Form 3/A
U.S. SECURITES AND EXCHANGE COMMISSION
Washington, DC 20549
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OMB Number 3235-0104
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INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17 (a) of the Public Utility Holding Company Act of 1935 or
Section 30 (f) of the Investment Company Act of 1940
1. Name and Address of Reporting Person
NAAB DONALD C.
(Last) (First) (Middle)
7757 CAMINITO MONARCA
(Street)
CARLSBAD CA 92009
(City) (State) (Zip)
2. Date of Event Requiring Statement
(Month/Day/Year)
June 29, 1998
3. IRS or Social Security Number of Reporting Person
(Voluntary).
###-##-####
4. Issuer Name and Ticker or Trading Symbol
Pacific Research & Engineering Corporation
PXE - AMEX
5. Relation of reporting Person to Issues
(Check all applicable)
_____ Director _____ 10%Owner
__X__ Officer (give title below) _____ Other (specify below)
_____________________PRESIDENT________________________________
6. If Amendment, Date of Originial
(Month/Day/Year)
06/98
<TABLE>
Table 1- Non-Derivative Securities Beneficially Owned
<CAPTION>
1.Title of Security 2.Amount of 3.Ownership 4.Nature of Indirect
(Instr. 4) Securities Form: Direct Beneficial Ownership
Benefically (D) or (Instr. 5)
Owned Indirect (I)
(Instr. 4) (Instr. 5)
<S> <C> <C> <C>
N/A
<FN>
<F1>Reminder: Report on a separate line for each class of securities
beneficially owned directly or indirectly.
</FN>
</TABLE>
<TABLE>
FORM 3 (continued) Table II-Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible
securities)
1.Title Derivative 2.Date Exer- 3.Title and Amount
Security (Instr.4) cisable and of Securities
Expiration Underlying
Date Derivative Security
(Month/Day/ (Instr. 4)
Year)
Date Expir- Title Amount or
Exer- ation Number of
cisable Date Shares
<S> <C> <C> <C> <C>
Employee Stock Option (right to buy) * 6/29/08 Common Stock 75,000
4. Conversion or 5.Ownership Form 6.Nature of Indirect
Exercise Price of Derivative Beneficial Ownership
of Derivative Security: Direct (Instr. 5)
Security (D) or Indirect (I)
(Instr. 5)
<C> <C> <C>
3.625 D
<FN>
<F1>Explanation of responses:
*This option becomes exercisable in 20% increments commencing on the
anniversary date of the grant.
**Price will be set at the next Board of Directors Meeting on July 23, 1998.
</FN>
</TABLE>
** Intentional misstatements or omissions of facts constitute Federal
Criminal Violations ______/S/ DONALD C. NAAB____________10/05/98__
** Signature of Reporting Person Date
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a)
Note: File three copies of this Form, one of which must be manually
signed. If space provided is insufficient, see Instruction 6 for
procedure.
