WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

  



<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) AND NOTES TO THE 
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH PERIOD ENDED
JUNE 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-K 
FOR THE YEAR ENDED DECEMBER 31, 1996, AS AMENDED, FILED ON APRIL 15, 1997.     
</LEGEND>
<CIK>                         0000722051
<NAME>                        NOISE CANCELLATION TECHNOLOGIES, INC.
<MULTIPLIER>                                   1000
<CURRENCY>                                     US DOLLARS
       
                                            
<PERIOD-TYPE>                                  YEAR
<FISCAL-YEAR-END>                              DEC-31-1997
<PERIOD-START>                                 JAN-01-1997
<PERIOD-END>                                   DEC-31-1997
<CASH>                                         1,122
<SECURITIES>                                       0
<RECEIVABLES>                                    761
<ALLOWANCES>                                     112
<INVENTORY>                                    1,244
<CURRENT-ASSETS>                               3,031
<PP&E>                                         5,416
<DEPRECIATION>                                 3,585
<TOTAL-ASSETS>                                 6,570
<CURRENT-LIABILITIES>                          2,403
<BONDS>                                            0
<PREFERRED-MANDATORY>                              0
<PREFERRED>                                        0
<COMMON>                                       1,283
<OTHER-SE>                                     2,771
<TOTAL-LIABILITY-AND-EQUITY>                   6,570
<SALES>                                          581
<TOTAL-REVENUES>                               4,004
<CGS>                                            505
<TOTAL-COSTS>                                    705
<OTHER-EXPENSES>                               5,310
<LOSS-PROVISION>                                 209
<INTEREST-EXPENSE>                                54
<INCOME-PRETAX>                               (2,011)
<INCOME-TAX>                                       0
<INCOME-CONTINUING>                           (2,011)
<DISCONTINUED>                                     0
<EXTRAORDINARY>                                    0
<CHANGES>                                          0
<NET-INCOME>                                  (2,011)
<EPS-PRIMARY>                                   (.02)
<EPS-DILUTED>                                   (.02)