UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                           Washington, DC  20549

                                 FORM 10-K
                                 ---------

    [X]     Annual Report Pursuant to Section 13 or 15(d) of the
            Securities Exchange Act of 1934
            for the fiscal year ended December 31, 1999

    [ ]     Transition Report Pursuant to Section 13 or 15(d) of the
            Securities Exchange Act of 1934
            for the transition period from ____________ to _________

                        Commission File No. 1-8250

                   WELLS-GARDNER ELECTRONICS CORPORATION
                   -------------------------------------
            (Exact name of registrant as specified in its charter)

               ILLINOIS                                36-1944630
               --------                                ----------
   (State or other jurisdiction of                    (IRS Employer
   incorporation or organization)                Identification Number)

 2701 North Kildare Avenue, Chicago, Illinois            60639
 --------------------------------------------            -----
   (Address of principal executive offices)            (Zip Code)

     Registrant's telephone number, including area code:  773/252-8220

        Securities registered pursuant to Section 12(b) of the Act:

  Common Stock, $1.00 par value               American Stock Exchange
  -----------------------------               -----------------------
       Title of each class                Name of each exchange on which
           registered

  Securities registered pursuant to Section 12(g) of the Act:  None

  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  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

  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 1,  2000, 4,562,742  shares  of the  Common Stock  of  the
  registrant were outstanding.
<PAGE>
  While it is difficult to determine the number of shares of stock  owned
  by non affiliates, the registrant  estimates that the aggregate  market
  value of the registrant's Common Stock held by non affiliates on  March
  1, 2000 was  approximately $10,872,000.   This  determination is  based
  upon an  estimate  that  70.6%  of  the shares  are  so  owned  by  non
  affiliates and  upon the  closing price  for the  Common Stock  on  the
  American Stock Exchange on such date.

                    DOCUMENTS INCORPORATED BY REFERENCE
                                                                    Part
  Portions of Annual Report to Shareholders for fiscal year         ----
    ended December 31, 1999:                                       I & II
  Portions of Proxy Statement for Annual Meeting of
    Shareholders to be held on April 25, 2000:                       III

<PAGE>

                                 PART I
  Item 1.  BUSINESS

  (a)  General Development of Business

  Wells-Gardner  Electronics   CorporationO     (the  "Company")   is   a
  distributor  and  ISO  9001  certified  manufacturer  of  color   video
  monitors, video  liquid crystal  & plasma  displays, coin  doors,  coin
  mechanisms and other related distribution  products for a wide  variety
  of markets  including,  but  not limited  to,  gaming  machines,  coin-
  operated  video  games,  leisure  and  fitness,  automotive,   display,
  intranet, medical, service and video walls.   The Company continues  to
  focus on improving the quality of  its products to achieve its  goal of
  being the "best-in-class" quality supplier  in all its served  markets.
  During 1999, the Company passed its  annual quality audit  conducted by
  the ISO 9001  accreditation agency.   The Company  was incorporated  in
  Illinois in 1925.

    (b)  Narrative Description of Business

    (c)  (i), (ii) and (iii)

    PRODUCTS

  The  Company's   primary   business  is   the   distribution,   design,
  manufacture, assembly  and  marketing of  electronic  components  which
  consist of  video  color monitors  and  displays, gaming  supplies  and
  components, coin doors and mechanisms and the bonding of touch  sensors
  to  video  monitors.  The  image  on  a  CRT  display  is  produced  by
  magnetically guiding an interruptible  stream of electrons against  the
  back of a  phosphorescent screen.   This  stream of  electrons scans  a
  series of horizontal lines  from the top to  the bottom of the  screen.
  When the stream of  electrons strikes the back  of the screen a  bright
  area is produced and when it is interrupted, a dark area appears.  In a
  medium-resolution unit, the stream of electrons  scans the screen in  a
  series of 525 horizontal lines 30 times per second, whereas the  series
  of light and dark areas produced appears as a steady coherent image  to
  the viewer.  High-resolution displays scan a greater number of lines at
  a greater speed, thus producing a  clearer image on the screen.   Video
  products and  accessories accounted  for  approximately 99  percent  of
  revenues in 1999, 1998 and 1997.
<PAGE>
  The Company  offers a  full  line of  video  monitors, with  CRT  sizes
  ranging from 13" to 39" with horizontal scan frequencies from 15kHz  to
  35kHz.  In  addition to  providing standardized  products, the  Company
  also customizes electrical and mechanical applications to meet specific
  customer requirements and optically bonds  touch screen sensors to  the
  face of  the monitors  to allow  the user  of a  CRT video  monitor  to
  interact with  a computer  program by  touching a  video screen.    The
  Company has  also entered  the gaming  distribution  market as  it  has
  acquired certain assets of American Gaming & Electronics of New Jersey,
  Las Vegas and Florida in January, 2000.

  The Company's sales are comprised of five main applications:

                                1999      1998      1997
                                ------------------------
            Amusement            30%       38%       44%
            Gaming               29%       22%       20%
            Service & Coin       29%       20%       15%
            Leisure / Fitness     6%        9%       12%
            Display / Other       6%       11%        9%
                                ------------------------
                 Totals         100%      100%      100%
                                ========================


    MANUFACTURING AND ASSEMBLY

  The Company's production activities consist primarily of wiring printed
  circuit boards,  assembling finished  units (and  to a  limited  extent
  subassemblies), aligning, testing and optically bonding touch  sensors.
  The Company manufactures a limited  range of electronic components  and
  coin doors and mechanisms and therefore  relies on outside sources  for
  the majority of  the other required  components.  A  limited number  of
  sources are available for such electronic components and the other  raw
  materials. Two  sources  supply the  Company  with almost  all  of  the
  chassis subassemblies  for  its two-dimensional  color  game  monitors.
  Chassis subassemblies are contracted off-shore based on custom  designs
  developed by the Company.  As the Company believes is characteristic of
  other manufacturers in its industry, it  has been confronted with  long
  lead times and cost pressures.

    MARKETING AND SALES

  The Company  sells  products  throughout  the  world.    The  Company's
  products are sold  primarily through  James Industries,  Inc., a  sales
  representative  organization.     This   representation  is   currently
  furnished under a Sales Representation Agreement (See Item 13.  Certain
  Relationships and  Related Transactions).   James  Industries, Inc.  is
  headquartered in Inverness, Illinois and also utilizes the services  of
  regional sub-representative  firms.    The Company  maintains  its  own
  internal sales staff primarily for sales of products not covered  under
  the Sales Representation Agreement, repair and service of its  products
  and to support its external sales representative organization.
<PAGE>
            (c) (iv)   The Company  is licensed on a non-exclusive  basis
  under certain patents owned by RCA Corporation, covering the  technical
  and electrical design of color display and video monitor chassis.  Fees
  under these  licenses are  based on  the number  of units  shipped  and
  amounted to less than 0.2% of total 1999 revenue.  Although certain  of
  these licenses may expire  in the future, it  has been the practice  of
  the Company to  renew such licenses  on substantially  the same  terms.
  However, failure  of the  Company to  obtain renewal  of any  of  these
  licenses could  have  a  materially adverse  effect  on  the  Company's
  business, financial condition and results of operations.

            (c) (v)    The Company's business is generally not seasonal.

            (c) (vi)   The  Company  has  no  unique or unusual practices
  relating to working capital items.

            (c) (vii)  The Company's largest customer accounted for total
  revenues of 32%, 33% and 34% in 1999, 1998 and 1997, respectively.

            (c) (viii)  The  Company's   1999   year-end   backlog    was
  approximately 30,000 monitors  representing approximately three  months
  sales.  It  is the Company's  experience that well  over 90 percent  of
  backlog results in revenue recognition.

            (c) (ix)   No material  portion of the Company's business  is
  subject to re-negotiation  of profits  or termination  of contracts  or
  subcontracts at the election of the Government.

            (c) (x) The Company encounters intense competition from  many
  domestic and foreign manufacturers.  Due to the nature of its  business
  and the absence  of reliable  industry statistics,  the Company  cannot
  estimate its position  in relation to  its competitors.   However,  the
  Company recognizes  that some  competitors have  greater financial  and
  personnel resources, handle more  extensive lines of products,  operate
  larger facilities and price some  products more competitively than  the
  Company.  Although the Company believes that the prices of its products
  are competitive, it endeavors to meet competition primarily through the
  quality of its product line, service  and delivery reliability and  new
  product innovations.

            (c)  (xi)  During  1999,  the  Company  spent   approximately
  $1,334,000 for  product engineering,  research and  development  costs,
  compared to $1,536,000 in 1998 and $1,786,000 in 1997.

            (c) (xii) Compliance with federal, state and local provisions
  which  have  been  enacted  or  adopted  regulating  the  discharge  of
  materials into the environment, or otherwise relating to the protection
  of  the  environment,   has  no  material   effect  upon  the   capital
  expenditures, earnings and competitive position of the Company.

            (c)  (xiii)  At  December  31,  1999,  the  Company  employed
  approximately 170 persons.  The Company believes its relationship  with
  its employees is satisfactory.

            (d) Export sales  were approximately 25  percent of sales  in
  1999, 21 percent in 1998 and 22 percent in 1997.
<PAGE>

  Item 2.  PROPERTIES

  The Company's plant, which is owned by the Company, is located at  2701
  North Kildare  Avenue  in  Chicago, Illinois.    It  has  approximately
  207,000 square  feet of  floor  space. Not  less  than 100,000  of  the
  207,000 square  feet  of  the  plant  are  at  any  time  dedicated  to
  production.  Offices for engineering, sales and administration are also
  located at that  facility.   The plant is  in good  condition, is  well
  maintained, and currently has excess production capacity.  In 1999, the
  plant operated at  an average 62  percent capacity based  on one  shift
  production.  The plant is not subject to any material encumbrance.

  Item 3.  LEGAL PROCEEDINGS

  As the Company sells its products and services to a wide customer base,
  from time to time it  may be named in  legal proceedings.  The  Company
  aggressively reviews all claims on a timely basis and in the opinion of
  management and its  legal counsel, any  currently pending legal  claims
  have no basis and no loss contingency reserves have been established.

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

  No matters  were submitted  to a  vote  of the  Company's  shareholders
  during the fourth quarter of 1999.



                  EXECUTIVE OFFICERS OF THE REGISTRANT


                                                                 Year First
                                                               Elected As An
       Name                    Office                   Age  Executive Officer
       ----                    ------                   ---  -----------------
  Anthony Spier       Chairman of the Board, President
                      and Chief Executive Officer        56         1994

  Kathleen E. Hoppe   Director of Information Technology 54         1994

  Mark E. Komorowski  Vice President of Sales            34         1994

  Larry Mahl          Director of Materials              52         1989

  John S. Pircon      Vice President of Marketing        41         1994

  Eric Slagh          Director of Quality                34         1997

  Jeff Sterling       Vice President of Engineering      41         1998

  George B. Toma      Vice President of Finance,
                      Chief Financial Officer, Treasurer
                      And Corporate Secretary            32         1996

  Randall S. Wells    Executive Vice President and
                      General Manager                    48         1980

<PAGE>
  Unless otherwise  indicated,  each  executive  officer  has  served  in
  various executive capacities with the Company for the past five years.

  George B.  Toma  joined  the  Company in  1990  and  was  elected  Vice
  President  of  Finance,  Chief  Financial  Officer  and  Treasurer   in
  February, 1997.    Mr.  Toma was  previously  elected  Chief  Financial
  Officer and Treasurer  in April, 1996  and prior  thereto held  various
  accounting positions within the Company.  Prior to joining the Company,
  Mr. Toma  was an  auditor with  Laventhol &  Horwath.   Mr. Toma  is  a
  certified  public  accountant  as   well  as  a  certified   management
  accountant.

  Mark E. Komorowski joined the Company  in 1990 and was elected as  Vice
  President in April, 1996. Prior to  this election, Mr. Komorowski  held
  the position  of  Controller.    Prior  to  joining  the  Company,  Mr.
  Komorowski was an auditor with Laventhol & Horwath.

  Eric Slagh joined  the Company  as Director  of Quality  in May,  1997.
  Prior to joining the Company, Mr.  Slagh was Quality Assurance  Manager
  at Danfoss Electronic Drives.

  Jeff Sterling joined the  Company as Vice  President of Engineering  in
  November, 1998.    Prior  to joining  the  Company,  Mr.  Sterling  was
  Development Director of Commercial Products at Zenith Electronics.


                                 PART II

  Item 5.  MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED
           STOCKHOLDERS MATTERS.

  The information required by this Item is set forth in Exhibit 13  under
  the caption "Common Share Market Price," which information is contained
  in the  Company's Annual  Report to  Shareholders  for the  year  ended
  December 31, 1999, and which information is hereby incorporated  herein
  by reference.

  Item 6.  SELECTED FINANCIAL DATA

  The information required by this Item is set forth in Exhibit 13  under
  the caption "Selected Financial  Data," which information is  contained
  in the  Company's Annual  Report to  Shareholders  for the  year  ended
  December 31, 1999, and which information is hereby incorporated  herein
  by reference.

  Item 7.   MANAGEMENT'S DISCUSSION AND  ANALYSIS OF FINANCIAL  CONDITION
  AND RESULTS OF OPERATIONS

  The information required by this Item is set forth in Exhibit 13  under
  the  caption  "Management's  Discussion   and  Analysis  of   Financial
  Condition and Results of Operations" which information is contained  in
  the Company's Annual Report to Shareholders for the year ended December
  31, 1999, and which information is hereby incorporated herein by refer-
  ence.
<PAGE>
    a.  Quantitative and Qualitative Disclosures About Market Risk
  The information required by this Item is set forth in Exhibit 13  under
  the caption "Market  and Credit Risks"  in the Management's  Discussion
  and Analysis of  Financial Condition  and Results  of Operations  which
  information is contained in the Company's Annual Report to Shareholders
  for the year ended December 31,  1999, and which information is  hereby
  incorporated herein by reference.

  Because  the  Company  wants  to  provide  shareholders  and  potential
  investors with  more meaningful  and  useful information,  this  Report
  contains certain forward-looking statements (as such term is defined in
  the Securities Act of 1933, as amended, and the Securities Exchange Act
  of 1934, as  amended) that reflect  the Company's current  expectations
  regarding  the   future   results  of   operations,   performance   and
  achievements of  the  Company.   Such  forward-looking  statements  are
  subject to the safe harbor created by the Private Securities Litigation
  Reform Act  of 1995.   The  Company has  tried, wherever  possible,  to
  identify these  forward-looking  statements  by  using  words  such  as
  "anticipate," "believe," "estimate," "expect" and similar  expressions.
  These statements reflect the Company's current beliefs and are based on
  information currently available to  it.  Accordingly, these  statements
  are subject to certain risks, uncertainties and assumptions which could
  cause the  Company's future  results,  performance or  achievements  to
  differ materially from those expressed in, or implied by, any of  these
  statements.  The Company undertakes  no obligation to release  publicly
  the results of  any revisions  to any  such forward-looking  statements
  that may be made to reflect  events or circumstances after the date  of
  this Report or to reflect the occurrence of unanticipated events.

  Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

  The following financial statements together with the notes thereto  are
  set forth  in  Exhibit  13,  which  information  is  contained  in  the
  Company's Annual Report to Shareholders for the year ended December 31,
  1999 and which information hereby incorporated herein by reference.

  Balance Sheets as of December 31, 1999 and 1998

  Statements of Operations for years ended December  31, 1999, 1998  and
  1997

  Statements of Shareholders' Equity for  years ended December 31,  1999,
  1998 and 1997

  Statements of Cash Flows  for years ended December  31, 1999, 1998  and
  1997

  Notes to Financial Statements

  Independent Auditors' Report

  Quarterly financial data for the years ended December 31, 1999 and 1998
  are set  forth  in  Exhibit  13  in Note  13  of  "Notes  to  Financial
  Statements" and  are  contained  in  the  Company's  Annual  Report  to
  Shareholders for the year ended December 31, 1999, which information is
  hereby incorporated herein by reference.
<PAGE>

  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

    a.  Directors
  The information required  by this Item  is set forth  in the  Company's
  Proxy Statement for the  Annual Meeting of Shareholders  to be held  on
  April  25,  2000,  under  the  captions  "Election  of  Directors"  and
  "Compliance with Section 16(a) of the Exchange Act," which  information
  is hereby incorporated herein by reference.

  Item 11.  EXECUTIVE COMPENSATION

  The information required  by this Item  is set forth  in the  Company's
  Proxy Statement for the  Annual Meeting of Shareholders  to be held  on
  April 25,  2000,  under  the  captions  "Summary  Compensation  Table,"
  "Option Grants  in  1999," "Aggregated  Option  Exercises in  1999  and
  Option Values at December 31, 1999,"  "Report of Board of Directors  on
  Compensation,"  and  "Compensation  Committee  Interlocks  and  Insider
  Participation," which  information  is hereby  incorporated  herein  by
  reference.

  Item  12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
             MANAGEMENT

  The information required  by this Item  is set forth  in the  Company's
  Proxy Statement for the  Annual Meeting of Shareholders  to be held  on
  April 25, 2000,  under the  caption "Securities  Beneficially Owned  by
  Principal Shareholders  and Management,"  which information  is  hereby
  incorporated herein by reference.

  Item 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

  The Information required  by this Item  is set forth  in the  Company's
  Proxy Statement for the  Annual Meeting of Shareholders  to be held  on
  April 25, 2000,  under the caption  "Compensation Committee  Interlocks
  and Insider Participation,"  which information  is hereby  incorporated
  herein by reference.


<PAGE>

                                 PART IV

  Item 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM
            8-K

    a. (1)  Financial Statements   The information  required by this Item
  is set  forth in  Part II,  Item 8  of this  Report.   The  Independent
  Auditors Report is set forth following the Financial Statement Schedule
  referred to under (2) below.

       (2)  Financial Statement  Schedules    The information required by
  this Item is set forth following the signature page of this Report.

       (3)  Exhibits

  The following exhibits are filed herewith:

    3.1.  Articles of Incorporation of the Company,  as amended, filed as
  Exhibit 3.1 of the  Company's Annual Report on  Form 10-K for the  year
  ended December 31, 1994 and incorporated herein by reference.

    3.2. By-Laws of the Company, as amended, filed as  Exhibit 3.2 of the
  Company's Annual Report on  Form 10-K for the  year ended December  31,
  1994 and incorporated herein by reference.

    10.1*.    Amended  Employment  Agreement  dated  February  29,  1996,
  between the  Company  and  Anthony Spier  and  incorporated  herein  by
  reference.

    10.2.  License  Agreement dated January 1, 1995, between  the Company
  and RCA Corporation and incorporated herein by reference.

    10.3. Agreement  dated July 1,  1997, between  the Company and  Local
  1031, I.B.E.W., AFL-CIO, and incorporated herein by reference.

    10.4*.  Wells-Gardner  Electronics  Corporation  Employee  401K  Plan
  dated January 1,  1990 and  Amendment 1  dated February  11, 1992,  and
  Amendment 2  dated January  20, 1994,  filed as  Exhibit  10.10 of  the
  Company's Annual Report on  Form 10-K for the  year ended December  31,
  1993 and incorporated herein by reference.

    10.5*.    Wells-Gardner  Electronics  Corporation   1996  Nonemployee
  Director Plan, filed as  Annex A to the  Company's Proxy Statement  for
  the Annual Meeting  of Shareholders to  be held on  April 23, 1996  and
  incorporated herein by reference.

    10.6*.  Wells-Gardner Electronics  Corporation Amended  and  Restated
  Incentive Stock  Plan, as  amended  and filed  as  Exhibit 4.1  of  the
  Company's Form S-8, dated August 21, 1998.

    10.7.  Credit  Agreements  dated  June  5,   1998,  between  American
  National Bank and Trust Company and the Company, filed as Exhibits 2.2,
  2.3, 2.4 and 2.5  of the Company's Form  8K/A dated August 5,  1998 and
  incorporated herein by reference.
<PAGE>
    10.8.  Amended  and Restated  Sales  Representative  Agreement  dated
  December 9, 1998 and Amendment 1 dated August 30, 1999 and incorporated
  by reference in this Annual Report on Form 10-K.

    10.9. Guaranty  Agreement dated  December 9,  1998, between James  J.
  Roberts Jr.,  John  R.  Blouin  and the  Company  and  incorporated  by
  reference in this Annual Report on Form 10-K.

    10.10. Promissory Note  dated December 9, 1998 and Amendment  1 dated
  August 30, 1999, between James  Industries, James J. Roberts  Jr., John
  R. Blouin and the Company and incorporated by reference in  this Annual
  Report on Form 10-K.

    10.11.  Voting Rights Agreement dated December  9, 1998 and Amendment
  1 dated August  30, 1999,  among the  Company, Anthony  Spier, John  R.
  Blouin,  James  J.  Roberts,   Jr.  and  James  Industries,   Inc.  and
  incorporated by reference in this Annual Report on Form 10-K.

    13. Certain portions  of the Company's Annual Report  to Shareholders
  for the year  ended December 31,  1999 as  specified in  Part I and  II
  hereof to be incorporated  by reference in this  Annual Report on  Form
  10-K.

    23.  Consent of KPMG LLP.

    27.  Financial Data Schedule

    *Management contract or compensatory plan or arrangement.

    b.   Reports on Form 8-K   No reports on  Form 8-K were filed  during
  the last quarter ended December 31, 1999.

<PAGE>
                                SIGNATURES

    Pursuant to  the requirements  of Section  13 or 15(d)  of the  Secu-
  rities Exchange Act of 1934, the Registrant has duly caused this report
  to  be  signed  on  its  behalf  by  the  undersigned,  thereunto  duly
  authorized.

                  WELLS-GARDNER ELECTRONICS CORPORATION


  By: /S/  ANTHONY SPIER
      -----------------------
      Anthony Spier             Chairman of the Board,
                                President and Chief
                                Executive Officer           February 16, 2000


      /S/  GEORGE B. TOMA
      -----------------------
      George B. Toma CPA, CMA   Vice President of Finance,
                                Chief Financial Officer,
                                Treasurer  and  Corporate
                                Secretary                   February 16, 2000

  Pursuant to the requirements  of the Securities  Exchange Act of  1934,
  this report has been signed below by the following persons on behalf of
  the registrant and in the capacities on the dates indicated.

    Signature                        Title                        Date
    ---------                        -----                        ----
  /S/  ANTHONY SPIER            Chairman of the Board,
  Anthony Spier                 President and Chief
                                Executive Officer           February 16, 2000

  /S/  JOHN R. BLOUIN
  John R. Blouin                Director                    February 16, 2000

  /S/  MARSHALL L. BURMAN
  Marshall L. Burman            Director                    February 16, 2000

  /S/  JERYY KALOV
  Jerry Kalov                   Director                    February 16, 2000

  /S/  FRANK R. MARTIN
  Frank R. Martin               Director                    February 16, 2000

  /S/  JAMES J. ROBERTS, JR.
  James J. Roberts, Jr.         Director                    February 16, 2000

  /S/  RANDALL S. WELLS
  Randall S. Wells              Director                    February 16, 2000

  /S/  ERNEST R. WISH
  Ernest R. Wish                Director                    February 16, 2000

<PAGE>

                          FINANCIAL SCHEDULE

  Schedules not included  with this additional  financial data have  been
  omitted because they are not applicable or the required  information is
  shown in the financial statements or notes thereof.


  SCHEDULE II
  VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

  ALLOWANCE FOR DOUBTFUL ACCOUNTS

            Balance at
            Beginning        (1)            (2)           Balance at
    Year    of Period     Additions     Deductions      End of Period
    ----    ---------     ---------     ----------      -------------
    1997     106,933       175,000         17,633          264,300

    1998     264,300        36,133        215,433           85,000

    1999      85,000        36,000         61,000           60,000

  (1) Provision for bad debt.
  (2) Accounts receivable written off against the allowance.