SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C.  20549

                                   FORM 10-QSB


     [X]  QUARTERLY  REPORT  PURSUANT  TO SECTON 13 OR 15(d) OF THE SECURITIES
          EXCHANGE  ACT  OF  1934

     For  the  quarterly  period  ended  March  31,  2000

     [ ]  TRANSITIONAL  REPORT  UNDER  SECTION  13  OR  15(d) OF THE SECURITIES
          EXCHANGE  ACT  OF  1934  (No  Fee  Required)

                           Commission File No. 0-27210


                          Tech Electro Industries, Inc.
              ----------------------------------------------------
                 (Name of Small Business Issuer in its Charter)


                Texas                                   75-2408297
     -------------------------------              --------------------------
     (State or other jurisdiction of                 (I.R.S. Employer
      incorporation of organization)                Identification No.)

            477 Madison Avenue, 24th Floor, New York, New York 10022
        ----------------------------------------------------------------
                     (Address of principal executive office


                                 (212) 583-0900
                          ----------------------------
                           (Issuer's telephone number)

Check  whether  the  issuer  has (1) filed all reports required by Section 12 or
15(d) of the Exchange Act during the past 12 months, and 2) been subject to such
filing  requirements  for  the  past  ninety  (90)  days.  Yes  [  X ]   No [  ]

     As  of  March  31, 2000, 8,103,039 shares of Common Stock were outstanding.


<PAGE>


THIS DOCUMENT IS PREPARED AND FILED UNDER THE REQUIREMENTS OF REGULATIONS S-B OF
THE  SECURITIES  AND  EXCHANGE  COMMISSION,  EFFECTIVE  JULY  31,  1992.


                                      INDEX


<TABLE>
<CAPTION>
                                                                      Page
                                                                      ----
<S>                                                                   <C>

PART I - Financial Information

Item 1.  Financial Statements

Consolidated Balance Sheet at March 31, 2000 (unaudited)
and December 31, 1999. . . . . . . . . . . . . . . . . . . . . . . .   F-3

Consolidated Statements of Operations for the three
months ended March 31, 2000 and 1999 (unaudited) . . . . . . . . . .   F-5

Consolidated Statements of Cash Flows for the three
months ended March 31, 2000 and 1999 (unaudited) . . . . . . . . . .   F-7

Notes to Consolidated Financial Statements . . . . . . . . . . . . .   F-9

Item 2.  Management's Discussion and Analysis or Plan of Operation..    15

PART II - Other Information. . . . . . . . . . . . . . . . . . . . .    18

Item 1.  Legal Proceedings.. . . . . . . . . . . . . . . . . . . . .    18

Item 2.  Changes in Securities.. . . . . . . . . . . . . . . . . . .    18

Item 3.  Defaults Upon Senior Securities.. . . . . . . . . . . . . .    18

Item 4.  Submission of Matters to a Vote of Securities Holders.. . .    18

Item 5.  Other Information.. . . . . . . . . . . . . . . . . . . . .    19

Item 6.  Exhibits and Reports on Form 8-K. . . . . . . . . . . . . .    19

Signature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    19
</TABLE>


                                       2
<PAGE>


PART  I  -  FINANCIAL  INFORMATION
----------------------------------

Item  1.  Financial  Statements


<TABLE>
<CAPTION>
                     TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                              CONSOLIDATED BALANCE SHEETS



                                  ASSETS
                                              (Unaudited)
                                              Mar 31, 2000    Dec 31, 1999
                                              ------------   --------------
<S>                                          <C>             <C>
CURRENT ASSETS
  Cash and cash equivalents . . . . . . . .  $     695,090   $     894,261
  Certificate of deposit . . . . . . . . .         262,940         260,294
  Accounts and notes receivable
    Trade, net of allowance for doubtful
    accounts of $281,028 and $282,498 in
    2000 and 1999, respectively . . . . . .      3,424,597       3,352,887
    Notes . . . . . . . . . . . . . . . .          180,146         180,146
    Other . . . . . . . . . . . . . . . .           46,711          67,901
  Inventories, net . . . . . . . . . . .         1,951,219       1,611,358
  Prepaid expenses and other current assets        416,131         601,257
                                              ------------   --------------

      Total current assets. . . . . . . . .      6,976,834       6,968,104
                                              ------------   --------------
PROPERTY AND EQUIPMENT
  Facsimile and business center equipment        8,156,196       8,175,530
  Other equipment . . . . . . . . . . . .        1,040,225         959,814
  Furniture and fixtures . . . . . . . .           214,841         214,271
  Vehicles . . . . . . . . . . . . . . .            14,262          14,262
  Leasehold improvements  . . . . . . .             73,232          51,378
                                              ------------   --------------
                                                 9,498,756       9,415,255
  Less accumulated depreciation and
    amortization . . . . . . . . . . . .        (1,779,271)     (1,426,888)
                                              ------------   --------------
      Net property and equipment. . . . . .      7,719,485       7,988,367
                                              ------------   --------------

OTHER ASSETS
  Notes receivable, net of current portion           6,250           7,031
  Deferred financing costs, net . . . . . .        694,704         688,875
  Other . . . . . . . . . . . . . . . . . .         23,943          26,461
                                              ------------   --------------
      Total other assets. . . . . . . . . .        724,897         722,367
                                              ------------   --------------
TOTAL ASSETS. . . . . . . . . . . . . . . .  $  15,421,216   $  15,678,838
                                             =============   ==============
</TABLE>

            The accompanying footnotes are an integral part of these
                       consolidated financial statements.

                                -     Continued -


                                      F-3
<PAGE>


<TABLE>
<CAPTION>
                                TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                                    CONSOLIDATED BALANCE SHEETS - Continued


                                     LIABILITIES AND STOCKHOLDERS' EQUITY

                                                                   (Unaudited)
                                                                   Mar 31, 2000    Dec 31, 1999
                                                                  --------------  --------------
<S>                                                               <C>             <C>
CURRENT LIABILITIES
  Line of credit . . . . . . . . . . . . . . . . . . . . . . .    $     604,525   $     389,532
  Current portion of long-term debt . . . . . . . . . . . . . . . . .   700,621       2,316,796
  Trade accounts payable . . . . . . . . . . . . . . . . . . . . . .  1,679,012       1,846,642
  Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . .   1,126,992         948,687
  Other current liabilities  . . . . . . . . . . . . . . . . . . . . .   44,119          44,119
                                                                  --------------  --------------
      Total current liabilities. . . . . . . . . . . . . . . . .      4,155,269       5,545,776
                                                                  --------------  --------------

LONG-TERM DEBT, less current portion . . . . . . . . . . . . . .      2,531,487       2,556,174
EXCESS OF NET ASSETS OF COMPANIES ACQUIRED
  OVER COST, NET . . . . . . . . . . . . . . . . . . . . . . .        3,903,031       4,033,132
                                                                  --------------  --------------
      Total liabilities. . . . . . . . . . . . . . . . . . . . .     10,589,787      12,135,082

COMMITMENTS AND CONTINGENCIES (Note N)

STOCKHOLDERS' EQUITY
  Preferred stock - $1.00 par value; 1,000,000
    shares authorized; 119,588 Class A issued
    and outstanding; liquidation preference
    of $627,837  . . . . . . . . . . . . . . . . . . . . . . .          119,588         119,588
  Common stock - $0.01 par value; 50,000,000
    shares authorized; 8,103,139 and 7,034,684
    shares issued and outstanding in 2000 and
    1999, respectively.  . . . . . . . . . . . . . . . . . . . . . . .   81,031          70,347
  Additional paid-in capital  . . . . . . . . . . . . . . . . . . .  14,376,922      13,225,368
  Accumulated deficit  . . . . . . . . . . . . . . . . . . .. .      (9,746,112)    ( 9,871,547)
                                                                  --------------  --------------
      Total stockholders' equity . . . . . . . . . . . . . . . .      4,831,429       3,543,756
                                                                  --------------  --------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  . . . . . . . . . .   $  15,421,216   $  15,678,838
                                                                  ==============  ==============
</TABLE>

            The accompanying footnotes are an integral part of these
                       consolidated financial statements.


                                      F-4
<PAGE>


<TABLE>
<CAPTION>
                         TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                              CONSOLIDATED STATEMENTS OF OPERATIONS
                       For the Three Months Ended March 31, 2000 and 1999
                                           (Unaudited)


                                                           2000          1999
                                                      -------------  ------------
<S>                                                   <C>             <C>
REVENUES
  Revenues . . . . . . . . . . . . . . . . . . . .   $   5,730,795   $ 2,442,950
  Service revenue. . . . . . . . . . . . . . . . . .             -     2,775,147
                                                      -------------  ------------
                                                         5,730,795     5,218,097
COST OF REVENUES
  Cost of revenues . . . . . . . . . . . . . . . .       3,296,063     2,448,011
  Direct servicing costs . . . . . . . . . . . . . .             -     1,586,638
                                                      -------------  ------------
                                                         3,296,063     4,034,649
                                                      -------------  ------------

GROSS PROFIT . . . . . . . . . . . . . . . . . . .       2,434,732     1,183,448

OPERATING EXPENSES
  Selling, general and administrative . . . . . . .      1,861,428     2,388,499
  Inventory obsolescence provision . . . . . . . . .         3,000       185,430
  Depreciation and amortization of property
    and equipment . . . . . . . . . . . . . . . . .        390,640       218,353
  Lawsuit settlement . . . . . . . . . . . . . . .         400,086             -
  Amortization of excess of net assets
    of companies acquired over cost . . . . . . . .       (130,101)            -
                                                      -------------  ------------
                                                         2,525,053     2,792,282
                                                      -------------  ------------
LOSS FROM OPERATIONS . . . . . . . . . . . . . . . .       (90,321)   (1,608,834)

OTHER INCOME (EXPENSES)
  Interest income . . . . . . . . . . . . . . . . .          7,968        13,696
  Interest expense . . . . . . . . . . . . . . . .        (200,012)     (113,903)
  Amortization of deferred financing cost . . . . .       (157,725)      (18,494)
  Other                                                      9,210        (2,170)
                                                      -------------  ------------
                                                          (340,559)     (120,871)

LOSS BEFORE PROVISION FOR INCOME TAXES AND
    EXTRAORDINARY GAIN . . . . . . . . . . . . . . . .    (430,880)   (1,729,705)

PROVISION FOR INCOME TAXES . . . . . . . . . . . .               -             -
                                                      -------------  ------------
LOSS BEFORE EXTRAORDINARY GAIN . . . . . . . . . .        (430,880)   (1,729,705)

EXTRAORDINARY GAIN . . . . . . . . . . . . . . . . .       568,750             -
                                                      -------------  ------------
NET INCOME (LOSS). . . . . . . . . . . . . . . . .   $     137,870   $(1,729,705)
                                                      -------------  ------------
Net income (loss) attributable to common
  stockholders                                        $    125,435   $(1,747,688)
                                                      =============  ============
</TABLE>

            The accompanying footnotes are an integral part of these
                       consolidated financial statements.

                                - Continued -


                                      F-5
<PAGE>


<TABLE>
<CAPTION>
                  TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS - Continued
                For the Three Months Ended March 31, 2000 and 1999
                                    (Unaudited)

                                                            2000          1999
                                                       -------------  -----------
<S>                                                    <C>             <C>
Basic and diluted net loss before extraordinary gain
  per share attributable to common shareholders        $       (0.05)  $    (0.37)
                                                       ==============  ===========
Basic and diluted extraordinary gain attributable
   to common shareholders . . . . . . . . . . . . . .  $        0.07   $        -
                                                       ==============  ===========
Basic and diluted net income (loss) per share
  attributable to common shareholders                  $        0.02   $    (0.37)
                                                       ==============  ===========

Number of weighted-average shares of common
  stock outstanding (basic and diluted)                    7,688,722    4,808,415
                                                       ==============  ===========
</TABLE>

            The accompanying footnotes are an integral part of these
                       consolidated financial statements.


                                      F-6
<PAGE>


<TABLE>
<CAPTION>
                   TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                 For The Three Months Ended March 31, 2000 and 1999
                                     (Unaudited)


                                                           2000            1999
CASH FLOWS FROM OPERATING ACTIVITIES                  --------------  ------------
<S>                                                   <C>             <C>
Net income (loss). . . . . . . . . . . . . . . . . .  $     137,870   $  (1,729,705)
Adjustments to reconcile net income (loss) to net
   cash provided by (used by) operating activities:
    Shares issued for compensation                          (45,000)         18,496
    Depreciation and amortization of property
      and equipment                                         390,640         218,353
    Provision for bad debts                                   4,100         160,600
    Provision for obsolete inventory                          3,000         185,430
    Loss on sale of property and equipment                        -           2,170
    Extraordinary gain on note retirement                  (568,750)              -
    Amortization of deferred financing costs                157,725          18,494
    Amortization of excess of net assets
      of companies acquired over cost                      (130,101)              -
    Change in operating assets and liabilities
      (Increase)decrease -
        Accounts receivable - trade. . . . . . . . .        (75,810)        326,400
        Accounts receivable - other. . . . . . . . .         21,190          (3,348)
        Inventories. . . . . . . . . . . . . . . . .       (342,861)        296,264
        Prepaid expenses and other current assets. .        185,126         (21,535)
        Other assets . . . . . . . . . . . . . . . .          2,518          15,694
      Increase(decrease) in -
        Trade accounts payable . . . . . . . . . . .       (167,630)         43,824
        Accrued liabilities. . . . . . . . . . . . .        178,305         980,757
        Deferred service liability . . . . . . . . .              -        (199,163)
                                                      --------------  --------------
Net cash provided by (used by) operating activities.       (249,678)        312,731
                                                      --------------  --------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchases of property and equipment. . . . . . . .       (158,696)        (17,501)
  Proceeds on sale of property and equipment . . . .         36,938          21,512
  Payments received on notes receivable. . . . . . .            781          39,557
  Advance to related party . . . . . . . . . . . . .              -        (222,344)
  Purchase of certificate of deposit . . . . . . . .         (2,646)              -
  Cash in de-consolidation of subsidiary . . . . . .              -        (316,262)
                                                      --------------  --------------
Net cash used by investing activities. . . . . . . .       (123,623)       (495,038)
                                                      --------------  --------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Net activity on line of credit . . . . . . . . . .        214,993        (750,827)
  Repayment of long-term debt. . . . . . . . . . . .       (540,863)        (36,834)
  Proceeds from long-term debt.. . . . . . . . . . .        500,000               -
  Cash received on shareholder receivable. . . . . .              -          25,000
                                                      --------------  --------------
Net cash provided by (used by) financing activities.        174,130        (762,661)
                                                      --------------  --------------

NET DECREASE IN CASH AND CASH EQUIVALENTS. . . . . .       (199,171)       (944,968)
</TABLE>

            The accompanying footnotes are an integral part of these
                       consolidated financial statements.


                                      F-7
<PAGE>


<TABLE>
<CAPTION>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
               For The Three Months Ended March 31, 1999 and 2000
                                   (Unaudited)


                                                  2000          1999
                                              ------------  -----------
<S>                                           <C>            <C>
Cash and cash equivalents at beginning
  of period. . . . . . . . . . . . . . . . .        894,261   1,399,060
                                              -------------  ----------
Cash and cash equivalents at end of period .  $     695,090  $  454,092
                                              =============  ==========
SUPPLEMENTAL SCHEDULE OF NONCASH
  INVESTING AND FINANCING ACTIVITIES

  Issuance of common stock for
    settlement of note payable                $   1,031,250  $        -
                                              =============  ==========
  Dividends paid through issuance
    of common stock                           $      12,435  $   17,983
                                              =============  ==========
  Fair value of warrants issued and recorded
    as deferred financing costs               $     163,554  $        -
                                              =============  ==========
</TABLE>

            The accompanying footnotes are an integral part of these
                       consolidated financial statements.


                                      F-8
<PAGE>


                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE  A  -  BASIS  OF  PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with  generally accepted accounting principles for interim financial information
and  in  accordance  with  the  instructions  per  Item 310(b) of Regulation SB.
Accordingly,  they  do not include all of the information and footnotes required
by  generally  accepted accounting principles for complete financial statements.

In  the  opinion  of management, all adjustments (consisting of normal recurring
adjustments)  considered  necessary  for a fair presentation have been included.
Operating  results  for  the  three  month  period  ended March 31, 2000 are not
necessarily  indicative  of the results that may be expected for the year ending
December  31,  2000.

NOTE  B  -  ORGANIZATION

Tech Electro Industries,  Inc. ("TEI") was formed on January 10, 1992 as a Texas
corporation.  The Company's subsidiary, Computer Components Corporation ("CCC"),
stocks and sells electronic components.  A significant portion of CCC's business
is  involved  in  the  stocking and sale of batteries.  Within the battery sales
activity,  there  is significant value added to the batteries in the assembly of
batteries  into  "packs".  CCC's  electronic  components  sales are generated by
in-house  sales  staff and sales representatives as well as over the internet to
customers  throughout  the  United  States.

On  October  22,  1999,  TEI  acquired  100%  of the outstanding common stock of
AlphaNet  Hospitality  Systems, Inc. ("AHS").  The acquisition was accounted for
as  a  purchase  and  the  operations  of  AHS  are  included  in the results of
operations  of  the  Company  from  the  acquisition  date. AHS provides in-room
facsimile  and  business center services to the hotel industry through licensing
agreements.  AHS  generates  revenues  from  its InnFax product line, a patented
in-room  send and receive facsimile service and TheOffice, full service business
centers,  for  business  travelers  staying  at  hotels.

NOTE  C  -  CONSOLIDATION  OF  AHS

The  Company  acquired  AHS  in  October  1999,  and thus  AHS results  are  not
reflected  in  the  Company's  first  quarter  1999  financials.  The  following
unaudited  pro forma consolidated results for the three month period ended March
31,  1999  assumes  the  acquisition  of  AHS  occurred as of January 1, 1999:

                                     (unaudited)
                                   March 31, 2000
                                   --------------

Revenues                           $   7,335,734
Net loss                              (2,263,187)
Basic  and  diluted  loss  per
   share                           $       (0.47)


                                      F-9
<PAGE>


NOTE  D  -  DIVIDENDS

Dividends  were declared on March 8, 2000 for Class A Preferred Stock at $0.0975
per  share totaling $12,435.  This dividend was paid in the form of common stock
at  the rate of 0.11 shares of common for each share of preferred.  The dividend
was payable on March 31, 2000 to stockholders of record at the close of business
of  February  28,  2000.

NOTE  E  -  INVENTORIES

Inventories consist of the following at March 31, 2000:

Electronic  components,  batteries  and  assembly
     Materials. . . . . . . . . . . . . . . . . . . . . $  1,929,183
Facsimile  and  business  center  inventory . . . . . .      435,878
Inventory  obsolescence  reserve. . . . . . . . . . . .    (413,842)
                                                        ------------
                                                        $  1,951,219
                                                        ============
NOTE  F  -  NOTES  RECEIVABLE

Notes  receivable  consist  of  the  following  at  March  31,  2000:

     Note  receivable  from  a  preferred  stock
     shareholder,  due  March  31,  1999  and
     extended  month-to-month  thereafter,
     bearing  interest  at  10.5%,  interest
     payments  due  quarterly,  secured  by
     common  stock  of  the  Company . . . . . . . . . $     180,146

     Notes  receivable,  jointly  and  severally
     from  two  minority  shareholders  with
     interest  at 6%, payable monthly at $312.50
     plus  interest,  matures  November  2001,
     unsecured. . . . . . . . . . . . . . . . . . . . .        6,250
                                                        ------------
     Less  current  maturities . . . . . . . . . . . .     (180,146)
                                                        ------------
     Long-term  portion . . . . . . . . . . . . . . . . $      6,250
                                                        ============

NOTE  G  -  LINE  OF  CREDIT

Line  of  credit  at  March  31,  2000  consists  of  the  following:

     $3,000,000  line  of  credit  with  bank
     payable  on  demand,  with  interest
     payable  monthly  at  prime  plus  2%
     (11%  at  March  31,  2000), maturing
     August,  2002  and  secured  by
     accounts  receivable,  inventories,
     equipment  and  intangibles  of  CCC.
     Pursuant  to  borrowing  base  formulas,
     as  of  March  31,  2000  additional
     borrowings  of  $1,043,613  are  available
     under  the  line  of  credit. . . . . . . . . . .  $    604,525
                                                        ============


                                      F-10
<PAGE>


NOTE  H  -  LONG-TERM  DEBT

Long-term  debt  at  March  31,  2000  consists  of  the  following:

     Promissory  note  to  financing  company,
     with  interest  payable  monthly  at  12%,
     principal  due  at  maturity  May  2000,
     secured  by  stock  of  AHS . . . . . . . . . . . .$   500,000

     Non-interest  bearing,  unsecured  note
     payable  to  an  investment  company,
     lump  sum  payment  due  at  maturity  on
     June,  2000 . . . . . . . . . . . . . . . . . . . .    107,000

     Installment  notes  payable  to  leasing
     company,  due  in  monthly  installments
     ranging  from  $3,695  to  $3,004,
     including  interest  at  rates  from
     14.50%  to  14.52%,  current  portion  of
     debt  which  matures  October  2002,
     collateralized  by  facsimile  and
     business  center  equipment  of  AHS . . . . . . . .    93,621

     Note  payable  to  financing  company,
     with  interest  payable  monthly  at  20.5%,
     principal  due  at  maturity  (October  2001),
     guaranteed  by  TEI,  with  first  lien  on
     all  AHS  assets  and  second  lien  on  AHS
     common  stock . . . . . . . . . . . . . . . . . . .    940,600

     Note  payable  to  financing  company,
     with  interest  payable  monthly  at  20.5%,
     principal  due  at  maturity  (October  2001),
     guaranteed  by  TEI,  with  first  lien  on
     all  AHS  assets  and  second  lien  on  AHS
     common  stock. . . . . . . . . . . . . . . . . . .   1,434,400

     Installment  notes  payable  to  leasing
     company,  due  in  monthly  installments
     ranging  from  $3,695  to  $3,004,
     including  interest  at  rates  from
     14.50%  to  14.52%,  maturing  at
     various  dates  though  October  2002,
     collateralized  by  facsimile  and
     business  center  equipment  of  AHS. . . . . . . .    156,487
                                                       -------------
     Less  current  maturities . . . . . . . . . . . . .   (700,621)
                                                       -------------
     Long-term  portion . . . . . . . . . . . . . . .  $  2,531,487
                                                       =============

NOTE  I  -  INCOME(LOSS)  PER  SHARE

Basic net income(loss) per share is computed by dividing net income(loss) by the
weighted  average  number  of common shares outstanding for the period.  Diluted
net  income(loss)  per  share  is  computed  by dividing net income(loss) by the
weighted  average  number  of  common  shares  and  common  stock  equivalents
outstanding  for  the  period.  The  Company's  common stock equivalents are not
included  in  the diluted loss per share for March 31, 2000 and 1999 as they are
antidilutive.  Therefore,  diluted  and  basic loss per share is identical.  Net


                                      F-11
<PAGE>


NOTE  I  -  INCOME(LOSS)  PER  SHARE  (continued)

income(loss) per share for the three month period ending March 31, 2000 and 1999
has  been decreased(increased) for dividends on preferred stock totaling $12,435
and  $17,983,  respectively.

NOTE  J  -  WARRANTS  AND  STOCK  OPTIONS

On  February  16,  2000,  the  Company  agreed  to  extend  the exercise date of
1,000,000  options  originally  granted in connection with an equity offering by
two years to March 10, 2002, at the original exercise  price of $2.50.

On  February  24,  2000,  the  Company issued Caspic International, Inc. 250,000
warrants  for providing a $500,000 loan.  The warrants were issued at $0.73 with
a expiration date of February 25, 2005. The warrants were recorded at fair value
using the Black-Scholes model, and recorded as deferred financing fees, totaling
$163,554.  The  warrants  are  being  amortized  over  three months, the initial
maturity  period  of  the  loan.  (See  Note  M)

NOTE  K  -  EXCESS  OF  NET  ASSETS  OF  COMPANIES  ACQUIRED  OVER  COST

The  deferred  credit results from the excess of the estimated fair value of the
net  assets acquired over the purchase price paid for AHS.  After application to
all  non  current  assets  acquired,  this  amount  totaling $4,163,233 is being
amortized  using  the  straight-line  method  over 8 years. Amortization for the
period  ended  March  31,  2000  was  $130,101.

NOTE  L  -  EXTRAORDINARY  GAIN

The  Company recognized an extraordinary gain of $568,750 in connection with the
retirement  of  a  $2,100,000  note payable.  The note was settled with $500,000
cash  and  1,100,000  million common shares of the Company on February 25, 2000.
The shares and related debt settlement were recorded at the trading price of the
common  stock  on  the  date  of  the  settlement  which  was  $0.9375.

NOTE  M  -  RELATED  PARTIES

On October 26, 1999, the Company completed the acquisition of AlphaNet.  As part
of  this transaction,  the Company arranged for a $2,525,000 credit facility for
AlphaNet  to  refinance  its  existing  indebtedness;  $1,525,000  of  the  said
indebtedness was refinanced  through Appel Investments Inc.  ("Appel").  William
Tan Kim Wah's brother,  Kim Yeow Tan is an officer of Appel. In conjunction with
Appel's $1,525,000 loan to refinance AlphaNet indebtedness, AlphaNet paid a loan
origination  fee of $150,737.  The remaining  balance of the  indebtedness bears
interest  at  20.5% per annum.  The principal of the indebtedness is due in full
on  October  26, 2001. As additional  consideration  for the  refinancing, Appel
Investments  Inc.  received 116,703 Warrants to purchase the Common Stock of the
Company  exercisable  at  $0.75  per  share.  The Warrants expire on October 20,
2004.  AHS  also borrowed $1,000,000 from a finance company that has a principal
who  is  also  a  shareholder  of  TEI.  The Company paid an origination  fee of
$98,828.  The  loan  requires  interest payments monthly at 20.5% per annum. The
principal is due in full on October 21, 2001.  As additional  consideration  the
finance company received  warrants to purchase 76,514 shares of TEI common stock
exercisable  at $0.75 per share.  The warrants  vest  immediately  and expire on
October  20,  2004.  These  warrants  were  recorded  at  fair  value  using the
Black-Scholes  model,  and  recorded  as  deferred financing fees, and are being
amortized  over  the  life  of  the  respective  loans.


                                      F-12
<PAGE>


NOTE  M  -  RELATED  PARTIES  (continued)

The  Company  engaged  Placement  &  Acceptance,  Inc. ("PAI"), a British Virgin
Islands  corporation,  to effect a private  placement of  securities,  which was
consummated in December 1997. Mr. Tan is a director and  shareholder of PAI. PAI
received fees of $112,000,  inclusive of expenses,  for acting as sales agent in
the placement. The Company also engaged PAI in October, 1999 to effect a private
placement of securities for the Company's acquisition of AlphaNet.  PAI received
a placement fee of 500,000 warrants in consideration for services  rendered.  In
addition,  the  Company  retained  PAI to  refinance  the  outstanding  AlphaNet
indebtedness required to complete the acquisition.  PAI received a placement fee
of 550,000 warrants in  consideration  for services  rendered.  The warrants are
exercisable  at  $0.75  per share and expire on October 20, 2004. These warrants
were  recorded  at  fair  value  using  the Black-Scholes model, and recorded as
deferred financing fees, and are being amortized over the life of the respective
loans.

On  February  24,  2000,  the  Company  renegotiated  and  settled  in  full its
$2,100,000  promissory  note  with  PricewaterhouseCoopers, Inc. (Trustee of the
Estate of  AlphaNet  Telecom  Inc.) that  composed  part of the  purchase  price
of  the  acquisition  of  AlphaNet.  The promissory note was paid in full by the
payment  of  $500,000 cash and the issuance of 1,100,000 shares of Common Stock.

The  $500,000 cash was  raised by a loan from  Caspic  International,  Inc.  Mr.
Tan is also a director and  shareholder of Caspic  International,  Inc. The loan
is  due on May 25, 2000, bears an interest rate of 12% per annum payable monthly
and  is secured by a  pledge  of  the  shares  of  capital  stock  of  AlphaNet.
As  additional  consideration  for the loan, the Company also issued warrants to
purchase  250,000  shares  of  Common  Stock  at  $0.73  per share,  exercisable
immediately,  with  an  expiration  date  of  February  25,  2005.  (See Note J)

NOTE  N  -  COMMITMENTS  AND  CONTINGENCIES

Commitments

AHS  has  entered into an agreement with a leasing company which requires AHS to
pay  $5  per  machine  each  month for two years, which represents the estimated
residual  value  at the end of a four-year leasing contract.  The future minimum
payments  under  this  agreement  at  March  31,  2000  are  as  follows:

     2000 . . . . . . . . . . $     174,702
     2001 . . . . . . . . . .       106,798
     2002 . . . . . . . . . .        21,744
                              -------------
                              $     303,244
                              =============

Guarantees

In  March, 1998, the Company completed the acquisition of a controlling interest
in  US  Computer  Group,  ("USCG")  a  company  that  provided  a broad range of
information technology  services and  products.   On February 25, 1999,  Telstar
Entertainment  ("Telstar"),  the second largest shareholder of USCG, contributed
additional   capital  to  USCG  through  the  purchase  of  additional   shares,
making  Telstar  the largest  shareholder of USCG.  Effective February 25,  1999
TEI ceased  reporting  USCG's  financial  results in its  consolidated financial
statements  and  uses  the equity  method to account for its  minority interest.
On October  20, 1999 the Company  guaranteed  a payment  made by Telstar to USCG
totaling  $100,000  for  working  capital.   In March 2000, a USCG bank creditor


                                      F-13
<PAGE>


NOTE  N  -  COMMITMENTS  AND  CONTINGENCIES  (continued)

foreclosed  on  all  of  USCG's assets,  effectively  terminating  all of USCG's
operations.  TEI  has  guaranteed  a portion of the USCG bank  indebtedness.  In
this  regard,  the  said  bank  creditor  has demanded  that TEI pay $361,740 to
the  bank  pursuant  to  the  guarantee.  TEI  is  investigating  its options in
response  to  these  events.  Management  does not know how much, if any, of the
guarantee  amount  will  ultimately  be  payable.

NOTE  O  -  SUBSEQUENT  EVENTS

On  April  28,  2000 the Company was advised that the American Arbitration Board
awarded  an  ex-employee of CCC $375,865 for breach of the employee's employment
agreement.  The  liability is reflected in the accompanying financial statements
for  the  three  months  ended  March  31,  2000  and is to be paid in May 2000.

AHS  was  a defendant in a lawsuit filed by a competitor claiming that AHS's The
Office  product infringes on a patent assigned to the said competitor.  In order
to  end  this  litigation  and the resultant legal fees, AHS paid the competitor
$50,000  to  settle the case and all claims of the competitor.  The liability is
reflected  in  the  accompanying financial statements for the three months ended
March  31,  2000  and  was  paid  in  April  2000.


                                      F-14
<PAGE>


ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION.

The  following  discussion  and  analysis should be read in conjunction with the
Company's Consolidated Financial Statements and notes thereto included elsewhere
in  this  Form  10-QSB.  Except for the historical information contained herein,
the  discussion  in this Form 10-QSB contains certain forward looking statements
that involve risks and uncertainties, such as statements of the Company's plans,
objectives, expectations and intentions.  The cautionary statements made in this
Form  10-QSB  should  be read as being applicable to all related forward-looking
statements  wherever they appear in this Form 10-QSB.  These statements include,
without  limitation,  statements concerning the potential operations and results
of  the  Company  described  below.  The  Company's  actual results could differ
materially from these discussed here.  Factors that could cause or contribute to
such differences include, without limitation, those factors discussed herein and
in  the  Company's  Annual Report on Form 10-KSB for the year ended December 31,
1999.

BACKGROUND  AND  RECENT  DEVELOPMENTS

The  results  of  operations  for the three months ended March 31, 2000 does not
include  US  Computer Group ("USCG") operations, while the comparative period of
1999  includes two months of USCG operations.  As AHS was acquired as a purchase
in  October  1999, the financial statements for the three months ended March 31,
2000  include  three  months  of  activity  with  no  operations  of AHS for the
comparative  prior  quarter.

The  Company  was  advised  on  March  22, 2000 that Coast Business Credit, Inc.
("Coast"),  has declared that USCG has defaulted on certain loans from Coast and
has demanded full payment by USCG for all indebtedness.  The Company was advised
verbally  by  Coast's  attorney  that  it  had foreclosed and sold all of USCG's
assets  that  were  pledged to secure loans from Coast.  Coast has demanded that
the  Company pay Coast $361,740 on its guarantees.  The Company is investigating
the  propriety of Coasts said foreclosure sale of USCG's assets and the validity
of  its said demand under the Company guarantees.  TEI owns approximately 43% of
USCG's  outstanding  capital  stock.

On  April  28, 2000, the American Arbitration Association awarded an ex-employee
of  CCC's  $375,865 due to breach of his employment agreement.  The liability is
reflected  in  March  2000  financials.

In  April  2000,  AHS  settled their lawsuit filed by a competitor claiming that
AHS's  The  Office product infringes on a patent assigned to the said competitor
for  $50,000.  The  settlement  is  reflected  in  March  2000  financials.

RESULTS  OF  OPERATIONS

Currently,  the  Company's  operations  are  conducted through its subsidiaries,
Computer  Components  Corporation  ("CCC"),  and  AlphaNet  Hospitality  Systems
("AHS").

REVENUES

For  the  three  month  period ended March 31, 2000, the Company had revenues of
$5,730,795  an  increase  of  $512,698 (9.825%) from sales of $5,218,097 for the
three  month  period  ended  March  31,  1999.  USCG  contributed  $3,187,661 in
revenues  for  the period ending March 31, 1999 with no comparison in 2000 since
USCG  was  de-consolidated  in  February  1999.


                                       15
<PAGE>


CCC  had  revenues  of  $3,689,554  for  the  three  months ended March 31, 2000
compared  to revenues of $2,030,436 during the same period ended March 31, 1999,
an  increase  of $1,659,118 (81.71%).  The increase is related to the increasing
sales  in  batteries  and  related  products.

AHS  contributed  revenues  of $2,041,241 for the first quarter of 2000, with no
contribution  in  the  same  period  1999.

COST  OF  REVENUES

The  cost of revenues decreased to $3,296,063 in the first quarter of 2000, from
$4,034,649  in  the  same  period in 1999, a decrease of $738,586 (18.31%).  The
decrease  is  associated  with  the  de-consolidation of USCG, which contributed
$2,694,228  in  1999.

Increased  sales  at  CCC resulted in an increase in the cost of revenues during
the  period  ended  March 31, 2000.  CCC's cost of revenues increased $1,335,548
(85.94%)  to  $2,889,601  for  the  first  quarter  of 2000, compared to cost of
revenues  of  $1,554,053  for  the  same  period  in  1999.

Cost  of  revenues at AHS was $406,462 for the three months ended March 31, 2000
and  no  comparison  in  1999.

GROSS  PROFIT

The  Company  recorded  a  gross profit of $2,434,732 for the three months ended
March  31,  2000,  compared  to  $1,183,448 during the first quarter of 1999, an
increase  of  $1,251,284  (105.73%).  Of  the $1,183,448 at March 31, 1999, USCG
contributed  $691,631  and  no  contribution  at  March  31,  2000.

CCC contributed $799,953 compared to $491,817 during the similar period in 1999,
an  increase  of $308,136 (62.65%).  AHS contributed $1,634,779 during the first
quarter  of  2000,  with  no  contribution  made during the same period in 1999.

Gross  profit  as  a  percentage  of revenue for CCC decreased to 21.68% for the
three  months  ended  March  31, 2000, compared to 24.22% for the same period in
1999.  The decreasing gross profit margin of CCC is attributable to the focus on
battery  and  battery-related products, which produce a lower profit margin than
component  sales.

OPERATING  EXPENSES

The  Company's  operating  expenses,  consisting  of  selling,  general  and
administrative,  legal  settlement,  depreciation  and  amortization  expenses
decreased  to  $2,525,053  for the three month period ended March 31, 2000, from
$2,792,282 for the same period in 1999.  For the three month period ending March
31,  1999,  USCG  contributed  $1,944,840 in selling, general and administrative
expenses  with  no  comparison  at  March  31,  2000.  CCC  selling, general and
administrative  expenses  increased  to  $691,101  in  the first quarter of 2000
compared  $662,012  for the same period in 1999, an increase of $29,089 (4.39%).
Selling,  general  and  administrative expenses increased because of legal fees,
wages  and  travel  expenses.   AHS  incurred $1,260,808 in selling, general and
administrative  expenses at March 31, 2000 with no comparison in 1999, which was
attributable  to  legal,  communications,  wages  and  advertising  expenses.

The  Company  incurred  $400,086 in legal settlement fees from the Company's two
subsidiaries,  (CCC and AHS), for the period ending March 31, 2000.  The Company
did not incur any legal settlement fees for the three month period  ending March


                                       16
<PAGE>
31, 1999.   The CCC lawsuit stemmed from an ex-employee due to the breach of his
employment agreement.  The American Arbitration Association awarded a settlement
of $375,865. AHS settled their lawsuit filed by a competitor claiming that AHS's
The Office product infringes  on a  patent  assigned  to the said competitor for
$50,000.

DEPRECIATION  AND  AMORTIZATION  OF  PROPERTY  AND  EQUIPMENT

The  Company  incurred  $390,640 in depreciation and amortization for the period
ending March 31, 2000 compared to $218,353 in 1999.  The increase of $172,287 is
due  to  AHS  depreciation  of  revenue  assets at March 31, 2000. USCG incurred
$181,803 in amortization costs for  the period  ending March 31, 1999  which has
been de-consolidated in February 1999.

INTEREST  EXPENSE  AND  FINANCING  FEES

The  Company incurred $200,012 in interest expense during the three months ended
March 31, 2000, compared to $113,903 during the same period in 1999, an increase
of  $86,109  (75.60%).  The  significant  increase  in  interest  expense  is
attributable  to  AHS,  which  incurred  $169,126 in interest expense during the
first  quarter  of  2000  with  no  contribution during the same period in 1999.

Deferred  financing  costs  are  amortized  on  a  straight-line  basis over the
original term of the financing agreement. The Company issued warrants to various
lenders  which  were  recorded  at  fair  value  using  the Black-Scholes model.
Amortization  of these deferred financing costs was $157,725 and $18,494 for the
three  months  period  ending  March  31,  2000  and  1999,  respectively.

EXCESS  OF  NET  ASSETS  OF  COMPANIES  ACQUIRED  OVER  COST

The  deferred  credit results from the excess of the estimated fair value of the
net  assets acquired over the purchase price paid for AHS.  After application to
all  non  current  assets  acquired,  this  amount  totaling $4,163,233 is being
amortized  using  the  straight-line  method  over 8 years. Amortization for the
period  ended  March  31,  2000  was  $130,101.

EXTRAORDINARY  GAIN

The  Company recognized an extraordinary gain of $568,750 from the retirement of
the  PricewaterhouseCoopers,  Inc.  note of $2,100,000 that composed part of the
purchase  price of the AHS acquisition.  The note was settled with $500,000 cash
and  1,100,000  million  common  shares  in  February  2000.

INVENTORY

The  Company continually reviews its inventory allowance procedures and policies
and will make adjustments as necessary.  During the period ended March 31, 2000,
the  Company  recorded  $3,000 as a reserve for inventory allowance, compared to
$185,430 in  the same  period in 1999.   CCC  recorded  $65,430  as an inventory
reserve for the first  quarter  of  1999  for  slow  moving passive  components.
USCG  recorded $120,000 as a reserve on their inventory for  the  first  quarter
ending in 1999 with no comparison in 2000.

LIQUIDITY

As  of  March  31,  2000  the  Company had cash and cash equivalents of $695,090
compared  to  $894,261  at  December  31,  1999.

The  Company  used  cash  from operations of $249,678 for the three month period
ended March 31, 2000 compared to cash provided by operations of $312,731 for the
same  period  in  1999.
                                       17
<PAGE>


The  Company  used cash in investing activities of $123,623 in the first quarter
of 2000,  compared  to  $495,038 in 1999.  The majority of this cash was used to
purchase  new  property  and equipment in the first quarter of 2000.  During the
prior comparative quarter, the cash was used primarily for advances to a related
party  of  $222,344  and  in  connection  with  the  de-consolidating of USCG of
$316,262.

The  Company  provided  cash  from financing activities of $174,130 in the three
month period ended March 31, 2000 compared to cash used in financing of $762,661
in 1999.  During the quarter  ended March 31, 2000 the Company received $214,993
of net proceeds under its line of credit.  CCC established a new credit line and
has  an  additional $1,043,613 available on their credit line at March 31, 2000.
The  Company organized repayment of their acquisition debt and recognized a gain
in  connection  with  this  settlement  and  refinancing  transactions.

INFLATION

The  Company  has  not been materially effected by inflation.  While the Company
does  not  anticipate inflation affecting the Company's operations, increases in
labor  and  supplies  could  impact  the  Company's  ability  to  compete.

INTERNATIONAL  CURRENCY  FLUCTUATION

Since  the  majority  of  goods  that  CCC  purchases are from Asia, it has been
subject,  like  its competitors, to international currency fluctuation since the
company's  inception.  The  management  of  CCC  does  not  believe  that  the
fluctuation  in  currency presents a serious threat to the Company's operations.

PART  II  -  OTHER  INFORMATION

Item  1.  Legal  Proceedings.

        Martin  Frank, a former employee of CCC, filed an arbitration claim with
        the  American  Arbitration  Association  against CCC and the Company for
        the  breach  of  his  employment  agreement.

        On April 28, 2000,  the Arbitration panel awarded Martin Frank $375,865.
        The  Company  does not intend to appeal this award.  The Company has not
        been advised whether  or  not  Mr.  Frank  will  appeal  the  award.

        AHS  was  a  defendant  in a lawsuit filed by a competitor claiming that
        AHS's  The  Office  product  infringes  on a patent assigned to the said
        competitor.  In  order  to  end  this litigation and the resultant legal
        fees, in  April 2000, AHS paid the competitor $50,000 to settle the case
        and all claims of the competitor.

Item  2.  Changes  in  Securities.

        None.

Item  3.  Defaults  Upon  Senior  Securities.

        None.

Item  4.  Submission  of  Matters  to  a  Vote  of  Securities  Holders.

        None.


                                       18
<PAGE>


Item  5.  Other  Information.

        None.

Item  6.  Exhibits  and  Reports  on  Form  8-K.

        None.



                                    Signature
                                    ---------

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


                              Tech  Electro  Industries,  Inc.
                              --------------------------------


Date:  May 19, 2000

                              /s/  Julie  Sansom-Reese
                              -----------------------------
                              Interim  Chief  Financial  Officer


                                       19