Strain measurement is still performed mainly by contact sensing techniques with well known disadvantages. Existing non-contact strain measurement systems are nor yet sufficiently advanced for wide industrial application, e.g. : PC-based image processing with normal video cameras as well as laser scanners have insufficient optical resolution, Speckle interferometry is very expensive. The objective of this project is therefore to develop a medium priced strain measurement system based on advanced video technology, new optical colour sensors with high resolution and a DSP system for real-time image processing. Systems parameters shall be a measuring range of 1 -100 cm, a measuring frequency of > 0,5 kHz and a resolution of better than 1/40.000 of the measuring range. The strain measuring system is foreseen as OEM equipment for electric and hydraulic material test machines for stress, strain, fracture and shear measurement, especially for high strain and destructive testing. Compared to existing techniques, non-contact and highly automated measuring can be performed.