This is a project to develop a special-purpose computer called SNAP for inference in semantic networks and rule-based systems. Each node of the network will be held in one processor within a mesh of processors. The processors are specialized for semantic net processing; they can search in parallel for nodes with specified relations to other nodes. In this one-year project, detailed design and simulations are being performed to determine the suitability of SNAP for real-world problems and to identify system bottlenecks.