U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)

(X)       QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

          For the quarterly period ended June 30, 1998

( )       TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES 
          EXCHANGE ACT OF 1943 (No Fee Required)

 For the transition period from_______________________to_______________________

                        Commission File number 33-18174-D


                        SIEMANN EDUCATIONAL SYSTEMS, INC.
--------------------------------------------------------------------------------
                 (Name of small business issuer in its charter)

          Colorado                                        84-1067172
-------------------------------              -----------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)                                  

           405 S. Platte River Drive, Suite 3A, Denver, Colorado 80223
           -----------------------------------------------------------
                    (Address of principal executive offices)

                                  303/733-9673
                                 ---------------
                            Issuer's telephone number

     Check whether the issuer (1) filed all reports to be filed by Section 13 or
15 (d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.

         Yes       X                No
               -----------              -----------

     State the number of shares  outstanding of each of the issuer's  classes of
common equity as of the latest practicable date.

3,765,000 shares of common stock were outstanding as of July 28, 1998.
--------------------------------------------------------------------------------


<PAGE>

Part One.  FINANCIAL INFORMATION

         Item 1.  Financial Statements

               SIEMANN EDUCATIONAL SYSTEMS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                     Assets


                                                      June 30,      December 31,
                                                        1998             1997
                                                     -----------     -----------
                                                     (Unaudited)      (Audited)

Current assets:
    Cash                                             $   249,717     $    18,830
    Student accounts receivable                        3,286,433         657,814
    Student notes receivable                             765,365         746,693
    Note receivable - stockholder                        156,302         216,300
    Note receivable - related party                      200,000         200,000
    Inventory                                             87,878           7,392
    Prepaid and other                                     82,447          31,401
    Deferred tax asset                                    20,117            --
                                                     -----------     -----------
                   Total current assets                4,848,259       1,878,430
                                                     -----------     -----------
Student accounts and notes receivable                    807,559         718,275
Property and equipment, net of
       accumulated depreciation                          601,827         284,774
Investment in acquisition of business                       --           223,936
Intangibles, net                                       8,829,028            --
Perkins matching funds                                    70,000          70,000
Other                                                     31,120          25,597
                                                     -----------     -----------

Total assets                                         $15,187,793     $ 3,201,012
                                                     ===========     ===========




                                       2

<PAGE>
<TABLE>
<CAPTION>


                 SIEMANN EDUCATIONAL SYSTEMS, INC. AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS (CONTINUED)

                        Liabilities and Stockholders' Equity


                                                            June 30,     December 31,
                                                              1998           1997
                                                           -----------   -----------
                                                           (Unaudited)     (Audited)

Current liabilities:
<S>                                                        <C>           <C>        
    Accounts payable                                       $   156,467   $   123,449
    Student refunds payable and credit balances                 32,824        21,061
    Payable to owner of business to be acquired                   --          61,968
    Accrued liabilities                                        508,346       133,321
    Income taxes payable                                        20,117          --
    Deferred tuition income                                  2,678,350       871,537
    Common stock repurchase commitment                            --          61,968
    Note payable - stockholder                                  24,900          --
    Current maturities of capital lease obligations            103,780          --
    Current maturities of long-term debt                     2,690,966       462,149
                                                           -----------   -----------
          Total current liabilities                          6,215,750     1,735,453
                                                           -----------   -----------
Rent payable, related party                                    135,228       132,902
Capital lease obligations                                      170,091          --
Long-term debt, net of current maturities and discount       4,908,405       605,730
Note payable - stockholder                                   2,208,351       355,307
                                                           -----------   -----------
          Total liabilities                                 13,637,825     2,829,392
                                                           -----------   -----------

Redeemable warrants                                            211,863          --
                                                           -----------   -----------

Stockholders' equity:
    Common stock, $.10 par value, 100,000,000 shares
       authorized, 3,765,000 (1998) and 3,795,984 (1997)
       shares issued and outstanding                           376,500       379,598
    Additional paid-in capital                                 948,278        88,706
    Common stock repurchase commitment                            --         (61,968)
    Retained earnings                                           13,327       (34,716)
                                                           -----------   -----------
          Total stockholders' equity                         1,338,105       371,620
                                                           -----------   -----------

Total liabilities and stockholders' equity                 $15,187,793   $ 3,201,012
                                                           ===========   ===========


                                         3


</TABLE>

<PAGE>
<TABLE>
<CAPTION>


                                 SIEMANN EDUCATIONAL SYSTEMS, INC. AND SUBSIDIARIES
                                        CONSOLIDATED STATEMENTS OF OPERATIONS
                                                    (Unaudited)


                                                         Three Months Ended                  Six Months Ended
                                                               June 30,                           June 30,
                                                   -----------------------------       -----------------------------
                                                       1998              1997              1998              1997
                                                   -----------       -----------       -----------       -----------

Revenue:
<S>                                                <C>               <C>               <C>               <C>        
    Tuition revenue                                $ 2,764,399       $   610,537       $ 3,742,358       $ 1,317,844
    College supply and cafeteria sales                  83,080            46,123           131,247            88,969
    Other                                               38,013            23,617            63,134            58,138
                                                   -----------       -----------       -----------       -----------
       Total revenues                                2,885,492           680,277         3,936,739         1,464,951
Operating expenses:
    Educational services and facilities              1,293,063           306,262         1,734,431           601,040
    Cost of college supplies and cafeteria sales       117,422            48,291           160,670            91,896
    Selling and promotion                              268,356           116,169           418,304           248,520
    General and administrative                         663,436           130,710           980,967           299,064
    Depreciation and amortization                      149,512            40,458           204,698            86,670
    Bad debt expense                                    38,937            27,916            77,443            57,816
                                                   -----------       -----------       -----------       -----------
       Total operating expenses                      2,530,726           669,806         3,576,513         1,385,006
                                                   -----------       -----------       -----------       -----------

       Income from operations                          354,766            10,471           360,226            79,945

Interest income                                         33,151              --              33,151              --
Interest (expense)                                    (279,465)           (8,723)         (345,334)          (18,933)
                                                   -----------       -----------       -----------       -----------

       Income before provision for income taxes        108,452             1,748            48,043            61,012

Provision for income taxes:
   Current                                                --                --                --                --
   Deferred                                               --                --                --                --
                                                   -----------       -----------       -----------       -----------
      Total provision for income taxes                    --                --                --                --
                                                   -----------       -----------       -----------       -----------

Net income                                         $   108,452       $     1,748       $    48,043       $    61,012
                                                   ===========       ===========       ===========       ===========

Net income (loss) per common share
    Primary                                        $      0.03       $      0.00       $      0.01       $      0.15
                                                   ===========       ===========       ===========       ===========
    Fully diluted                                  $      0.02       $      0.00       $      0.01       $      0.15
                                                   ===========       ===========       ===========       ===========

Weighted number of common shares outstanding
    Primary                                          3,765,000           400,000         3,782,470           400,000
                                                   ===========       ===========       ===========       ===========
    Fully diluted                                    6,095,463           400,000         5,044,267           400,000
                                                   ===========       ===========       ===========       ===========



                                                         4
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                         SIEMANN EDUCATIONAL SYSTEMS, INC. AND SUBSIDIARIES
                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                             (Unaudited)

                                                                       Six Months Ended June 30,
                                                                  ----------------------------------
                                                                      1998                   1997
                                                                  -----------            -----------
Cash flows from operating activities:
<S>                                                               <C>                    <C>        
    Net income                                                    $    48,043            $    61,012
     Cash provided (used) by operating activities:
           Depreciation and amortization                              204,698                 86,670
           Contributed assets                                         (25,838)                  --
      Changes in operating assets and liabilities:
         Student accounts and notes receivable                     (1,261,235)              (535,677)
         Prepaid expenses and other assets                            (42,210)                   441
         Deferred tax assets and liabilities                          (20,117)                  --
         Accounts payable                                              (5,350)                80,960
         Student refunds payable and credit balances                   11,764               (131,777)
         Accrued liabilities and income taxes                         145,159                 (4,559)
         Rent payable, related party                                    2,326                 94,150
         Deferred tuition revenue                                     376,102                271,790
                                                                  -----------            -----------
              Net cash provided (used) by operating activities       (566,658)               (76,990)
                                                                  -----------            -----------

 Cash flows from investing activities:
         Purchases of property and equipment                          (22,976)               (10,052)
         Collections on loans to related parties                       60,000                   --
         Loans to related parties                                        --                  (33,302)
         Acquisition of subsidiary, net of cash acquired           (3,529,851)                  --
                                                                  -----------            -----------
             Net cash provided (used) by investing activities      (3,492,827)               (43,354)
                                                                  -----------            -----------

 Cash Flows from Financing Activities:
         Proceeds from debt                                         5,183,835                 56,832
         Proceeds from debt - related party                              --                   10,464
         Payments of debt and capital leases                         (831,493)              (218,000)
         Stock repurchase commitment                                  (61,968)                  --
                                                                  -----------            -----------
            Net cash provided (used) by financing activities        4,290,374               (150,704)
                                                                  -----------            -----------

         Net increase (decrease) in cash                              230,889               (271,048)
 Cash, beginning of period                                             18,828                311,986
                                                                  -----------            -----------
 Cash, end of period                                              $   249,717            $    40,938
                                                                  ===========            ===========

                                             (continued)
                                       5
<PAGE>



               SIEMANN EDUCATIONAL SYSTEMS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                       (continued)


Supplemental disclosure of cash flow information:
 Cash payments for interest                                  $   292,254          $    18,933
                                                             ===========          ===========
 Non-cash investing and financing transactions:
       Investment in subsidiary                              $ 9,061,283
       Future stock to be issued in payments                    (750,000)
       Note to prior owner                                    (4,340,000)
       Cash acquired with acquisition                           (341,432)
       Earnest money from prior periods applied                 (100,000)
                                                             -----------
       Cash paid for subsidiary                              $ 3,529,851
                                                             ===========

        Loan fees and costs                                  $   174,916
        Loan discounts                                          (146,165)
        Deposit from prior periods applied                       (20,000)
                                                             -----------
        Cash paid for loan fees/costs                        $     8,751
                                                             ===========

         Warrants issued with financing                      $   380,306
                                                             ===========

         Equipment acquired under capital lease              $    82,418
                                                             ===========


                                       6
</TABLE>

<PAGE>

                        SIEMANN EDUCATIONAL SYSTEMS, INC.
                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 1998


1. BASIS OF PRESENTATION AND ORGANIZATION
   --------------------------------------

The balance sheet as of June 30, 1998,  the  statements  of  operations  for the
three months and six months ended June 30, 1998 and 1997,  and the statements of
cash flows for the six months ended June 30, 1998 and 1997,  have been  prepared
by the Company.  In the opinion of management,  all  adjustments  (which include
normal  recurring   adjustments)  necessary  to  present  fairly  the  financial
position, results of operations, and changes in cash flows at June 30, 1998, and
for all periods presented, have been made.

Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have  been  condensed  or  omitted.  It  is  recommended  that  these  financial
statements  be read in  conjunction  with the  financial  statements  and  notes
thereto  included in the  Company's  December  31, 1997  10-KSB.  The results of
operations for the six months ending June 30, 1998 and 1997 are not  necessarily
indicative of the operating results for the full year.

2. ACQUISITION OF SUBSIDIARY AND RELATED DEBT
   ------------------------------------------

The Company acquired Data Processing  Trainers,  Inc. ("DPT") on March 24, 1998,
for a purchase  price of $9,061,283.  DPT, now a wholly-owned  subsidiary of the
Company,  is an  accredited  school  offering a variety of  vocational  training
programs  with two  locations  in  Philadelphia,  Pennsylvania.  The majority of
students are drawn from the surrounding metropolitan area.

The purchase price is comprised of:  $3,629,853 in cash  (including  $119,564 in
repurchased  common stock),  which was paid, less a deposit of $150,000,  at the
time of closing;  a  $4,340,000  promissory  note;  and  $750,000 in stock.  The
promissory note, dated March 24, 1998,  requires quarterly payments beginning in
June,  1998, of $542,500 in principal plus accrued interest at 7% per annum. The
note is due March 24, 2000, and is secured by a Security  Agreement-Stock Pledge
and a Guaranty and Security Agreement. Under the terms of the agreement,  59,782
shares of the Company's  common stock valued at $119,654 were repurchased at the
time of the closing by the Company for cash,  leaving the balance of $750,000 to
be satisfied by the Company issuing on March 24, 1999, an undetermined number of
shares of non-registered common stock equivalent to a value of $750,000 based on
the ten day trailing average market price at the time of the transfer.

The acquisition is being accounted for as a purchase with a substantial  portion
of the  purchase  price  being  allocated  to  goodwill.  The  goodwill is being
amortized over forty years. The following pro forma  information is presented as
if the acquisition occurred at the beginning of each of the periods:

                                                   Six Months Ended June 30,
                                                 -----------------------------
                                                      1998            1997
                                                 -------------   -------------
 Pro forma revenues                              $   5,997,794   $   4,802,347
 Pro forma net income                                  238,785          67,411
 Pro forma primary earnings per share            $         .06   $         .17
 Pro forma fully diluted earnings per share      $         .05   $         .02

In order to fund the purchase price,  the Company  borrowed  $2,000,000 from its
president and majority  stockholder,  and $2,900,000  from an outside  financing
source.  The debt of $2,000,000 to the  president  bears 12% interest,  interest
only payable monthly,  and is due on March 24, 2003. The president also received
a warrant  to  purchase  732,360  shares of the  Company's  common  stock for an
aggregate  price of $100 for the  period  ending  March  24,  2003.  The debt of
$2,900,000 to the outside source is payable  interest only quarterly,  bears 12%
interest,  and is due on March 24,  2003.  This  lender  received  a warrant  to
purchase  1,268,486  shares of the  Company's  common stock for a total price of
$100 through March 25, 2003.

                                       7
<PAGE>


The warrants were valued at  approximately  $380,000,  which is presented on the
balance sheet as a discount from the debt and is being  amortized  over the life
of the term of the related notes  payable.  The costs of obtaining the financing
have  been  deferred  and are also  being  amortized  over the term of the notes
payable.

3. SUBSEQUENT EVENTS
   -----------------

In July, 1998, the Company signed a letter of intent with an underwriter to sell
approximately 1,857,000 shares of common stock at approximately $7 per share.


                                       8
<PAGE>



Item 2.          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

Liquidity and Capital Resources
-------------------------------

June 30, 1998 as Compared to December 31, 1997
----------------------------------------------

The Company completed its planned acquisition of Data Processing Trainers, Inc.,
an accredited  school with two locations in  Philadelphia  offering a variety of
vocational training programs, on March 24, 1998. The purchase of this school was
a first step in management's  long-term plan to grow its business by acquisition
of profitable schools which fit within the Company's overall expansion strategy.
The acquisition was accounted for as a purchase. As a result of the acquisition,
the Company now owns and operates two vocational schools:  Denver Automotive and
Diesel College ("DADC") and Data Processing Trainers, Inc. ("DPT").

The Company's cash balance increased $230,888 over the period ended December 31,
1997;  the increase  resulted  primarily  from  borrowings  associated  with the
acquisition of DPT,  additional  borrowings on three commercial lines of credit,
restoration of DADC's eligibility to participate in Title IV funding and grants,
and cash flows from the newly acquired  operations of DPT.  Student accounts and
notes receivable increased  $2,647,291 over December 31, 1997;  $2,459,041of the
increase  resulted  from the  inclusion  of DPT's  student  receivables.  DADC's
accounts and notes receivable  increased  $181,787,  or approximately  13%, over
December  31, 1997,  primarily  due to  continuation  of  institutional  student
financing during the first quarter Title IV ineligibility period. Because of the
changes in ownership, the Company was temporarily ineligible to receive Title IV
funds  until  the  Department  of  Education  approved  its  re-applications  to
participate in these programs.  DPT's and DADC's Title IV funds were restored as
of the end of May and February, 1998,  respectively.  Deferred income tax assets
and liabilities  have been recorded to recognize the tax effects of the 1997 net
operating  loss   carry-forward   and  the  difference   between  book  and  tax
amortization expense.

DPT was acquired for  $9,061,283,  comprised of $3,629,853 cash (net of $341,432
acquired in the purchase),  a $4,340,000 note payable to DPT's former owner, and
$750,000 stock.  The purchase  resulted in an increase to property and equipment
of $316,534;  intangible assets in the amount of $8,890,886 were recorded in the
transaction,  including  $174,916  of  loan  acquisition  costs  related  to new
borrowings in conjunction with the purchase.  Goodwill  resulted from the excess
of the price paid over the fair market value of the net assets purchased;  as is
the nature of the  vocational  school  industry,  tangible  assets  represent  a
relatively low fraction of the overall value associated with reputation, trained
staff,  accredited programs,  and job placement success.  Loans to the Company's
president in the amount of $60,000 were repaid in April 1998. The balance of the
shareholder  notes  receivable  is due within one year.  Overall,  assets of the
Company increased by $11,986,781 over December 31, 1997.

Accounts  payable and accrued  expenses  increased by $377,956 over December 31,
1997.  The  inclusion  of DPT's  payables  and accrued  expenses  accounted  for
$352,091  of the  increase,  while  DADC's  accruals  decreased  nominally  over
December  31; the parent  company's  accrued  expenses  increased by $32,725 due
primarily to accrued interest on acquisition loans. Deferred tuition liabilities
rose $1,806,813  over the period,  of which  $1,595,483 was  attributable to the
inclusion of DPT. DADC's deferred tuition increase of $211,330 over December 31,
1997  resulted  from  normal  student  enrollment  and timing  fluctuations.  In
connection with the purchase of DPT, the Company  incurred debt to the following
parties:  $4,340,000 to the seller,  $2,900,000  to a financing  subsidiary of a
brokerage  firm,  and  $2,000,000  to  the  Company's  president.  Interest-only
payments are due on the latter two loans,  which have five-year  terms; the loan
to DPT's seller requires  quarterly  principal and interest  payments,  with the
remaining  principal  due two  years  from the  date of  purchase.  The  Company
believes it has  sufficient  resources to continue  normal  operations  and debt
service. Overall, liabilities increased by $10,808,433 over December 31, 1997.

Warrants to purchase  2,008,846  shares of the Company were issued in connection
with the debts to the shareholder and the outside lender. Based on provisions of
the warrant agreement,  a substantial number of shares are expected to be earned
back by the  Company;  the  remaining  warrants  were  valued  and  recorded  at
$380,306.  Of this total,  $211,863  appears on the balance  sheet as redeemable
warrants,  and $168,443 is included in additional  paid-in  capital.  Additional
paid-in  capital also  increased by a further net amount of $691,130 as a result
of the DPT acquisition:  a $750,000 increase was recorded for future stock to be
issued to the school's seller, while a net decrease of $58,870 was recorded when
stock issued to him in connection  with the Letter of Intent was  repurchased at
closing  of the  sale,  as was  contemplated  by that  agreement.  Common  stock
decreased  by a  net  $3,098,  also  as  a  result  of  the  closing  repurchase
transaction.

                                       9
<PAGE>


Results of Operations
---------------------

June 30, 1998 as Compared to June 30, 1997
------------------------------------------

The Company's total revenues increased by $2,471,788 to $3,936,739,  for the six
months  ended  June 30,  1998,  compared  to the same  period of 1997.  Revenues
include $2,344,453 attributable to DPT's operations from the date of acquisition
to June 30. DADC's  revenues  increased  $126,336 over the previous year's first
two quarters due to a slight increase in student units and higher tuition rates.
Revenue  for the three  month  period  ended June 30,  1998 was more than double
first quarter 1998 revenue,  again  primarily due to inclusion of DPT; the first
quarter results  included DPT operations for only the six days from  acquisition
to the end of the quarter.  DPT's  revenues for the second  quarter of 1998 were
$2,186,296.

The  educational  services and facilities  cost increase of $1,133,391  over the
previous  year's  first  two  quarters  includes  $1,040,568  related  to  DPT's
operations.  The $851,695  increase from the first to the second quarter of 1998
is due to inclusion of a full quarter of DPT expenses;  as discussed above, only
six days of DPT operations were included in first quarter results. DPT`s overall
operating  expenses for the second quarter of 1998 were $1,562,359.  General and
administrative  costs  increased  by $681,903  over the same period of 1997 as a
result of indirect  expenses  incurred in conjunction  with the purchase of DPT,
inclusion  of DPT's G & A expenses  for a full  quarter,  and  continuing  costs
associated with the Company's  transition to publicly-held  status. The interest
expense  increase  of  approximately  $326,401  over  1997  is  attributable  to
acquisition  and  operations  borrowings;  the use of loan  proceeds  to finance
operations  was required due to first quarter 1998 temporary  ineligibility  for
Title IV funds.  Expense  increases for the second quarter of 1998 over the same
quarter of 1997 are associated  with the same factors  discussed with respect to
year-to-date  changes.  An income tax benefit was recorded due to a reduction in
the deferred tax asset  valuation  account  against the 1997 net operating  loss
carryover,  which  offset the  current  income tax  expense  accrued on earnings
through June 30, 1998. Overall, income was $48,043 for the first two quarters of
1998,  compared to net income of $61,012  for the same period of 1997.  DADC net
income  decreased  approximately  $56,000  over the same  period  of 1997 due to
higher expenses in all  categories.  Net income per share and weighted number of
shares outstanding reflect a substantial increase from December 31, 1997, due to
the issuances of shares in connection with the conversion from privately held to
publicly held status,  the reverse  merger of August 31, 1997,  and issuances in
conjunction with acquisition financing.

The Company is actively  exploring with its current  software vendors the extent
and cost of any  measures  that may be required to fix Year 2000  problems.  The
Company  primarily  uses  off-the-shelf  student  record-keeping  and accounting
software in its operations;  both these systems are currently under review as to
possible  replacement.  As a result,  the Company would have the  opportunity to
determine Year 2000 compliance prior to purchase.

                                     PART II

Item 1.  LEGAL PROCEEDINGS.

None.

Item 2.  CHANGE IN SECURITIES

Per the  Letter of Intent to  purchase  DPT,  on March  24,  1998,  the  Company
repurchased  $119,564  of  stock  issued  to  DPT's  seller.  The  issuance  and
repurchase were both at $2.00 per share.

Item 3.  DEFAULTS ON SENIOR SECURITIES

None.

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

                                       10
<PAGE>



Item 5.  OTHER INFORMATION

None.

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a).  Exhibit  No. Description

               27   Financial Data Schedule

         (b).  Reports on Form 8-K:

               On April 8, 1998,  the  Company  filed a Report on Form 8-K under
               Item 2., "Acquisition or Disposition of Assets".

               On June 9,  1998,  the  Company  filed a Report on Form 8-K under
               Item 7.,  "Financial  Statements  and  Exhibits"  for DPT for the
               years ended December 31, 1997 and 1996.


                                       11

<PAGE>
                                   SIGNATURES

Pursuant  to the  requirement  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.

                                            SIEMANN EDUCATIONAL SYSTEMS, INC.
                                                      (Registrant)


                                         By: /s/  PAUL T. SIEMANN
                                            ------------------------------------
                                            Paul T. Siemann, President and CEO