<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