U.S. SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

                           FORM 10-QSB

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

     For the quarterly period ended March 31, 1998

     OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

     For the transition period from _________ to _________

                  Commission File Number 01-8929


           SANITARY ENVIRONMENTAL MONITORING LABS, INC.
     ________________________________________________________
(Exact name of small business issuer as specified in its charter)

Nevada                                                 13-3432594
(State or other jurisdiction of                  (I.R.S. Employer
incorporation or organization)                Identification No.)


            1408 Pawnee Drive, Las Vegas, Nevada 89102
             (Address of principal executive offices)

                          (888) 355-8805
         (Issuer's telephone number, including area code)


                               N/A
      (Former name, former address and former fiscal year,
                 if changed since last report)



  Securities registered under Section 12(b) of the Exchange Act:

                                   Name of Each Exchange
     Title of Each Class           on Which Registered



  Securities registered under Section 12(g) of the Exchange Act:

                           Common Stock
                    -------------------------
                         (Title of Class)


Check whether the Issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.     Yes __   No  X

The aggregate number of shares outstanding of the Issuer's Common
Stock, its sole class of common equity, was 25,538,268 as of
March 31, 1998 (after giving effect to the 1-for-10 reverse
instituted in 1999, this would be 2,553,827, as reflected in the
audited statements filed with the December 31, 1997 10KSB).


           SANITARY ENVIRONMENTAL MONITORING LABS, INC.
                           FORM 10-QSB

               for the quarter ended March 31, 1998


                        TABLE OF CONTENTS


Part I.   Financial Information
-------
Item 1.   Financial Statements (unaudited)

Item 2.   Managements Discussion and Analysis or Plan of
          Operation


Part II.  Other Information
--------
Item 1.   Legal Proceedings

Item 2.   Changes in Securities

Item 3.   Defaults upon Senior Securities

Item 4.   Submission of Matters to a Vote of Security holders

Item 5.   Other Information

Item 6.   Exhibits and reports on form 8-K

          SIGNATURES

<PAGE>

                              PART I


ITEM 1.  FINANCIAL STATEMENTS


           SANITARY ENVIRONMENTAL MONITORING LABS, INC.
                  (A Development Stage Company)

                            UNAUDITED
                    CONSOLIDATED BALANCE SHEET
                          MARCH 31, 1998

                              ASSETS

                                         March 31,  December 31,
                                           1998        1997

Current Assets
 Cash                                    $     721         721
 Accounts Receivable                             0           0
 Other Receivable                                0           0
 Inventories                                     0           0
 Pre-paid expenses                               0           0

     Total Current Assets                $     721         721


Fixed Assets                                     0           0
 Less Accumulated Depreciation                   0           0

     Total Fixed Assets                        721         721

     Total Assets                              721         721

<PAGE>

           SANITARY ENVIRONMENTAL MONITORING LABS, INC.
                  (A Development Stage Company)

                            UNAUDITED
                    CONSOLIDATED BALANCE SHEET
                          MARCH 31, 1998

              LIABILITIES AND STOCKHOLDERS' DEFICIT


                                         March 31,  December 31,
                                           1998        1997

Current Liabilities
 Accounts Payable                         $ 14,601  $  14,601
 Suppliers                                       0          0
 Short-term credit from banks                    0          0
 Short-term loans (other)                   26,956     26,956
                                           -------   --------
     Total Current Liabilities            $ 41,557     41,557

Long-Term Liabilities
 Long-term loans                                 0          0
 Accrued Expenses (Tweed)                        0          0
 Liability for Severance pay                     0          0
                                         ---------  ---------
     Total Long-Term Liabilities                 0          0

Stockholders' Deficit
 Common Stock, $.001 par value,
  authorized 26,000,000 shares,
  issued and outstanding
  2,553,827 shares and 2,553,827            25,538     25,538
 Additional Paid-In Capital              7,777,260  7,777,260
 Accumulated Deficit During
   The Development Stage                (7,843,634)(7,843,634)
                                         ---------  ---------
     Total Liabilities and Equity              721        721
                                         =========  =========

<PAGE>

           SANITARY ENVIRONMENTAL MONITORING LABS, INC.
                  (A Development Stage Company)

                            UNAUDITED
    CONSOLIDATED STATEMENTS OF INCOME AND ACCUMULATED DEFICIT
                    FOR THE THREE MONTHS ENDED
             MARCH 31, 1998 AND FOR THE ANNUAL PERIOD
                     ENDING DECEMBER 31, 1997


                                  3 Months
                                  Ended                Annual to
                                  March                December
                                  30, 1998             31, 1997

Revenues
  Sales                           $      0            $        0

Operating Expenses:
  General and Administrative             0                88,311
                                  --------             ---------
     Total Expenses                      0                88,311
                                  --------             ---------

Other Expenses:

  Interest expense (Note 5)              0              (144,817)
  Discontinued operations (Note 3)       0                79,701
  Estimated gain on disposal             0               975,019

  (loss)/income before extra-
   ordinary items                        0               821,592

Extraordinary item - gain on
  extinguishment of debt                 0               323,466

Net (loss)/Income                        0             1,145,058

Accumulated Deficit, Beginning  (7,843,634)           (8,988,692)
                                  --------             ---------

Accumulated Deficit, Ending     (7,843,634)           (7,843,634)
                                 =========             =========


            See Notes to Financial Statements for 1997



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

THE COMPANY

Background.    Israel Semiconductor Corporation, as of March 31,
1998, had fully liquidated its only subsidiary and asset, GAD
Semiconductors, and had no actual operations.

Business Development.  In September 1993, the Company committed
to invest in shares of a newly founded Israeli development stage
company, GAD Semiconductors, Ltd. ("GAD"), specializing in
gallium arsenide applications, initially in the specialty diodes
area.  The Company committed to invest an amount up to $1,000,000
($900,000 in cash and $100,000 in loans) and undertook to raise
additional funds by means of commercial banking loans, grants and
government loans which GAD is qualified to receive as a
recognized Approved Enterprise under the Israeli Encouragement of
Capital Investment- 1959 Law.  Together with the initial
investment, this has aggregated to approximately $3,400,000,
which is $400,000 in excess of the originally agreed upon amount.
In return for the initial commitment, GAD issued to the Company
60% of its common stock, par value $2,033.  The subsequent
investment of $400,000 was converted into additional common stock
of GAD for which GAD issued 1000 shares (approximately 10% of the
common stock then outstanding) to the Company in September, 1995.
The major part of the investment, up to the amount which the
Company has undertaken to invest in GAD's shares, has been
considered as premium on the shares.  As of September  30, 1996,
the Company was well past its initial commitment for investment,
and has exceeded the original program by approximately $700,000,
most of which has been converted to additional equity in GAD.

Capital Resources and Liquidity.  The Company, as of June 30,
1997, has sustained a negative cash flow since the beginning of
1994.  The Company raised $1,538,125 during 1995 in various
private placements, and in 1996, raised additional equity of
$939,786 by the sale of 1,308,667 shares in private placements
and an S-8 registration.

During the fourth quarter of 1996, and the first quarter, 1997,
the Company borrowed $399,273.94 from Tweed Investments, Ltd.,
which was in the form of a convertible note, with a conversion
rate at market during the succeeding 12 months, and $100,000 from
Karlin Investments, convertible at 75% of then-existing market
prices on date of conversion.  An additional $100,000 was
borrowed from Karlin Investments during the second quarter, 1997.
Tweed converted the sum of all of its loans into equity during
the fourth quarter of 1997, in exchange for 11,300,000 shares.
This was accounted for as a payment of $110,625 in the then-
current value of the stock and an extraordinary gain of $323,466
on the amount of debt, in excess of stock value, cancelled by the
Company.

During the first quarter of 1997, Karlin Investments converted
$100,000 of its credit into 334,846 shares of common stock of the
Company and loaned the Company an additional $100,000 on February
20, 1997.  During the second quarter, Karlin loaned the Company
an additional $100,000 and converted all of its outstanding
indebtedness into common stock.  All Karlin advances were
converted into a total of 4,424,026 shares of stock issued to
Karlin Investments, primarily during the second quarter, 1997.

No activity took place during the first, second or third quarters
of 1998, and no shares were issued.  The only expense was an
ongoing expense for general and administrative costs, which was
assessed during the fourth quarter and therefore first occurs on
the annual statement for 1998, filed as an exhibit to the 1998
10-KSB.


                   PART II.  OTHER INFORMATION


ITEM 1.   LEGAL PROCEEDINGS

          None (In US: subsidiary in liquidation in Israel
                for most of year)


ITEM 2.   CHANGES IN SECURITIES

          None


ITEM 3.   DEFAULT UPON SENIOR SECURITIES

          None


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

          None


ITEM 5.   OTHER INFORMATION

          None


ITEM 6.   EXHIBITS AND REPORTS

          None



                            SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of
1934, Registrant has duly caused this Report to be signed on its
behalf by the undersigned, thereunto duly authorized.


           SANITARY ENVIRONMENTAL MONITORING LABS, INC.
                           (Registrant)



Dated:  November 7, 2000          By:   /s/  Robert M. Terry
                                             Robert M. Terry,
                                             Chairman