UNITED STATES                
              SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549
                               
                          FORM 10-K
                          (Mark One)
  
  [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
   
      EXCHANGE ACT OF 1934 
  
      For the fiscal year ended December 31, 1996
                               
                              OR
  [  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES 
       EXCHANGE ACT OF 1934 
  
     For the transition period from__________to _________
                               
                Commission File Number 0-23332
                               
               ELECTRONIC FAB TECHNOLOGY CORP.
    (Exact name of registrant as specified in its charter)
                           COLORADO                             
       (State or other jurisdiction of incorporation of organization)
                          84-0854616
               (I.R.S. Employer Identification No.)
                                
                        7251 West 4th St                                  
                       Greeley , Colorado                                
           (Address of principal executive offices)
                            80634
                          (Zip Code)
  Registrant's telephone number, including area code:  (970) 353-3100          
                                
  Securities registered pursuant to Section 12(b) of the Act: None
                                
  Securities registered pursuant to Section 12(g) of the Act:
                         Common Stock
                       (Title of Class)          
                               
       Indicate by check mark whether the registrant (1) has filed all
  reports required to be filed by Section 13 or 15(d) of the Securities
  Exchange Act of 1934 during the preceding 12 months ( or 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    
     Indicate by check mark if disclosure of delinquent filers pursuant
  to Item 405 of Regulation S-K is not contained herein, and will not be
  contained, to the best of registrant's knowledge, in definitive proxy or
  information statements incorporated by reference in Part III of this
  Form 10-K or any amendment to this Form 10-K.[  ]
  
     As of March 14, 1997, the number of outstanding shares of Common
  Stock was 5,922,660.  As of such date, the aggregate market value of the
  shares of Common Stock held by non-affiliates, based on the closing
  price of the Common Stock on the Nasdaq National Market, was
  approximately $11,962,530.
  
             DOCUMENTS INCORPORATED BY REFERENCE
       Part III of this Form 10-K is incorporated by reference to the
  Company's Proxy Statement for its 1997 Annual Meeting of Stockholders to 
  be held May 28, 1997.                    
  

  PART I
  
  Item 1. Business 
  
     The information set forth below contains "forward looking
  statements" within the meaning of the federal securities laws, including
  statements regarding opportunities for growth from expanded use of
  contract manufacturing by OEMs, the Company's new strategic business
  plan and development of its new management information system, the trend
  toward turnkey manufacturing, the Company's expectations regarding
  increases in the numbers of assemblies ordered by customers, and other
  statements of expectations, beliefs, plans, and similar expressions
  concerning matters that are not historical facts.  These statements are
  subject to risks and uncertainties that could cause actual results to
  differ materially from those expressed in the statements.  
  
  General
  
     Electronic Fab Technology Corp.  (the "Company" or "EFTC"), formed
  in 1981, is an independent provider of electronic manufacturing services
  to original equipment manufacturers ("OEMs") in the computer
  peripherals, medical equipment, industrial controls, telecommunications
  equipment and electronic instrumentation industries.
  
     The Company's manufacturing services consist of assembling complex
  printed circuit boards (using both surface mount and pin-through-hole
  technologies), cables, electro-mechanical devices and finished products. 
  The Company also provides computer-aided testing of printed circuit
  boards, subsystems and final assemblies.  In certain instances, the
  Company completes the assembly of its customers' products at the
  Company's facilities by integrating printed circuit boards and electro-
  mechanical devices into other components of the customers products.
  
     Most of the Company's sales are generated from turnkey contracts,
  whereby the Company provides the components and other materials used in
  the assembly process, as well as value-added services.  A lesser amount
  of the Company's sales is made on a consignment basis, whereby the
  Company, using components provided by the customer, provides only
  assembly and post-assembly testing services.  The Company focuses on a
  market niche of complex, mid-volume industrial electronic products,
  where high levels of responsiveness and flexibility are most valuable to
  customers.
  
       In 1994, the Company completed a new 52,000 square foot
  manufacturing facility in Greeley, Colorado and acquired two new surface
  mount technology  production lines.  In 1995, the Company began a
  process to replace its existing management information systems and,
  following a reevaluation of the project and resultant changes in it, the
  Company expects the completion date to be in the third quarter of 1997.  
  
  
     On August 5, 1996, the board hired Mr. Jack Calderon as the new
  President and Chief Executive Officer of the Company.  After a short
  period of cost restructuring and internal reorganization, Mr. Calderon
  implemented a program named "the 100 Week Journey of Progress,"   which
  included five key corporate goals: (i) become the recognized leader in
  high-mix electronic contract manufacturing; (ii) become a multi-sited
  manufacturer; (iii) double revenues; (iv) provide a broader range of
  service to a broader customer base; and (v) outperform competitors in
  return-on-equity, cash flow and sales growth.  Among the strategies to
  meet such goals, the Company adopted an acquisition strategy centered on
  finding companies that are favorably located geographically, which will
  strengthen the Company financially and are focused on the same high-mix
  strategy as the Company.  
  
     As an additional part of its corporate restructuring in the third
  quarter of 1996, the Company developed and implemented an innovative
  manufacturing methodology, Asynchronous Process Manufacturing ("APM"). 
  APM involves the combination of high-speed manufacturing equipment,
  sophisticated information systems and standardized process teams to
  produce small quantities of products more flexibly and more quickly
  through the factory to market.  The Company implemented APM for all its
  customers as part of the Company's new strategy to deliver manufacturing
  solutions for high-mix products in high speed modes.  The Company's new
  high-mix market focus concentrates on offering solutions to OEMs in the
  medical, instrumentation and high-end storage industries, as well as
  certain segments of the communications industry.  See "Manufacturing
  Services" below.
  
     On February 24, 1997, the Company acquired two affiliated
  entities, Current Electronics, Inc., an Oregon Corporation, and Current
  Electronics (Washington), Inc., a Washington Corporation, for total
  consideration of approximately $10.3 million, consisting of 1,980,000
  shares of Company common stock and approximately $4.9 million in cash. 
  The Company will record goodwill of approximately $6.5 million in
  connection with the acquisition, which will be amortized over 30 years. 
  The combined revenues for Current Electronics, Inc. and Current
  Electronics (Washington), Inc. for the fiscal year ended September 30,
  1996 was approximately $32.5 million.
  
     In connection with the business combination, the Company
  renegotiated its line of credit to increase maximum borrowings to
  $15,000,000 and extended the maturity date to June 1998.  In addition,
  the Company obtained a 90 day bridge loan in the amount of $4.9 million,
  the proceeds from which were used to pay the cash consideration related
  to the acquisition, as discussed above.
  
     At December 31, 1996, the Company had 398 employees and four
  fully-automated surface mount technology lines.
  
  
  
  
  Manufacturing Services in the Electronics Industry
  
      The electronic manufacturing services industry emerged in the
  United States in the 1970's.  By subcontracting their manufacturing
  operations, OEMs can realize productivity gains because fewer in-house
  employees are needed to produce products, and manufacturing capacity and
  capabilities increase without capital investment.   Four key
  developments have spurred the growth in the electronics manufacturing
  services industry: surface mount technology ("SMT"), turnkey
  manufacturing, concurrent engineering and outsourcing in the electronics
  industry.
  
     Surface Mount Technology.   In SMT production,  electronic
  components are attached and soldered directly onto the surface of a
  circuit board rather than inserted through holes. This process differs
  from pin-through-hole technology, where electronic components, such as
  integrated circuits, are attached to printed circuit boards by means of
  pins, also known as leads, that are inserted into pre-drilled holes on a
  circuit board, and are then soldered to complete the circuitry.  SMT
  components are smaller, can be spaced more closely together and, unlike
  pin-through-hole components, can be placed on both sides of a circuit
  board.  This allows for product miniaturization, while enhancing the
  electronic properties of the circuit.  Because the SMT manufacturing
  process is fully automated, it results in lower labor costs and higher
  quality output than pin-through-hole manufacturing.
  
     Turnkey Manufacturing. Traditionally OEMs provided most components
  and other materials needed to complete a job on a consignment basis to
  electronics contract manufacturers ("ECMs").  Coincident with the trend
  toward SMT, OEMs began to shift the responsibility for material
  procurement to  ECMs.  This concept came to be known as "turnkey
  manufacturing."  Turnkey manufacturing benefits  OEMs in several ways. 
  It allows an OEM's purchasing agents to focus on procurement of fewer
  parts, making it easier to coordinate the timing of future deliveries. 
  In many cases, turnkey manufacturing reduces material costs because ECMs
  can combine the purchasing needs of  customers when negotiating volume
  pricing agreements with suppliers.  Turnkey manufacturing also frees
  working capital of  OEMs that would otherwise be tied up in raw material
  inventory.   
  
     Concurrent Engineering. In an effort to gain greater efficiency in
  material procurement and manufacturing, OEMs are giving contractors
  greater input on such design issues as board layout, component
  selection, production methods, and the preparation of assembly drawings
  and test schematics.  With such "concurrent engineering," also known as
  "design for manufacturability,"  OEMs can tap the contract manufacturer's 
  expertise at the outset to minimize manufacturing bottlenecks.
  
     Outsourcing.  To improve performance, many OEMs are concentrating
  resources on their "core competencies," or those business activities
  that give them a strategic advantage in the marketplace.  Non-core
  activities are eliminated or outsourced.  Many OEMs have determined that
  manufacturing is not one of their corecompetencies and are outsourcing
  their manufacturing to ECMs.    In addition, utilization of outside
  contract manufacturers by OEMs enables the OEMs to focus their efforts
  on research, product design and development, and marketing.  Other
  significant benefits of using ECM services include: reduced time to
  market, reduced capital investment, access to leading-edge manufacturing
  technology, improved inventory management and improved purchasing power. 
  The Company believes that many OEMs now view contract manufacturers as
  an integral part of their business and manufacturing strategy rather
  than as a back-up source to in-house manufacturing capacity during peak
  periods.  The types of services now being outsourced have also grown. 
  OEMs are outsourcing more design engineering, distribution and after-sale 
  support, in addition to material procurement, manufacturing and testing.
  
  Strategy
  
     The Company's objective is to be a leading provider of electronic
  contract manufacturing services exclusively focusing on the needs of
  high-mix OEM customers in its targeted markets.   In pursuing this
  objective, the Company has created a new strategic business plan, its
  "100-Week Vision," with five key goals: (i) become the recognized leader
  in high-mix contract manufacturing; (ii) become a multi-sited
  manufacturer; (iii) double revenues; (iv) provide a broader range of
  service to a broader customer base; and (v) outperform competitors in
  return-on-equity, cash flow and sales growth.
  
     Creating and maintaining long-term relationships with customers by
  providing high quality, cost-effective manufacturing services marked by
  a high degree of responsiveness and flexibility.  The central tenet of
  the Company's operating philosophy is customer service, characterized by
  high quality, flexibility and responsiveness to the needs of the
  customer.  The Company maximizes the level of service provided to
  customers by using (i) total quality management to assure that the
  Company realizes the full value of its human resources, (ii) APM,  (iii)
  computer-integrated manufacturing to allow the Company to track the
  progress and costs of each project on a real-time basis and to respond
  quickly and effectively to customer inquiries and changes and (iv)
  create new services such as fixed price prototype and point-of-use
  inventory.  For a more detailed discussion of the Company's
  manufacturing operations, see "Manufacturing Services" below.
  
     Focusing on a market niche of complex, high-mix products.  The
  Company provides contract manufacturing services to established
  producers of  electronic products.  The Company focuses primarily on
  high-mix OEMs in the   medical, instrumentation, and high end data
  storage industries, as well as certain segments of the communication  
  industry.  High levels of quality, responsiveness and flexibility tend
  to be of most value to OEMs in these industries.  Management believes
  that there are many OEMs in these industries with high-mix product
  requirements that could benefit from using, or expanding their use of,
  contract manufacturers, and therefore represent significant
  opportunities for the Company's growth.  Given its focus, the Company
  does not compete for the manufacture of low cost, high volume printed
  circuit boards for use in personal computers, automotive or other
  consumer related products. 
    
     Increasing profitability by emphasizing turnkey manufacturing and
  concurrent engineering and expanding the breadth of services offered. 
  Management believes that expanding the scope of its relationships with
  its customers leads to greater stability of its customer base and
  increased profit opportunities.  The Company has been successful in
  converting most of its customers (over 90%) from consignment
  manufacturing to turnkey manufacturing and emphasizes turnkey
  relationships in its negotiations with new customers. Although turnkey
  manufacturing generally results in a lower gross profit percentage
  compared to consignment sales, the Company is attempting to improve
  margins by reengineering several critical business processes in order to
  achieve improved efficiencies.  In addition, the Company works to expand
  its relationships with existing customers by emphasizing concurrent
  engineering and other services.  The Company frequently works with its
  customers to develop and utilize advanced engineering to improve product
  quality, to reduce cost and to gain early access to new product
  introductions.  This positions the Company to negotiate the price of new
  projects rather than being submitted to a competitive bid process. 
  These concurrent engineering activities include: design for
  manufacturability; design for testability; and component applications
  engineering.
  
     Further diversifying its markets by pursuing opportunities in a
  variety of industries and geographic areas.  Management has sought to
  balance the benefits of industry segment specialization with industry
  concentration risks by focusing on four market segments: medical,
  instrumentation, high-end data storage and communications.  Management
  believes that, by addressing multiple markets, the Company is less
  susceptible to downturns in any single OEM industry, while limiting the
  total number of markets allows the Company to offer more precisely
  tailored solutions to address the particular needs of each different
  market. In addition, management believes that having manufacturing
  facility sites in several locations allows, the Company to better serve
  customers  and puts the Company in a better position to compete for new
  customers.  As part of the revision of the Company's strategy in the
  third quarter of 1996, the Company adopted an acquisition strategy that
  focuses on acquiring high-mix ECMs with favorable geographic locations
  and earnings.
  
     Critical business processes and management information systems .  
  In the third quarter of 1996, the Company refocused its strategy to
  exclusively serve high-mix OEMs.  As part of this refocusing, the
  Company revised certain of its business and manufacturing processes with
  the goal of creating a sustainable competitive advantage.   
  
     At the center of the Company's new strategy was the introduction
  of APM.  APM standardizes processes so that any circuit board can be
  assembled by a variety of different production lines.  APM allows for
  short cycle time manufacture of a wide variety of products.  Management
  believes that the Company's ability to manufacture high-mix products at
  high speed creates certain competitive advantages.
  
     The Company's computer information technology enables APM to
  function effectively.  In August 1995, the Company began reviewing
  certain business and manufacturing processes in a "reengineering" effort
  to modify and restructure those processes in order to improve operations
  and competitiveness.  The processes reviewed focused on core
  competencies of materials acquisition, scheduling and project quoting.
  
     The Company is reengineering its materials acquisition processes
  by focusing on methods to optimize purchasing power by identifying
  materials that are used across customer lines.  Also, the Company is
  consolidating vendors in order to achieve greater corporate purchasing
  power.  The Company believes that with these efforts the Company will
  obtain greater leverage in material pricing and that the Company will
  become more competitive when bidding for turnkey business.  The Company
  also is developing methods to improve project quoting and bidding
  processes.  The Company believes that by improving turn-around time on
  customer quotes and by better tracking actual costs against customer
  quotes, the Company will better control costs and more accurately
  predict and manage its operating margins.  In addition, the Company is
  introducing scheduling improvements to allow for more accurate schedule
  and production processes and to create a more coordinated production
  effort than in the past.  As part of the introduction of APM during the
  third quarter of 1996, the Company incorporated performance measurements
  and incentives into the APM process in order to provide management with
  the ability to more effectively incent employees' performance.
  
     Concurrent with the redesign of these business processes, the
  Company has commenced development of a new management information
  system.  The Company anticipates that it will purchase new software from
  third party vendors, develop certain software internally and purchase
  new hardware in connection with the development of this new management
  information system.  The Company has hired consultants to assist in the
  design and implementation of the management information system.  The
  reengineering and management information system projects were scheduled
  for completion in the latter part of 1996.  Because of the Company's
  reorganization, initiated by Jack Calderon in the third quarter of 1996,
  the project was reevaluated and some changes were made in the overall
  project direction in order to implement APM.  The management information
  system project is now scheduled for completion in the third quarter of
  1997.
  
     The Company can give no assurances that it will meet it targeted
  completion date for implementation of the reengineered business
  processes and the new management information system or that such
  processes and management information system ultimately will be
  successful in enabling the Company to create a sustainable competitive
  advantage and to improve efficiencies.
  
  
  
  
  Manufacturing Services 
  
     The Company's turnkey  manufacturing services consist of
  assembling complex printed circuit boards (using both surface mount and
  pin-through-hole interconnection technologies), cables, electro-mechanical
  devices and finished products.  The Company also provides computer-aided 
  testing of printed circuit boards, subsystems and final assemblies.  In 
  certain instances, the Company completes the assembly of its customers' 
  products at the Company's facilities by integrating printed circuit boards
  and electro-mechanical devices into other components of the customer's 
  products.  The Company also provides manufacturing services on a 
  consignment basis, whereby the Company, using components provided by the 
  customer, provides only assembly and post-assembly testing services.  The 
  Company obtained ISO 9002 certification in 1994, an international quality 
  standard for manufacturing and distribution management systems.
  
     In the third quarter of 1996, the Company introduced a new
  manufacturing methodology, Asynchronous Process Manufacturing.  APM is
  an innovative combination of high-speed manufacturing equipment,
  sophisticated information systems and standardized process teams
  designed to manufacture mixtures of small quantities of products more
  flexibly and faster.  The Company implemented APM for all its customers
  as part of restructuring strategy to focus the Company exclusively on
  delivering manufacturing solutions for high-mix products in high-speed
  modes.  Implementation of APM required a complete redesign of the
  Company's manufacturing operations, reorganizing personnel into process
  teams and revising documentation.  The physical moves were completed in
  September, and by the end of October, APM was fully implemented.
  
     High-mix manufacturing involves a discontinuous series of products
  fed through assembly in a start-stop manner, heretofore incompatible
  with high-velocity techniques.  APM is an alternative to both
  traditional continuous (synchronous) flow processing ("CFM"), the
  predominant method used in high-volume manufacturing, and batch
  processing often used in smaller scale manufacturing.  Until now, the
  combination of high-mix and high-speed has been viewed as difficult, if
  not impossible, by many high-mix manufacturers.  CFM techniques used by
  high-volume, high-speed ECMs cannot accommodate high-mix product
  assembly without sacrificing speed, while smaller ECMs, capable of
  producing a wide variety of products, cannot afford top quality high-speed
  manufacturing assets or keep up with OEM's growing product demand. 
  The Company's new high-mix-speed model, APM, is able to process products
  rapidly through the use of a combination of new discontinuous flow
  methods for differing product quantities and the Company's fast surface
  mount assembly systems, test equipment and wide-pipe, high-velocity
  production lines.  A hybrid of CFM and batch production techniques, APM
  sets optimal process parameters and maximizes velocity in producing
  smaller lot quantities.  By designating teams to set up off-line
  feeders, standardizing loading methods regardless of product complexity,
  and most importantly, by improving employee motivation, the Company's
  application of APM has decreased set-up and cycle times, standardized
  work centers, allowed processing of smaller lot sizes and increased the
  Company's productivity.
  
     The Company has the capability to perform in-circuit and
  functional testing, as well as environmental stress screening.  In-circuit 
  tests verify that components have been properly inserted and
  that the electrical circuits are complete.  Functional tests determine
  if a board or system assembly is performing to customer specifications. 
  Environmental tests determine how a component will respond to varying
  environmental factors such as different temperatures and power surges. 
  These tests are usually conducted on a sample of finished components
  although some customers may require testing of all products to be
  purchased by that customer.  Usually, the Company either designs or
  procures test fixtures and then develops its own test software.  The
  change from pin-through-hole technology to SMT is leading to further
  changes in test technology.  The Company seeks to provide customers with
  highly sophisticated testing services that are at the forefront of
  current test technology.  Because the density and complexity of
  electronic circuitry constantly is increasing, the Company seeks to
  utilize developing test technology in its automated test equipment and
  inspection systems in order to provide superior services to its
  customers.   
  
     The Company also participates in product design by providing its
  customers "concurrent engineering" or "design for manufacturability"
  services.  The Company's applications engineering group interacts with
  the customer's engineers early in the design process to reduce variation
  and complexity in new designs and to increase the Company's ability to
  use automated production technologies.   Application engineers are also
  responsible for assuring that a new design can be properly tested at a
  reasonable cost.  Engineering input in component selection is also
  essential to assure that a minimum number of components are used, that
  components can be used in automated assembly and that components are
  readily available and cost efficient. The Company also offers customers
  a quick-turnaround, turnkey prototype service.
  
  
  
  Customers and Marketing
  
     The Company seeks to serve a sufficiently large number of
  customers to avoid dependence on any one customer or industry. 
  Nevertheless, historically, a substantial percentage of the Company's
  net sales have been to a small number of customers, the loss of any of
  which would adversely affect the Company.  To that extent, the Company's 
  success depends on the success of its customers, which depends
  substantially on the growth of the high-end data storage devices, 
  medical equipment, communications and electronic instrumentation
  industries.  In 1996, two of the Company's customers, Exabyte and Ohmeda
  (BOC Group), each accounted for more than 10% of the Company's net sales
  and together represented 36.5% of net sales.  In 1996, the Company's ten
  largest customers accounted for 75.9% of net sales.  In 1995, three of
  the Company's customers, Hewlett Packard Company and subsidiaries
  ("HP")and, Ohmeda (BOC Group)  each accounted for more than 10% of the
  Company's net sales and together represented 53.1% of net sales.  In
  1995, the Company's ten largest customers accounted for 79.4% of net
  sales.  In 1994, four of the Company's customers, Colorado Memory
  Systems, Inc., HP, XEL Communications, and Ohmeda, each accounted for
  more than 10% of the Company's net sales and together represented 76.3%
  of net sales.  In 1994, the Company's ten largest customers accounted
  for 90.2% of net sales.   
  
     The following table represents the Company's net sales by industry
  segment in excess of 10%:
  
<TABLE>
  
  
                                              1996      1995      1994
  <CAPTION>
  
  <S>                                         <C>       <C>       <C>
  Computer peripherals                        12.3%     50.7%     57.5%
  Medical equipment                           35.4%     27.5%     19.2%
  High-end storage devices                    41.0%      *         *
  Telecommunications                           *         *        17.9%
   
  
  <FN>
  <F1>
  *  Less than 10% of net sales
  </FN>
</TABLE>
  
  Backlog
  
     The Company's backlog was $28.5 million at December 31, 1996,
  compared to $32.5 million at December 31, 1995.  Backlog generally
  consists of purchase orders believed to be firm that are expected to be
  filled within the next  six months.  Since orders and commitments may be
  rescheduled or canceled and customers' desired lead times may vary,
  backlog does not necessarily reflect the timing or amount of future
  sales.  The Company generally seeks to deliver its products within four
  to eight weeks of obtaining purchase orders, which tends to minimize
  backlog.   
  
  
  Competition
  
     The contract manufacturing services provided by the Company are
  available from many independent sources. The Company also competes with
  in-house manufacturing operations of current and potential customers. 
  The Company competes with numerous domestic and foreign ECMs, including
  SCI Systems, Inc., Solectron Corporation, Benchmark Electronics, Inc.,
  The DII Group, Inc., Plexis, Reptron, and others.  The Company also
  faces competition from its current and potential customers, who are
  continually evaluating the relative merits of internal manufacturing
  versus contract manufacturing for various products.   Certain of the
  Company's competitors have broader geographic breadth than the Company. 
  Many of such competitors are more established in the industry and have
  substantially greater financial, manufacturing or marketing resources
  than the Company.   In addition, several contract manufacturers have
  established manufacturing facilities in foreign countries.  The Company
  believes that foreign manufacturing facilities are more important for
  contract manufacturers that focus on high-volume consumer electronic
  products, and do not afford a significant competitive advantage in the
  Company's targeted market for complex, mid-volume products for which
  greater flexibility in specifications and lead times is required.  The
  Company believes that the principal competitive factors in its targeted
  market are quality, reliability, ability to meet delivery schedules,
  technological sophistication, geographic location and price.
  
  
  Suppliers
  
     The Company uses numerous suppliers of electronic components and
  other materials for its operations.  The Company works with customers
  and suppliers to minimize the effect of any component shortages.  Some
  components used by the Company have been subject to industry-wide
  shortages, and suppliers have been forced to allocate available
  quantities among their customers.  The Company's inability to obtain any
  needed components during periods of allocations could cause delays in
  shipments to the Company's customers and could adversely affect results
  of operations.
  The Company works at mitigating the risks of  component shortages by
  working with  customers to delay  delivery schedules or by working with
  suppliers to provide the needed components using just-in-time inventory
  programs.  Although in the future the Company may experience periodic
  shortages of certain components, the Company believes that an overall
  trend toward greater component availability is developing in the
  industry.
  
  
  Patents and Trademarks
  
     The Company does not hold any patent or trademark rights. 
  Management does not believe that patent or trademark protection is
  material to the Company's business.
  
  
  Governmental Regulation
  
     The Company's operations are subject to certain federal, state and
  local regulatory requirements relating to environmental, waste
  management, health and safety matters, and there can be no assurance
  that material costs and liabilities will not be incurred in complying
  with those regulations or that past or future operations will not result
  in exposure to injury or claims of injury by employees or the public. 
  To meet various legal requirements, the Company has modified its circuit
  board cleaning processes to eliminate the use of substantially all
  chlorofluorocarbons and now uses aqueous (water-based) methods in its
  cleaning processes.
  
     Some risk of costs and liabilities related to these matters is
  inherent in the Company's business, as with many similar businesses. 
  Management believes that the Company's business is operated in
  substantial compliance with applicable environmental, waste management,
  health and safety regulations, the violation of which could have a
  material adverse effect on the Company.  In the event of violation,
  these regulations provide for civil and criminal fines, injunctions and
  other sanctions and, in certain instances, allow third parties to sue to
  enforce compliance.  In addition, new, modified or more stringent
  requirements or enforcement policies could be adopted that may adversely
  affect the Company.
  
     The Company periodically generates and temporarily handles limited
  amounts of materials that are considered hazardous waste under
  applicable law.  The Company contracts for the off-site disposal of
  these materials.
  
  
  
  
  Employees
  
     As of December 31, 1996, the Company employed 398 persons, of whom
  335 were engaged in manufacturing and operations, 32 in material
  handling and procurement, 6 in marketing and sales and 25 in finance and
  administration , and the Company  engaged the full-time services of 16
  temporary laborers through employment agencies in manufacturing and
  operations.  None of the Company's employees is subject to a collective
  bargaining agreement.  Management believes that the Company's
  relationship with its employees is good.
  
  
  Item 2. Description of Property
  
     The Company's executive offices and manufacturing facilities are
  located in two facilities totaling 100,000 sq. ft. on approximately 19
  acres owned by the Company in Greeley, Colorado.  The Company believes
  the facilities are in good condition.  The properties are subject to a
  deed of trust securing indebtedness of $3,060,000 as of December 31,
  1996.
  
  
  Item 3.  Legal Proceedings
  
     The Company has no material pending legal proceedings.
  
  
  Item 4.  Submission of Matters to a Vote of Security Holders
  
  
     No matters were submitted to a vote of security holders during the
  fourth quarter of 1996.
     
  
  
  
                         PART II
  
  
  Item 5.  Market for Common Equity and Related Stockholder Matters.
  
     The Company's Common Stock is quoted on the Nasdaq National Market
  under the symbol "EFTC".  On March 24, 1997, there were approximately
  253 shareholders of record of the Common Stock of the Company.
  
     The following table sets forth the high and low sale prices for
  the Company's Common Stock, as reported on the Nasdaq National Market,
  for the quarters presented. 
  
<TABLE>
  
  
                                         1996 Sale Prices             1995 Sale Prices
                                     High                Low      High                Low
<CAPTION>

  <S>                                <C>               <C>       <C>                  <C>    
  First Quarter                      $5 1/8            $3 3/4    $7 5/8               $5
  
  Second Quarter                      4 7/8             3 5/8     8 1/4                5
  
  Third Quarter                       4 1/4             3 1/2     8                    5 3/8
  
  Fourth Quarter                      4 7/8             2 3/4     5 7/8                3 1/2


</TABLE>


  Dividends
  
     The Company has never paid dividends on its Common Stock and does
  not anticipate that it will do so in the foreseeable future.  The future
  payments of dividends, if any, on the Common Stock is within the
  discretion of the Board of Directors and will depend on the Company's
  earnings, capital requirements, financial condition and other relevant
  factors.  The Company's loan agreements prohibit payment of dividends
  without the lender's consent.
  
  
  Item 6. Selected Financial Data.
  
     The following selected financial data as of December 31, 1996 and
  1995, and for each of the years in the three-year period ended December
  31, 1996, are derived from the audited financial statements of the
  Company included as part of this report on Form 10-K and should be read
  in conjunction with such financial statements and the notes thereto. 
  The data presented below as of December 31, 1994, 1993, and 1992, and
  for each of the years in the two-year period ended December 31, 1993,
  are derived from financial statements of the Company not included in
  this report.
  
<TABLE>
  
  
                                                                Year ended December 31,
                               
                               
                                
                                                    1996          1995          1994          1993          1992 
                                                             (In thousands, except per sharedata)

  <S>                                            <C>           <C>            <C>            <C>           <C>
  Statement of Income Data:
  Net Sales  . . . . . . . . . . . . . . .       $56,880       $49,220        $52,541        $29,817       $17,294
  Cost of goods sold . . . . . . . . . . .        53,980        45,325         47,123         25,689        15,129
  
  Gross profit . . . . . . . . . . . . . .         2,900         3,895          5,419          4,128         2,165
  Impairment of fixed assets . . . . . . .           726          -              -              -              -   
  Selling, general and
     administrative expenses . . . . . . .         4,196         3,093          2,395          1,842         1,452
  Operating income (loss). . . . . . . . .        (2,022)          802          3,024          2,286           713  
  Interest expense . . . . . . . . . . . .          (526)         (399)          (175)          (237)         (227)
  Other, net . . . . . . . . . . . . . . .            83            78            109            (12)            8 
  
  Income (loss) before income taxes. . . .        (2,465)          481          2,958          2,037           494   
  IncomE tax expense (benefit) . . . . . .          (872)          127          1,041            736           174 
  
  Net income (loss). . . . . . . . . . . .       ($1,593)      $   354        $ 1,917        $ 1,301       $   320   
  
  Income(loss) per common and common
     equivalent share. . . . . . . . . . .        ($.40)       $.09           $.53           $.52           $.13  
 
  
  Weighted average shares
     outstanding . . . . . . . . . . . . .         3,942         3,962          3,627          2,483         2,417 
  
</TABLE>
  
  
<TABLE>
  
                                                                 December 31,
                                                   1996        1995        1994        1993           1992

                                                                  (In thousands)
                               
  <S>                                        <C>           <C>            <C>            <C>            <C>                         
  Balance Sheet Data:
  WorKing capital. . . . . . . . .           $8,508        $ 9,868        $ 6,744        $ 2,404        $1,423
  Total assets . . . . . . . . . .           22,870         24,984         23,479         11,172         6,703
  Notes payable and current
     portion of long-term debt . .            1,970            170           170             544           444
  Long-term debt, net of 
     current portion . . . . . . .            2,890          3,060          3,230          2,540          2,736 
  Shareholders' equity . . . . . .           13,922         15,509         14,989          3,547         2,090  
  
</TABLE>
   
  
  Item 7. Management's Discussion and Analysis of Financial Condition
  and Results of Operations.
  
     The information set forth below contains "forward looking
  statements" within the meaning of the federal securities laws, including
  statements regarding opportunities for growth from expanded use of
  contract manufacturing by OEMs, the Company's new strategic business
  plan and development of its new management information system, the trend
  toward turnkey manufacturing, the Company's expectations regarding
  increases in the numbers of assemblies ordered by customers, and other
  statements of expectations, beliefs, plans, and similar expressions
  concerning matters that are not historical facts.  These statements are
  subject to risks and uncertainties that could cause actual results to
  differ materially from those expressed in the statements.
  
      
  General
  
     The Company has provided electronic manufacturing services to its
  customers since 1981.  Since 1981, there has been a general shift in the
  nature and scope of the Company's services  and the makeup of the
  relative components of its sales.  Within the electronic manufacturing
  services industry in general and as experienced by the Company, there
  has been a significant shift from consignment business to turnkey
  business.  For consignment projects the Company charges only for  value-added 
  labor and manufacturing costs and uses materials provided by the customer.
  Turnkey projects require the Company to provide value-added labor, incur
  manufacturing costs and  acquire components and other materials used in
  the assembly process.  In addition, turnkey projects generally offer
  higher net sales and higher gross profits than consignment projects as
  the sales and costs of components and other materials are included in
  the results of the Company's operations.  However, the gross profit
  percentage earned on materials sales is generally lower than that earned
  on assembly services, resulting in a trend over time toward a lower
  gross profit percentage as turnkey sales increase.  The growth in
  turnkey sales has also required the Company to increase its investment
  in working capital, particularly as it relates to inventory and accounts
  receivable.  The percentage of net sales attributable to sales of
  materials under turnkey contracts increased from 58.4% in 1992 to 79.8%
  in 1996.
  
     The Company's results of operations are affected by a number of
  factors, including the level and timing of customer orders, the mix of
  turnkey and consignment orders, the degree of automation used in the
  manufacturing process, fluctuations in material costs, the overhead
  efficiencies achieved by the Company in managing the costs of its
  operations, price competition, the Company's level of experience in
  manufacturing a particular product, and the timing of expenditures in
  anticipation of increased sales.  Inflation has not been a significant
  factor in the results of the Company's operations because the Company's
  price quotations for turnkey jobs are generally good for only 90 days
  and the Company is entitled to pass on certain cost increases under some
  of its turnkey contracts.
  
     The following table sets forth certain operating data as a
  percentage of net sales:
  
<TABLE>
  
  
                                               Year Ended December 31,
                                                                   
                                            1996          1995             1994
                               
                               
  <S>                                       <C>          <C>          <C>                                                   
  Net Sales. . . . . . . . . . . . . . . .  100.0%       100.0%       100.0%
  
  Gross Profit . . . . . . . . . . . . . .    5.1          7.9         10.3
  
  Impairment of fixed assets . . . . . . .    1.3          ---          ---
  
  Selling, general and administrative
     expenses. . . . . . . . . . . . . . .    7.4          6.3          4.6
  
  Operating income (loss). . . . . . . . .   (3.6)         1.6          5.7
  
  Interest expense . . . . . . . . . . . .    (.9)         (.8)         (.3)
  
  Other, net . . . . . . . . . . . . . . .    0.2          0.2          0.2
  
  Income (loss) before income taxes. . . .   (4.3)         1.0          5.6
  
  Income tax expense (benefit) . . . . . .   (1.5)          .3          2.0
  
  Net Income (loss). . . . . . . . . . . .   (2.8)          .7          3.6

</TABLE>
  
  Results of Operations    
  
     1996 Compared to 1995
  
     Net sales.  Net sales are net of discounts and are recognized upon
  shipment of an order to a customer.  Net sales in 1996 increased 15.6%
  to $56,880,067 from $49,220,070 in 1995.  The increase in net sales is
  due primarily to increased material sales associated with electro-mechanical 
  assembly (box-build) to one customer.  The top ten customers in 1996 
  accounted for 75.9 % of total sales volume, as compared to 79.4% in 1995.
  
     Gross profit. Gross profit equals net sales less cost of goods
  sold ( such as salaries, leasing costs, and depreciation charges related
  to production operations) and non-direct, variable manufacturing costs
  (such as supplies and employee benefits).  Gross profit in 1996
  decreased 25.5% from 1995 to $2,900,000.  Gross profit as a percentage
  of net sales for 1996 was 5.1% compared to 7.9% in 1995.  One reason for
  the decline in gross profit is related to restructuring charges of
  $479,029 that were included in cost of goods sold in the third quarter
  of 1996.  Without the restructuring, gross profit would have been
  $3,379,029 or 5.9% of net sales.  These restructuring charges were
  severance expenses related to a decrease in workforce, write down of
  inventory related to changes in the Company's customer mix, and expenses
  related to the reorganization of the manufacturing floor and
  manufacturing process.   
     
     Selling General and Administrative Expenses. Selling, general and
  administrative expenses ("SGA expense") consist primarily of 
  non-manufacturing salaries, sales commissions, and other general expenses. 
  SGA expense for 1996 increased by 35.6% over 1995 to $4,195,784.  The
  increase is due to restructuring charges for severance expenses related
  to reduction of workforce and other expenses related to organizational
  changes in the amount of $922,404 in the third quarter of 1996. 
  Excluding the restructuring charges, the SGA expense would have been
  $3,273,380 an increase of $179,980 or 5.8% over 1995.  This increase was
  due primarily to increased sales commissions and related expenses
  associated with the sales growth from 1995 to 1996 levels as noted
  above.  As a percentage of net sales, SGA expense increased to 7.4% in
  1996 from 6.3% in 1995.  Without the restructuring charges, SGA expenses
  would have been 5.8% of net sales for the year ended 1996.
  
     Impairment of fixed assets.  During the third quarter of 1996, the
  Company incurred a write down associated with impaired assets in the
  amount of $725,869.  Statement of Financial Accounting Standards No.121
  "Accounting for the impairment of long-lived assets and for long-lived
  assets to be disposed of," requires that long-lived assets and certain
  identifiable intangibles to be held and used by an entity be reviewed
  for impairment whenever events or changes in circumstances indicate that
  the carrying amount of an asset may not be recoverable.  Long-lived
  assets and certain identifiable intangibles to be disposed of should be
  reported at the lower of carrying amount or fair value less cost to
  sell.  The Company went through a corporate restructuring in the third
  quarter of 1996 which included a workforce reduction and a change in the
  way product is manufactured which resulted in certain assets no longer
  being used in operations.  Certain software that will no longer be used,
  as well as excess equipment that is now held for sale, were written down
  to fair value in accordance with Statement No. 121.
  
     Operating Income.  Operating income in 1996 decreased 352.3% to a
  loss of $2,021,653 from income of $801,321.  Operating income as a
  percent of sales decreased to (3.6%) in 1996 from 1.6% in 1995.  The
  decrease in operating income was primarily attributable to the
  restructuring charges and impairment of fixed assets  noted above in the
  amount of  $2,127,302.   Excluding the restructuring charges, the
  Company would have had operating income of $105,649 or .2% of net sales
  for 1996. The decrease, excluding the restructuring charges, was related
  to product mix changes and related overhead expenses to put new programs
  in place as well as increased variable selling costs associated with
  higher sales volumes in the first two quarter of 1996.
  
     Interest expense.  Interest expense in 1996 increased 31.7% from
  1995 to $525,854.  Borrowing due to increases in inventory and accounts
  receivable levels is the primary reason for the increase in interest
  expense.
  
     Income tax expense.  The Company's effective income tax rate for
  1996 was 35.4% compared to 26.3% for 1995.  Tax expense for 1995 was
  lower due to certain research expenditures incurred in 1992,  1993, 1994
  for which the Company claimed federal tax credits. The Company is also
  located in a state enterprise zone.  The Company receives state tax
  credits for capital expenditures and increases in the number of Company
  employees. As sales increase, these state tax credits will have a
  relatively smaller effect on the Company's effective income tax rate. 
  
  
     1995 Compared to 1994                                 
  
  
     Net Sales.   Net sales in 1995 decreased 6.3% to $49,220,070 from
  $52,541,842 in 1994.  In 1995, three of EFTC's largest customers
  decreased orders by approximately $13.6 million when compared to 1994
  levels.  One customer moved into a larger facility and decided to
  decrease its  outsourced manufacturing requirements.  The decrease in
  orders from the other two customers was due to the Company's inability
  to be competitive on material pricing because of not being able take
  advantage of volume buying.  In 1994 such two customers accounted for
  approximately $23.6 million of revenues compared to approximately $10
  million in 1995.  The top ten customers in 1995 accounted for 79.4% of
  total sales volume, as compared to 90.2% in 1994.  A significant portion
  of the lost revenues attributable to the decrease in orders was replaced
  with new sources of revenue during 1995.  For example, the Company
  replaced  10 assemblies related to the $13.6 million decrease in orders
  with approximately 140 new assemblies in 1995, thus decreasing the
  Company's dependence on any particular high-volume assemblies and
  lowering the volatility of orders from certain customers.
  
     Gross Profit.     Gross profit in 1995 decreased 27.0% from 1994
  to $3,894,721.  Gross profit as a percentage of net sales for 1995 was
  7.9% , compared to 10.3% in 1994.  The decrease in gross profit is
  attributable to several factors.  First, the company made investments in
  equipment and facilities at the end of 1994 and the beginning of 1995.  
  As a result of such investments, depreciation expense increased by
  $743,579 to $1,716,841 in 1995 from $973,262 in 1994.   The decrease in
  customer orders, as described above,  negatively impacted gross profit
  in 1995.  Also, during the course of the year, material shortages 
  created upward pressure on prices and impacted  gross margins.
  
  
     Selling, General and Administrative Expenses.  Selling, general
  and administrative expenses ("SGA expense") consist primarily of 
  non-manufacturing salaries, sales commissions and other general expenses. 
  SGA expense for 1995 increased by 25.2% over 1994 to $3,093,400.  The
  increase is primarily the result of non-recurring costs related to
  corporate re-structuring in the third quarter, consulting fees related
  to  corporate reengineering processes, increased selling expenses
  related to a new  sales office in Texas  and a new sales representative
  in California, and increased administrative expenses related to being a
  publicly-held company.  As a percentage of net sales, SGA expense
  increased to 6.3% in 1995 from 4.6% in 1994.
  
     Operating Income.  As a result of the factors described above,
  operating income in 1995 decreased 73.5% from 1994 to $801,321. 
  Operating income as a percentage of net sales decreased from 5.7% in
  1994 to 1.6% in 1995.
  
     Interest Expense.  Interest expense in 1995 increased 56.1% from
  1994 to $399,389.  The increase was attributable to the Company's use of
  bank debt to fund increases in inventory  and accounts receivable which
  were related to the previously mentioned change in product mix.  Also,
  the Company acquired  approximately $2.5 million in property and
  equipment in 1995 which was financed with  short term debt.  As
  discussed below under " Liquidity and Capital Resources", the Company
  completed a sale-leaseback transaction in December of 1995. The Company
  used  the proceeds of the sale leaseback transaction to retire $3.3
  million of short term debt.
  
     Income Tax Expense.  The Company's effective income tax rate for
  1995 was 26.3% compared to 35.2% for 1994.  The decrease in the
  effective tax rate is primarily attributable to certain research
  expenditures incurred in 1992, 1993, 1994 and 1995 for which the Company
  claimed federal tax credits.  Also, the Company's facilities are located
  in a state enterprise zone.   The Company receives state tax credits 
  for capital expenditures and increases in the number of Company
  employees. 
  
          Quarterly results.  The following table presents unaudited
  quarterly operating data for  the most recent eight quarters for the two
  years ended December 31,1996.  The information includes all adjustments,
  consisting only of normal recurring adjustments, that the Company
  considers necessary for a fair presentation thereof.
  
     Although management does not believe that the Company's business
  is materially affected by seasonal factors, the Company's sales and
  earnings may vary from quarter to quarter, depending primarily upon the
  timing of customer    
  orders and product mix.  Therefore, the Company's operating results for
  any particular quarter may not be indicative of the results for any
  future quarter or year.
  
<TABLE>
    
                                                          Quarter Ended
                               
                                    Mar 31,    Jun 30,     Sep 30,    Dec 31,    Mar 31,    Jun 30,    Sep 30,    Dec 31,
                                    1995       1995        1995       1995       1996       1996       1996       1996

                                                                (In thousands, except per share data)
                               
  <S>                                <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>   
  Net Sales. . . . . . . . . . .     $12,119    $12,330    $11,692    $13,080    $15,003    $15,941    $13,632    $12,304
  Cost of goods sold . . . . . .      11,173     11,009     11,072     12,072     14,403     15,177     13,096     11,304 
  
  Gross profit . . . . . . . . .         946      1,321        620      1,008        600        764        536     1,000
  Impairment of fixed assets . .         -          -          -          -          -          -          726       -  
  Selling, general and
     administrative expenses . .         724        790        844        735        812        845      1,747       792
  
  Operating income (loss). . . .         222        531       (224)       273       (212)       (81)    (1,937)      208  
  Interest expense and other,
     net . . . . . . . . . . . .         (32)       (70)       (90)      (129)      (102)      (123)      (141)      (77)
  
  Income (loss) before income
     taxes . . . . . . . . . . .         190        461       (314)       144        (314)     (204)    (2,078)      131
  Income tax expense
  (benefit). . . . . . . . . . .          65        161       (101)         2        (126)      (75)      (719)       48
  
  Net income (loss). . . . . . .     $   125    $   300    $  (213)   $   142      $ (188)    $ (129)   ($1,359)  $   83     
  
  Income (loss) per common and
     common equivalent share. . .    $   .03      $   .08         $  (.05)       $   .04      $(.05)     $ (.03)  $ (.34)    $  .02
  
  Weighted average shares
     outstanding . . . . . . . .       3,947        3,973           3,961          3,953       3,958       3,955   3,968    3,942

</TABLE>
  
  
  Liquidity and Capital Resources
  
     At December 31, 1996, working capital totaled $8,413,069 compared
  to $9,867,843 at December 31,1995, a decrease of $1,454,774 or 14.7%. 
  Working capital in 1995 increased due to  a sale-leaseback transaction
  which closed in December  1995, whereby the Company sold equipment at a
  sales price of $3,678,014 and retired short-term debt in the amount of
  $3,310,000.  The subsequent decrease in working capital in 1996 is
  attributable primarily to the purchase of fixed assets and long-term
  debt retirement.
  
     Cash provided by operations in 1996 was $35,667 compared to cash
  used by operations of  $933,589 in 1995.  Cash used by  operations in
  1994 was $697,176.  Accounts receivable decreased 22.4% to $3,866,991 at
  December 31, 1996 from $4,982,450 at December 31, 1995.  Receivable
  turns (i.e. net sales divided by year-end accounts receivable) for 1996
  and 1995 were 14.7 and 9.9, respectively.    Inventories decreased 7.2%
  to $9,146,505 on December 31, 1996 from $9,859,414 at December 31, 1995. 
  Inventory turns (i.e. annualized cost of sales divided by current
  inventory) for 1996 and 1995 were 5.9 and 4.6, respectively.  Inventory
  turns have increased  primarily because of new projects that were being
  introduced towards the end of 1995.  Inventory increases  in the early
  stages of new turnkey business which may create delays and decrease the
  turning of inventory until the new assemblies are in full production.
  
     The Company used cash from investing activities of $2,028,865 in
  1996, compared to providing cash of $1,265,525 in 1995. The Company used
  cash from investing activities in 1994 of $9,035,395. The Company used
  cash to purchase capital equipment totally $2,374,403 in 1996 compared
  with $2,473,819 in 1995.  In 1995 the Company received cash from the
  sale of equipment primarily from the sale-leaseback transaction
  mentioned above of $3,739,344.    In 1994 capital equipment consisting
  primarily of manufacturing and computer equipment  in the amount of
  $5,346,016 and $3,689,379 for the construction of a new manufacturing
  facility and  an additional parcel of land to allow for future expansion
  was purchased.  The capital equipment was purchased with proceeds from
  the Company's initial public offering.   
  
      On October 2, 1996, the Company renegotiated its revolving line
  of credit in the amount of $10,000,000 with a maturity date of June 5,
  1997.  The amount outstanding was $1,800,000 at December 31,1996. 
  Interest on borrowings under this credit facility accrues at the Bank
  One Prime rate plus .25% (8.5% at December 31.1996).  The credit
  facility was collateralized by substantially all of the Company's
  assets, other than real estate.   The Company also has a term loan that
  is secured by deeds of trust on both of the Company's buildings and
  land. The term of the loan is seven years with a 20 year amortization. 
  Principal payments of $85,000 are semi-annual with monthly payments of
  interest.  The loan floats at the Citibank prime rate plus 1% (9.25% at
  December 31, 1996) with a cap of 9.5%.  The rate is adjusted annually on
  September 15th.  The balance due on the loan was $3,060,000 at December
  31,1996.
  
     Subsequent to year end 1996, on February 24,1997, the Company
  renegotiated its revolving line of credit, negotiated a 90 day bridge
  loan and incurred additional equipment debt in conjunction with the
  merger of Current Electronics, Inc. and the acquisition of Current
  Electronics (Washington), Inc.  The revolving line of credit was
  increased to $15,000,000 and has a maturity date of June 5,1998. 
  Interest on this credit facility accrues at the Bank One Prime rate plus
  .25% (8.5% on February 24,1997).  The credit facility is collateralized
  by substantially all of the Company's assets, other than real estate. 
  The loan agreement from this facility contains restrictive covenants
  relating to capital expenditures, borrowings and payment of dividends,
  and certain financial statement ratios.  The credit facility may be
  withdrawn/canceled at the bank's option under certain conditions such as
  default or in the event the Company experiences a material negative
  change in financial condition. The short term bridge facility was for
  $4,900,000 and has a maturity date of May 24,1997. The interest rate
  accrues at the Bank One Prime rate plus .25% (8.5% on February 24,1997).
  The proceeds from this loan were used to pay the cash portion of the
  consideration to be paid in the merger and acquisition noted above. The
  Company has engaged in discussions for the issuance of convertible debt
  or preferred stock, the proceeds of which would be used to repay the
  bridge facility.  The bridge facility was conditioned on the Company's
  receipt of a third party committment for the purchase of the convertible
  debt or preferred stock which has been obtained.  The Company also
  issued a $1,800,000 five year note with a maturity date of April 5,
  2002. The interest rate will be 8.95% per annum.    The Company will pay
  this loan in 60 regular monthly payments of $36,983 and one final
  payment of $41,983.  These payments  include both principal and
  interest.  The proceeds of this loan were used to pay off equipment debt
  of Current Electronics, Inc as per the merger agreement.
  
     The Company may require additional capital to finance enhancements
  to, or expansions of, its manufacturing capacity or to finance mergers
  and acquisitions in accordance with its business strategy.  Management
  believes that the need for working capital will continue to grow at a
  rate generally consistent with the growth of the Company's operation. 
  The Company may seek additional funds, from time to time, through public
  or private debt or equity offerings, bank borrowing, or leasing
  arrangements, although no assurance can be given that financing will be
  available on terms acceptable to the Company
  
  
  Item 8.  Financial Statements and Supplementary Data.
  
     The Company's financial statements and notes thereto are included
  elsewhere in this report on Form 10-K, commencing on page F-1.
  
  
  Item 9. Changes in and  Disagreements With Accountants on Accounting and
  Financial Disclosure.
  
     None.
  
  
  
                              PART III
  
  Item 10.  Directors and Executive Officers of the Registrant.
  
     The information concerning the directors and executive officers of
  the Company is incorporated herein by reference to the section entitled
  PROPOSAL 1- ELECTION OF DIRECTORS in the Company's definitive Proxy
  Statement with respect to the Company's Annual Meeting of Shareholders
  (the "Proxy Statement").
  
  Item 11.  Executive Compensation.
  
     The section labeled "Compensation of Directors and Executive
  Officers" appearing in the Company's Proxy Statement is incorporated
  herein by reference, except for such information as need not be
  incorporated by reference under rules promulgated by the Securities and
  Exchange Commission.
     
  Item 12.  Security Ownership of Certain Beneficial Owners and
  Management.
  
     The section labeled "Security Ownership of Directors and Executive
  Officers and Certain Beneficial Owners" appearing in the Company's Proxy
  Statement is incorporated herein by reference.
  
  Item 13.  Certain Relationships and Related Transactions.
  
      The section labeled "Certain Relationships and Related
  Transactions" appearing in the Company's Proxy Statement is incorporated
  herein by reference.                       
  
                        Part IV
  
  Item 14.  Exhibits, Financial Statement Schedules, and Reports on Form
  8-K.
  
  (a)     1.   Financial Statements- The financial statements listed in the
                 index to Financial Statements, which appears on page F-1,
                 are filed as part of this annual report.
  
     2.   Exhibits- The following exhibits are filed as part of this
            annual report.    
  
  Exhibits.
     2.1(5)  --     Agreement and Plan of Merger among Electronic
                      Fab Technology Corp., Current Merger Corp., and
                      Current Electronic, Inc., dated as of January
                      15, 1997.
  
     2.2(5)  --     Share Purchase Agreement, dated as of January
                      15, 1997, among the Company and the shareholders
                      of Current Electronics ( Washington), Inc.
  
     3.1(1)  --     Amended and Restated Articles of Incorporation
                      of the Company filed December 22, 1993.
  
     3.2(1)  --     Articles of Amendment to the Articles of
                      Incorporation of the Company.
  
     3.3(1)  --     Amended and Restated Bylaws of the Company.
  
     4.1(1)  --     The Amended and Restated Articles of
                      Incorporation, Bylaws, and Articles of Amendment
                      to the Articles of Incorporation of the Company
                      are included as Exhibits 3.1, 3.2 and 3.3,
                      respectively.
  
     10.1    --     Electronic Fab Technology Corp. Equity Incentive
                      Plan.
  
     10.2    --     Electronic Fab Technology Corp. Stock Option
                      Plan for Non-Employee Directors.
  
     10.3(1) --     1993 Incentive Stock Option Plan.
  
     10.4(1) --     1989 Stock Option Plan.
  
     10.5    --     Form of Business Loan Agreement dated February 
                      24, 1997, and Form of Commercial Security
                      Agreement dated February 24,1997 between the
                      Company and Bank One, Greeley, N. A., and
                      Promissory Notes dated February  24, 1997
                      payable to Bank One Greeley, N. A., in the
                      principal amounts of $15,000,000, $4,900,000 and
                      $1,800,000.
  
     10.6(1) --     Master Equipment Lease Agreement dated June 7,
                      1993, between the Company and KeyCorp Leasing
                      Ltd.
  
     10.6A(1)  --   Amendment, dated January 24, 1994 to Master
                      Equipment Lease Agreement between the Company
                      and KeyCorp Leasing Ltd.
  
     10.6B(1)  --   Amendment, dated August 30, 1993, to Master
                      Equipment Lease Agreement between the Company
                      and KeyCorp Leasing Ltd.
  
     10.6C(2)  --   Amendment dated January 27, 1995, to Master
                      Equipment Lease dated June 7, 1993, between the
                      Company and KeyCorp Leasing Ltd.
  
     10.7(1) --     Form of Employment Agreement entered into
                      between the Company and each of  Stuart Fuhlendorf, 
                      and George Lawrence.
  
     10.8(3) --     1995 EFTC Management Bonus Plan
  
     10.9(3)   --   1996 Senior Staff Management Bonus Plan.
  
     10.10(3)  --   1996 EFTC Executive Officer Bonus Plan.
  
     10.11(1)  --   Form of Registration Rights Agreements between
                      the Company and the shareholders of the Company
                      party thereto.
  
     10.12(5)  --   Registration Rights Agreement, dated as of
                      February 24, 1997, among the Company, Charles E. 
                      Hewitson, Matthew J. Hewittson, Gregory C. Hewitson
                      and certain other parties. 
  
     10.13(4)  --   Master Equipment Lease Agreement dated December
                      6, 1995, between the Company and KeyCorp Leasing
                      Ltd.
  
     10.14     --   Form of Consulting Agreement entered into by the
                      Company and each of Charles E. Hewitson, Matthew
                      J. Hewitson and Gregory C. Hewitson.
  
     10.15(5)  --   Indemnification Agreement, dated as of February
                      24,1997, among certain shareholders of Current
                      Electronics, Inc., the shareholders of Current
                      Electronics (Washington), Inc. and the Company.
  
     10.16     --   Employment Agreement entered into between the
                      Company and Jack Calderon.
  
     10.17     --   Consulting Agreement between the Company and
                      Gerald J. Reid.   
          
     23.1    --     Consent of KPMG Peat Marwick LLP.
  
     24.1    --     Form of Powers of Attorney.
  
 
________________________________________________________________________
  
  (1)Incorporated by reference the Company's Registration Statement on
  Form SB-2 under the Securities Act of 1933, File No. 33-73392-D.
  
  (2)Incorporated by reference the Company's 10-KSB for the fiscal year
  ended December 31,1994.
  
  (3)Management compensation plan.
  
  (4)Incorporated by the Company's 10-K for the fiscal year ended December
  31,1995.
  
  (5)Incorporated by reference to the Company's Current Report on Form 8-K, 
     dated March 5, 1997.
  
  
  
  
  
  
                          SIGNATURES
                                
     Pursuant to the requirements of Section 13 or 15(d) of the
  Securities Exchange Act of 1934, the Registrant has duly caused this
  Report to be signed on its behalf by the undersigned, thereunto duly
  authorized, in the City of Greeley, State of Colorado, on this 27th day
  of March, 1997.
  
  
                    ELECTRONIC FAB TECHNOLOGY CORP.,
                    a Colorado corporation
  
  
  
                          Stuart W. Fuhlendorf                       
                              Stuart W. Fuhlendorf
                         Chief Financial Officer
  
     Pursuant to the requirements of the Securities Exchange Act of
  1934 , the Registrant has caused this Report to be signed by the
  following persons in the capacities and on the dates indicated.
  
  
  
           Signature                   Position Held                Date
                                    With the Registrant
  
              *                     Chairman of the               March 27, 1997
       Gerald J. Reid                 Board of Directors
                               
                              
              *                     President and Director        March 27, 1997
        Jack Calderon
                               
                               
              *                     Director                     March 27, 1997 
     Lloyd A. McConnell 
                               
                               
              *                     Chief Financial Officer and  March 27, 1997
       Stuart W. Fuhlendorf           Director
                               
                               
              *                     Controller (Principal         March 27, 1997
      Brent L. Hofmeister             Accounting Officer)
                               
                               
              *                     Director                      March 27, 1997
        Lucille A. Reid
                               
                               
              *                     Director                      March 27, 1997
        David W. Van Wert
                               
                               
               *                    Director                      March 27, 1997
         Darrayl Cannon
                               
                               
               *                    Director                      March 27, 1997
        Masoud S. Shirazi
                               
                               
               *                    Director                      March 27, 1997
         Robert McNamara
                               
                               
               *                    Director                      March 27, 1997
         James A. Doran
                               
                               
               *                    Director                      March 27, 1997
       Richard L. Monfort
                               
                               
               *                    Director                      March 27, 1997
         Charles Hewitson
                               
                               
               *                    Director                      March 27, 1997
        Gregory Hewitson
                               
                               
               *                    Director                      March 27, 1997
        Matthew Hewitson
                               
                               
     *  By:   Stuart W. Fuhlendorf        
              Stuart W. Fuhlendorf   
              Attorney-in-fact            
                               
                               
                               <PAGE>
                              
                      
                                  
                                  
                                  
                                  
                                  
                                  
                                   Electronic Fab Technology Corp.
                                   
                                        Financial Statements
                                  
                                      December 31, 1996 and 1995
                                  
                                  
                             (With Independent Auditors' Report Thereon)
                                   
  
  
    <PAGE>
  ELECTRONIC FAB TECHNOLOGY CORP.
  
  
  
  
                Index to Financial Statements
                                                                          
  
  
  Independent Auditors' Report . . . . . . . . . . . . .             F-2
  
  Balance Sheets   December 31, 1996 and 1995  . . . . .             F-3
  
  Statements of Operations   Years Ended December 31, 1996,
      1995 and 1994. . . . . . . . . . . . . . . . . . .             F-5
  
  Statements of Shareholders' Equity   Years Ended December 31, 1996,
     1995 and 1994 . . . . . . . . . . . . . . . . . . .             F-6
  
  Statements of Cash Flows   Years Ended December 31, 1996,
      1995 and 1994     . . . . . . . . . . . . . . . . . . .        F-7
  
  Notes to Financial Statements   . . . . . . . . . . . .            F-9
  
  

  <PAGE>
                Independent Auditors' Report
                                
  
  
  
  
  The Board of Directors
  Electronic Fab Technology Corp.:
  
  
  We have audited the accompanying balance sheets of Electronic Fab
  Technology Corp. as of December 31, 1996 and 1995, and the related
  statements of operations, shareholders' equity and cash flows for each of
  the years in the three-year period ended December 31, 1996.  These
  financial statements are the responsibility of the Company's management. 
  Our responsibility is to express an opinion on these financial statements
  based on our audits.
  
  We conducted our audits in accordance with generally accepted auditing
  standards.  Those standards require that we plan and perform the audit to
  obtain reasonable assurance about whether the financial statements are
  free of material misstatement.  An audit includes examining, on a test
  basis, evidence supporting the amounts and disclosures in the financial
  statements.  An audit also includes assessing the accounting principles
  used and significant estimates made by management, as well as evaluating
  the overall financial statement presentation.  We believe that our audits
  provide a reasonable basis for our opinion.
  
  In our opinion, the financial statements referred to above present fairly,
  in all material respects, the financial position of Electronic Fab
  Technology Corp. as of December 31, 1996 and 1995, and the results of its
  operations and its cash flows for each of the years in the three-year
  period ended December 31, 1996, in conformity with generally accepted
  accounting principles.
  
  
  
  
  
                                KPMG Peat Marwick LLP
  
  
  Denver, Colorado
  January 20, 1997, except as
         to note 12, which is as of
         February 24, 1997
  

    <PAGE>
ELECTRONIC FAB TECHNOLOGY CORP.
<TABLE>
Balance Sheets

December 31, 1996 and 1995
<CAPTION>                                                               


Assets (Note 3)                                             1996            1995

<S>                                                   <C>              <C>      
Current assets:
  Cash and cash equivalents                           $    123,882         481,086 
  Trade receivables, less allowance for doubtful        
    accounts of $20,000 in 1996 and 1995                 3,866,991       4,982,450 
  Inventories (note 2)                                   9,146,505       9,859,414 
  Income taxes receivable                                  616,411          74,922 
  Deferred income taxes (note 5)                           427,059         145,538 
  Prepaid expenses and other                                69,196         382,928 

       Total current assets                             14,250,044      15,926,338 

Property, plant and equipment (note 3):
  Land                                                     662,098         662,098 
  Building                                               4,889,467       4,874,571 
  Machinery and equipment                                5,084,114       5,870,194 
  Furniture and fixtures                                 1,756,588       1,433,113 
                                                        12,392,267      12,839,976 
  Less accumulated depreciation                         (3,872,443)     (3,949,163)

       Net property, plant and equipment                 8,519,824       8,890,813 

Other assets, net                                           99,773         167,148 

                                                      $ 22,869,641      24,984,299 

</TABLE>
                                                              (Continued)<PAGE>
<TABLE>

ELECTRONIC FAB TECHNOLOGY CORP.

Balance Sheets, Continued
<CAPTION
                                                               


Liabilities and Shareholders' Equity                   1996                1995

<S>                                                  <C>                 <C>
Current liabilities:
  Line of credit with bank (note 3)                  $1,800,000              -
  Accounts payable                                    2,320,871           4,986,757
  Accrued compensation payable                          682,881             529,636
  Other accrued expenses                                767,803             372,102
  Current portion of long-term debt (note 3)            170,000             170,000

       Total current liabilities                      5,741,555           6,058,495

Long-term debt, less current portion (note 3)         2,890,000           3,060,000

Deferred income taxes (note 5)                          315,859             356,606

Shareholders' equity (note 7):
 Preferred stock, $.01 par value.  Authorized       
    5,000,000 shares; none issued or outstanding           -                   -
 Common stock, $.01 par value.  Authorized      
    45,000,000 shares; issued and outstanding     
    3,942,660 and 3,940,860 shares in 1996 and 1995      39,427              39,409
 Additional paid-in capital                          10,187,180          10,181,204
 Retained earnings                                    3,695,620           5,288,585

       Total shareholders' equity                    13,922,227          15,509,198

 Commitments and contingencies (notes 4 and 8)
                                                   $ 22,869,641          24,984,299

<FN> 
<F1>
See accompanying notes to financial statements.
</FN>
</TABLE>




ELECTRONIC FAB TECHNOLOGY CORP.
<TABLE>
Statements of Operations

Years Ended December 31, 1996, 1995 and 1994
<CAPTION>                                                                         




                                             1996             1995            1994
<S>                                      <C>              <C>             <C>
Net sales                                $ 56,880,067     49,220,070      52,541,842 
Cost of goods sold (note 10)               53,980,067     45,325,349      47,123,066 

   Gross profit                             2,900,000      3,894,721       5,418,776 

Selling, general and administrative
 expenses (note 10)                         4,195,784      3,093,400       2,395,164 
Impairment of fixed assets (note 10)          725,869          -               - 
            
   Operating income (loss)                 (2,021,653)       801,321       3,023,612 

Other income (expense):
 Interest expense                            (525,854)      (399,389)       (175,400)
 Interest income                                5,624          3,700          78,933 
 Gain on sale of assets                        50,012         49,533           - 
 Other, net                                    26,792         25,491          31,187 
                                             (443,426)      (320,665)        (65,280)

     Income (loss) before income taxes     (2,465,079)       480,656       2,958,332 

Income tax expense (benefit) (note 5)        (872,114)       126,518       1,041,415 

     Net income (loss)                   $ (1,592,965)       354,138       1,916,917 

Income (loss) per share                          (.40)           .09             .53 

Weighted average shares outstanding         3,942,139      3,962,261       3,626,845 

<FN>
<F1>

See accompanying notes to financial statements.
</FN>
</TABLE>

<PAGE>
ELECTRONIC FAB TECHNOLOGY CORP.
<TABLE>
Statements of Shareholders' Equity

Years Ended December 31, 1996, 1995 and 1994
                                                                               
<CAPTION>                                                                            
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                               Additional                            Total
                                   Common stock                  paid-in           Retained        shareholders'
                                Shares        Amount             capital           earnings          equity

<S>                           <C>            <C>             <C>                  <C>                 <C>          
Balances at
  January 1, 1994             2,368,500      $ 23,685            505,316           3,017,530           3,546,531  

Initial public offering, 
  net of offering costs
  of $1,320,749               1,419,660        14,197          9,312,700               -               9,326,897 
Stock options exercised         102,950         1,029            198,019               -                 199,048 
Net income                        -             -                  -               1,916,917           1,916,917 

Balances at
  December 31, 1994           3,891,110        38,911         10,016,035           4,934,447          14,989,393 

Stock options exercised          49,750           498            165,169               -                 165,667      
Net income                        -             -                  -                 354,138             354,138 

Balances at
  December 31, 1995           3,940,860        39,409         10,181,204           5,288,585          15,509,198 

Stock options exercised           1,800            18              5,976               -                   5,994    
  Net loss                          -             -                  -            (1,592,965)         (1,592,965)

Balances at
  December 31, 1996           3,942,660      $ 39,427         10,187,180           3,695,620          13,922,227  

<FN>
<F1>

See accompanying notes to financial statements.
</FN>
</TABLE>


<PAGE>
ELECTRONIC FAB TECHNOLOGY CORP.
<TABLE>
Statements of Cash Flows

Years Ended December 31, 1996, 1995 and 1994
<CAPTION>                                                                                       
       



                                                                1996              1995            1994            
<S>                                                         <C>               <C>             <C>        
Cash flows from operating activities:
 Net income (loss)                                          $(1,592,965)         354,138       1,916,917 
 Adjustments to reconcile net income (loss) to net
   cash provided (used) by operating activities:
     Depreciation                                             1,281,628         1,716,841        973,262 
     Deferred income tax expense (benefit)                     (322,268)          (15,745)       121,385 
     Loss (gain) on sale and impairment of
       fixed assets, net                                      1,101,475           (49,533)         -
     Deferred gain on sale leaseback                             16,751          (106,088)         -
     Changes in operating assets and liabilities:
       Trade receivables                                      1,115,459        (1,123,927)    (1,378,102)
       Inventories                                              712,909        (2,380,040)    (2,839,405)
       Income taxes receivable                                 (541,489)          (10,267)       (64,655)
       Prepaid expenses and other                               313,732          (333,461)          (302)
       Other assets                                              67,375           (96,971)       147,640 
       Accounts payable and accrued expenses                 (2,116,940)        1,111,464        426,084 

         Net cash provided (used) by
           operating activities                                   35,667         (933,589)      (697,176)

Cash flows from investing activities:
  Purchase of property, plant and equipment                   (2,374,403)      (2,473,819)     (9,035,395)
  Proceeds from sale of equipment                                345,538        3,739,344          -
        Net cash provided (used) by
          investing activities                                (2,028,865)       1,265,525     (9,035,395)

Cash flows from financing activities:
  Stock options exercised                                          5,994          165,667        199,048 
  Issuance of common stock                                         -                -          9,326,897 
  Net borrowings (payments) on notes payable                   1,800,000            -           (300,000)
  Proceeds from long-term debt                                     -                -          3,400,000 
  Principal payments on long-term debt                          (170,000)        (170,000)    (2,783,770)

        Net cash provided (used) by
          financing activities                                 1,635,994           (4,333)     9,842,175 

        Increase (decrease) in cash and
          cash equivalents                                      (357,204)         327,603        109,604 

Cash and cash equivalents:
  Beginning of year                                              481,086          153,483         43,879 

  End of year                                                $   123,882          481,086        153,483 
</TABLE>

        (Continued)


<PAGE>
ELECTRONIC FAB TECHNOLOGY CORP.
<TABLE>
Statements of Cash Flows, Continued
<CAPTION>                                                                               


                                                                    

 
                                                             1996               1995              1994
 
<S>                                                     <C>                  <C>             <C>
Supplemental disclosures of cash flow information - 
  Cash paid during the period for:
    Interest                                             $   517,502         387,045           238,884

    Income taxes paid (refunded), net                    $    (8,010)        152,530         1,596,475

<FN>
<F1>
See accompanying notes to financial statements.
</FN>
</TABLE>


<PAGE>
  ELECTRONIC FAB TECHNOLOGY CORP.
  
  Notes to Financial Statements
  
  December 31, 1996 and 1995
                                                                            
  
  
  (1)  Business and Significant Accounting Policies
  
       (a)  Business
    
            Electronic Fab Technology Corp. (the "Company"), is an
              independent provider of electronic manufacturing services to
              original equipment manufacturers in the computer peripherals,
              medical equipment, industrial controls, telecommunications
              equipment and electronic instrumentation industries
              predominantly in the Colorado/Rocky Mountain region.  The
              Company's manufacturing services consist of assembling complex
              printed circuit boards (using both surface mount and pin-through-
              hole technologies), cables, electro-mechanical devices
              and finished products.  The Company also provides computer
              aided testing of printed circuit boards, subsystems and final
              assemblies.
    
        (b)  Significant Accounting Policies
         
             Use of Estimates
         
             The preparation of financial statements in conformity with
             generally accepted accounting principles requires management
             to make estimates and assumptions that affect the reported
             amounts of assets and liabilities and disclosure of contingent
             assets and liabilities at the date of the financial statements
             and the reported amounts of revenues and expenses during the
             reporting period.  Actual results could differ from those
             estimates.
         
             Cash and Cash Equivalents
         
             Cash and cash equivalents include highly liquid investments
             with original maturities of three months or less.
         
             Inventories
         
             Inventories are stated at the lower of average cost or market,
             using weighted average cost.
         
             Property, Plant and Equipment
         
             Property, plant and equipment are stated at cost.  Maintenance
             and repairs are charged to expense as incurred.  Depreciation
             is computed using straight-line and accelerated methods based
             on estimated useful lives ranging from 31 to 39 years for
             buildings and 5 to 10 years  for furniture and fixtures and
             machinery and equipment.
         
             Impairment of Long-Lived Assets
         
             The Company adopted the provisions of SFAS No. 121, Accounting
             for the Impairment of Long-Lived Assets and for Long-Lived
             Assets to Be Disposed Of, effective January 1, 1996.  This
             Statement requires the long-lived assets and certain
             identifiable intangibles be reviewed for impairment whenever
             events or changes in circumstances indicate that the carrying
             amount of an asset may not be recoverable.  Recoverability of
             assets to be held and used is generally measured by a
             comparison of the carrying amount of an asset to future net
             cash flows to be expected to be generated by the asset.  If
             such assets are considered to be impaired, the impairment to
             be recognized is measured by the amount by which the carrying
             amounts of the assets exceed the fair values of the assets. 
             Adoption of this statement did not have a material impact on
             the Company's financial position, results of operations or
             liquidity.  In connection with the Company's restructuring in
             August 1996, the Company recorded a provision for impairment
             of certain fixed assets of $725,869.
  
             Income Taxes
  
             Deferred tax assets and liabilities are recognized for the
             future tax consequences attributable to differences between
             the financial statement carrying amounts of existing assets
             and liabilities and their respective tax bases and operating
             loss and tax credit carryforwards.  Deferred tax assets and
             liabilities are measured using enacted tax rates expected to
             apply to taxable income in the years in which those temporary
             differences are expected to be recovered or settled.  The
             effect on deferred tax assets and liabilities of a change in
             tax rates is recognized in income in the period that includes
             the enactment date.
    
            Revenue Recognition
    
            The Company recognizes revenue upon shipment of an order to a
              customer.
    
            Income (Loss) Per Share
    
            Income per share is computed using weighted average number of
              shares outstanding during the year and, if significant, common
              equivalent shares.  Common equivalent shares consist of stock
              options, determined using the treasury stock method, and are
              not significant in 1994 and 1995 and are antidilutive in 1996.
            
            Stock-based Compensation
  
            The Company accounts for its employee stock compensation plans
              as prescribed under Accounting Principles Board (APB) Opinion
              No. 25, Accounting for Stock Issued to Employees.  Pro forma
              disclosures of net income and earnings per share required by
              Statement of Financial Accounting Standards No. 123 (SFAS
              123), Accounting for  Stock-based Compensation, are included
              in note 6 to the financial statements.
  
  ELECTRONIC FAB TECHNOLOGY CORP.
  
  Notes to Financial Statements, Continued
                                                                          
  
  (2)  Inventories
         
       Inventories at December 31 are summarized as follows:
  
<TABLE>
  
  
                                                               1996            1995
  
         <S>                                                <C>              <C>                      
         Purchased parts and completed subassemblies        $ 7,640,712      8,051,648
         Work-in-process                                      1,256,570      1,807,766
         Finished goods                                         249,223          -
                                                            $ 9,146,505      9,859,414
</TABLE>
  
  
  (3)  Debt

       The Company has a revolving line of credit with a bank which provides
       for borrowings up to the lesser of $10,000,000 or the borrowing base,
       as defined in the line of credit agreement.  At December 31, 1996, the
       borrowing base was $7,255,831.  The line of credit is secured by
       substantially all of the Company's assets, including inventories,
       trade receivables, furniture, fixtures, machinery and equipment. 
       Interest is at the bank's prime rate plus .25% (8.50% at December 31,
       1996).  Subsequent to December 31, 1996, the line of credit was
       renegotiated as discussed in note 12.
         
       The line of credit agreement contains restrictive covenants relating
       to capital expenditures, borrowings, and payment of dividends and
       provides that the agreement may be withdrawn or cancelled at the
       bank's option under certain conditions such as default or in the event
       the Company experiences a material negative change in its financial
       condition.
         
       Long-term debt at December 31 consists of the following:
         
<TABLE>
  
                                                                 1996           1995
  
  <S>                                                        <C>                 <C>
  Note payable to a bank with interest at 1% 
    above Citibank's prime rate adjusted annually, 
    (initial rate of 7.25% through September 15, 1996,
    and 9.25% at December 31, 1996).  Interest is 
    payable monthly with semi-annual principal payments 
    of $85,000, maturing September 15, 2001, 
    collateralized by a first deed of trust on 
    buildings and land                                         $ 3,060,000       3,230,000 
  
  Less current portion                                            (170,000)       (170,000)
  
     Long-term debt, less current portion                      $ 2,890,000       3,060,000 

</TABLE>
  
  
  ELECTRONIC FAB TECHNOLOGY CORP.
  
  Notes to Financial Statements, Continued
  
                                                                            
  
       Annual maturities of long-term debt are as follows at December 31,
         1996:
    
  
      1997                             $   170,000
      1998                                 170,000
      1999                                 170,000
      2000                                 170,000
      2001                               2,380,000
  
                                       $ 3,060,000
  
  
      This credit facility may be also withdrawn or cancelled at the
      bank's option under certain conditions such as default or in the
      event the Company experiences a material negative change in its
      financial condition.
  
  (4)    Leases
         
         The Company has noncancelable operating leases for equipment that
         expire in various years through 2002.  Lease expense on these
         operating leases amounted to $1,215,623, $578,958, and $736,153 for
         the years ended December 31, 1996, 1995 and 1994, respectively.
         
         At December 31, 1996, future minimum lease payments for operating
         leases are as follows:
         
  

            1997                         $ 1,225,670
            1998                           1,203,447
            1999                           1,181,259
            2000                             881,586
            2001                             771,320
            Thereafter                       152,680
  
                                         $ 5,415,962
  
  
  (5)  Income Taxes
         
       Income tax expense (benefit) for the years ended December 31 is
       comprised of the following:
         
<TABLE>
  
  
                                          1996         1995         1994
  
  <S>                                  <C>           <C>           <C>
  Current:
     Federal                           $(549,846)     142,263      880,392
     State                                 -            -           39,638
                                        (549,846)     142,263      920,030
  
  Deferred:
     Federal                            (196,440)     (13,635)     105,115
     State                              (125,828)      (2,110)      16,270
                                        (322,268)     (15,745)     121,385
  
                                       $(872,114)     126,518    1,041,415
</TABLE>
  
  
    <PAGE>
ELECTRONIC FAB TECHNOLOGY CORP.
  
  Notes to Financial Statements, Continued
  
                                                                              
         
       Actual income tax expense (benefit) for the years ended December 31
       differs from the amounts computed using the statutory tax rate of
       34% as follows:
  
<TABLE>
  
                                             1996           1995           1994
  
  <S>                                     <C>             <C>          <C>
  Computed tax at the expected
    statutory rate                        $(838,126)      163,423       1,005,833 
  Increase (decrease) in income 
    taxes resulting from:
      Research and development
       tax credits                            -            (40,000)         -
      State tax, net of federal
       benefit and state tax credits        (83,046)        (1,392)        36,900 
      Other, net                             49,058          4,487         (1,318)
  
         Income tax expense (benefit)     $(872,114)       126,518      1,041,415 
  
</TABLE>
  
   The tax effects of temporary differences that give rise to
   significant portions of the deferred tax assets and deferred tax
   liabilities are presented below:   
  
<TABLE>
                                                             1996             1995
  
  <S>                                                      <C>                <C>  
  Deferred tax assets-current:
    Accrued vacation                                       $  76,064            83,375
    Restructuring charges                                    186,434             - 
    Deferred gain on sale leaseback                           36,088            39,571
    State net operating loss carryforward, expires 2011       95,420             -
    Other                                                     33,053            22,592
  
          Total deferred tax assets   current              $ 427,059           145,538
  
  Deferred tax liability   noncurrent:
      Accelerated depreciation of property, plant
       and equipment                                       $(315,859)         (356,606)

</TABLE>
  
  
       Management believes that it is more likely than not that the results
       of future operations will generate sufficient taxable income to
       realize the deferred tax assets recorded at December 31, 1996.
  
  (6)  Stock Options
         
       The Company has three stock option or equity incentive plans;  (1)
       the 1993 Incentive Stock Options Plan (the "1993 Plan"), (2) the
       Electronic Fab Technology Corp. Equity Incentive Plan (the "Equity
       Incentive Plan") and (3) the Electronic Fab Technology Corp. Stock
       Option Plan for Non-employee Directors (the "Non-employee Directors
       Plan").


<PAGE>
ELECTRONIC FAB TECHNOLOGY CORP.
  
  Notes to Financial Statements, Continued
  
                                                                            
  
         
  (6)    Stock Options (continued)
  
       Options to purchase 180,000 shares of common stock at an exercise
       price of $3.33 have been granted under the 1993 Plan.  These options
       generally vest over a five-year period and expire April 22, 2003. 
       The Equity Incentive Plan provides for the grant of non-qualified
       stock options, incentive stock options, stock appreciation rights,
       restricted stock and stock units.  Substantially all employees are
       eligible for the grant of awards.  This plan was amended to increase
       the maximum number of shares of common stock that can be granted
       under this Plan to 250,000.  The Non-Employee Directors Plan
       provides for a one-time grant to acquire 5,000 shares of common
       stock to each member of the Board of Directors who is not also an
       employee.  Shares available for grant under this plan total 80,000.

       The following summarizes activity of the plans for the three years
       ended December 31, 1996:
         
<TABLE>
  
  
                                                                      Weighted average  
                                       Number of                       exercise price
                                        options                          per share
                                            
                                           
    <S>                                <C>                               <C>                                         
    Balance, January 1, 1994             247,500                         $ 2.75
       Granted                           169,000                           7.74
       Exercised                        (102,950)                          1.93
  
    Balance, December 31, 1994           313,550                           5.11
       Granted                            69,500                           5.30
       Exercised                         (49,750)                          3.33
       Canceled                          (70,600)                          6.37
  
   Balance, December 31, 1995            262,700                           5.87
       Granted                           375,200                           4.04
       Exercised                          (1,800)                          3.33
       Canceled                          (75,600)                          6.64
  
   Balance, December 31, 1996            560,500                           4.55
  
   At December 31, 1996:
       Options exercisable               183,410                           5.49
  
   Shares available for future grants     92,300 
  
</TABLE>
  
  
   The Company applies the provisions of APB Opinion 25 and related
   interpretations in accounting for its plans.  Accordingly, no
   compensation cost has been recognized for its fixed stock options
   plans in 1996, 1995 and 1994.
  
  
  <PAGE>
ELECTRONIC FAB TECHNOLOGY CORP.
  
  Notes to Financial Statements, Continued
  
                                                                            
  
         
  (6)    Stock Options (continued)
  
       The weighted average fair value of options granted during 1996 and
         1995 were $4.15 and $4.92, respectively.  In estimating the fair
         value of options, the Company used the Black-Scholes option-pricing
         model with the following assumptions used for grants for the
         respective years ended December 31:
  
<TABLE>
  
  
                                             1996                  1995
  
  <S>                                       <C>                   <C> 
  Dividend yield                             0.00%                 0.00%
  Expected volatility                       60.00%                60.00%
  Risk-free interest rates                   6.00%                 6.00%
  Expected lives (years)                     4.00                  3.00 
  
</TABLE>
  
     Had compensation cost for the Company's three stock-based
     compensation plans been determined using the fair values at the
     grant dates for awards under those plans consistent with SFAS 123,
     the Company's pro forma net income (loss) and income (loss) per
     share would have been as follows:
  
  
<TABLE>
  
                                               1996                  1995
  
  <S>                                      <C>                      <C>
  Net income (loss):
     As reported                           $(1,592,965)             354,138
     Pro forma                              (1,731,259)             329,963
                                                                             
  
  Income (loss) per share:
     As reported                                 (0.40)                0.09
     Pro forma                                   (0.44)                0.08
  
</TABLE>
  
       The above pro forma disclosures are not necessarily representative
       of the effect on the reported net income for future periods because
       options vest over several years, and additional awards are made each
       year.  In addition, compensation cost for options granted prior to
       January 1, 1995 has not been considered.
  
  
  <PAGE>
ELECTRONIC FAB TECHNOLOGY CORP.
  
  Notes to Financial Statements, Continued
  
                                                                            
  
  
       The following table summarizes information about fixed stock options
         outstanding at December 31, 1996:
  
<TABLE>
  
                                              Weighted
                                               Average        Weighted                   Weighted
                                              Remaining       Average                    Average
             Range of         Number         Contractual      Exercise        Number     Exercise
          Exercise Prices   Outstanding         Life            Price      Exercisable     Price
  
       <S>                     <C>              <C>            <C>           <C>          <C>  
       $ 3.33 to 3.635         192,000          8.43           $ 3.45        37,800       $ 3.45             
                             
       $ 4.00 to 4.125         222,500          9.50             4.12        58,750         4.12
       $ 5.00 to 5.50           56,000          8.87             5.18         9,160         5.18
       $ 7.25 to 7.625          90,000          7.65             7.57        77,700         7.57
                                           
                               560,500          8.77           $ 4.55       183,410         4.55
</TABLE>
                                           
                                           
  (7)  Fair Values of Financial Instruments
                                           
       The carrying amounts of the Company's financial instruments at
       December 31, 1996 and 1995 are deemed to approximate estimated fair
       values.  The fair value of a financial instrument is the amount at
       which the instrument could be exchanged in a current transaction
       between willing parties.  The carrying amounts of cash and cash
       equivalents, trade receivables, accounts payable and accrued
       liabilities approximate fair value because of the short maturity of
       these instruments.  The carrying amounts of notes payable and long-term 
       debt approximate fair value because of the variable nature of
       the interest rates of these instruments.
  
  (8)  Employee Benefit Plans
         
       During 1990, the Company established a 401(k) Savings Plan covering
       substantially all employees.  The Company matches 50% of an
       employee's contribution to a maximum of 2% of the employee's
       compensation.  Additional profit sharing contributions to the plan
       are at the discretion of the Board of Directors.  During the years
       ended December 31, 1996, 1995 and 1994, contributions by the Company
       to the Plan were approximately $108,000, $106,000 and $90,000,
       respectively.
 
       The Company also maintains a Profit and Gain Sharing Plan through
       which a percentage of net income before taxes is allocated to the
       plan.  During the years ended December 31, 1995 and 1994,
       contributions by the Company to the plan were approximately $97,150
       and $487,000, respectively.  No contribution was made in 1996.
  
       During 1996, the Company established an employee incentive plan
       based upon employee productivity, transaction accuracy and
       profitability and contributed approximately $210,000 to the plan.
        
    <PAGE>
ELECTRONIC FAB TECHNOLOGY CORP.
  
  Notes to Financial Statements, Continued
                                                                            
  
         
  (9)    Transactions with Related Parties
  
       The Company purchased approximately 10 acres of land for aggregate
       consideration of $500,000 from Tech Center Properties, a general
       partnership, in March 1994.  The Company constructed an additional
       facility on the land.  A director of the Company is related to a 50%
       partner of Tech Center Properties.
  
  (10) Restructuring
  
       In the third quarter of fiscal 1996, management initiated a plan to
       restructure the Company's manufacturing operations and various
       administrative functions, including a change in the manufacturing
       process and a reorganization of the sales department.  The
       restructuring plan involved the termination of 142 employees and is
       expected to be completed by August 1997.  A provision for the
       restructuring of $2,127,000 was charged to expense in the statement
       of operations for the year ended December 31, 1996, including
       approximately $324,000 relating to employee termination benefits and
       approximately $726,000 for the impairment of fixed assets.  Of the
       total restructuring charge, $922,000 is included in selling, general
       and administrative expenses relating to employee termination
       benefits and consulting fees and $479,000 is included in cost of
       goods sold relating to the write-off of certain inventories.

  
  (11) Business and Credit Concentrations
         
       The Company operates in the electronic manufacturing services
       segment of the electronics industry.  The Company's customers are
       located in the United States, primarily in the Colorado/Rocky
       Mountain region, and sales and accounts receivable are concentrated
       with customers principally in the computer peripherals and medical
       equipment industries.  The Company has a policy to regularly monitor
       the credit worthiness of its customers and provides for
       uncollectible amounts if credit problems arise.  Customers may
       experience adverse financial difficulties, including those that may
       result from industry developments, which may increase bad debt
       exposure to the Company.  In addition, the electronics manufacturing
       services industry has experienced component supply shortages in the
       past.  Should future component supply shortages occur, the Company
       may experience reduced net sales and profitability.
 
       Sales to significant customers as a percentage of total net sales
       for the years ended December 31 were as follows:
 
<TABLE>
  
  
                                          1996           1995            1994
           <S>                           <C>             <C>             <C>
  
           Exabyte                       20.8%             -               -
           Ohmeda (BOC Group)            15.7%           15.3%           16.5%
           Hewlett Packard Company       26.4%           37.8%           43.3%
           XEL Communications              .9%            8.7%           16.5%
  
</TABLE>
   As of December 31, 1996, accounts receivable from Exabyte and Ohmeda
   represented 28.3% and 13.6% of total accounts receivable, respectively.
  
  ELECTRONIC FAB TECHNOLOGY CORP.
  
  Notes to Financial Statements, Continued
                                                                   
  
         
  (12)   Business Combination
  
       On February 24, 1997, the Company acquired two affiliated entities,
       Current Electronics, Inc., an Oregon Corporation, and Current
       Electronics (Washington), Inc., a Washington Corporation, for total
       consideration of approximately $10.3 million, consisting of
       1,980,000 shares of Company common stock and approximately $4.9
       million in cash.  The Company will record goodwill of approximately
       $6.5 million in connection with the acquisition, which will be
       amortized over 30 years.  The combined revenues for the two
       companies for the fiscal year ended September 30, 1996 was
       approximately $32.5 million.
  
       In connection with the business combination, the Company
       renegotiated its line of credit to increase maximum borrowings to
       $15,000,000 and extended the maturity date to June 1998.  In
       addition, the Company obtained a 90-day bridge loan in the amount of
       $4,900,000, the proceeds from which were used to pay the cash
       consideration related to the acquisition, as discussed above.