UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
[X] Check this box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue.
1. Name and Address of Reporting Person(s)
Baisley, Brian E.
6300 Bridgepoint Parkway
Building Three, Suite 200
Austin, TX 78730
2. Issuer Name and Ticker or Trading Symbol
PSW Technologies, Inc. (PSWT)
3. I.R.S. Identification Number of Reporting Person, if an entity (Voluntary)
4. Statement for Month/Year
09/98
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
[ ] Director [ ] 10% Owner
[X] Officer (give title below) [ ] Other (specify below)
Senior Vice President
7. Individual or Joint/Group Filing (Check Applicable Line)
[X] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Person
<TABLE>
<CAPTION>
Table I Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
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1)Title of Security 2)Trans- 3.Trans- 4.Securities Acquired(A) 5)Amount of 6) 7)Nature of
action action or Disposed of (D) Securities Indirect
Date Code A Beneficially D Beneficial
(Month/ or Owned at or Ownership
Day/Year) Code V Amount D Price End of Month I
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C><C> <C> <C><C>
<CAPTION>
Table II (PART 1) Derivative Securities Acquired, Disposed of, or Beneficially Owned (Columns 1 through 6)
- ------------------------------------------------------------------------------------------------------------------------------------
1)Title of Derivative 2)Conversion 3)Trans- 4)Trans- 5)Number of Derivative 6)Date Exercisable and
Security or Exercise action action Securities Acquired (A) Expiration Date
Price of Date Code or Disposed of (D)
Derivative
Security Code V A D Exercisable Expiration
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Non-Qualified Stock Option $0.0400 (1) 09/29/04
(right to buy)
Non-Qualified Stock Option $0.4400 (2) 09/25/05
(right to buy)
Non-Qualified Stock Option $0.4400 (3) 01/15/06
(right to buy)
Non-Qualified Stock Option $2.5800 (4) 05/15/06
(right to buy)
Non-Qualified Stock Option $3.9000 (5) 09/27/06
(right to buy)
Non-Qualified Stock Option $9.0000 (6) 03/17/07
(right to buy)
Non-Qualified Stock Option $11.6250 (7) 07/10/07
(right to buy)
<CAPTION>
Table II (PART 2) Derivative Securities Acquired, Disposed of, or Beneficially Owned (Columns 1,3 and 7 through 11)
- ------------------------------------------------------------------------------------------------------------------------------------
1)Title of Derivative 3)Trans- 7)Title and Amount 8)Price 9)Number of 10) 11)Nature of
Security action of Underlying of Deri- Derivative Indirect
Date Securities vative Securities D Beneficial
Amount or Security Beneficially or Ownership
Number of Owned at I
- Title Shares End of Month
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Non-Qualified Stock Option Common Stock 12,308 12,308 D Direct
(right to buy)
Non-Qualified Stock Option Common Stock 6,154 6,154 D Direct
(right to buy)
Non-Qualified Stock Option Common Stock 6,154 6,154 D Direct
(right to buy)
Non-Qualified Stock Option Common Stock 12,308 12,308 D Direct
(right to buy)
Non-Qualified Stock Option Common Stock 12,308 12,308 D Direct
(right to buy)
Non-Qualified Stock Option Common Stock 25,000 25,000 D Direct
(right to buy)
Non-Qualified Stock Option Common Stock 30,000 30,000 D Direct
(right to buy)
<FN>
Explanation of Responses:
- -
(1) Options to purchase 12,308 shares are presently exercisable.
(2) Options to purchase 4,615 shares are presently exercisable. The remaining
options have been cancelled.
(3) Options to purchase 6,154 shares are presently exercisable.
(4) Options to purchase 6,154 shares are presently exercisable. The remaining
options have been cancelled.
(5) Options to purchase 6,154 shares are presently exercisable. The remaining
options have been cancelled.
(6) Options to purchase 11,849 shares are presently exercisable. The remaining
options have been cancelled.
(7) Options to purchase 7,500 shares are presently exercisable. The remaining
options have been cancelled.
</FN>
</TABLE>
SIGNATURE OF REPORTING PERSON
/S/ Baisley, Brian E.
DATE 10/01/98
