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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                    FORM 8-K


                             CURRENT REPORT Pursuant
                          to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


       Date of report (Date of earliest event reported) September 30, 2004

                              VIKING SYSTEMS, INC.
- --------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)

                                     Nevada
- --------------------------------------------------------------------------------
                 (State or Other Jurisdiction of Incorporation)

             000-49636                             86-0913802
- --------------------------------------------------------------------------------
     (Commission File Number)           (IRS Employer Identification No.)


7514 Girard Ave., Ste. 1509, La Jolla, CA                         92037
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices)                       (Zip Code)

                                  858-456-6608
- --------------------------------------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)


- --------------------------------------------------------------------------------
          (Former Name or Former Address, if Changed Since Last Report)

     Check the  appropriate  box below if the Form 8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

     |_| Written  communications  pursuant to Rule 425 under the  Securities Act
(17 CFR 230.425)

     |_| Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)

     |_|  Pre-commencement  communications  pursuant to Rule 14d-2(b)  under the
Exchange Act (17 CFR 240.14d-2(b))

     |_|  Pre-commencement  communications  pursuant to Rule 13e-4(c)  under the
Exchange Act (17 CFR 240.13e-4(c))





Item 1.01 Entry Into a Material Definitive Agreement

     On September 30, 2004, Viking Systems, Inc. ("Viking") entered into a Lease
Agreement for its  operations  based in  Westborough,  Massachusetts  The leased
premises  consist of  approximately  17,850  square feet located at 134 Flanders
Road, Westborough, MA. The least is for a term of three years. The lease rate is
$13,365 per month plus a pro rata portion of common area expeneses.

Item 9.01 Financial Statements and Exhibits

C - Exhibits

      Exhibit Number          Description
      --------------          -----------

      10.1                    Lease Agreement



                                   SIGNATURES

     Pursuant to the  requirements of the Securities Act of 1934, the Registrant
has duly  caused  this  report  to be signed  on its  behalf by the  undersigned
thereunto duly authorized.

Dated:  September 30, 2004                VIKING SYSTEMS, INC.



                                          By:  /s/ Thomas B. Marsh,
                                               President/Chairman of the Board










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