Securities and Exchange Commission
                             Washington, D.C. 20549

                                    FORM 8-K

                 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
                                       OF
                     THE SECURITIES AND EXCHANGE ACT OF 1934

       Date of Report (Date of Earliest Event Reported): January 21, 2000

                           SI DIAMOND TECHNOLOGY, INC.
             (Exact Name of Registrant as Specified in its Charter)

                                      TEXAS
                 (State or Other Jurisdiction of Incorporation)



              1-11602                       76-0273345
       (Commission File No.)   (I.R.S. Employer Identification No.)


                             3006 Longhorn Boulevard
                                    Suite 107
                               Austin, Texas 78758
                    (Address of Principal Executive Offices)

                                  512/339-5020
              (Registrant's Telephone Number, Including Area Code)






Item 5. Other Events

         Electronic   Billboard   Technology,   Inc.,  ("EBT")  a  wholly  owned
subsidiary of SI Diamond  Technology,  Inc.,  entered into a Lease Agreement For
Electronic  Billboard  (the  "Agreement")  with  Eckerd  Corporation  ("Eckerd")
effective  as of January 21,  2000.  Pursuant to the  Agreement,  EBT will lease
space from Eckerd locations so that it can construct electronic billboards.  The
Agreement  also  gives EBT the  right to sell  advertising  on these  electronic
billboards.  As  consideration  for the lease,  Eckerd is  entitled to an amount
equal to 10% of the gross  revenues  collected  from  advertising  sold on these
electronic billboards minus all applicable sales taxes.

Item 7. Financial Statements and Exhibits.

     (c) Exhibits:

      10.1   Form  of  Lease  Agreement  for  Electronic   Billboard,  dated  as
January 21, 2000, by and between the Registrant and Eckerd Corporation.

      99.1   News  Release,  "Eckerd  and  SI Diamond  Announce  an Agreement to
Install  Digital Billboards for  Outdoor Point-of-Sale  Advertising" February 1,
2000.

SIGNATURES


     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                              SI DIAMOND TECHNOLOGY, INC.

                              By: /S/  W.  MICHAEL MURRAY
                                   W. Michael Murray, Vice President
                                   and General Counsel





Dated: January 21, 2000