Nematic circular drops of the liquid crystals 5CB and MBBA suspended in their isotropic phases exhibit an electric-field-induced deformation into an elliptical shape extended normal to the applied field which is many times larger than that found in nonliquid crystal systems, a result of the low nematic-isotropic interfacial tension. Isotropic drops suspended in a nematic phase also exhibit large deformation, but of opposite sign. In both cases the deformation is proportional to the applied field squared and decreases in amplitude with increasing frequency, a result of the conductivity relaxation of the liquid crystal.