This is the second in a series of annual reports summarizing the activities and accomplishments of the Educational Resources Information Center (ERIC) program, which is funded and managed by the Office of Educational Resources and Improvement in the U.S. Department of Education. The report begins by presenting background information on ERIC's information services and products, its structure, and the components of the system. The functions and accomplishments of the 16 ERIC Clearinghouses are then described, including database building activities, outreach activities (including ERIC Partners), user services, and publications. Highlights of projects and products of the individual clearinghouses conclude this section. ERIC Processing and Reference Facility activities are also described, including the ERICSTAT Project, ERIC Digests Online, and automation of the Acquisitions Data Report. A brief description of the functions of the ERIC Document Reproduction Service (EDRS) is provided next, followed by a list of the 10 most popular ERIC documents ordered from EDRS during the year. The report concludes with descriptions of other ERIC system initiatives undertaken during the year, which include an assessment of the coverage of CIJE (Current Index to Journals in Education); several ERIC system components working with InterED--a group representing education indexes in Australia, Canada, and the United Kingdom--to develop a cluster of educational databases called ERIC International; the initiation of a competition for ACCESS ERIC, a new outreach component for the system; and highlights of the work of several ERIC Task Forces. Appended are six tables of data on the ERIC system and a directory of ERIC system components. (BBM)