The Alabama Public Library Service (APLS) is responsible for receiving and administering federal and state funds for the more than 200 public libraries in Alabama. This document represents the annual report for the Alabama Public Library Service for fiscal year 1998. Information is reported under the following categories: Evaluation and Research; Information Services; Networking, Development and Planning; Technical Services; Division for the Blind and Physically Handicapped; Automation Services; and Finances. State aid totals for 1998 are also presented for Alabama public libraries, as are Library Services and Technology Act (LSTA) totals. A note from the Executive Board Chair, Virginia Doyle, reports the announcement by the Gates Library Foundation (GLF) of the award of its first state partnership to the APLS which would be GLF's pilot program for future statewide funding. By the year's end, all but 5 of the state's approximately 215 public libraries either had Internet access or were waiting for installation. The Executive Board members for Districts One through Seven and Division Directors are listed at the beginning of the report. (AEF)