<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS CUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) AND NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-K FOR THE YEAR ENDED DECEMBER 31, 1996, AS AMENDED, FILED 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 <EXCHANGE-RATE> 1 <CASH> 1,038 <SECURITIES> 0 <RECEIVABLES> 620 <ALLOWANCES> 124 <INVENTORY> 1,350 <CURRENT-ASSETS> 3,167 <PP&E> 5,416 <DEPRECIATION> 3,950 <TOTAL-ASSETS> 6,254 <CURRENT-LIABILITIES> 3,878 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 1,312 <OTHER-SE> 1,064 <TOTAL-LIABILITY-AND-EQUITY> 6,254 <SALES> 1,069 <TOTAL-REVENUES> 4,840 <CGS> 1,401 <TOTAL-COSTS> 1,696 <OTHER-EXPENSES> 8,312 <LOSS-PROVISION> 148 <INTEREST-EXPENSE> 54 <INCOME-PRETAX> (5,178) <INCOME-TAX> 0 <INCOME-CONTINUING> (5,178) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (5,178) <EPS-PRIMARY> (.04) <EPS-DILUTED> (.04)