-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Varh6swCZhtO/ReeYcJUM4CCfmhH6Ei59uZ7OlVpOY5iaxOnnEdWc/CiByDFV5hh
 Yc43h7+aANdijoyzJTx1wQ==

<SEC-DOCUMENT>0001179110-03-008663.txt : 20031009
<SEC-HEADER>0001179110-03-008663.hdr.sgml : 20031009
<ACCEPTANCE-DATETIME>20031009180202
ACCESSION NUMBER:		0001179110-03-008663
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030318
FILED AS OF DATE:		20031009

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			WARD DENNIS
		CENTRAL INDEX KEY:			0001264123

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07115
		FILM NUMBER:		03935779

	MAIL ADDRESS:	
		STREET 1:		220 SAULTEAUX CRESCENT
		CITY:			WINNIPEG MANITOBA CANADA
		STATE:			A2
		ZIP:			9999999999

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			K TEL INTERNATIONAL INC
		CENTRAL INDEX KEY:			0000054193
		STANDARD INDUSTRIAL CLASSIFICATION:	PHONOGRAPH RECORDS & PRERECORDED AUDIO TAPES & DISKS [3652]
		IRS NUMBER:				410946588
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			0630

	BUSINESS ADDRESS:	
		STREET 1:		2605 FERNBROOK LN N
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55447-4736
		BUSINESS PHONE:		6125596800

	MAIL ADDRESS:	
		STREET 1:		2605 FERNBROOK LANE N
		STREET 2:		15525 MEDINA ROAD
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55447
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
<periodOfReport>2003-03-18</periodOfReport>
<notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000054193</issuerCik>
        <issuerName>K TEL INTERNATIONAL INC</issuerName>
        <issuerTradingSymbol>KTEL</issuerTradingSymbol>
</issuer>
<reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001264123</rptOwnerCik>
            <rptOwnerName>WARD DENNIS</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>220 SAULTEAUX CRESCENT</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>WINNIPEG</rptOwnerCity>
            <rptOwnerState>A2</rptOwnerState>
            <rptOwnerZipCode>R3J3W3</rptOwnerZipCode>
            <rptOwnerStateDescription>MANITOBA, CANADA</rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>1</isDirector>
<isOfficer>1</isOfficer>
<isTenPercentOwner>0</isTenPercentOwner>
<isOther>0</isOther>
<officerTitle>Chief Financial Officer</officerTitle>
<otherText></otherText>
</reportingOwnerRelationship>
</reportingOwner>
<nonDerivativeTable></nonDerivativeTable>
<derivativeTable><derivativeTransaction><securityTitle><value>Stock Option (right to buy)</value>
</securityTitle>
<conversionOrExercisePrice><value>5.5125</value>
</conversionOrExercisePrice>
<transactionDate><value>2003-03-18</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>D</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
</transactionCoding>
<transactionAmounts><transactionShares><value>50000</value>
</transactionShares>
<transactionPricePerShare><footnoteId id="F1"></footnoteId>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>D</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<exerciseDate><value>2000-03-03</value>
</exerciseDate>
<expirationDate><value>2010-03-03</value>
</expirationDate>
<underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value>
</underlyingSecurityTitle>
<underlyingSecurityShares><value>50000</value>
</underlyingSecurityShares>
</underlyingSecurity>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</derivativeTransaction>
<derivativeTransaction><securityTitle><value>Stock Option (right to buy)</value>
</securityTitle>
<conversionOrExercisePrice><value>8.7313</value>
</conversionOrExercisePrice>
<transactionDate><value>2003-03-18</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>D</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
</transactionCoding>
<transactionAmounts><transactionShares><value>15000</value>
</transactionShares>
<transactionPricePerShare><footnoteId id="F1"></footnoteId>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>D</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<exerciseDate><value>1999-02-25</value>
</exerciseDate>
<expirationDate><value>2009-02-25</value>
</expirationDate>
<underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value>
</underlyingSecurityTitle>
<underlyingSecurityShares><value>15000</value>
</underlyingSecurityShares>
</underlyingSecurity>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</derivativeTransaction>
<derivativeTransaction><securityTitle><value>Stock Option (right to buy)</value>
</securityTitle>
<conversionOrExercisePrice><value>1.8438</value>
</conversionOrExercisePrice>
<transactionDate><value>2003-03-18</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>D</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
</transactionCoding>
<transactionAmounts><transactionShares><value>40000</value>
</transactionShares>
<transactionPricePerShare><footnoteId id="F1"></footnoteId>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>D</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<exerciseDate><value>2000-07-13</value>
</exerciseDate>
<expirationDate><value>2010-07-13</value>
</expirationDate>
<underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value>
</underlyingSecurityTitle>
<underlyingSecurityShares><value>40000</value>
</underlyingSecurityShares>
</underlyingSecurity>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</derivativeTransaction>
<derivativeTransaction><securityTitle><value>Stock Option (right to buy)</value>
</securityTitle>
<conversionOrExercisePrice><value>0.15</value>
</conversionOrExercisePrice>
<transactionDate><value>2003-03-18</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>D</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
</transactionCoding>
<transactionAmounts><transactionShares><value>150000</value>
</transactionShares>
<transactionPricePerShare><footnoteId id="F1"></footnoteId>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>D</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<exerciseDate><value>2001-01-02</value>
</exerciseDate>
<expirationDate><value>2011-01-02</value>
</expirationDate>
<underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value>
</underlyingSecurityTitle>
<underlyingSecurityShares><value>150000</value>
</underlyingSecurityShares>
</underlyingSecurity>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</derivativeTransaction>
</derivativeTable>
<footnotes><footnote id="F1">On March 18, 2003, K-tel International, Inc. cancelled the stock option pursuant to a stock option exchange program. A replacement stock option will be issued to the reporting person not earlier than six months and one day from the date of such cancellation.</footnote>
</footnotes>
<ownerSignature><signatureName>/s/ Dennis W. Ward</signatureName>
<signatureDate>2003-10-09</signatureDate>
</ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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