<TABLE>
<CAPTION>
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
<S> <C> <C>
FORM 4 Filed pursuant to Section 16(a) of the OMB APPROVAL
- ------ Securities Exchange Act of 1934, Section ------------
/ / Check this box if no longer 17(a) of the Public Utility Holding Company OMB Number 3235-0287
subject to Section 16. Form 4 Act of 1935 or Section 30(f) of the Investment Expires: September 30, 1998
of Form 5 obligations may continue. Company Act of 1940 Estimated average
See Instruction 1(b). burden hours
per response....0.5
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
1. Name and Address of Reporting Person 2. Issuer Name and Ticker or Trading Symbol 6. Relationship of Reporting Person
to Issuer (Check all applicable)
Reynolds, Donald R. HEI, Inc. (HEI)
-------------------------------------------- -----------------------------------
_______________________________________ 3. IRS or Social Security 4. Statement for Director 10% Owner
(Last) (First) (Middle) Number of Reporting Month/Year --- ---
Person (Voluntary) October 1998 X Officer (give ____ Other
--- title below) (specify
EXECUTIVE VICE PRESIDENT below)
14177 Sandy Beach Trail 5. If Amendment,
____________________________________________________ Date of Original
(Street) (Month/Year)
Prior Lake, MN 55372
____________________________________________________
(City) (State) (Zip) 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>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
TABLE I -- NON-DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Title of Security 2. Trans- 3. Trans- 4. Securities Acquired (A) 5. Amount of 6. Owner- 7. Nature
(Instr. 3) action action or Disposed of (D) Securities ship of In-
Date Code (Instr. 3, 4 and 5) Beneficially Form: direct
(Month/ (Instr. 8) Owned at Direct Bene-
Day/ End of (D) or ficial
Year) Month Indirect Owner-
(Instr. 3 (I) ship
and 4) (Instr. 4) (Instr. 4)
--------------------------------------------
Code V Amount (A) or Price
(D)
- ------------------------------------------------------------------------------------------------------------------------------------
Common Stock $.05 par value 10/20/98 P 2,000 A $5.00 (D)
- ------------------------------------------------------------------------------------------------------------------------------------
Common Stock $.05 par value 10/20/98 P 2,000 A $4.875 4,000 (D)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
*If the form is filed by more than reporting person, see Instruction 4(b)(v).
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
(Print or Type Responses)
TABLE II -- DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED
(E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)
- ------------------------------------------------------------------------------------------------------------------------------------
1. Title of 2. Conver- 3. Trans- 4. Transac- 5. Number of 6. Date Exer- 7. Title and 8. Price 9. Number 10. Owner- 11. Na-
Derivative sion or action tion Derivative cisable and Amount of of of Ship ture
Security Exercise Date Code Securities Expiration Underlying Deriva- Deriva- Form of of
(Instr. 3) Price of (Instr. 8) Acquired (A) Date (Month/ Securities tive tive Deriva- In-
Deriva- (Month/ or Disposed Day/Year) (Instr.3 Security Securi- tive di-
tive Day/ of (D) and 4) (Instr. 5) ties Bene- Security: rect
Security Year) (Instr. 3, ficially Direct Bene-
4, and 5) Owned at (D) or fi-
End of Indirect cial
Month (I) Own-
(Instr. 4) (Instr. 4) er-
ship
------------------------------------- (Instr.
Date Expir- 4)
Exer- ation Amount or
cisable Date Title Number of
Shares
------- ----- ----- -----
Code V (A) (D)
- ------------ ----------- ---------- ------- ----- ----- ------ ------- ------ --------- ----- ---------- ---------- ------- -----
- ------------ ----------- ---------- ------- ----- ----- ------ ------- ------ --------- ----- ---------- ---------- ------- -----
- ------------ ----------- ---------- ------- ----- ----- ------ ------- ------ --------- ----- ---------- ---------- ------- -----
- ------------ ----------- ---------- ------- ----- ----- ------ ------- ------ --------- ----- ---------- ---------- ------- -----
- ------------ ----------- ---------- ------- ----- ----- ------ ------- ------ --------- -- -- ---------- ---------- ------- -----
- ------------ ----------- ---------- ------- ----- ----- ------ ------- ------ --------- --- - ---------- ---------- ------- -----
</TABLE>
Explanation of Responses:
/s/ Donald R. Reynolds 11/9/1998
------------------------------- -----------------
**Signature of Reporting Person Date
**Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
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.
