Dissolve yeast in warm water. Add salt. Blend in flour with fork on floured board. Knead dough until smooth. Pull off pieces of dough about size of golf balls. Roll into 14 inch ropes and twist into pretzel shapes (alphabet shapes are fun for young children.) Brush with beaten egg and water; sprinkle with salt. Bake on greased cookie sheets at 350 degrees for 15-18 minutes.