Preparation of algorithms has been undertaken to extract geophysical parameters from ocean colour data, and of methodologies for their archival, management and exploitation. Compilation of a biooptical data base on the marine environment has been initiated, using historical data, to promote the use of ocean colour data in an application demonstration programme devoted to marine regions of European interest. The definition of standard format and processing software has been completed. All software development concerning the set of the value adding algorithms, together with interfaces, formats, and suitable procedures for verification and output data validation, has been completed, and functional tests been performed. All software developed has been integrated into a single system, which will provide the backbone for the data processing systems of future ocean colour sensors. The compilation of a data archive has progressed and a data catalogue and browsing system have been made available for consultation to all interested scientific groups. The main research projects concern the assessment of pigment patterns, and their variability in both space and time; the relationships between plankton pigments and nutrients; the evaluation of plankton biomass and production; surface circulation and water constituent dispersion, including sediment transport; currents; bathymetry and islands interaction; upwelling dynamics; coastal runoff and plumes; the monitoring of potential pollution sources; and fisheries applications. The standard data selections have been obtained in the following manner: for each year and for each geographical group, a selection of all the images judges of some interest was performed, on the basis of operational criteria taking into account the image geographical coverage, seasonal period, acquisition mode and satellite altitude, acceptable cloud cover, and surface features. A final plan has been drafted for a programme on ocean colour techniques for observation, processing and utilization systems. A preliminary assessment of ocean colour applications to marine environmental issues has been undertaken and 2 workshops held on the topic. Alternative methods for the use of algorithms to determine optically active material concentrations in marine water have been investigated. Joint activities for the development of European algorithm set have also been started.