<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted form SGI International's Form 10-Q for the six month period ended June 30, 1998, and is qualified in its entirely by reference to such financial statements. </LEGEND> <CIK> 0000737955 <NAME> SGI International <MULTIPLIER> 1 <CURRENCY> 0 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> JUN-30-1998 <EXCHANGE-RATE> 1.000 <CASH> 299,407 <SECURITIES> 402,500 <RECEIVABLES> 767,095 <ALLOWANCES> 84,460 <INVENTORY> 64,323 <CURRENT-ASSETS> 1,588,652 <PP&E> 1,643,421 <DEPRECIATION> 724,949 <TOTAL-ASSETS> 5,424,897 <CURRENT-LIABILITIES> 5,914,211 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 661 <COMMON> 43,047,488 <OTHER-SE> (43,646,963) <TOTAL-LIABILITY-AND-EQUITY> 5,424,897 <SALES> 2,589,188 <TOTAL-REVENUES> 2,616,526 <CGS> 1,978,110 <TOTAL-COSTS> 1,978,110 <OTHER-EXPENSES> 2,725,803 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 460,882 <INCOME-PRETAX> (2,975,558) <INCOME-TAX> 0 <INCOME-CONTINUING> (2,975,558) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,975,558) <EPS-PRIMARY> (.36) <EPS-DILUTED> (.36)