<ARTICLE> 5
<LEGEND>
THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM TEI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK>     0000867888
<NAME>     TANKNOLOGY ENVIRONMENTAL INC
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               SEP-30-1998
<CASH>                                      15,173,306
<SECURITIES>                                13,617,153
<RECEIVABLES>                                  675,887
<ALLOWANCES>                                         0
<INVENTORY>                                    275,280
<CURRENT-ASSETS>                            30,565,685
<PP&E>                                       5,008,344
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                              38,783,039
<CURRENT-LIABILITIES>                        1,406,599
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       152,062
<OTHER-SE>                                  37,255,578
<TOTAL-LIABILITY-AND-EQUITY>                38,783,039
<SALES>                                      2,287,187
<TOTAL-REVENUES>                             2,287,187
<CGS>                                        1,760,188
<TOTAL-COSTS>                                3,692,205
<OTHER-EXPENSES>                           (1,163,186)
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                              (241,832)
<INCOME-TAX>                                  (81,135)
<INCOME-CONTINUING>                          (160,697)
<DISCONTINUED>                               (108,500)
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 (269,197)
<EPS-PRIMARY>                                   (0.02)
<EPS-DILUTED>                                   (0.02)