<PAGE>
<PAGE>
<TABLE>
<S> <C>
FORM 4 U.S. SECURITIES AND EXCHANGE COMMISSION
[ ] Check this box if no Washington, D.C. 20549
longer subject to Section STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
16, Form 4 or Form 5 Filed pursuant to Section 16(a) of the Securities Exchange Act of
obligations may continue. 1934, Section 17(a) of the Public Utility Holding Company Act of
See Instruction 1(b). 1935 or Section 30(f) of the Investment Company Act of 1940
</TABLE>
<TABLE>
<S> <C> <C>
1. Name and Address of 2. Issuer Name and Ticker or Trading Symbol 6. Relationship of Reporting Person to Issuer
Reporting Person NAI Technologies, Inc. (NATL) (Check all applicable)
Holmes Charles S. XX Director XX 10% Owner
(Last) (First) (Middle) __ Officer (give __ Other (specify
title below)
117 Whites Lane below)
(Street) 3. IRS or Social 4. Statement for
Security Number of Month/Year __________________________________
Reporting Person May 1996
(Voluntary)
5. If Amendment,
Date of Original
(Month/Year)
Southampton, NY 11968
(City) (State) (Zip)
</TABLE>
<TABLE>
<CAPTION>
Table 1--Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
- -----------------------------------------------------------------------------------------------------------------------------------
1. Title of Security 2. Transaction 3. Transaction 4. Securities Acquired (A) 5. Amount of 6. Ownership 7. Nature
(Instr. 3) Date (Month/ Code or Disposed of (D) Securities Form: Direct of Indirect
Day/Year) (Instr. 8) (Instr. 3, 4 and 5) Beneficially (D) or Beneficial
Owned at End Indirect (I) Ownership
Code V Amount (A) or Price of Month (Instr. 4) (Instr. 4)
(D) (Instr. 3
and 4)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock, par 5/9/96 C 1 million A $2.00 1 million D
value $.10 per share
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly (Over)
(Print or Type Responses)
<PAGE>
<PAGE>
FORM 4 (continued)
<TABLE>
<CAPTION>
Table II--Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
_________________________________________________________________________________________________________________________________
1. Title of Derivative Security 2. Conversion 3. Transaction 4. Transaction 5. Number of Derivative 6. Date
(Instr. 3) or Exercise Date Code Securities Acquired Exercisable
price of (Month/ (Instr. 8) (A) or Disposed of and
Derivative Day/ (D) (Instr. 3, 4 and Expiration
Security Year) 5) Date
(Month/
Day/
Year)
Date Expira-
Exer- tion
Code V (A) (D) cisable Date
_________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12% Convertible Subordinated $2.00 5/9/96 C $2 million Immed- Jan.
Promissory Notes due 2001 iate 15/01
Common stock warrants $3.00 5/9/96 J 300,000 Immed- Feb.
(right to buy) (2) iate 15/02
<CAPTION>
___________________________________________________________________________________________________________________________
1. Title of Derivative Security 7. Title and 8. Price of 9. Number of 10. Ownership 11. Nature
(Instr. 3) Amount of Derivative Derivative From of of Indirect
Underlying Security Securities Derivative Beneficial
Securities (Instr. 5) Beneficially Security: Ownership
(Instr. 3 Owned at Direct (D) (instr. 4)
and 4) End of or
Month Indirect(I)
Title Amount or (Instr. 4) (Instr. 4)
Number of
Shares
___________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
12% Convertible Subordinated Common 1 million (1) -0-
Promissory Notes due 2001 Stock
Common Stock Warrants Common 300,000 (3) D
(right to buy) Stock 2 million
</TABLE>
________________________________________________________________________________
Explanation of Responses
(1) The reported securities are included within 2,000 Units purchased by the
reporting person for $1,000 per Unit. Each Unit consists of $1,000 principal
amount of 12% Convertible Subordinated Promissory Notes of the Company due
2001 (the "Notes") and Warrants to purchase 250 shares of Common Stock of
the Company.
(2) In consideration for the conversion by the reporting person of $2,000,000
aggregate principal amount of Notes into 1,000,000 shares of Common Stock in
accordance with the terms thereof, the Company granted to the reporting
person Warrants to purchase 300,000 shares of Common Stock at $3.00 per
share, subject to adjustment.
(3) The reporting person is also a direct beneficial owner of Warrants to
purchase 1.7 million shares of Common Stock at $2.50 per share, subject to
adjustment.
**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.
/s/ CHARLES S. HOLMES 6/7/96
____________________________________ _______
**Signature of Reporting Person Date
Page 2
