This annual report highlights many recent achievements in the Educational Resources Information Center (ERIC) system. The ERIC system encompasses the world's largest and most frequently used education database as well as a network of 16 subject-specific clearinghouses, several adjunct clearinghouses, and three supporting service components. ERIC is sponsored by the United States Department of Education, Office of Educational Research and Improvement, and is administered by the National Library of Education. For 30 years, ERIC has been an important component of the national education dissemination system, ensuring that education information reaches those who need it. The ERIC database now contains more than 920,000 records of education documents and journal articles, including abstracts of more than 6,000 published books. ERIC is accessible from virtually anywhere in the world. In 1996, ERIC distributed more than 1.4 million copies of their publications. ERIC works cooperatively with other organizations to reduce duplication of efforts and ensure cost-effective service. More than 500,000 copies of ERIC-produced publications were distributed by other organizations in 1996. Highlights, with illustrations, include an overview of the ERIC Database, user services, and ERIC publications and products; accessibility; ERIC Clearinghouses' 1996 Bestsellers; electronic communication; web site users; partnerships; an ERIC system directory; the ERIC Document Reproduction Service (EDRS) electronic ERIC resources; online ERIC document delivery; document availability; digital collections; products and services; clearinghouse and support component highlights; the ERIC budget; and the future outlook. (AEF)