<ARTICLE> 5
<LEGEND>
TELEGEN CORPORATION AND SUBSIDIARIES' AUDITED FINANCIAL STATEMENTS FOR THE YEAR
ENDED DECEMBER 31, 1996.
</LEGEND>
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                       3,166,657
<SECURITIES>                                         0
<RECEIVABLES>                                   17,784
<ALLOWANCES>                                         0
<INVENTORY>                                    173,841
<CURRENT-ASSETS>                             3,994,594
<PP&E>                                       1,993,341
<DEPRECIATION>                                 328,967
<TOTAL-ASSETS>                               5,727,322
<CURRENT-LIABILITIES>                        1,292,533
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                    10,399,318
<OTHER-SE>                                  (6,308,155)
<TOTAL-LIABILITY-AND-EQUITY>                 5,727,322
<SALES>                                         23,700
<TOTAL-REVENUES>                               541,056
<CGS>                                           18,083
<TOTAL-COSTS>                                   86,695
<OTHER-EXPENSES>                             5,869,211
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             146,650
<INCOME-PRETAX>                             (5,115,026)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                         (5,115,026)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                (5,115,026)
<EPS-PRIMARY>                                    (1.16)
<EPS-DILUTED>                                    (1.16)