UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D. C.  20549

                                    FORM 10-Q


    (X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE
        SECURITIES EXCHANGE ACT OF 1934


    FOR THE PERIOD ENDED               JUNE 30, 1999

                                       OR

    ( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE
    SECURITIES EXCHANGE ACT OF 1934


    COMMISSION FILE NUMBER                1-5005


                        SELAS CORPORATION OF AMERICA
            (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


               PENNSYLVANIA                          23-1069060
    (STATE OR OTHER JURISDICTION OF     (IRS EMPLOYER IDENTIFICATION NO.)
    INCORPORATION OR ORGANIZATION)


              DRESHER, PENNSYLVANIA                         19025
     (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)             (ZIP CODE)


                               (215) 646-6600
               (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)


    INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS
    REQUIRED TO BE FILED BY SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
    ACT OF 1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD
    THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN
    SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS.

                                         (X) YES  ( ) NO

    INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S
    CLASSES OF COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE.


                  CLASS                    OUTSTANDING AT AUGUST 4, 1999
     COMMON SHARES, $1.00 PAR VALUE       5,178,009 (exclusive of 456,959
                                                 treasury shares)


                                        -2-


                         SELAS CORPORATION OF AMERICA


                                  I N D E X

                                                                  Page
                                                                Number

    PART I - FINANCIAL INFORMATION

          Item 1.  Financial Statements

            Consolidated Balance Sheets as of
            June 30, 1999 and December 31, 1998 . . . . . . . .   3, 4

            Consolidated Statements of Operations for
            the Three Months Ended June 30, 1999
            and 1998. . . . . . . . . . . . . . . . . . . . . .   5

            Consolidated Statements of Operations for the
            Six Months Ended June 30, 1999 and 1998 . . . . . .   6

            Consolidated Statements of Cash Flows
            for the Six Months Ended June 30,
            1999 and 1998 . . . . . . . . . . . . . . . . . . .   7

            Consolidated Statement of Shareholders' Equity
            for the Six Months Ended June 30, 1999    . . . . .   8

            Notes to Consolidated Financial Statements  . . . .   9

          Item 2.  Management's Discussion and Analysis of
                   Financial Condition and Results of
                   Operations . . . . . . . . . . . . . . . .     15



    PART II - OTHER INFORMATION

          Item 1.  Legal Proceedings  . . . . . . . . . . . . .   19

          Item 4.  Submission of Matters to a Vote of Security
                   Holders  . . . . . . . . . . . . . . . . . .   19

          Item 6.  Exhibits and Reports on Form 8-K . . . . . .   19



                                        -3-


                          SELAS CORPORATION OF AMERICA

                          Consolidated Balance Sheets
                                    Assets

                                                  June 30,      December 31,
                                                   1999           1998
                                                (Unaudited)     (Audited)
    Current assets

     Cash, including cash equivalents of
      $1,249,000 in 1999 and $313,000 in
      1998 . . . . . . . . . . . . . . . . . .  $ 2,449,806    $ 2,784,284

     Accounts receivable (including unbilled
      receivables of $8,178,000 in 1999 and
      $3,898,000 in 1998 less allowance for
      doubtful accounts of $1,145,000 in 1999
      and $1,994,000 in 1998)  . . . . . . . .   26,452,263     30,494,933
     Inventories    . . . . . . . . . . . . . .  13,072,989     12,628,623

     Deferred income taxes  . . . . . . . . . .   2,703,577      3,603,701

     Other current assets . . . . . . . . . . .   2,021,588      1,332,135

         Total current assets . . . . . . . . .  46,700,223     50,843,676

    Investment in unconsolidated affiliate  . .     523,160        538,913

    Property, plant and equipment

     Land . . . . . . . . . . . . . . . . . . .   1,014,458      1,077,522

     Buildings  . . . . . . . . . . . . . . . .  11,518,512     12,129,811

     Machinery and equipment  . . . . . . . . .  27,751,941     25,788,736

                                                 40,284,911     38,996,069
     Less:  Accumulated depreciation  . . . . .  21,355,049     20,038,177

       Net property, plant and equipment  . . .  18,929,862     18,957,892

    Excess of cost over net assets of acquired
     subsidiaries, less accumulated amortization
     of $2,798,000 and $2,452,000 . . . . . . .  16,460,661     16,813,073

    Other assets including patents, less
     amortization . . . . . . . . . . . . . . .     744,884        627,009

                                                $83,358,790    $87,780,563
                                                ===========    ===========


           (See accompanying notes to the consolidated financial statements)



                                           -4-

                               SELAS CORPORATION OF AMERICA

                               Consolidated Balance Sheets
                           Liabilities and Shareholders' Equity

                                                  June 30,     December 31,
                                                   1999           1998
                                                (Unaudited)     (Audited)
    Current liabilities

     Notes payable  . . .  . . . . . . . . . .  $ 6,026,994    $ 4,701,279

     Current maturities of long-term debt  . .    2,828,350      3,178,241

     Accounts payable  . . . . . . . . . . . .   14,615,603     15,410,642

     Federal, state and foreign income taxes .       24,558        838,634

     Customers' advance payments on contracts.    2,375,948        697,270

     Guarantee obligations and estimated future
      costs of service   . . . . . . . . . . .    1,254,432      2,294,889

     Other accrued liabilities . . . . . . . .    5,686,758      6,512,016

        Total current liabilities  . . . . . .   32,812,643     33,632,971

    Long-term debt     . . . . . . . . . . . .    4,482,481      6,265,720

    Other postretirement benefit obligations .    4,127,884      4,096,057

    Deferred income taxes  . . . . . . . . . .       57,203        157,575

    Contingencies and commitments

    Shareholders' equity

     Common shares, $1 par; 10,000,000 shares
      authorized; 5,634,968 and 5,615,081 shares
      issued, respectively   . . . . . . . . .    5,634,968      5,615,081

     Additional paid-in capital    . . . . . .   12,012,541     11,941,498

     Retained earnings . . . . . . . . . . . .   25,004,393     25,797,823

     Accumulated other comprehensive income  .       13,544        655,775

     Less:  432,959 and 363,564 common shares,
       respectively, held in treasury, at cost     (786,867)      (381,937)

        Total shareholders' equity   . . . . .   41,878,579     43,628,240

                                                $83,358,790    $87,780,563
                                                ===========    ===========

         (See accompanying notes to the consolidated financial statements)



                                           -5-


                            SELAS CORPORATION OF AMERICA

                     Consolidated Statements of Operations
                                   (Unaudited)



                                                  Three Months Ended
                                                 June 30,       June 30,
                                                  1999           1998

    Sales, net                                $25,391,053    $25,221,639

    Operating costs and expenses
     Cost of sales                             20,428,015     18,734,335
     Selling, general and
      administrative expenses                   4,444,317      4,698,080

    Operating income                              518,721      1,789,224

    Interest (expense)                           (233,409)      (304,731)
    Interest income                                18,248         12,396
    Other income (expense), net                  (169,251)      (126,563)

    Income before income taxes                    134,309      1,370,326

    Income taxes (benefit)                        102,734       (395,590)

    Net income                                $    31,575    $ 1,765,916
                                              ===========    ===========



    Earnings per share

      Basic                                         $0.01          $0.34

      Diluted                                       $0.01          $0.33



    Average shares outstanding

      Basic                                     5,219,000      5,227,000

      Diluted                                   5,232,000      5,325,000

    Comprehensive income (loss)               $  (185,986)   $ 1,903,693
                                              ===========    ===========



       (See accompanying notes to the consolidated financial statements)



                                           -6-


                              SELAS CORPORATION OF AMERICA

                         Consolidated Statements of Operations
                                       (Unaudited)



                                                   Six Months Ended
                                                 June 30,       June 30,
                                                  1999           1998

    Sales, net                                $49,444,212    $47,088,362

    Operating costs and expenses
      Cost of sales                            39,960,074     35,345,252
      Selling, general and
        administrative expenses                 8,945,597      8,932,092

    Operating income                              538,541      2,811,018

    Interest (expense)                           (495,188)      (542,241)
    Interest income                                40,675         47,677
    Other income (expense), net                  (333,338)       (55,596)

    Income (loss) before income taxes
      (benefit)                                  (249,310)     2,260,858

    Income taxes (benefit)                         73,214        (64,268)

    Net income (loss)                         $  (322,524)   $ 2,325,126
                                              ===========    ===========


    Earnings (loss) per share
      Basic                                        ($0.06)         $0.44

      Diluted                                      ($0.06)         $0.44


    Average common shares outstanding

      Basic                                     5,235,000      5,226,000

      Diluted                                   5,235,000      5,287,000

    Comprehensive income (loss)               $  (964,755)   $ 2,262,115
                                              ===========    ===========


      (See accompanying notes to the consolidated financial statements)




                                         -7-
                          SELAS CORPORATION OF AMERICA
                     Consolidated Statements of Cash Flows
                                   (Unaudited)
                                                       Six Months Ended
                                                     June 30,       June 30,
                                                       1999          1998
    Cash flows from operating activities:
     Net income (loss)                          $    (322,524)  $  2,325,126
     Adjustments to reconcile net income (loss)
        to net cash provided (used) by operating
        activities:
       Depreciation and amortization                 2,010,523     1,848,561
       Equity in (income) loss of unconsolidated
        affiliate                                        1,277        (8,579)
       (Gain) on sale of property and equipment         (3,455)         (905)
       Deferred taxes                                  641,662      (624,508)
       Changes in operating assets and liabilities:
         Decrease in accounts receivable             3,080,304     7,797,760
        (Increase) in inventories                     (744,778)   (1,910,507)
        (Increase) decrease in other assets           (858,478)      589,309
         Increase (decrease) in accounts payable     1,247,130    (5,829,954)
        (Decrease) in accrued expenses              (3,330,125)   (1,630,170)
         Increase in customer advances               1,899,232       913,265
         Increase (decrease) in other
           liabilities                                  (8,010)        1,231
             Net cash provided by
             operating activities                    3,612,758     3,470,629

    Cash flows from investing activities:
     Purchases of property, plant and equipment     (2,190,764)   (1,382,785)
     Proceeds from sale of property and equipment        3,455         5,900
      Acquisition of subsidiary companies, net
        of cash acquired                                (5,388)   (1,726,764)
      Receipt of dividend from unconsolidated
        affiliate                                       14,476         -
             Net cash (used) by investing
             activities                             (2,178,221)   (3,103,649)

    Cash flows from financing activities:
      Proceeds from short-term bank borrowings       1,017,955     1,239,240
      Proceeds from long-term bank borrowings        1,016,320        --
      Proceeds from borrowings to acquire
       subsidiary company                                 --       2,475,248
      Repayments of short-term bank borrowings         (57,535)       --
      Repayments of long-term debt                  (2,688,546)   (1,307,976)
      Proceeds from exercise of stock options           83,540         6,425
      Payment of dividends                            (470,906)     (470,375)
      Purchase of treasury stock                      (404,930)
             Net cash provided (used) by
             financing activities                   (1,504,102)    1,942,562

    Effect of exchange rate changes on cash           (264,913)       (7,611)
    Net increase (decrease) in cash and cash
      equivalents                                     (334,478)    2,301,931
    Cash and cash equivalents, beginning of
      period                                         2,784,284     3,034,903

    Cash and cash equivalents, end of period     $   2,449,806  $  5,336,834
                                                 ============= =============
         (See accompanying notes to the consolidated financial statements)


                                           -8-

                             SELAS CORPORATION OF AMERICA
                    Consolidated Statement of Shareholders' Equity
                            Six Months Ended June 30, 1999
                                      (Unaudited)

                                     Common Stock
                                                                Additional
                                 Number of                       Paid-In
                                  Shares           Amount        Capital

    Balance, January 1, 1999      5,615,081     $ 5,615,081     $11,941,498
    Net (loss)
    Exercise of stock options        19,887          19,887          71,043
    Cash dividends paid
      ($.09 per share)
    Foreign currency
      translation (loss)
    Comprehensive (loss)
    Purchase of 69,395
      treasury shares

    Balance, June 30, 1999        5,634,968     $ 5,634,968     $12,012,541
                                ===========     ===========     ===========

                                                Accumulated
                                                  Other
                                  Retained      Comprehensive
    Comprehensive
                                  Earnings         Income          Income
    Balance, January 1, 1999    $25,797,823     $   655,775     $
    Net (loss)                     (322,524)                      (322,524)
    Exercise of stock options
    Cash dividends paid
      ($.09 per share)             (470,906)
    Foreign currency
      translation (loss)                           (642,231)      (642,231)
    Comprehensive (loss)                                        $ (964,755)
                                                                ==========
    Purchase of 69,395
      treasury shares

    Balance, June 30, 1999      $25,004,393     $    13,544
                                ===========     ===========

                                                   Total
                                   Treasury     Shareholders'
                                    Stock         Equity
    Balance, January 1, 1999    $  (381,937)    $43,628,240
    Net (loss)                                     (322,524)
    Exercise of stock options                        90,930
    Cash dividends paid
      ($.09 per share)                             (470,906)
    Foreign currency
      translation (loss)                           (642,231)
    Comprehensive (loss)                               --
    Purchase of 69,395
      treasury shares              (404,930)       (404,930)

    Balance, June 30, 1999      $  (786,867)    $41,878,579
                                ===========     ===========
        (See accompanying notes to the consolidated financial statements)


                                           -9-

                        SELAS CORPORATION OF AMERICA
                       PART I - FINANCIAL INFORMATION

    ITEM 1.  Notes to Consolidated Financial Statements (Unaudited)
            (Continued)

    1.   In the opinion of management, the accompanying consolidated
         condensed financial statements contain all adjustments (consisting
         of normal recurring adjustments) necessary to present fairly Selas
         Corporation of America's consolidated financial position as of June
         30, 1999 and December 31, 1998, and the consolidated results of its
         operations for the three and six months ended June 30, 1999 and
         1998 and consolidated statements of shareholders' equity and cash
         flows for the six months then ended.

    2.   The accounting policies followed by the Company are set forth in
         note 1 to the Company's financial statements in the 1998 Selas
         Corporation of America Annual Report.

    3.   Inventories consist of the following:

                                             June 30,      December 31,
                                              1999            1998

         Raw material                      $ 3,513,186    $ 3,418,891
         Work-in-process                     5,321,978      4,286,566
         Finished products and
          components                         4,237,825      4,923,166

                         Total             $13,072,989    $12,628,623
                                           ===========    ===========
    4.   Income Taxes

         Consolidated income taxes (benefit) for the six month periods ended
         June 30, 1999 and 1998 are $73,000 and $(64,000) which result in
         effective tax rates of 29.3% and (2.8%), respectively.  The rate of
         tax in relation to pre-tax loss in 1999 results from tax benefits
         from certain foreign net operating losses which could not be
         utilized for income tax purposes.  The rate of tax benefit in
         relation to pre-tax income in 1998 is low because the Company
         reduced the valuation allowance applied against deferred tax
         benefits associated with domestic postretirement benefit
         obligations by $724,512 and against certain domestic employee
         pension plan obligations by $33,694.  The Company had determined
         that it is more likely than not that the $758,206 of deferred tax
         assets will be realized.




                                           -10-

                        SELAS CORPORATION OF AMERICA
                       PART I - FINANCIAL INFORMATION

    ITEM 1.  Notes to Consolidated Financial Statements (Unaudited)


    5.   Legal Proceedings

         The Company is a defendant along with a number of other parties in
         approximately 147 lawsuits as of December 31, 1998 (215 as of
         December 31, 1997) alleging that plaintiffs have or may have
         contracted asbestos-related diseases as a result of exposure to
         asbestos products or equipment containing asbestos sold by one or
         more named defendants.  Due to the noninformative nature of the
         complaints, the Company does not know whether any of the complaints
         state valid claims against the Company.   The lead insurance
         carrier has informed the Company that the primary policy for the
         period July 1, 1972 - July 1, 1975 has been exhausted and that the
         lead carrier will no longer provide a defense under that policy.
         The Company has requested that the lead carrier substantiate this
         situation.  The Company has contacted representatives of the
         Company's excess insurance carrier for some or all of this period.
         The Company does not believe that the asserted exhaustion of the
         primary insurance coverage for this period will have a material
         adverse effect on the financial condition, liquidity, or results of
         operations of the Company.  Management is of the opinion that the
         number of insurance carriers involved in the defense of the suits
         and the significant number of policy years and policy limits to
         which these insurance carriers are insuring the Company make the
         ultimate disposition of these lawsuits not material to the
         Company's consolidated financial position or results of operations.

         In 1995, a dispute which was submitted to arbitration, arose under
         a contract between a customer and a subsidiary of the Company.
         Substantial claims were asserted against the subsidiary Company
         under the terms of the contract.  The Company recorded revenue of
         approximately $1,400,000 in 1994 and has an uncollected receivable
         of $140,000.  In June, 1998, the arbitrator found in favor of the
         customer.  The Company has refused to recognize the validity of the
         arbitration proceedings and decision and believes it is entitled to
         a new hearing before an international or French tribunal.  The
         Company believes that the disposition of this claim will not
         materially affect the Company's consolidated financial position or
         results of operations.




                                           -11-

                        SELAS CORPORATION OF AMERICA

                       PART I - FINANCIAL INFORMATION

    ITEM 1.  Notes to Consolidated Financial Statements (Unaudited)
             (Continued)


    6.   Statements of Cash Flows

         Supplemental disclosures of cash flow information:

                                                Six Months Ended
                                           June 30,         June 30,
                                            1999             1998

         Interest received . . . . . . .  $  23,879        $   50,950
         Interest paid . . . . . . . . .  $ 453,466        $  448,079
         Income taxes paid . . . . . . .  $ 950,342        $  928,238

    7.   Accounts Receivable

         At June 30, 1999, the Company had $2,143,178 of trade accounts
         receivable due from the major U.S. automotive manufacturers and
         $4,094,936 of trade accounts receivable due from hearing aid
         manufacturers.  The Company also had $11,372,890 in receivables
         from long-term contracts for customers in the steel industry in
         North America, Europe and Asia.



                                           -12-

                        SELAS CORPORATION OF AMERICA

                       PART I - FINANCIAL INFORMATION

    ITEM 1.  Notes to Consolidated Financial Statements (Unaudited)
             (Continued)

    8.   Earnings (Loss) Per Share

         The following table sets forth the computation of basic and diluted
         earnings (loss) per share:
                                            For the Three Months
                                            Ended June 30, 1999

                                     Income        Shares      Per Share
                                   Numerator     Denominator     Amount

    Basic Earnings Per Share

      Income available to
       common shareholders         $    31,575     5,219,313   $    0.01
                                                               =========

    Effect Of Dilutive Securities

      Stock options                                  12,252
                                   ------------------------


    Diluted Earnings Per Share     $   31,575     5,231,565    $    0.01
                                   =====================================

                                            For the Six Months
                                           Ended June 30, 1999
                                     Income        Shares      Per Share
                                   Numerator     Denominator     Amount

    Basic (Loss) Per Share

      (Loss) available to
       common shareholders         $ (322,524)    5,235,458    $   (0.06)
                                                               =========

    Effect Of Dilutive Securities

      Stock options                                     --
                                   -----------------------


    Diluted (Loss) Per Share      $ (322,524)    5,235,458    $   (0.06)
                                   =====================================



                                       -13-

                           SELAS CORPORATION OF AMERICA


    9. Business Segment Information

       The company has three operating segments.  The Company is engaged in
       providing engineered heat technology equipment and services to
       industries throughout the world, the manufacture of precision medical
       and electronic products and the manufacture of original equipment for
       light trucks and vans.  The results of operations and assets of these
       segments are prepared on the same basis as the condensed consolidated
       financial statements for the six months ended June 30, 1999 and 1998
       and the consolidated financial statements included in the 1998 Form
       10-K.
       The Company's reportable segments reflect separately managed,
       strategic business units that provide different products and
       services, and for which financial information is separately prepared
       and monitored.



    Segments
                                            Tire
                                           Holders,     Precision
                                           Lifts and    Medical and
    For The Six Months          Heat       Related      Electronic
    Ended June 30, 1999      Technology    Products       Products     Total



    Sales, net              $22,330,989   $9,459,926   $17,653,297 $49,444,212
                            ==================================================

    Net income (loss)       $(1,354,531)  $  594,158   $   437,849 $  (322,524)
                            ==================================================

    Depreciation and
      amortization          $   369,559   $  105,672   $ 1,535,292 $ 2,010,523
                            ==================================================

    Property, plant and
      equipment additions   $   467,369   $   74,580   $ 1,648,815 $ 2,190,764
                            ==================================================

    Total assets            $38,792,052   $6,619,057   $37,947,681 $83,358,790
                            ==================================================




                                        -14-

                            SELAS CORPORATION OF AMERICA


    9.  Business Segment Information (Continued)


                                                Segments

                                            Tire
                                           Holders,     Precision
                                           Lifts and    Medical and
    For The Six Months          Heat       Related      Electronic
    Ended June 30, 1998      Technology    Products       Products     Total



    Sales, net             $20,804,554   $8,390,004   $17,893,804  $47,088,362
                            ==================================================

    Net income             $   950,667   $  499,093   $   875,366 $  2,325,126
                            ==================================================

    Depreciation and
      amortization         $   297,864   $  108,432   $ 1,442,265 $  1,848,561
                            ==================================================

    Property, plant and
      equipment additions  $   171,145   $  110,122   $ 1,101,518 $  1,382,785
                             ==================================================

    Total assets           $43,687,356   $6,587,459   $34,696,514  $84,971,329
                            ==================================================





                                    -15-

                        SELAS CORPORATION OF AMERICA
                       PART I - FINANCIAL INFORMATION

    ITEM 2.  Management's Discussion and Analysis of Financial
             Condition and Results of Operations

    Consolidated net sales increased to $25.4 million and $49.4 million for
    the three and six months ended June 30, 1999 compared to $25.2 million
    and $47.1 million for the same periods ended June 30, 1998.  Net sales
    for the heat technology segment decreased slightly to $11.6 million for
    the three months ended June 30, 1999 compared to $12 million for the
    same period in 1998 and increased to $22.3 million for the six months
    ended June 30, 1999 compared to sales of $20.8 million in 1998.  The
    increase in sales in 1999 is due to several large engineered contracts
    nearing completion offset by decreased spare and replacement part sales.
    Sales and earnings of large engineered contracts are recognized on the
    percentage-of-completion method and generally require more than twelve
    months to complete.  Consolidated backlog for the heat technology
    segment increased to $38.5 million at June 30, 1999 compared to $32.2
    million for the same period in 1998.  Sales for the Company's precision
    medical and electronic products segment decreased to $8.9 million and
    $17.6 million for the three and six month periods ended June 30, 1999
    compared to $9.2 million and $17.9 million for the same periods in 1998.
    Sales to hearing health customers decreased compared to 1998 due to the
    down conditions in this market, offset by increased revenue from RTI
    Technologies PTE LTD, the Singapore company acquired in October, 1998.
    Sales of RTI Electronics were lower in 1999 compared to 1998 due to
    increased price competition and the Asian economic situation, slightly
    offset by sales of IMB Electronics Products, which was acquired in May,
    1998.  Net sales of the tire holders, lifts and related products segment
    increased for the three and six months ended June 30, 1999 to $4.9
    million and $9.5 million compared to $3.9 million and $8.4 million for
    the same periods in 1998.  The increase in revenue is due to higher tire
    lift sales to the Company's automotive customers.

    The Company's gross profit margin as a percentage-of-sales decreased to
    19.6% and 19.3% for the three and six month periods ended June 30, 1999
    compared to 25.8% and 25% for the same periods in 1998.  Gross profit
    margins for the heat technology segment decreased to 9.6% and 11% for
    the three and six months ended June 30, 1999 compared to 21.3% for the
    same periods in 1998.  Heat technology gross profit margins vary
    markedly from contract to contract, depending on customer specifications
    and other conditions relating to the project.  The gross profit margins
    for 1999 were impacted by revenue recognized on several large engineered
    contracts whose margins were not as profitable as contracts completed in
    1998 and reduced sales of spare and replacement parts, which generally
    have higher profit margins.  Gross profit margins for the precision
    medical and electronic products segment decreased to 29.8% and 29.7% for
    the three and six months ended June 30, 1999 compared to 32.1% and 31.6%
    for the same periods in 1998.  The lower margins in 1999 are partially
    attributable to the mix of sales between the periods as precision
    components, precision systems, plastic and electronic products have
    varying profit margins.  Also impacting the margins in 1999 were the
    costs relating to combining the production operations of RTI Electronics
    and IMB Electronics, Inc. into one facility.  Gross profit margins for
    the tire holders, lifts and related products segment decreased to 21.2%
    and 19.5% for the three and six months ended June 30, 1999 compared to
    24.9% and 20.3% for the same periods in



                                    -16-

                        SELAS CORPORATION OF AMERICA

                       PART I - FINANCIAL INFORMATION

    ITEM 2.  Management's Discussion and Analysis of Financial
             Condition and Results of Operations (Continued)

    1998.  The margins in 1998 are higher primarily because of a refund of
    excess insurance premiums during the second quarter of 1998.

    Selling, general and administrative expenses (SG&A) decreased slightly
    for the three months ended June 30, 1999 to $4.4 million compared to
    $4.7 million for the same period in 1998, while SG&A for the six month
    periods ended June 30, 1999 and 1998 remained constant at $8.9 million.
    The slight decrease for the quarter results from cost reductions in
    certain areas of the Company's operations.

    Interest expense for the three and six months ended June 30, 1999 was
    $233,000 and $495,000 compared to $305,000 and $542,000 for the same
    periods in 1998.  The decrease in expense is due to lower average
    borrowings during the current year.  Interest income for the second
    quarter of 1999 increased slightly to $18,000 compared to $12,000 for
    the same period in 1998, while it decreased to $41,000 from $47,000 for
    the six month periods ended June 30, 1999 and 1998.  The slight decline
    for six months is due to lower balances available for investment.

    Other income (expense) includes losses on foreign exchange of $133,000
    and $296,000 for the three and six months ended June 30, 1999 compared
    to losses of $49,000 for the 1998 second quarter and gains of $7,000 for
    1998 year to date.

    Consolidated income taxes (benefit) for the six month periods ended June
    30, 1999 and 1998 are $73,000 and $(64,000) which result in effective
    tax rates of 29.3% and (2.8%), respectively.  The rate of tax in
    relation to pre-tax loss in 1999 results from tax benefits from certain
    foreign net operating losses which could not be utilized for income tax
    purposes.  The rate of tax benefit in relation to pre-tax income in 1998
    is low because the Company reduced the valuation allowance applied
    against deferred tax benefits associated with domestic postretirement
    benefit obligations by $724,512 and against certain domestic employee
    pension plan obligations by $33,694.  The Company had determined that it
    is more likely than not that the $758,206 of deferred tax assets will be
    realized.

    Consolidated operations for the three and six month periods ended June
    30, 1999 resulted in net income of $32,000 for the second quarter of
    1999 and a net loss of $323,000 for the six months then ended compared
    with net income of $1,766,000 and $2,325,000 for the same periods in
    1998.  The decrease in 1999 is attributable to lower profit margins on
    certain contracts and other products, losses on foreign currency
    exchange and lower tax benefits on operating losses not available for
    utilization.  The earnings for 1998 were favorably impacted by a
    reduction in the valuation allowance of deferred income tax assets which
    resulted in a tax benefit for the quarter and year-to-date of
    approximately $750,000.



                                    -17-

                        SELAS CORPORATION OF AMERICA

                       PART I - FINANCIAL INFORMATION

    ITEM 2.  Management's Discussion and Analysis of Financial
             Condition and Results of Operations (Continued)

    Liquidity and Capital Resources

    Consolidated net working capital decreased to $13.9 million at June 30,
    1999 from $17.2 million at December 31, 1998.  The decrease is primarily
    attributable to the net loss year-to-date, purchases of property and
    equipment, pay-down of long-term debt, payment of dividends and purchase
    of treasury stock.  The major changes in components of working capital
    for the six months were lower accounts receivable of $4 million,
    increased notes payable of $1.3 million, lower accounts payable of $.8
    million, increased customer advance payments of $1.7 million, lower
    guaranteed obligations of $1 million and decreased accrued liabilities
    of $.8 million.  These changes relate to the ongoing operations of the
    Company year-to-date.

    In June, 1999, the Company refinanced existing mortgage debt of $900,000
    with a commercial bank.  The original mortgage was assumed at the date
    of acquisition of Resistance Technology, Inc. (RTI) and was secured by
    certain land and building of RTI.  The refinanced debt is payable in
    monthly installments of $7,500, excluding interest, and is set to mature
    on July 1, 2004.  The mortgage carries an interest rate at the Market
    Index London Interbank Offered Rate (LIBOR) plus 1.25%.  The agreement
    is subject to the same financial reporting requirements and maintenance
    of certain financial ratios as the Company's other term loan agreements
    with the commercial bank.

    The Company has completed a program during the second quarter of 1999
    designed to remediate all of the Company's significant computer systems
    that were not Year 2000 compliant.  The program was divided into three
    major components:  (1) identification of all information technology
    systems ("IT Systems") and non-information technology systems ("Non-IT
    Systems") that were not Year 2000 compliant; (2) repair or replacement
    of the identified non-compliant systems; and (3) testing of the repaired
    or replaced systems.  All three parts have been completed for both in-
    house and commercially developed IT Systems.  However, the Company will
    continue to monitor and evaluate the impact of any other Year 2000
    issues on its operations.

    The Company has been inquiring of certain key suppliers and business
    partners about their Year 2000 readiness.  While no assurances can be
    given that key suppliers and business partners will remedy their own
    Year 2000 issues, the Company to date has not identified any material
    impact on its ability to continue normal business operations with
    suppliers or other third parties who fail to address the Year 2000
    issue.

    Actual costs associated with implementation of the Company's Year 2000
    program are expected to be insignificant to the Company's operations and
    financial condition.  Costs of $200,000, primarily for software and
    outside services, have been or are expected to be incurred.  As of June
    30, 1999, $170,000 of costs have been expended.




                                    -18-

                        SELAS CORPORATION OF AMERICA

                       PART I - FINANCIAL INFORMATION

    ITEM 2.  Management's Discussion and Analysis of Financial
             Condition and Results of Operations (Continued)

    On January 1, 1999, eleven of fifteen member countries of the European
    Union established fixed conversion rates between their existing
    currencies ("legacy currencies") and one common currency -- the Euro.
    The Euro trades on currency exchanges and may be used in business
    transactions.  The conversion to the Euro will eliminate currency
    exchange risk between the member countries.  Beginning in January 2002,
    new Euro-denominated bills and coins will be issued, and legacy
    currencies will be withdrawn from circulation.  The Company has
    recognized this situation and has been developing a plan to address any
    issue being raised by the currency conversion.  Possible issues include,
    but are not limited to, the need to adapt computer and financial systems
    to recognize Euro-denominated transactions, as well as the impact of one
    common European currency on pricing.  The Company anticipates that any
    unaddressed issues will be resolved during 1999.

    The Financial Accounting Standards Board (FASB) has issued Statements of
    Financial Accounting Standard (SFAS) No. 137, Accounting for Derivative
    Instruments and Hedging Activities - Deferral of the Effective Date of
    FASB Statement No. 133, SFAS No. 133, "Accounting for Derivative
    Instruments and Hedging Activities" and SFAS No. 135, "Recision of FASB
    Statement No. 75 and Technical Corrections."  SFAS No. 137 delays the
    effective date of SFAS No. 133 to be effective for all fiscal quarters
    of all fiscal years beginning after June 15, 2000.  SFAS No. 133
    standardizes the accounting for derivative instruments, including
    derivative instruments embedded in other contracts, by requiring that an
    entity recognize those items as assets or liabilities in the statement
    of financial position and measure them at fair value.  SFAS No. 135
    provides technical corrections to some 29 accounting pronouncements.  It
    is effective for fiscal years ending after February 15, 1999.
    Management has not yet determined the impact that the adoption of these
    statements may have on earnings, financial condition and liquidity of
    the Company.  The Company plans to adopt SFAS No. 133 by January 1, 2001
    and SFAS No. 135 by December 31, 1999, respectively, as permitted by
    these accounting standards.

    The Company believes that its present working capital position, combined
    with funds expected to be generated from operations and the available
    borrowing capacity through its revolving credit loan facilities, will be
    sufficient to meet its anticipated cash requirements for operating needs
    and capital expenditures for 1999.

    ITEM 3.  Quantitative and Qualitative Disclosures About Market Risk

    For information regarding the Company's exposure to certain market
    risks, see Item 7A, Quantitative and Qualitative Disclosures About
    Market Risk, in the Annual Report on Form 10-K for 1998.  There have
    been no significant changes in the Company's portfolio of financial
    instruments or market risk exposures which have occurred since year-end.






                                        -19-

                        SELAS CORPORATION OF AMERICA

                       PART I - FINANCIAL INFORMATION



    Forward-Looking and Cautionary Statements

    The Company may from time to time make written or oral forward-looking
    statements, including those contained in the foregoing Management's
    Discussion and Analysis.  In order to take advantage of the "safe
    harbor" provisions of the Private Securities Litigation Reform Act of
    1995, the Company has identified in its Annual Report on Form 10-K for
    the year ending December 31, 1998, certain important factors which could
    cause the Company's actual results, performance or achievement to differ
    materially from those that may be contained in or implied by any
    forward-looking statement made by or on behalf of the Company.  All such
    forward-looking statements are qualified by reference to the cautionary
    statements herein and in such Report on Form 10-K.




                                    -20-


                        SELAS CORPORATION OF AMERICA

                         PART II - OTHER INFORMATION

    ITEM 1.  Legal Proceedings

    See Note 5 to the Consolidated Financial Statements.


    ITEM 4.  Submission of Matters to a Vote of Security Holders

    The 1999 Annual Meeting of Shareholders of the Company was held on April
    20, 1999.

    At the 1999 Annual Meeting:

           (i)  Messrs. John H. Austin, Jr. and Ralph R. Whitney, Jr. were
    re-elected to the Board of Directors of the Company for terms expiring
    at the 2002 Annual Meeting.  In such election, 3,966,651 votes were cast
    for Mr. Austin and 3,979,020 votes were cast for Mr. Whitney.  Under
    Pennsylvania law, votes cannot be cast against a candidate.  Proxies
    filed at the 1999 Annual Meeting by the holders of 418,507 shares
    withheld authority to vote for Mr. Austin and those filed by the holders
    of 406,138 shares withheld authority to vote for Mr. Whitney.  No
    "broker nonvotes" were received at the 1999 Annual Meeting with respect
    to the election of directors;

           (ii)  4,373,239 shares were voted in favor of ratifying the
    appointment of KPMG LLP as the Company's auditors for 1999 and 6,219
    shares were voted against such proposal.  Proxies filed at the 1999
    Annual Meeting by the holders of 5,700 shares instructed the proxy
    holders to abstain from voting on such proposal.  No "broker nonvotes"
    were received at the 1999 Annual Meeting with respect to this proposal.

    ITEM 6.  Exhibits and Reports on Form 8-K

    (a)  The following Exhibit is filed with this report.

         Amendment to Amended and Restated Credit Agreement dated June 30,
    1999.

    (b)  Reports on Form 8-K - There were no reports on Form 8-K filed
         for the six months ended June 30, 1999.



                                     -21-


                        SELAS CORPORATION OF AMERICA


                                   SIGNATURE







    Pursuant to the requirements of the Securities Exchange Act of 1934, the
    registrant has duly caused this report to be signed on its behalf by the
    undersigned thereunto duly authorized.


                                           SELAS CORPORATION OF AMERICA
                                                  (Registrant)





    Date:   August 6, 1999                   /s/Francis A. Toczylowski
                                            Francis A. Toczylowski
                                            Vice President and Treasurer





                    AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT


               THIS AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT
          ("AMENDMENT" together with all amendments and modifications hereto,
          this "AGREEMENT"), dated as of June 30, 1999, is by and among
          FIRST UNION NATIONAL BANK, a national banking association, with an
          office at Broad and Walnut Streets, Philadelphia, Pennsylvania
          19109 (the "BANK"), SELAS CORPORATION OF AMERICA, a Pennsylvania
          business corporation with offices located at 2034 Limekiln Pike,
          Dresher, Pennsylvania 19025 ("SELAS" or "BORROWER"), DEUER
          MANUFACTURING, INC., an Ohio business corporation with offices
          located at 2985 Springboro West, Dayton, Ohio 45439 ("DEUER"),
          RESISTANCE TECHNOLOGY, INC., a Minnesota business corporation with
          offices located at 1260 Red Fox Road, Arden Hills, Minnesota 55112
          ("RTI"), RTI EXPORT, INC., a Barbados corporation with offices
          located at c/o 2034 Limekiln Pike, Dresher, Pennsylvania 19025
          ("RTIE") and RTI ELECTRONICS, INC., a Delaware corporation with
          offices located at 1800 Via Burton Street, Anaheim, California
          92806 ("RTI ELECTRONICS", and together with Deuer, RTI and RTIE,
          the "GUARANTORS").

                                       BACKGROUND

               .    The Bank, the Borrower and the Guarantors entered into
          that certain Amended and Restated Credit Agreement dated as of July
          31, 1998 (as so amended, the "CREDIT AGREEMENT"), pursuant to which
          the Bank agreed to make available to Selas, a revolving credit
          facility in a maximum principal amount of $4,000,000 in addition to
          the existing term loans referred to therein (collectively, the
          "EXISTING LOANS").

               .    The Existing Loans are evidenced by the following
          promissory notes of the Borrower: (a) a Term Note A dated as of
          October 20, 1993 in the original principal amount of $11,550,000,
          (b) a Term Note C dated as of February 21, 1997 in the original
          principal amount of $3,500,000, and (c) Amended and Restated
          Revolving Credit Note dated as of July 31, 1998 in the principal
          amount of $4,000,000 (collectively, the "EXISTING NOTES").

               .    The Credit Agreement, the Existing Notes, and all of the
          documents, instruments and agreements executed and delivered in
          connection therewith, together with all amendments and
          modifications thereto, shall be referred to hereinafter as the
          "LOAN DOCUMENTS."

               .    The Bank, the Borrower and the Guarantors, pursuant to
          the terms hereof, wish to amend certain of the terms of the Loan
          Documents.

               NOW, THEREFORE, incorporating the foregoing Background herein
          by reference and for other good and valuable consideration, the
          receipt and legal sufficiency of which is hereby acknowledged, and
          intending to be legally bound hereby, the parties agree as follows:

               .    DEFINED TERMS.  Terms used herein which are capitalized
          but not defined herein shall have the meanings ascribed to such
          terms in the Credit Agreement.

               .    AMENDMENTS.

                    (a)  Section 1.1 of the Credit Agreement is hereby
          amended by adding the following defined terms which shall appear in
          alphabetical order:
          "RTI Mortgage" shall mean that certain Mortgage, Security Agreement
          and Fixture Financing Statement dated June 30, 1999
          (together with all amendments and modifications thereto) covering
          the Minnesota Real Property as security for RTI's obligations to
          the Bank under this Agreement and the RTI Guaranty."

                         "Term Loan D" means the term loan made pursuant to
                    Section 2.1(c) of this Agreement.

                         "Term Note D" means the promissory note of Borrower
                    dated June 30, 1999 payable to the order of the Bank in
                    the principal amount of $900,000.00, in the form of
                    Exhibit A attached to the Amendment to this Agreement
                    dated as of June 30, 1999, to be delivered to the
                    Bank by Selas pursuant to Section 5(b) of such Amendment,
                    as such Note may be amended, modified, extended or
                    restated from time to time.

                    (b)The definition of "RTI Security Documents" which
                    appeared in the Background Section of the Credit
                    Agreement is hereby added to Section 1.1 of the Credit
                    Agreement as follows:

          "RTI Collateral Security Documents" shall mean collectively the RTI
          Collateral Security Documents described in Section C3 of the
          Background section of this Agreement, together with the RTI
          Mortgage.

                    (c)Section 1.1 of the Credit Agreement is hereby amended
                    by amending and restating the following defined terms as
                    follows:

                         "Term Loans" means Term Loan A, Term Loan C and Term
                    Loan D.

                         "Term Notes" means Term Note A, Term Note C and Term
                    Note D.

                    (d)  Section 2.1 of the Credit Agreement is hereby
          amended by adding the following new subsection (c) after
          subsection (b):

                         (c)  Term Loan D.  On the date of the Amendment to
                    this Agreement dated as of June 30, 1999, the Bank
                    will make a term loan to the Borrower in the principal
                    amount of $900,000.00 ("TERM LOAN D").  Any amounts of
                    Term Loan D that are repaid or prepaid may not be
                    reborrowed hereunder.

                    (e)  Section 2.2 of the Credit Agreement is hereby
          amended by adding new subsection 2.2.1 after Section 2.2:

                         2.2.1  Term Loan D.  The indebtedness of Borrower
                    under Term Loan D shall be evidenced by Term Note D.

                    (f)  Section 2.3 of the Credit Agreement is hereby
          amended by adding the following new subsection 2.3.1 after  Section
          2.3:

                         2.3.1  Term Loan D.  Funds advanced under Term Loan
                    D shall be used by the Borrower to fund advances to RTI
                    to refinance existing debt on the Minnesota Real
                    Property.

                    (g)  Section 2.4 of the Credit Agreement is hereby
           amended by adding the following new subsection (d) after subsection
          (c):

                         (d)  Term Loan D.

                                (i)  Scheduled Payments.  Term Loan D shall
                    be payable in fifty-nine (59) consecutive monthly
                    principal installments of $7,500.00 each, commencing
                    August 1, 1999 and continuing on the first day of each
                    month thereafter, with the final, sixtieth (60th)
                    installment of the remaining principal balance of Term
                    Loan D, together with all interest accrued thereon and
                    all fees and costs payable in connection therewith, due
                    and payable on July 1, 2004.

                                 (ii)  Optional Prepayments. The Borrower may
                    prepay Term Loan D in whole at any time or in part from
                    time to time; provided, however, that (A) any such
                    prepayment shall be applied to the outstanding principal
                    of Term Loan D in the inverse order of maturity of the
                    installments thereof, and (B) any such prepayment shall
                    be accompanied by any additional payment required to
                    compensate the Bank for any loss, cost or expense
                    incurred as a result of such prepayment as provided in
                    Section 2.14 hereof and any amount due in connection with
                    the termination of any Swap Agreement entered into for
                    purposes of hedging Term Loan D.

                                (iii)  Swap Agreements.  Any prepayment of
                    Term Loan D shall not release the obligations of the
                    Borrower under any Swap Agreement.


          (h)  Section 2.5 of the Credit Agreement is hereby amended by
          adding the following new subsection (d) after  subsection (c):

                         (d)  Term Loan D. In the absence of an Event of
                    Default or Default hereunder, the outstanding principal
                    balance of Term Loan D shall continue to bear interest at
                    the LIBOR Market Index Rate plus 125 basis points
                    (1.25%), payable by the Borrower monthly on the first day
                    of each month and upon the maturity of Term Loan D.
                    Interest will be calculated on the basis of a 360-day
                    year and the actual number of days elapsed.

          and the references in the former subsection (d) (which shall be
          redesignated as subsection (e)) to "subsections (a), (b) and (c)"
          and "Sections 2.5(a), (b) and (c)" shall be amended to read
          "subsections (a), (b), (c) and (d)" and "Sections 2.5(a), (b),
          (c)and (d)", respectively.

                    (i) Section 4 of the Credit Agreement is amended by
          adding the following as new Section 4.23 after Section 4.22:

          4.23  YEAR 2000.  The Borrower and the Guarantors each have
          reviewed the areas within their respective businesses and
          operations which could be adversely affected by, and have developed
          or are developing a program to address on a timely basis the risk
          that certain computer applications used by the Borrower and/or the
          Guarantors may be unable to recognize and perform properly
          date-sensitive functions involving dates prior to and after
          December 31, 1999 (the "YEAR 2000 PROBLEM").  The Year 2000 Problem
          is not reasonably expected to result in any material adverse effect
          on the business, properties, assets, financial condition, results
          of operations or prospects of the Borrower and/or the Guarantors,
          or the ability of the Borrower and/or the Guarantors to duly and
          punctually pay or perform its obligations hereunder and under the
          other Loan Documents.

          (j) Section 6.15 of the Credit Agreement is amended and restated as
          follows:

                    6.15  CONSOLIDATED TANGIBLE CAPITAL FUNDS.  Maintain, as
                    of each June 30 and December 31, Consolidated Tangible
                    Capital Funds for the Borrower and its Consolidated
                    Subsidiaries of not less than $23,713,339.00, increasing
                    semiannually commencing as of June 30, 1999 and on each
                    June 30 and December 31 thereafter, on a cumulative
                    basis, by an amount equal to (i) sixty percent (60%) of
                    consolidated net income (as determined in accordance with
                    GAAP) for the preceding semiannual period, with no
                    reduction for losses accrued during any such semiannual
                    period; and (ii) sixty percent (60%) of the aggregate
                    amount of contributions to capital during such semiannual
                    period. The Borrower and Guarantors acknowledge that
                    $23,713,339.00 was the Consolidated Tangible Capital
                    Funds minimum as of December 31, 1998 and that the first
                    increase will be on June 30, 1999.

               3.   ADDITIONAL COLLATERAL.  The RTI Mortgage shall be
          considered Additional Collateral for the Loans as required by
          Section 6.11(i) of the Credit Agreement.

               4.   FACILITY FEE.  On the date of execution of this
          Agreement, the Borrower shall pay to the Bank a nonrefundable
          facility fee (the "FACILITY FEE") equal to one-quarter percent
          (0.25%) of the principal amount of Term Loan D.

               5.   CONDITIONS PRECEDENT.  The effectiveness of this
          Agreement and the Bank's obligations hereunder are conditioned upon
          the satisfaction of the following conditions precedent:

                    ()   The Borrower and Guarantors shall have delivered to
          the Bank this Agreement, duly executed by Borrower and each of the
          Guarantors.

                    ()   The Borrower shall have delivered to the Bank Term
          Note D, dated as of the date hereof, duly executed by the Borrower;

                    (c)  RTI shall have delivered to the Bank the RTI
          Mortgage, dated as of the date hereof, duly executed by RTI in
          recordable form;

                    (d)  The Borrower or RTI shall have delivered to the Bank
          a title insurance policy in form and substance satisfactory to the
          Bank with respect to the Minnesota Real Property;

                    (e)  The Bank shall have received an opinion of counsel
          from Drinker Biddle & Reath, counsel for the Borrower and
          Guarantors, in form and substance satisfactory to the Bank and its
          counsel;

                    (f)  The Borrower shall have paid the Facility Fee to the
          Bank;

                    (g)  All proceedings required to be taken by the Borrower
          and Guarantors in connection with the transactions contemplated by
          this Agreement shall be satisfactory in form and substance to the
          Bank and its counsel, and the Bank shall have received all such
          counterpart originals or certified or other copies of such
           documents as the Bank may reasonably request;

                    (h)  The Borrower and Guarantors shall have executed and
          delivered to the Bank such other documents, instruments and
          agreements as the Bank may reasonably request.

               6.   REPRESENTATIONS, WARRANTIES AND COVENANTS.  In order to
          induce the Bank to enter into this Agreement, the Borrower and
          Guarantors each hereby represent, warrant and covenant to the Bank
          as follows:

                    ()   The representations and warranties contained in the
          Loan Documents are true and correct on and as of the date of this
          Agreement and, after giving effect hereto, no Event of Default
          (other than those that have been waived in writing by the Bank)
          will be in existence or will occur as a result of giving effect
          hereto.

                    ()   The execution, delivery and performance of this
          Agreement will not violate any provision of any law or regulation
          or of any writ or decree of any court or governmental
          instrumentality, of the Borrower's or of any of the Guarantors'
          certificate or articles of incorporation, by-laws or other similar
          organizational documents.

                    ()   The Borrower and each of the Guarantors have the
          power to execute, deliver and perform this Agreement and each of
          the documents, instruments and agreements to be executed and/or
          delivered in connection herewith and have taken all necessary
          action to authorize the execution, delivery and performance of this
          Agreement and each of the documents, instruments and agreements
          executed and/or delivered in connection herewith and the
          performance of the Credit Agreement as amended hereby.

                    ()   The execution, delivery and performance of this
          Agreement and each of the documents, instruments and agreements to
          be executed and/or delivered in connection herewith does not
          require the consent of any other party or the consent, license,
          approval or authorization of, or registration or declaration with,
          any governmental body, authority, bureau or agency and the Loan
          Documents, this Agreement and each of the documents, instruments
          and agreements executed and/or delivered in connection herewith
          constitute legal, valid and binding obligations of the Borrower and
          each of the Guarantors, enforceable in accordance with their
          respective terms, subject to bankruptcy, insolvency, reorganization
          and other laws of general applicability relating to or affecting
          creditors' rights and except as enforcement may be subject to
          general equitable principles.

               7.   REAFFIRMATION BY BORROWERS AND GUARANTORS.  Except as
          amended hereby, all of the terms, covenants and conditions of the
          Credit Agreement and each of the other Loan Documents (INCLUDING,
          BUT NOT LIMITED TO, PROVISIONS RELATING TO ANY AUTHORITY GRANTED TO
          THE BANK TO CONFESS JUDGMENT AGAINST THE BORROWER, GUARANTORS, OR
          ANY OF THEM, AND ANY WAIVER OF THE RIGHT TO TRIAL BY JURY) are
          ratified, reaffirmed and confirmed and shall continue in full force
          and effect as therein written and are not intended to be reenacted
          as of the above date, but rather to be effective as of the original
          date of such documents.  The Borrower and each of the Guarantors
          hereby reaffirm and ratify all of the terms, covenants, and
          conditions contained in each of their respective guarantees and
          confirms that such guarantees are binding and enforceable against
          the parties thereto as if such guarantees had been executed as of
          the date hereof. The Borrowers and each Guarantor hereby
          acknowledge and agree that the term "Obligations," as defined in
           their respective Security Agreements and Guaranty and Suretyship
          Agreements (and, as to RTI, its Patent and Trademark Security
          Agreement), includes all of the obligations of Borrower under Term
          Note D and all of their respective obligations under the Loan
          Documents as amended by this Amendment.

               8.   BINDING EFFECT.  This Agreement shall be binding upon and
          inure to the benefit of the Borrower, the Guarantors and the Bank
          and their respective heirs, executors, administrators, successors
          and assigns; provided, however, that the Borrower and/or the
          Guarantors may not assign any of their rights, nor delegate any of
          their obligations, under this Agreement without the prior written
          consent of the Bank and any purported assignment or delegation
          absent such consent shall be void.

               9.   COUNTERPARTS; EFFECTIVENESS.  This Agreement may be
          executed in any number of counterparts and by the different parties
          on separate counterparts.  Each such counterpart shall be deemed to
          be an original, but all such counterparts shall together constitute
          one and the same agreement.  This Agreement shall be deemed to have
          been executed and delivered when the Bank has received counterparts
          hereof executed by all parties listed on the signature page(s)
          hereto.

               10.  AMENDMENT AND WAIVER.  No amendment of this Agreement,
          and no waiver of any one or more of the provisions hereof shall be
          effective unless set forth in a writing and signed by the parties
          hereto.

               11.  GOVERNING LAW.  This Agreement shall be governed by and
          construed in accordance with the internal laws of the Commonwealth
          of Pennsylvania

               12.  SEVERABILITY.  Any provision of this Agreement that is
          held to be inoperative, unenforceable, voidable or invalid in any
          jurisdiction shall, as to that jurisdiction, be ineffective,
          unenforceable, void or invalid without affecting the remaining
          provisions in that or any other jurisdiction, and to this end the
          provisions of this Agreement are declared to be severable.

               13.  JUDICIAL PROCEEDINGS.  Each party to this Agreement
          agrees that any suit, action or proceeding, whether claim or
          counterclaim, brought or instituted by any party hereto or any
          successor or assign of any party, on or with respect to this
          Agreement, the documents, instruments and agreements executed in
          connection herewith, the Loan Documents or the dealings of the
          parties with respect hereto and thereto, shall be tried only by a
          court and not by a jury.  EACH PARTY HEREBY KNOWINGLY, VOLUNTARILY
          AND INTENTIONALLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH
          SUIT, ACTION OR PROCEEDING.  Further, each party waives any right
          it may have to claim or recover, in any such suit, action or
          proceeding, any special, exemplary, punitive or consequential
          damages or damages other than, or in addition to, actual damages.
          THE BORROWER AND THE GUARANTORS ACKNOWLEDGE AND AGREE THAT THIS
          SECTION IS A SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT AND
          THAT THE BANK WOULD NOT ENTER INTO THIS AGREEMENT IF THE WAIVERS
          SET FORTH IN THIS SECTION WERE NOT A PART OF THIS AGREEMENT.

               14.  EXPENSES.  The Borrower agrees to pay all reasonable
          costs and expenses of the Bank, including without limitation the
          costs incurred by the Bank for regulatory compliance audits,
          environmental investigations, reasonable fees and costs of its
          legal counsel, filing and recording costs, and other expenses
          incurred in connection with the preparation, execution and delivery
          of this Agreement and the transactions contemplated hereby.

                             SIGNATURES BEGIN ON NEXT PAGE


     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
          duly executed and delivered as of the day and year first above
          written.


                                        SELAS CORPORATION OF AMERICA
          Attest:


          By:                           By:
          Name:                              Name:
          Title:                             Title:



                                        DEUER MANUFACTURING, INC.
          Attest:


          By:                           By:
          Name:                              Name:
          Title:                             Title:


                                        RESISTANCE TECHNOLOGY, INC.
          Attest:


          By:                           By:
          Name:                              Name:
          Title:                             Title:


                                        RTI EXPORT, INC.
          Attest:


          By:                           By:
          Name:                              Name:
          Title:                             Title:






                                        RTI ELECTRONICS, INC.
          Attest:


          By:                           By:
          Name:                              Name:
          Title:                             Title:


                                        FIRST UNION NATIONAL BANK


                                        By:
                                        Name:
                                        Title:

          EXHIBIT "A"

                                      TERM NOTE D



  

5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF SELAS CORPORATION OF AMERICA FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 6-MOS DEC-31-1999 JUN-30-1999 2,449,806 0 27,597,695 1,145,432 13,072,989 46,700,223 40,284,911 21,355,049 83,358,790 32,812,643 4,482,481 0 0 5,634,698 36,243,611 83,358,790 49,444,212 49,444,212 39,960,074 39,960,074 0 17,873 495,188 (249,310) 73,214 (322,524) 0 0 0 (322,524) .06 .06