<ARTICLE> 5
<LEGEND>
THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM TEI, INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER
31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK>     0000867888
<NAME>     TANKNOLOGY ENVIRONMENTAL INC
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               DEC-31-1997
<CASH>                                      12,810,100
<SECURITIES>                                15,516,366
<RECEIVABLES>                                  639,678
<ALLOWANCES>                                         0
<INVENTORY>                                    178,839
<CURRENT-ASSETS>                            31,411,412
<PP&E>                                       4,789,141
<DEPRECIATION>                                 800,254
<TOTAL-ASSETS>                              39,042,721
<CURRENT-LIABILITIES>                        1,377,574
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       151,992
<OTHER-SE>                                  37,513,155
<TOTAL-LIABILITY-AND-EQUITY>                39,042,721
<SALES>                                      2,725,749
<TOTAL-REVENUES>                             2,725,749
<CGS>                                        2,190,367
<TOTAL-COSTS>                                4,815,500
<OTHER-EXPENSES>                           (1,530,264)
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               6,748
<INCOME-PRETAX>                              (559,487)
<INCOME-TAX>                                 (159,585)
<INCOME-CONTINUING>                          (399,902)
<DISCONTINUED>                             (2,193,860)
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                               (2,781,616)
<EPS-PRIMARY>                                    (.20)
<EPS-DILUTED>                                    (.20)