<PAGE> PAGE 1
000 B000000 12/31/98
000 C000000 1052123
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 PAPP FOCUS FUND, INC.
001 B000000 811-08601
001 C000000 6029560980
002 A000000 6225 N. 24TH STREET, SUITE 150
002 B000000 PHOENIX
002 C000000 AZ
002 D010000 85016
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<PAGE> PAGE 2
071 B000000 1203
071 C000000 2389
071 D000000 50
072 A000000 10
074 N000000 4182
074 T000000 4032
075 A000000 0
075 B000000 2389
077 A000000 Y
080 A000000 NATIONAL UNION FIRE INSURANCE CO OF PITTS, PA
080 C000000 2225
081 A000000 Y
081 B000000 4
082 A000000 N
082 B000000 0
083 A000000 N
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084 A000000 N
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SIGNATURE ROBERT L. MUELLER
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> MAR-02-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 2,989,269
<INVESTMENTS-AT-VALUE> 3,844,641
<RECEIVABLES> 120,542
<ASSETS-OTHER> 216,460
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4,181,815
<PAYABLE-FOR-SECURITIES> 150,422
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 150,422
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,220,821
<SHARES-COMMON-STOCK> 302,478
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (11,392)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (33,408)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 855,372
<NET-ASSETS> 4,031,393
<DIVIDEND-INCOME> 10,881
<INTEREST-INCOME> 3,998
<OTHER-INCOME> 0
<EXPENSES-NET> 26,271
<NET-INVESTMENT-INCOME> (11,392)
<REALIZED-GAINS-CURRENT> (33,408)
<APPREC-INCREASE-CURRENT> 855,372
<NET-CHANGE-FROM-OPS> 810,572
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 330,351
<NUMBER-OF-SHARES-REDEEMED> 27,873
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 4,031,393
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 21,018
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 29,221
<AVERAGE-NET-ASSETS> 2,389,000
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (.06)
<PER-SHARE-GAIN-APPREC> 3.39
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.33
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors and Shareholders of
Papp Focus Fund, Inc.:
In planning and performing our audit of the financial statements
of Papp Focus Fund, Inc., for the year ended December 31, 1998,
we considered its internal control, including
control activities for safeguarding securities, in order
to determine our auditing procedures for the purpose of expressing
our opinion on the financial statements and to comply with
the requirements of Form N-SAR, not to provide assurance
on the internal control.
The management of Papp Focus Fund, Inc., is responsible for
establishing and maintaining internal control. In fulfilling
this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial statements
for external purposes that are fairly presented in conformity
with generally accepted accounting principles. Those controls
include the safeguarding of assets against unauthorized acquisition,
use or disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also, projection
of any evaluation of internal control to future periods is
subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design
and operation may deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control that
might be material weaknesses under standards established by
the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation
of one or more of the internal control components does
not reduce to a relatively low level the risk that misstatements
caused by error or fraud in amounts that would be material in
relation to the financial statements being audited may occur
and not be detected within a timely period by employees in the
normal course of performing their assigned functions.
However, we noted no matters involving the internal control and
its operation, including controls for safeguarding securities,
that we consider to be material weaknesses as defined above
as of December 31, 1998.
This report is intended solely for the information and use of
management, the Board of Directors of Papp Focus Fund, Inc.,
and the Securities and Exchange Commission.
ARTHUR ANDERSEN LLP
Phoenix, Arizona,
January 21, 1999.
