<HTML>
<HEAD>
<TITLE>UNITED STATES SECURITIES AND EXCHANGE COMMISSIONS</TITLE>
</HEAD>
<BODY>

<B><FONT FACE="Arial" SIZE=4><P ALIGN="CENTER"></P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER">UNITED STATES SECURITIES AND EXCHANGE COMMISSIONS</P>
<P ALIGN="CENTER">WASHINGTON D.C. 20549</P>
<P ALIGN="CENTER">FORM 10-QSB</P>
</B></FONT><FONT SIZE=3>
<P> </P><DIR>
<DIR>

<P ALIGN="CENTER">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES </P>
<P ALIGN="CENTER">EXCHANGE ACT OF 1934</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=336>
<TR><TD WIDTH="64%" VALIGN="TOP">
<P ALIGN="CENTER">For the quarterly period ended:</TD>
<TD WIDTH="36%" VALIGN="TOP">
<P ALIGN="CENTER">March 31 2000</TD>
</TR>
</TABLE>
</CENTER></P>

<U><FONT SIZE=3><P ALIGN="CENTER">               </U>             </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=288>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P ALIGN="CENTER">Commission File Number:</TD>
<TD WIDTH="33%" VALIGN="TOP">
<P ALIGN="CENTER">000-27793<U> </U></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=3><P ALIGN="CENTER"></P>
<P> </P>
<P> </P>
</FONT><B><FONT FACE="Arial"><P ALIGN="CENTER">ELECTRONIC SYSTEMS TECHNOLOGY,
INC.</P>
</B><P ALIGN="CENTER">(A Washington Corporation)</P>
<P ALIGN="CENTER"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=372>
<TR><TD WIDTH="69%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="CENTER">I.R.S. Employer Identification
no.</FONT></TD>
<TD WIDTH="31%" VALIGN="TOP">
<FONT FACE="Arial"><P ALIGN="CENTER">91-1238077</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT FACE="Arial"><P ALIGN="CENTER"></P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER">415 N. Quay St., #4</P>
<P ALIGN="CENTER">Kennewick  WA  99336</P>
<P ALIGN="CENTER">(509) 735-9092</P>
</FONT><FONT SIZE=3>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P> </P>
<P ALIGN="JUSTIFY">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 [    ].</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">	</P>
<P ALIGN="CENTER">The number of shares outstanding of common stock as of March
31, 2000 was 5,068,667. </P>

<P ALIGN="CENTER"> </P>
</FONT><B><FONT FACE="Arial"><P ALIGN="CENTER">PART I</P>
<P ALIGN="CENTER">FINANCIAL INFORMATION</P>
</B></FONT><FONT SIZE=3>
</FONT><B><FONT FACE="Arial"><P>Item 1.  Financial Statements.</P>
</B></FONT><FONT SIZE=3>
<P ALIGN="CENTER">ELECTRONIC SYSTEMS TECHNOLOGY, INC.</P>
<P ALIGN="CENTER">SELECTED FINANCIAL DATA</P>
<P ALIGN="CENTER">(as prepared by Management)</P>
<P ALIGN="CENTER">(Unaudited)</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=600>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Three Months Ended</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">Mar. 31, 2000</U></FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">Mar. 31, 1999</U></FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Sales</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$       228,413</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$       179,734</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Other Revenues</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$         60,706</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$         55,419</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Gross Profit</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$       104,620</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$         86,605</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Net Income (Loss) Before Taxes	</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$  (     45,996)</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$      (  68,212)</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Net Income (Loss) After Taxes</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$   (     30,357)</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$      (  45,020)</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Earnings (Loss) Per Share Before Taxes</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Basic</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$   (    0.01)</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$      (    0.014)</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Diluted</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$   (    0.01)</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$      (    0.014)</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Earnings (Loss) Per Share After Taxes</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Basic</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$  (      0.005)</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$      (     0.01)</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Diluted</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$  (      0.005)</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$      (     0.01)</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Weighted Average Shares Outstanding (Basic)</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Primary</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">      5,609,420</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">      5,584,694</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Diluted</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">      5,609,420</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">      5,584,694</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Total Assets</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$    2,443,133</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$    2,269,305</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Long-Term Debt and Capital Lease</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>   Obligations</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$                 0</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$                 0  </FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Shareholders' Equity</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$    2,253,845</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$    2,196,968</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Shareholders' Equity Per Share</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$             0.44</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$             0.44</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Working Capital</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$    2,108,736</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$    2,047,238</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Current Ratio</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">             12:1</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">               29:1     </FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP">
<FONT SIZE=3><P>Equity To Total Assets</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">             92 %</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">              97 %    </FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=3><P ALIGN="CENTER"></P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER">ELECTRONIC SYSTEMS TECHNOLOGY, INC.</P>
<P ALIGN="CENTER">BALANCE SHEET</P>
<P ALIGN="CENTER">(as prepared by Management)</P>
<P ALIGN="CENTER">(Unaudited)</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=654>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>
</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">Mar. 31, 2000</U>		</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">Dec. 31 ,1999</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>ASSETS</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>CURRENT ASSETS</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">		</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Cash and cash equivalents</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$     1,638,973</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$    1,624,728 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Accounts Receivable, net of allowance</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>   for uncollectibles</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">          151,865</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">         154,788 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Inventory</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">          470,842</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">         357,490 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Accrued Interest</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">             6,295</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">             5,415 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Prepaid Expenses</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">              9,365</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">             5,652</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Provision for Federal Income Taxes</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">            <U>20,684</U></FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">             5,045</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Total Current Assets</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$     2,298,024</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$    2,153,118</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>PROPERTY & EQUIPMENT net of</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>   Depreciation of $287,694 at</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>   Mar. 31, 2000 and $278,821</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>   At Dec. 31, 1999</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">          136,250</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">        145,123</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>		</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>OTHER ASSETS</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">            8,859</U></FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">             9,474</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>TOTAL ASSETS</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$     2,443,133</U></FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$    2,307,715</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>LIABILITIES & STOCKHOLDERS' EQUITY</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>CURRENT LIABILITIES</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">		</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Accounts Payable</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$          53,844</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$         36,607</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Refundable Deposits</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">111,219</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">--</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Deferred Tax Liability </FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">                    816</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">           816</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Accrued Liabilities</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">            23,409</U></FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">           25,540</U> </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Total Current Liabilities	</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">            189,288</U></FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">           62,963</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>STOCKHOLDERS' EQUITY</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Common Stock,  $.001 Par Value</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>50,000,000 Shares Authorized</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>5,068,667 and 4,953,667Shares Issued And Outstanding at March
31, 2000 and </P>
<P>December 31, 1999, respectively	</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$            5,069</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$           4,954  </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Additional Paid-in Capital</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">           933,464</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">         894,129  </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>Retained Earnings</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">        1,315,312</U></FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">       1,345,669</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>
</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$      2,253,845</U></FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$     2,244,752</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>TOTAL LIABILITIES AND STOCKHOLDERS'</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=3><P>   EQUITY</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$      2,443,133</U></FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$     2,307,715  </U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP"> </TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=3>
<P> </P>
<P> </P>
<P> </P>
<P ALIGN="CENTER">(See "Notes To Financial Statements")</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">ELECTRONIC SYSTEMS TECHNOLOGY, INC.</P>
<P ALIGN="CENTER">STATEMENT OF OPERATIONS</P>
<P ALIGN="CENTER">(as prepared by Management)</P>
<P ALIGN="CENTER">(Unaudited)</P>
</FONT>
<P ALIGN="LEFT"><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=630>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Three Months Ended</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">Mar. 31, 2000</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">Mar. 31, 1999</U></FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>SALES</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$        228,413</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$        179,734</U> </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>COST OF SALES</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Beginning Inventory</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">          357,490</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">          385,365  </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Purchases and Allocated Costs</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">          237,145</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">          150,776</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>
</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$        594,635  </FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$        536,141</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Ending Inventory</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">          470,842</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">          443,012</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Total Cost of Sales</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$        123,793</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$         93,129</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Gross Profit</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$        104,620</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$         86,605</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>OPERATING EXPENSES</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Finance/Administration</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$          47,485</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$          69,242 </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Research & Development</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">            49,912</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">            43,588  </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Marketing</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">            55,560</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">            43,936  </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Customer Service</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">            22,895</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">            18,120</U></FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Total Operating Expense</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$        175,852</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$        174,886</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>OPERATING INCOME (LOSS)</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$ (        71,232)</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$      (   88,282)</U> </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Other Income (expenses)</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Interest Income</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$          18,584</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$          14,977 </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Engineering Services</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">            42,122</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">            40,442  </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Engineering Support</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">           (35,468)</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">           (35,350)</U> </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Net Other Income (expense)</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$          25,238</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$           20,069</U> </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>NET INCOME (LOSS) BEFORE TAX</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$         ( 45,996)</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$         (  68,212) </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Provision For Income Tax</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">            15,639</U> </FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">              23,192</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>NET INCOME (LOSS)</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$       (  30,357)</U></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$        (  45,020)</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Basic Earnings  (Loss) Per Share</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>         Before Tax</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$         (    0.01)</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$       (     0.014) </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Basic Earnings  (Loss) Per Share </FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">       </FONT></TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>         After Tax</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$          ( 0.005)</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$        (      0.01) </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Diluted Earnings (Loss) Per Share</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP"> </TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>         Before Tax</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">              $          (   0.01)</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$        (     0.014) </FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Diluted Earnings (Loss) Per Share</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">    </FONT></TD>
<TD WIDTH="29%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>         After Tax</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$        (  0.005)</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$         (      0.01) </FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> (See "Notes To Financial Statements")</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">ELECTRONIC SYSTEMS TECHNOLOGY, INC.</P>
<P ALIGN="CENTER">STATEMENT OF CASH FLOWS</P>
<P ALIGN="CENTER">(as prepared by Management)</P>
<P ALIGN="CENTER">(Unaudited)</P>
</FONT>
<P ALIGN="RIGHT"><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=636>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Three Months Ended</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">Mar. 31, 2000</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">Mar. 31, 1999</U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP"> </TD>
<TD WIDTH="18%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P>CASH FLOWS PROVIDED (USED) IN OPERATING ACTIVITIES:</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP"> </TD>
<TD WIDTH="18%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Net Income (Loss)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$  (      30,357)</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$  (     45,020) </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Noncash items included in income:</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>      Depreciation</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">             8,873</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">            7,131  </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>      Amortization</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">                615</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">               585  </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>      Provision for Federal Income Taxes</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">  (        15,639)</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">    (     23,192)  </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP"> </TD>
<TD WIDTH="18%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P>DECREASE (INCREASE) IN CURRENT ASSETS:</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Accounts Receivable Net</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">             2,923</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">         255,315  </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Inventory</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">  (      113,352)</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">    (      57,647) </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Prepaid Expenses</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">  (          3,713)</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">    (           925) </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Accrued Interest</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">  (             880)</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">             2,873 </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP"> </TD>
<TD WIDTH="18%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P>INCREASE (DECREASE) IN CURRENT LIABILITIES:</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Accounts Payable and Accrued Expenses </FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   15,106</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(           293)</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P> Refundable Deposits</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">             111,219</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">      --</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Accrued Federal Income Taxes</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">	  --</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">     (       14,510)</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Deferred Income</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">                   --</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">     (      25,017)</U>	</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>
</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$ (        25,205) </U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$            99,300</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P>CASH FLOWS PROVIDED (USED) IN INVESTING ACTIVITIES:</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Additions To Property And Equipment</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$                  --</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ (           8,189) </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Capitalized Software</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">                    --</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">    (          1,821) </U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>
</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$                  --  </U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$ (         10,010)</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P>CASH FLOWS PROVIDED (USED) IN FINANCING ACTIVITIES:</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Common Stock Issued through exercised stock options</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$                115</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$                     --</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Additional Paid In Capital from exercised stock
options</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">            39,335</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">                       --</U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP"> </TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$           39,450</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$                     --</U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>NET INCREASE IN CASH AND</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>    CASH EQUIVALENTS</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$           14,245</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$           89,290 </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Cash And Cash Equivalents</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>    At Beginning Of Period</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">         1,638,973</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">        1,426,381</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Cash And Cash Equivalents At Ending of Period	</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$       1,624,728</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$      1,515,671</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP"> </TD>
<TD WIDTH="18%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P>SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Cash Paid Year To Date:</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Interest</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">                        0</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">                      0  </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Federal Income Taxes</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$                 0</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$            14,510 </U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP"> </TD>
<TD WIDTH="18%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Cash And Cash Equivalents:</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Cash</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$            6,656</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$            6,645  </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Money Market Accounts</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">          621,842</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">          588,927  </FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>Certificates Of Deposit</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">       1,010,475</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">          920,099 </U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT SIZE=3><P>	  	 </FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$      1,638,973</U>  </FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$     1,515,671</U></FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3>
<P ALIGN="CENTER"> (See "Notes To Financial Statements")</P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER">ELECTRONIC SYSTEMS TECHNOLOGY, INC.</P>
<P ALIGN="CENTER">NOTES TO FINANCIAL STATEMENTS</P>
<P ALIGN="CENTER">(as prepared by Management)</P>
<P ALIGN="CENTER">(Unaudited)</P>

</FONT><B><FONT FACE="Arial"><P>NOTE 1 - BASIS OF PRESENTATION </P>
</B></FONT><FONT SIZE=3>
<P ALIGN="JUSTIFY">The 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 month
periods ended March 31, 2000 and March 31, 1999. 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 financial statements, certain amounts
and balances have been restated from previously filed reports to conform with
the format of this quarterly presentation.  These 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, 1999 as filed
with Securities and Exchange Commission.</P>

<P>The results of operation for the three-month periods ended March 31, 2000 and
March 31, 1999 are not necessarily indicative of the results expected for the
full fiscal year or for any other fiscal period.</P>

</FONT><B><FONT FACE="Arial"><P>NOTE 2 - INVENTORIES</P>
</B></FONT><FONT SIZE=3>
<P>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:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=342>
<TR><TD WIDTH="39%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">March 31 <U>2000</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">December 31 </P>
<U><P ALIGN="CENTER">1999</U></FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Parts</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ 273,095</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ 256,334</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Work in progress</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">105,653</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">52,279</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Finished goods</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">92,094</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">48,877</U></FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP"> </TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$ 470,842</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"> </TD>
<TD WIDTH="30%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$ 357,490</U></FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=3>
</FONT><B><FONT FACE="Arial"><P>NOTE 3 - LOSS PER SHARE </P>
</B></FONT><FONT SIZE=3>
</FONT><P ALIGN="JUSTIFY">Basic and diluted loss per share is computed by
dividing income (loss) available to common stockholders by the weighted-average
number of common shares outstanding for the period, excluding equivalent shares
from possible stock option exercises, the effect of which would be anti-
dilutive. The primary weighted average number of common shares outstanding used
for calculation of basic and diluted loss per share was 5,068,667 for the
quarter ended March 31, 2000.</P>
<P ALIGN="JUSTIFY"></P>
<B><FONT FACE="Arial"><P>NOTE 4 - STOCK OPTIONS</P>
</B></FONT><FONT SIZE=3>
<P ALIGN="JUSTIFY">As of March 31, 2000, 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 11, 2000, 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 11, 2000
totaled 220,000 shares under option and have an exercise price of $2.81 per
share. The options granted on February 11, 2000 may be exercised any time during
the period from February 11, 2000 through February 10, 2003.  The Company's Form
8-K dated February 11, 2000, 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.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">During the 12 month period from March 31, 1999 to March 31,
2000, 160,000 shares under option expired, 115,000 shares under option were
exercised, and 220,000 shares under option were granted.  At March 31, 2000
there were 600,000 shares under option reserved for future exercises.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Company has adopted the disclosure-only provisions of
Statement of Financial Accounting Standards (SFAS) No. 123, "Accounting for
Stock-Based Compensation." The Company undertakes to make disclosures and
calculations pursuant to SFAS 123 on an annual basis coinciding with the
issuance of the Company's Annual Financial Statements. Accordingly, no
compensation cost has been recognized for the stock option plan. </P>

</FONT><B><FONT FACE="Arial"><P>NOTE 5 - RELATED PARTY TRANSACTIONS</P>
</B></FONT><FONT SIZE=3>
<P ALIGN="JUSTIFY">For the quarter ended March 31, 2000, services in the amount
of $22,057 were contracted with Manufacturing Services, Inc., of which the
owner/president is a member of the Board of Directors of EST.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P> </P>
<P> </P>
</FONT><B><FONT FACE="Arial"><P ALIGN="CENTER"> </P>
<P ALIGN="CENTER">ITEM II</P>
</B></FONT><FONT SIZE=3>
<P ALIGN="CENTER">MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL</P>
<P ALIGN="CENTER">CONDITION AND RESULTS OF OPERATION</P>

<B><I><P ALIGN="JUSTIFY">Management's discussion and analysis is intended to be
read in conjunction with the Company's unaudited financial statements and the
integral notes thereto for the quarter ending March 31, 2000.  The following
statements may be forward looking in nature and actual results may differ
materially.</P>
</B></I><P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">A.	RESULTS OF OPERATIONS</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">REVENUES: Total revenues from the sale of EST products and
services increased to $270,535 for the first quarter of 2000 as compared to
$220,176 in the first quarter of 1999.  Gross revenues increased to $289,119 for
the quarter ending March 31, 2000, from $235,153 for the same quarter of 1999.
It is Management's belief that the increased revenues are the result of
increased Domestic and U.S. Government sales in the first quarter of 2000.  This
increase in this quarter is highlighted, by comparing sales revenues for the
quarter ended March 31, 2000, with sales revenues  of the first quarter of 1999,
which was a quarter with low sales revenues and did not contain any U.S.
Government sales revenues.  In Management's opinion the increase in Domestic
sales is the result of increased demand for the Company's products for
industrial automation control projects, during the first quarter of 2000. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Company's revenues fall into three major customer
categories, Domestic, Export and U.S. Government sales.  Domestic commercial
sales increased to $242,877 in the first quarter of 2000 as compared to $207,163
for the first quarter of 1999. Foreign export sales for the first quarter of
2000 increased to $16,842 as compared to the $13,013 in foreign sales in the
same quarter of 1999.  The Company had sales of $10,816 to U.S. Government
programs for the first quarter of 2000 as compared with no revenues in the first
quarter 1999.  The increase in U.S. Government sales is primarily the result of
the Company's products being selected for use in a military airfield lighting
project in the first quarter of 2000.  Engineering services billed in the first
quarter of 2000 increased to $42,122 as compared with $40,442 for the same
quarter of 1999.  The increase is the result of increased engineering services
performed by the Company when compared with the first quarter of 1999, primarily
due to increased engineering services related with the Company's ongoing
projects for mobile data computer systems for public safety entities.  During
the quarter ended March 31, 2000 sales to Industrial Electronics and Controls,
one of the Company's distributors, consisted of 13% of the Company's sales and
service revenues. No other sales to a single customer comprised 10% or more of
the Company's product sales.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">A percentage breakdown of EST's major customer categories of
Domestic, Export and U.S. Government Sales, for the first quarter of 2000 and
1999 are as follows: </P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=360>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">For the first quarter of</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="CENTER">2000</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="CENTER">1999</U></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Domestic Sales</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">90%</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">94%</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">U.S. Government Sales</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">4%</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">0%</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Export Sales</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">6%</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">6%</FONT></TD>
</TR>
</TABLE>
</CENTER></P>
<DIR>
<DIR>

<FONT SIZE=3><P>	     	 </P></DIR>
</DIR>

<P>A percentage breakdown of EST's product sales categories for the first
quarter of 2000 and 1999 are as follows:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=414>
<TR><TD WIDTH="52%" VALIGN="TOP">
<FONT SIZE=3><P>For the first quarter of</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">2000</U></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">1999</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">
<FONT SIZE=3><P>ESTeem Model 192</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">44%</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">47%</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">
<FONT SIZE=3><P>ESTeem Model 95</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">10%</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">13%</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">
<FONT SIZE=3><P>ESTeem Model 84SP/85SP</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">--</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1%</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">
<FONT SIZE=3><P>ESTeem Model 96</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">8%</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">6%</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">
<FONT SIZE=3><P>ESTeem Accessories</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">19%</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">11%</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">
<FONT SIZE=3><P>Factory Services</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">3%</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">3%</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">
<FONT SIZE=3><P>Site Support</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">16%</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">19%</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=3>
<P>Sales include foreign export sales as follows:</P>
<P> </P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=414>
<TR><TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=3><P>Three Months Ended</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">March 31</FONT></TD>
<TD WIDTH="28%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">March 31</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=22><P></P></TD>
<TD WIDTH="30%" VALIGN="TOP" HEIGHT=22>
<FONT SIZE=3><P ALIGN="RIGHT"> <U>2000</U></FONT></TD>
<TD WIDTH="28%" VALIGN="TOP" HEIGHT=22>
<U><FONT SIZE=3><P ALIGN="RIGHT">1999</U>  </FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=22>
<FONT SIZE=3><P>Export sales</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP" HEIGHT=22>
<FONT SIZE=3><P ALIGN="RIGHT">$ 16,842</FONT></TD>
<TD WIDTH="28%" VALIGN="TOP" HEIGHT=22>
<FONT SIZE=3><P ALIGN="RIGHT">$ 13,013</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=22>
<FONT SIZE=3><P>Percent of sales</FONT></TD>
<TD WIDTH="30%" VALIGN="TOP" HEIGHT=22>
<FONT SIZE=3><P ALIGN="RIGHT">6%</FONT></TD>
<TD WIDTH="28%" VALIGN="TOP" HEIGHT=22>
<FONT SIZE=3><P ALIGN="RIGHT">6%</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=1>
</FONT><FONT SIZE=3><P>The geographic distribution of foreign sales for the
first quarter of 2000 and 1999 is as follows:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=414>
<TR><TD VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="RIGHT">Percent of Foreign Sales</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP"> </TD>
<TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">March 31</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">March 31</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<U><FONT SIZE=3><P>COUNTRY</U></FONT></TD>
<TD WIDTH="35%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">2000</U></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">1999</U></FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=3><P>Mexico</FONT></TD>
<TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">50%</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">--</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=3><P>South Korea</FONT></TD>
<TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">41%</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">--</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=3><P>Canada</FONT></TD>
<TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">9%</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">76%</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=3><P>Kuwait</FONT></TD>
<TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">--</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">22%</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<FONT SIZE=3><P>Brazil</FONT></TD>
<TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">--</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">2%</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=3>
<P ALIGN="JUSTIFY">The Company's domestic  and foreign sales for the first
quarter of 2000 were used primarily in Supervisory Control and Data Acquisition
(SCADA) applications.  Management believes these applications will continue to
provide the largest portion of the Company's domestic sales revenues for the
foreseeable future. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Based on previous year's activity, the majority of all U.S.
Government purchases are under the Company's General Services Administration
(GSA) contract.   Historically, U.S. Government sales average approximately 18%
of annual sales, but this level cannot be guaranteed, and during 1999 the
Company experienced a reduction in U.S. Government sales to 3% of annual sales
revenues.  Due to the uncertain nature of U.S. Government purchasing, the level
of U.S. Government sales cannot be guaranteed to return to levels experienced in
the past by the Company, which in turn may result in reduced sales revenues and
profitability for the Company.  Due to the uncertain nature of U.S. Government
purchasing, Management does not base profitability or liquidity projections on
expected U.S. Government sales.</P>
</FONT><FONT SIZE=2><P ALIGN="JUSTIFY"></P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">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. </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">BACKLOG:</P>
</B><P ALIGN="JUSTIFY"></P>
<P>The Corporation had backlog of $229,000 as of March 31, 2000, which includes
Mobile Data Computers for Public Safety entity projects, expected to be
completed within the next 90 days.  Customers generally place orders on an "as
needed basis".  With the exception of extended delivery times for Mobile Data
Computers for Public Safety entity projects, for which delivery involves
extended time periods for engineering services and third party service and
material providers, shipment is generally made within 5 to 10 working days after
receipt of an order from a customer.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">COST OF SALES:</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Cost of sales percentages of gross sales for the first
quarters of 2000 and 1999 were 54% and 52% of gross sales respectively.  Cost of
Sales variations are attributable to the type of product sold, order size, and
pricing structure, for discounts granted.  The increase in cost of sales in the
first quarter of 2000 is due to a combination of product mix, changes in pricing
structure and discounts granted to resellers.</P>
<B><P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">OPERATING EXPENSES:</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Operating expenses for the first quarter of 2000 increased
$966 from first quarter of 1999 levels.  The following is a delineation of
operating expenses:</P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=618>
<TR><TD WIDTH="31%" VALIGN="TOP" ROWSPAN=2> </TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">March 31</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">March 31</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">Increase</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> <U>2000</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">1999</U></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">(Decrease)</U></FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=3><P>Finance/Administration</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ 47,485</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ 69,242</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$(    21,757)</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=3><P>Research/Development</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">49,912</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">43,588</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">6,324</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=3><P>Marketing</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">55,560</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">43,936</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">    11,624</FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=3><P>Customer Service</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">22,895</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">18,120</U></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">          4,775</U></FONT></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT SIZE=3><P>Total Operating Expenses</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$175,852</U></FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$174,886</U></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">$           966</U></FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=3>
<P> </P>
<B><P>Finance and Administration:  </B>During the first quarter of 2000, Finance
and Administration expenses decreased $21,757 when compared with the first
quarter of 1999.  The decrease is the result of decreased salaries and wages
paid during the first quarter of 2000, due to the Company not paying a profit
sharing bonus caused by reduced profitability during 1999.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Research and Development:  </B>Research and Development
expenses increased $6,324 during the first quarter of 2000, over the same period
in 1999.  The increase in Research and Development costs is due to increased
subcontracted Research and Development expertise, associated with development
activity of the Company's product lines. </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Marketing: </B>During the first quarter of 2000, marketing
expenses increased $11,624 when compared with the same period of 1999.  The
increase is due to timing differences in advertising by the Company, as well as
increase tradeshow and travel expenses during the first quarter of 2000 when
compared with the first quarter of 1999.  </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Customer Service: </B>Customer service expenses increased
$4,775 during the first quarter of 2000 when compared with expenses for the same
quarter of 1999.  The increase in costs is primarily due to increased customer
service salaries and wages cost that were not directly billed to customers
during the first quarter of 2000, when compared with the first quarter of
1999.</P>
<P ALIGN="JUSTIFY"> </P>
<B><P ALIGN="JUSTIFY">INTEREST AND DIVIDEND INCOME:</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Corporation earned $18,584 in interest and dividend
income during the quarter ending March 31, 2000.  Sources of this income were
savings and money market accounts and short term investments. </P>
<B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">ENGINEERING SUPPORT:</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Engineering support costs increased to $35,468 as of March
31, 2000, as compared to $35,350 for the same period of 1999. The engineering
support costs for the first quarter of 2000, are directly resultant of the size
and scope of engineering services billed by the Company during the first quarter
of 2000, specifically projects for the Company's Mobile Data Computer
products.</P>
<B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">NET LOSS:</P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Company had a net loss of $30,357 for the first quarter
of 2000 compared to net loss of $45,020 for the same quarter of 1999.  The net
loss is attributable to relative effect sales revenues, cost of goods sold, and
operating expenses for the first quarter of 2000.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">B.	FINANCIAL CONDITION, LIQUIDITY AND CAPITAL
RESOURCES</P>
</B></FONT><FONT SIZE=1><P ALIGN="JUSTIFY"></P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">The Corporation's current asset to
current liabilities ratio at March 31, 2000 was 12:1 compared to 34.2:1 at
December 31, 1999.  The decrease in current ratio is due to increases in
refundable customer deposits and accounts payable amounts when compared with
December 31, 1999 amounts.</P>
</FONT><FONT SIZE=1><P ALIGN="JUSTIFY"></P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">For the quarter ending March 31, 2000,
the Company had cash and cash equivalent short-term investment holdings of
$1,638,973 as compared to cash and cash equivalent holdings of $1,624,728 at
December 31, 1999.  The increase is attributable primarily to receipt of
refundable customer deposits for future delivery of Mobile Data Computer for
Public Safety projects when compared with December 31, 1999 levels, and was
offset by the Company's net loss, and increased inventory levels. </P>
</FONT><FONT SIZE=1><P ALIGN="JUSTIFY"></P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">Accounts receivable decreased slightly to
$151,865 as of March 31, 2000, from December 31, 1999 levels of $154,788.
Management believes all of the Company's accounts receivable as of March 31,
2000 are collectible.  Inventory increased to $470,842 at March 31, 2000, from
December 31, 1999 levels of $357,490, due to increased procurement for
production of products primarily for Mobile Data Computer projects.  Provision
for Federal Income Taxes increased to $20,684 at March 31, 2000 as the provision
for potential tax credit for the Company increased for the period ended March
31, 2000, as this provision was calculated from the Company's first quarter 2000
net loss amount. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Company's fixed assets, net of depreciation, decreased to
$136,250 as of March 31, 2000, decreased from December 31, 1999 levels of
$145,123, solely due to depreciation of the Company's fixed assets.  The Company
did not have any capital expenditures of fixed assets in the first quarter of
2000, however, Management foresees capital expenditures may be necessary in 2000
to support the production and sale of the Company's products.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In Management's opinion, the Company's cash and cash
equivalent reserves, and working capital at March 31, 2000 is sufficient to
satisfy requirements for operations, capital expenditures, and other
expenditures as may arise during 2000. </P>
<P ALIGN="JUSTIFY"></P>
<B><I><P ALIGN="JUSTIFY">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.  </P>
</B></I><P ALIGN="CENTER"></P>
</FONT><B><FONT FACE="Arial"><P ALIGN="CENTER">PART II</P>
</B><P ALIGN="CENTER">OTHER INFORMATION</P>
</FONT><FONT SIZE=3><P> </P>
</FONT><FONT FACE="Arial"><P>Item 6.  EXHIBITS AND REPORTS ON FORM 8-K</P>
</FONT><FONT SIZE=3>
<P>(a)	Exhibits</P>

<P>Exhibit 27. Financial Data Schedule</P>

<OL START=2 TYPE="a">

<LI>Reports on Form 8-K</LI></OL>


<P>Form 8-K dated February 11, 2000 is incorporated herein by reference.</P>
<P>	        </P>
<P>Exhibit Index			Reference Form 10-QSB</P>

<P>Exhibit Number                           Notes to Financial Statements</P>

<P>4.	Instruments defining the Rights of Security Holders including
indentures.</P>

<P>Form 8-K dated February 7, 1997 is incorporated herein by reference.</P>
<P>Form 8-K dated February 6, 1998 is incorporated herein by reference.</P>
<P>Form 8-K dated February 12, 1999 is incorporated herein by reference.</P>
<P>Form 8-K dated February 11, 2000 is incorporated herein by reference.</P>
<P>	 </P>

<P ALIGN="JUSTIFY">11.	Statement Re: computation of per share earnings.	
Note 3 to Financial Statements.</P>

<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER">SIGNATURES</P>

<P ALIGN="JUSTIFY">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.</P>

<P ALIGN="CENTER">ELECTRONIC SYSTEMS TECHNOLOGY, INC.</P>

<P> </P></FONT>
<P ALIGN="RIGHT"><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=390>
<TR><TD WIDTH="38%" VALIGN="TOP"> </TD>
<TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=3><P>By: /s/ T.L. KIRCHNER</FONT></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<FONT SIZE=3><P> </FONT></TD>
<TD WIDTH="62%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<FONT SIZE=3><P>Date: MAY 10, 2000</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=3><P>Name:  T.L. Kirchner</FONT></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP"> </TD>
<TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=3><P>Title:  Director/President</FONT></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP"> </TD>
<TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=3><P>(Principal Executive Officer)</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3>
<P> </P>
<P> </P></FONT>
<P ALIGN="RIGHT"><TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=390>
<TR><TD WIDTH="38%" VALIGN="TOP"> </TD>
<TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=3><P>By: /s/ ROBERT SOUTHWORTH</FONT></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP"> </TD>
<TD WIDTH="62%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<FONT SIZE=3><P>Date: MAY 10, 2000</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=3><P>Name: Robert Southworth</FONT></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP"> </TD>
<TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=3><P>Title:  Director/Secretary/Treasurer</FONT></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP"> </TD>
<TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=3><P>(Principal Finance Officer)</FONT></TD>
</TR>
</TABLE>
</P>

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