Proceedings of the Artificial Neural Networks in Engineering Conference (ANNIE 98), November 1-4, 1998, St Louis, Missouri. The papers compiled in this book focus on building smart components to engineering systems currently available. The term smart in this context indicates physical systems that can interact with their environment and adapt to changes in both space and time by their ability to manipulate that enrironment through self-awareness and perceived models of the world based on both quantitative and qualitative information. Recent technologies such as neural networks, fuzzy logic, evolutionary programming, data mining, and rough sets from the basis of Smart Engineering System Design. Eight meeting since the foundation of the conference in 1991. Includes subject and author indices.