FILED PURSUANT TO RULE 424 (b) (3) AND(c)
                                                           FILE NUMBER 333-83595


            PROSPECTUS SUPPLEMENT TO PROSPECTUS DATED JULY 23, 1999

                                2,772,843 shares

                                DATA RACE, Inc.
                           common stock, no par value

                 ---------------------------------------------

     This prospectus supplement supplements our prospectus dated July 23, 1999
relating to the resale by certain selling shareholders of up to 2,772,843 shares
of our common stock, no par value, which may be offered and sold from time to
time by the selling shareholders.  We will receive no part of the proceeds from
any of the sales of these shares.  The "Selling Shareholders" section of the
original prospectus is hereby amended and supplemented to reflect a change in
the exercise price of certain warrants issued to certain selling shareholders.
This prospectus supplement should be read in conjunction with the original
prospectus, and this prospectus supplement is qualified by reference to the
original prospectus except to the extent that the information supersedes the
information contained in the original prospectus.

            The date of this prospectus supplement is June 6, 2001.


                                       FILED PURSUANT TO RULE 424 (b) (3) AND(c)
                                                           FILE NUMBER 333-83595


                              SELLING SHAREHOLDERS

     The "Selling Shareholders" section of the prospectus is hereby amended and
supplemented as follows:

     On page 7 of the prospectus, the subsection "Material Terms of the
Warrants", the   paragraph thereon is hereby deleted in its entirety and
replaced with the following sentence:

     "We also issued warrants to purchase 639,888 shares of our common stock
which have an exercise price of $0.12 per share"

     Except as set forth in this prospectus supplement there is no change to the
section entitled "Selling Shareholders" in the original prospectus.  We may
amend or supplement the original prospectus or the prospectus supplement from
time to time to update the disclosure set forth therein and herein.