Just a few years ago, virtual reality was regarded as more a toy than a tool. Today, however, it is becoming the enabling technology for man-machine communications. The rapid development of graphics hardware and soft ware makes its application possible. Besides building walkthroughs and landscape fly-overs with very realistic visual effects, we can recognize the trend toward industrial applications. This is because of the emerging need for tools for rapid product development. Especially in the aeronautical and automotive industries, companies have began to investigate and develop virtual reality tools for their own needs in co-operation with research or ganizations. In co-operation with the Fraunhofer Institute for Computer Graphics (IGD), the Computer Graphics Center (ZGDV) in Darmstadt established the German working group on virtual reality in 1993 as a forum for infor mation exchange between industry and research. German researchers, system developers, and industrial users have met several times in Darm stadt at the Computer Graphics Center. In these meetings they discussed the essential issues inherent in applying virtual reality to industrial appli cations and exchanged their latest research results and experiences.