This annual report of the Council on Library and Information Resources (CLIR) begins with a list of supporters, a letter from the chairman, and a message from the president. The major CLIR programs are then described: (1) Preservation and Access, including domestic and international activities; (2) Digital Libraries, including developing libraries of materials born digital, building core infrastructure, integrating digital materials into academic life, and organizational support for digital libraries; (3) Leadership, including the W. K. Kellogg Foundation Project, the Frye Leadership Institute, the College Libraries Committee, "The Mirage of Continuity," and the A. R. Zipf Fellowship Program; and (4) Economics of Information, including licensing discussions and the Investment in Information project. CLIR publications, advisory groups, and grants and contracts are listed. Audited CLIR financial statements with accompanying notes and a schedule of functional expenses are provided. (MES)