<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 THREE-MONTH PERIOD ENDED
MARCH 31, 1998 AND IS  QUALIFIED  IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 1997,  FILED ON MARCH 31, 1998, AS AMENDED APRIL
30, 1998 (AMENDMENT NO. 1) AND MAY 4, 1998 (AMENDMENT NO. 2).              
</LEGEND>                                                                  
<CIK>                          0000722051                                  
<NAME>                         NOISE CANCELLATION TECHNOLOGIES, INC.       
<MULTIPLIER>                   1000                                        
                                                                           
                                                                     
<PERIOD-TYPE>                                  YEAR                        
<FISCAL-YEAR-END>                              DEC-31-1998                 
<PERIOD-START>                                 JAN-01-1998                 
<PERIOD-END>                                   DEC-31-1998                 
<CASH>                                          8299                       
<SECURITIES>                                       0                       
<RECEIVABLES>                                    813                       
<ALLOWANCES>                                      42                       
<INVENTORY>                                     2174                       
<CURRENT-ASSETS>                               11613                       
<PP&E>                                          9518                       
<DEPRECIATION>                                  6926                       
<TOTAL-ASSETS>                                 14255                       
<CURRENT-LIABILITIES>                           3379                       
<BONDS>                                            0                       
<PREFERRED-MANDATORY>                              0                       
<PREFERRED>                                    12533                       
<COMMON>                                        1332                       
<OTHER-SE>                                     (2989)                      
<TOTAL-LIABILITY-AND-EQUITY>                   14255                       
<SALES>                                          402                       
<TOTAL-REVENUES>                                 734                       
<CGS>                                            303                       
<TOTAL-COSTS>                                    325                       
<OTHER-EXPENSES>                                4022                       
<LOSS-PROVISION>                                   4                       
<INTEREST-EXPENSE>                                 6                       
<INCOME-PRETAX>                                (3611)                      
<INCOME-TAX>                                       0                       
<INCOME-CONTINUING>                            (3611)                      
<DISCONTINUED>                                     0                       
<EXTRAORDINARY>                                    0                       
<CHANGES>                                          0                       
<NET-INCOME>                                   (3611)                      
<EPS-PRIMARY>                                   (.04)                      
<EPS-DILUTED>                                   (.04)