This paper describes the first phase of a project that applies multimedia and hypermedia technology to the study of modern languages. The approach differs from taditional ones in that language is not viewed from a conversational or grammatical perspective but through scenarios imitating the contexts of natural language use. In this phase, the approach is used to teach Italian through the substantive context of the Italian economy. The paper describes Interactive Tutoring Encyclopedia based on Multimedia (ITEM), a multimedia and hypermedia application implemented in Loco, under UNIX, actually existing as a prototype in ToolBook, running under MS-Windows. ITEM focuses on Italian economy since unification of the country and fosters a discussion on how political structures, traditions, and ways of thinking affect Italian economic life. Types of economic activities, state and private roles in the economy and company structures, definitions, organizations, and functions are desribed. ITEM is being designed to achieve three main goals: serve as an instructional aid for teachers of courses covering both Italian language and basic Italian economy; provide a self-directed learning environment for students; and supply professionals with a research tool. Contains six references. (AA/MSE)