<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> AUG-31-1999 <PERIOD-START> SEP-01-1998 <PERIOD-END> NOV-30-1998 <CASH> 31,803 <SECURITIES> 0 <RECEIVABLES> 1,399,118 <ALLOWANCES> 539,922 <INVENTORY> 527,158 <CURRENT-ASSETS> 2,615,850 <PP&E> 2,188,458 <DEPRECIATION> 954,238 <TOTAL-ASSETS> 3,920,358 <CURRENT-LIABILITIES> 8,973,757 <BONDS> 0 <PREFERRED-MANDATORY> 292,558 <PREFERRED> 0 <COMMON> 24,714,858 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 3,920,358 <SALES> 2,012,835 <TOTAL-REVENUES> 2,012,835 <CGS> 1,597,175 <TOTAL-COSTS> 1,597,175 <OTHER-EXPENSES> 53,755 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 225,770 <INCOME-PRETAX> (911,480) <INCOME-TAX> (2,642) <INCOME-CONTINUING> (908,838) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (908,838) <EPS-PRIMARY> (.01) <EPS-DILUTED> (.01)