<ARTICLE> 5
<LEGEND>
THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM TEI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK>     0000867888
<NAME>     TANKNOLOGY ENVIRONMENTAL INC
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               JUN-30-1998
<CASH>                                      13,191,678
<SECURITIES>                                14,456,491
<RECEIVABLES>                                  926,166
<ALLOWANCES>                                         0
<INVENTORY>                                    309,783
<CURRENT-ASSETS>                            31,088,820
<PP&E>                                       4,931,798
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                              39,066,410
<CURRENT-LIABILITIES>                        1,399,433
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       152,062
<OTHER-SE>                                  37,514,915
<TOTAL-LIABILITY-AND-EQUITY>                39,066,410
<SALES>                                      1,556,194
<TOTAL-REVENUES>                             1,556,194
<CGS>                                          974,961
<TOTAL-COSTS>                                2,338,079
<OTHER-EXPENSES>                             (769,230)
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                               (12,655)
<INCOME-TAX>                                   (2,795)
<INCOME-CONTINUING>                            (9,860)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (9,860)
<EPS-PRIMARY>                                   (0.00)
<EPS-DILUTED>                                   (0.00)