This ERIC Annual Report presents both accomplishments and historical perspectives, as 2001 marks 35 years of ERIC service in delivering educational research and information to the public. This annual report describes the developments in the database of educational literature, the growing variety of ERIC Web-based products and user services, and the distinctive focus of each of the ERIC clearinghouses and system support components. ERIC is in an evolutionary stage transitioning from a system relying on paper and microfiche to a digital network. Accomplishments in 2001 have pushed this change forward. For example, publication in paper of the monthly ERIC index, Resources in Education (RIE), was ended in December 2001. Now customers search the database electronically for new accessions to the database of education literature. To further improve quality control for accessions, a new processing technology was implemented that collectively feeds data from the ERIC Clearinghouses to the ERIC Facility, where the database is made accessible through the Internet. This report describes the improvements in editorial tools and error checking along with the anticipated advantages in processing speed. Contents include: improvements in database operations; database growth in 2001; database content; database access; document delivery; ERIC products and user services; the ERIC Clearinghouses; ERIC Support Components; and the ERIC budget. (AEF)