*** 9423872 Asawa This Small Business Innovation Research (SBIR) Phase II project will develop a new intrusion alarm module using phase-sensitive detection by a multimode graded-index optical fiber communication system. In Phase I a waveguide bimodal launcher was successfully made and tested. Phase II will focus on reduction of opto-electronic noise and extending the capability of the graded fiber index system. Commercial applications are expected in highly secure, high data rate optical communication. ***