<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF K.L.S. ENVIRO RESOURCES, INC. AND
SUBSIDIARIES FOR THE THREE MONTHS ENDED DECEMBER 31, 1996 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          SEP-30-1997
<PERIOD-END>                               DEC-31-1996
<CASH>                                      $2,800,590
<SECURITIES>                                         0
<RECEIVABLES>                                 $968,513
<ALLOWANCES>                                  $123,402
<INVENTORY>                                   $678,011
<CURRENT-ASSETS>                            $4,611,856
<PP&E>                                      $4,519,404
<DEPRECIATION>                              $1,468,641
<TOTAL-ASSETS>                              $7,729,791
<CURRENT-LIABILITIES>                       $2,793,840
<BONDS>                                              0
<PREFERRED-MANDATORY>                           $1,576
<PREFERRED>                                          0
<COMMON>                                           $10
<OTHER-SE>                                  $4,714,557
<TOTAL-LIABILITY-AND-EQUITY>                $7,729,791
<SALES>                                              0
<TOTAL-REVENUES>                            $1,573,318
<CGS>                                                0
<TOTAL-COSTS>                                 $727,126
<OTHER-EXPENSES>                              $716,259
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             $77,953
<INCOME-PRETAX>                                $50,451
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            $50,451
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   $50,451
<EPS-PRIMARY>                                   $0.005
<EPS-DILUTED>                                   $0.003