter ending June 30, 1997, from $390,218 for the same quarter of 
  1996.  This decrease is attributable mainly to a reduction in sales to 
  the U.S. Government, which experienced reductions in the second quarter 
  of 1997 when compared with the same quarter of 1996, as well as a 
  reduction in other revenue sources from recovery of uncollectible 
  accounts experienced in the second quarter of 1996. 

  The Company's revenues fall into three major customer categories, Domestic, 
  Export and U.S. Government Sales.  Domestic commercial sales increased to 
  $202,774 in the second quarter of 1997 as compared to $142,023 for the 
  second quarter of 1996.  Foreign export sales for the second quarter of 
  1997 decreased to $30,419 as compared to the $43,091 in the same quarter of 
  1996. U.S. Government sales decreased to $9,660 in the second quarter of 
  1997, a decrease from second quarter 1996 figure of $132,318, which 
  Management believes is a result of budget reductions and project delays 
  in the United States Government defense infrastructure.  The decrease in 
  engineering services from $23,722 as of June 30, 1996,  to $11,987 as of 
  June 30, 1997, is a result of a decrease in the size and scope of 
  engineering services requested when compared with the second quarter of 
  1996.  Sales to Columbia Electric Supply, a subsidiary of Consolidated  
  Electrical Distributors, resulted in 29% of the Company's product and 
  service revenues. No other sales to a single customer comprised 10% or 
  more of the Company's product sales for the quarter ending June 30, 1997. 

  A percentage breakdown of EST's major customer categories of Domestic, 
  Export and U.S. Government Sales, for the second quarter of 1997 and 1996 
  are as follows: 
	
                               For the second quarter of 
                                   1997         1996 
                                  	====        	====
          Domestic Sales           	83%         	45%
          Export Sales             	13%	         13% 
          U.S. Government Sales     	4%	         42%








<PAGE>
  A percentage breakdown of EST's product sales categories for the second 
  quarter of 1997 and 1996 are as follows: 

                                        For the second quarter of   
                                          1997            1996  
                                         	====           	====
            ESTeem Model 192              	37%              	-
            ESTeem Model 95               	25%            	49%
            ESTeem Model 96               	16%            	12%
            ESTeem Model 84SP/85SP	         1%              	-
            ESTeem Model 85      	less than 1%             	9%
            PEM and PEM-CPU                 	-   	less than 1%
            ESTeem Accessories            	15%            	20%
            Factory Services               	1%             	2%
            Site Support                   	5%             	8%

  Sales include foreign export sales as follows:

                                            Six Months Ended                  
                                         June 30,        June 30,
                                           1997            1996
                                        	========       	========
                  Export sales       	$    131,049   	$     94,859
                  Percent of sales            	23%            	14%

  The geographic distribution of foreign sales for the second quarter of 1997 
  and 1996 is as follows:

                                          Percent of Foreign Sales
                                         June 30,         June 30,
                                           1997             1996
  	                                      ========         =========
                    COUNTRY  
            -----------------------        
                    Ecuador                	35%               	6%  
                    Chile                  	25%               	0% 
                    Canada                 	22%               	6%
                    Israel                 	18%               	5%
                    Slovenia/Croatia        	0%              	32%
                    Mexico                  	0%              	26%
                    Brazil        	less than 1%              	25%
                    Venezuela               	0%     	less than 1%

  The bulk of the Company's domestic sales for the second quarter of 1997 
  continue to be used in Supervisory Control and Data Acquisition (SCADA) 
  applications. It is Management's opinion that these applications will 
  continue to provide the largest portion of the Company's domestic sales 
  revenues in the foreseeable future. Products purchased by foreign 
  customers in the second quarter of 1997 were also used primarily in SCADA 
  applications.  Foreign sales were also applied in Industrial Control 
  applications, but the shift continues in foreign markets toward SCADA 
  applications, closely mirroring the Company's domestic sales, a trend 
  which Management foresees continuing for the foreseeable future. 

  The Company's subcontract, dated December 23, 1993, with UNISYS is an 
  indefinite delivery, indefinite quantity, fixed price contract through 
  September 1997.  The Company did not provide material or derive any sales 
  revenues from this contract in the second quarter of 1997.  Based on the 
  terms of the UNISYS contract, and contracts of this type in general, 
<PAGE>
  Management does not base liquidity, profitability, or material purchase 
  projections on anticipated sales.  The Company's economic position allows 
  it to respond to UNISYS orders on an as needed basis.  It is Management's 
  opinion that due to the nature of this contract, sales or timing of 
  orders, if any, pursuant to the contract cannot be predicted.

  The Company's AIT subcontract, dated July 26, 1994, with INTERMEC is a 
  five year indefinite delivery, indefinite quantity, fixed price contract 
  through September 1999. The Company did not provide material or derive 
  any sales revenues from this contract in the first quarter of 1997.  
  Based on the terms of the AIT contract, and contracts of this type in 
  general, Management does not base liquidity, profitability, or material 
  purchase projections on anticipated sales.  The Company's economic 
  position allows it to respond to AIT orders on an as needed basis. It is 
  Management's opinion that due to the nature of this contract, sales or 
  timing of orders, if any, pursuant to the contract cannot be predicted.

  Based on previous years activity, the majority of all Federal government 
  purchases are under the Company's GSA contract.  Projections regarding 
  liquidity, profitability, and material purchases are based on past history 
  of annual purchases. Historically Federal sales average approximately 18% 
  of annual sales, but this level cannot be guaranteed. Due to the uncertain 
  nature of Federal purchasing, procurement of material and production 
  planning is adjusted quarterly based on demand. It is Management's opinion 
  that the majority of Federal purchases in 1997 will be under this contract.

  The Company's revenues have historically fluctuated from quarter to 
  quarter due to timing factors such as customer order placement and 
  product shipments to customers, as well as customer buying trends, and 
  changes in the general economic environment. The procurement process 
  regarding plant and project automation, or project development, which 
  usually surrounds the decision to purchase ESTeem products can be 
  lengthy. This procurement process may involve bid activities unrelated to 
  the ESTeem products, such as additional systems and subcontract work, as 
  well as capital budget considerations on the part of the customer.  
  Because of the complexity of this procurement process, forecasts in 
  regard to the Company's revenues become difficult to predict. 
 
  BACKLOG:

  The Corporation had backlog orders of $56,755 as of June 30, 1997, the 
  majority of which shipped within the first two weeks of the third quarter 
  of 1997.  Customers generally place orders on an "as needed basis".  
  Shipment is generally made within 5 working days after receiving the 
  order.
 
  COST OF SALES:

  Cost of sales percentages for the second quarters of 1997 and 1996 were 
  51% and 44% of gross sales respectively.  Cost of Sales variations are  
  attributed to the type of product sold and the size of the order.  Larger 
  orders grant lower sales prices because of volume discounting, reducing 
  the margin of profit. During the second quarter of 1997, a different mix 
  of products sold, as well as the sale of new products which have not 
  achieved economies of scale, resulted in an increased cost of sales 
  percentage, when compared with the second quarter of 1996.



<PAGE>
  OPERATING EXPENSES:

  Operating expenses for the second quarter of 1997 were $17,215 lower than 
  the second quarter of 1996.  The following is a delineation of operating 
  expenses: 

       For the quarter ended:      June 30,       June 30,     Increase 
                                     1997           1996      (Decrease) 
                                  	=======       	=======      	=======
      Finance/Administration    	$  35,223     	$  39,185  $  (   3,962) 
      Research/Development         	29,550        	31,487    	(   1,937)
      Marketing                    	41,277        	56,963     (  15,686)
      Customer Service	             20,259	        15,889	        4,370
                                   -------        -------       -------    
      Total Operating Expenses  	$ 126,309     	$ 143,524 	$  (  17,215)
                                   =======        =======       =======

  FINANCE AND ADMINISTRATION:

  During the second quarter of 1997 Finance and Administration expenses 
  decreased $3,962 over the second quarter of 1996.  This decrease is due 
  primarily in reductions of professional services required by the Company 
  and reduced postage, shipping and printing costs when compared with the  
  second quarter of 1996.  
 
  RESEARCH AND DEVELOPMENT:

  During the second quarter of 1997, Research and Development expenses 
  decreased $1,937 over the same period in 1996.  This decrease is due to a 
  reduction in subcontracted Research and Development expertise associated 
  with the development of the Company's ESTeem 192 product line as compared 
  with the same period in 1996. 

  MARKETING:

  During the second quarter of 1997, marketing expenses decreased $15,686 
  over the same period in 1996.  This decrease is attributable to a 
  combination of decreased sales commissions from lower U.S. Government 
  sales, and timing differences in attendance of tradeshows and related 
  travel expenses for the second quarter of 1997 when compared with the 
  same quarter of 1996. 
 
  CUSTOMER SERVICE:

  Customer service expenses increased by $4,370 in the second quarter of 
  1997 as compared with the same period of 1996.  The increase is due to 
  additional resources committed to the establishment of a local test site 
  for the application of the Company's products in Mobile Data Terminal 
  applications for the law enforcement and public safety marketplaces.  
  Management expects the partnership with a local law enforcement agency 
  will allow the Company to gain expertise in the Mobile Date Terminal 
  market to exploit this market opportunity.

  INTEREST INCOME:

  The Corporation earned $15,748 in interest income during the quarter 
  ended June 30, 1997.  Sources of this income were savings and money 
  market accounts, and short term investments. 
<PAGE> 
  ENGINEERING SUPPORT:

  Engineering support costs decreased to $9,997 for the quarter ended June 
  30, 1997, as compared to $20,951 for the same period of 1996.  This 
  decrease in engineering support costs for the second quarter of 1997 is a 
  result of an overall decrease in engineering services requested by 
  customers when compared with the second quarter of 1996.  
 
  NET INCOME: 

  The Corporation had a net income of $3,004 for the second quarter of 
  1997, compared to a $62,851 net income for the same quarter of 1996.  The 
  net income decrease is attributed to decreased revenues from product 
  sales and engineering services, increased cost of goods sold percentage, 
  and a reduction in other revenue sources from recovery of uncollectible 
  accounts experienced in the second quarter of 1996. 
 
  B.  Financial Condition as of June 30, 1997. 
 
  The Corporation's current asset to current liabilities ratio at June 30, 
  1997 was 17:1 compared to 61.5:1 at December 31, 1996. The decrease in 
  current ratio is primarily attributable to increases in trade accounts 
  payable, and liability incurred by the approval of cash distributions in 
  June, when compared with current liability levels at year-end 1996.

  For the quarter ending June 30, 1997, the Company had cash and cash 
  equivalent short-term investment holdings of $1,378,899 as compared to cash 
  and cash equivalent holdings of $1,413,182 at December 31, 1996.   This 
  decrease is attributable primarily to low accounts receivable levels at 
  year end 1996, combined with operating requirements and lower net income 
  performance by the Company in the second quarter of 1997.   

  Accounts receivable increased to $144,781 as of June 30, 1997, from 
  December 31, 1996 levels of $38,311, due to increased sales revenues 
  during the second quarter, when compared with the unusually low accounts 
  receivable levels at year end 1996.  Management believes that all of the 
  Company's accounts receivable as of June 30, 1996 are collectible. 
	 
  Inventory decreased to $394,670 at June 30, 1997, from December 31, 1996 
  levels of $401,305.  It is Management's opinion that inventory levels may 
  increase in 1997 as components are procured for full scale production of 
  yet to mature product lines.  Prepaid expenses decreased from December 
  31, 1996 levels of $10,031 to $7,629 as of June 30, 1997, due to timing 
  differences in prepaid fees for tradeshows when compared with the second 
  quarter of 1996.

  The Company's fixed assets increased to $340,199 as of June 30, 1997, 
  from December 31, 1996 levels of $326,594, resulting from capital 
  expenditures of $13,606.  These expenditures consisted mainly of upgrade 
  and expansion of the Company's production support equipment.    
 








<PAGE>
  As of June 30, 1997, the Company's trade accounts payable balances were 
  $36,535 as compared with $15,035 at December 31, 1996, and reflects 
  amounts owed for purchases of inventory stocks and contracted services.  
  Refundable customer deposits in the amount of $6,149 were held by the 
  Company for prepayment by foreign customers for orders that were not 
  shipped until the beginning of the third quarter of 1997. As of June 30, 
  1997, the Company recognized a current liability in the amount of 
  $49,537, reflecting the total dollar value of a declared cash 
  distribution as of June 5, 1997, of $0.01 per share of common stock, with 
  a record date of June 20, 1997 and a payable date of July 11, 1997.    
 
  It is Management's opinion that the Company's cash and cash equivalent 
  reserves, and working capital at June 30, 1997 is sufficient to satisfy 
  requirements for operations, capital expenditures, and other expenditures  
  as may arise within 1997. 

  FORWARD LOOKING STATEMENTS:  THE ABOVE DISCUSSION MAY CONTAIN FORWARD 
  LOOKING STATEMENTS THAT INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES.  IN 
  ADDITION TO THE FACTORS DISCUSSED ABOVE, AMONG OTHER FACTORS THAT COULD 
  CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY ARE THE FOLLOWING: COMPETITIVE  
  FACTORS SUCH AS RIVAL WIRELESS ARCHITECTURES AND PRICE PRESSURES; 
  AVAILABILITY OF THIRD PARTY COMPONENT PRODUCTS AT REASONABLE PRICES; 
  INVENTORY RISKS DUE TO SHIFTS IN MARKET DEMAND AND/OR PRICE EROSION OF  
  PURCHASED COMPONENTS; CHANGE IN PRODUCT MIX, AND RISK FACTORS THAT ARE 
  LISTED IN THE COMPANY'S REPORTS AND REGISTRATION STATEMENTS FILED WITH THE 
  SECURITIES AND EXCHANGE COMMISSION.

































<PAGE>
                                    PART II
                               OTHER INFORMATION 
 
  Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a) Exhibits 
 
     Exhibit 27. Financial Data Schedule, June 30, 1997

     (b) Reports on Form 8-K 
 
	                
     Form 8-K dated May 15, 1997 is incorporated herein by reference.
     Form 8-K dated June 5, 1997 is incorporated herein by reference.  
     Form 8-K dated June 6, 1997 is incorporated herein by reference.

        
     Exhibit Index                          Reference Form 10-QSB 

     Exhibit Number	                   	Notes to Financial Statements 
 
     4.  Instruments defining the Rights of Security Holders including 
         indentures. 

           Form 8-K dated Feb 7, 1997 is incorporated herein by reference.  
	 
     11. Statement Re: computation of per share earnings		Note 3 to Financial
                                                               Statements 
                                                     





























<PAGE>
                                  SIGNATURES 
 
  In accordance with the requirements of the Exchange Act, the registrant 
  caused this report to be signed on its behalf by the undersigned, 
  thereunto duly authorized. 
 

                                   ELECTRONIC SYSTEMS TECHNOLOGY, INC. 
 

                                          /s/ T.L. KIRCHNER
  
                                        
       Date:     12 August 1997	   Name:  T.L. Kirchner 
                                   Title:  Director/President 
                                   (Principal Executive Officer) 
 

                                         /s/ ROBERT SOUTHWORTH


       Date:     12 August 1997	  	Name:  Robert Southworth 
                                   Title:  Director/Secretary/Treasurer 
                                   (Principal Financial Officer)