<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AND STATEMENT OF OPERATIONS OF SPINE-TECH,INC., FOR THE THREE MONTHS ENDED MARCH 31,1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> MAR-31-1996 <CASH> 385,444 <SECURITIES> 25,867,449 <RECEIVABLES> 1,033,214 <ALLOWANCES> 60,583 <INVENTORY> 3,022,933 <CURRENT-ASSETS> 25,246,334 <PP&E> 2,394,047 <DEPRECIATION> 267,599 <TOTAL-ASSETS> 32,702,349 <CURRENT-LIABILITIES> 989,950 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 97,512 <OTHER-SE> 31,614,887 <TOTAL-LIABILITY-AND-EQUITY> 32,702,349 <SALES> 1,445,422 <TOTAL-REVENUES> 1,445,422 <CGS> 562,942 <TOTAL-COSTS> 562,942 <OTHER-EXPENSES> 1,634,652 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (355,004) <INCOME-TAX> 0 <INCOME-CONTINUING> (355,004) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (355,004) <EPS-PRIMARY> (.04) <EPS-DILUTED> (.04)