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This book constitutes, together with its compagnion LNCS 1607, the refereed proceedings of the International Work-Conference on Artificial and Natural Neural Networks, IWANN'99, held in Alicante, Spain in June 1999. The 89 revised papers presented were carefully reviewed and selected for inclusion in the book. This volume is devoted to foundational issues of neural computation and tools for neural modeling. The papers are organized in parts on neural modeling: biophysical and structural models; plasticity phenomena: maturing, learning, and memory; and artificial intelligence and cognitive neuroscience.