The development of the Lincoln Terminal System (LTS) terminals is described. During the quarter, a decision was made to discontinue work on a cassette-based microfiche storage and retrieval system and to continue work on a carousel-based system. The center has continued its preparation of lessons for use with LTS. Application of LTS to the maintenance management activities of a mobile communications group is noted. Other work on the LTS hardware included: (1) development of a microfiche reader, (2) development of a microcomputer system for use with the terminals, (3) simplification of the terminal electronics, and (4) improvements in the microfiche photography capabilities of the system. (DGC)