<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)