The RACE annual technical report for 1994 presents the achievements of the RACE programme at the end of 1993 and describes the planned activities for 1994. This annual report is the seventh in the series on the EU's programme for research and development in advanced communications technologies in Europe. The report describes the work of RACE II, including project extensions and new projects resulting from the additional call for proposals made in 1993. There is a description of the four concepts making up the programme: implementation, engineering, verification and collaboration. The impact of RACE results to date is also presented, providing examples of the realization of these concepts. Other sections of the report describe RACE accompanying measures and give details of the technological work undertaken. The results of RACE I are included, together with individual project summaries. Detailed information on individual RACE II projects is also provided, together with cross-referenced lists of participating organizations, project titles and acronyms, plus a glossary of terminology and a bibliography of reference material.