FORM 5
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
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
[ ] CHECK BOX IF NO LONGER SUBJECT
TO SECTION 16. FORM 4 OR FORM 5
OBLIGATIONS MAY CONTINUE. SEE
INSTRUCTION 1(B).
[ ] FORM 3 HOLDINGS REPORTED
[ ] FORM 4 TRANSACTIONS REPORTED
_______________________________________________________________________________
1. Name and Address of Reporting Person*
Smith Robert C.
- -----------------------------------------------------
(Last) (First) (Middle)
1355 Creekford Court
- -----------------------------------------------------
(Street)
Sugarland, Tx 77478
- -----------------------------------------------------
(City) (State) (Zip)
_______________________________________________________________________________
2. Issuer Name and Ticker or Trading Symbol
Enhanced Services Company, Inc.
ESVS
_______________________________________________________________________________
3. IRS or Social Security Number of Reporting Person (Voluntary)
_______________________________________________________________________________
4. Statement for Month/Year
_______________________________________________________________________________
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)
CFO, Treasurer
_______________________________________________________________________________
7. Individual or Joint/Group Reporting (check applicable line)
[X] Form Filed by One Reporting Period
[ ] Form Filed by More than One Reporting Person
_______________________________________________________________________________
TABLE I--NON-DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED
<TABLE>
<S> <C>
- ------------------------------------------------------------------------------------------------------------------------
1. 2. 3. 4. 5. 6. 7.
- --------------------- -------- ---------- ------------------------------ ----------- ---------- ----------
Amount of Owner-
Securities ship
Trans- Securities Acquired (A) Beneficially Form:
action or Disposed of (D) Owned at End Direct Nature of
Date Trans- (Instr. 3, 4 and 5) of Issuer's (D) or Indirect
Title of (Month/ action ---------------------------- Fiscal Year Indirect Beneficial
Security Day/ Code Amount (A) or Price (Instr. (I) Ownership
(Instr. 3) Year) (Instr. 8) (D) 3 and 4) (Instr. 4) (Instr. 4)
- --------------------- -------- ---------- ----------- ------ --------- ----------- ---------- ----------
Common Stock 12/31/97 P 10,666 A (1) 10,666 D
Common Stock 6/29/98 P 8,600 A (1) 8,600 D
</TABLE>
* If the form is filed by more than one reporting person, see instruction
4(b)(v).
<PAGE>
FORM 5 (continued)
TABLE II--DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED
(E.G. PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)
<TABLE>
<S> <C>
- ----------------------------------------------------------------------------------------------------------
1. 2. 3. 4. 5. 6.
- ---------- -------- -------- -------- ---------------- --------------
Number of
Derivative Date Exer-
Securities cisable and
Conver- Acquired (A) Expiration
sion of Trans- or Disposed Date (Month/
Exercise action Trans- of (D) Day/Year)
Title of Price of Date action (Instr. 3, --------------
Derivative Deriv- (Month/ Code 4 and 5) Date Expir-
Security ative Day/ (Instr. ---------------- Exercis- ation
(Instr. 3) Security Year) 8) (A) (D) able Date
- ---------- -------- -------- ------- -------- ------- -------- --------
Common Stock
Option 5/16/96 A 19,000 5/16/96 5/16/01
Common Stock
Option 2/09/98 A 40,000 2/09/98 2/09/03
Common Stock
Option 3/24/98 A 133,000 3/24/98 3/24/03
Common Stock
Option 12/31/96 A 8,000 12/31/96 12/31/01
<CAPTION>
- ----------------------------------------------------------------------------------------
7. 8. 9. 10. 11.
- ----------------------- ------ ---------- --------- ----------
Title and Ownership
Amount of of
Underlying Number of Deriv-
Securities Price Derivative ative
(Instr. 3 of Securities Security:
and 4) Deriv- Benefi- Direct
- ----------------------- ative cially (D) or Nature of
Amount Secur- Owned at Indirect Indirect
or Num- ity End of (I) Beneficial
ber of (Instr. Year (Instr. Ownership
Title Shares 5) (Instr. 4) 4) (Instr. 4)
- ------------ --------- ------ ---------- -------- ----------
Common Stock 19,000 .9375 19,000 D
Common Stock 40,000 .9375 40,000 D
Common Stock 133,000 .9375 133,000 D
Common Stock 8,000 .9375 8,000 D
</TABLE>
Explanation of Responses:
(1) Shares were gifted in private transaction
/s/ Robert C. Smith 2/16/99
** 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.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB number.
