The primary objective of this U.S.-Hungary cooperative research project between Dr. Eugene Stanley of Boston University and Dr. Janos Kertesz of the Hungarian Academy of Sciences' Research Institute for Technical Physics is to examine the fundamental properties of random media. The reseachers' intend improve our understanding of the basic physical laws of transport as they are modified in media possessing macroscopic heterogentics.Efforts will focus on transport phenomena that arise from different types of disorder, including random substitutional (percolation) disorder and spatially correlated disorder. Results should provide more information on principles of universality and on probability distributions associated with such kinetic phenomena. This project in condensed matter theory fulfills the program objective of advancing scientific knowledge by enabling leading experts in the United states and Eastern Europe to combine complementary talents and pool research resources in areas of strong mutual interest and competence.